Thread: New Final Payment Policy About to Go into Effect at Princess and Cunard.

Princess, Cunard Set to Unveil Strict New Final Payment Policy
October 06, 2010 10:34 PM
Princess Cruises and Cunard Line plan to introduce a stringent new policy on Dec. 1 that will automatically cancel all bookings as soon as final payment is past due. “Additionally, there will be no grace periods or extensions allowed for receipt of final payment,” according to a note to travel agents signed by Jan Swartz, executive vice president-sales, marketing and customer service. Electronic Fund Transfers must be submitted and payments by check must be posted by the final payment date. The final payment policy will also apply to group bookings.

In addition, new booking options will be limited to only one extension. The new policies will be in effect for all voyages sailing March 1 and after.

If paying by check, Princess and Cunard urged agents to submit payment so that it arrives in their offices at least one day prior to final payment. The final payment date is calculated as 75 days prior to embarkation date (or cruise-tour start date). In the past, agents may have received extensions beyond final payment, as well as warning notices after the final payment due date. As of Dec. 1, final payment warning notices will only be sent prior to the final payment due date.

To help consumers and agents keep track of upcoming payment deadlines, Princess will now send two final payment notices prior to the final payment day to agents for both FIT and group bookings. A reminder will be sent 14 days before the final payment due date, followed by a second warning seven days before final payment date. All passengers also will receive a pre-cruise preparation email five days before their final payment is due.

“These changes are intended to remove any ambiguity regarding final payment and booking deposit due dates in light of rapid growth and utilization of online sales transactions,” Swartz wrote.

At least one travel agent was worried about the implications of the automatic cancellation, especially as cruise lines routinely grant final payment extensions of a day or two. “I cannot imagine the trouble we will be in if the agent does not make the final payment and it cancels,” the agent said. “Princess will keep the deposit, and I will probably have to rebook it at a higher fare, plus cover the deposit. Our cruise line partners are making our lives more and more difficult.”

FMI: http://www.travelpulse.com/princess-...nt-policy.html


What do you think about these expected changes?

Well I guess we will have to really trust our agent. I pay by CC that my agent has on file. I also call 2 weeks before final and say pay it, and receive an immediate call back that it is paid. I have to admit I am anal about my cruises, I book, deposit, and final pay 3 cabins every year and after a few bumps in the way, I wait for immediate confirmation it is done.

Originally Posted by timwilloughby

At least one travel agent was worried about the implications of the automatic cancellation, especially as cruise lines routinely grant final payment extensions of a day or two. “I cannot imagine the trouble we will be in if the agent does not make the final payment and it cancels,” the agent said. “Princess will keep the deposit, and I will probably have to rebook it at a higher fare, plus cover the deposit. Our cruise line partners are making our lives more and more difficult.”

It seems to me.. that as long as we clearly tell our clients of this new policy and we as agents continue to be diligent in our duties I see no problem..
as it is now, I believe most agencies have already build in a small 7 day grace period..(making final payment due a week before the cruise lines system says it's due) in order to process payments in a timely fashion, and in full compliance with the rules.
Any agent that lets these bookings elapse should in my opinion be held held responsible and the penalty of re-booking their client is the price they have to pay.

In other words it's the cost of doing business..if agents don't like it don't book them..

That is my take..

Originally Posted by sue miller

I wait for immediate confirmation it is done.

That is the way it should be..

You are right Joey Most agents do give a prior date 1-2 weeks before final. I think the issue is if the agents are receiving cash or checks for final that do not arrive in time. If the agent goes ahead and uses a company check, without receiving the money, they are screwed if not paid, and if they don't cover it and the cruise is cancelled bcause of a late payement they are still screwed because the client will be angry and spread the word and they could lose clients. It is a no win situation for TA's. That is why the agent I have has a CC that I can change anytime, and I tell the agent to pay earlier than required. Then if anything goes wrong it was the agent, not me.

Originally Posted by sue miller

I think the issue is if the agents are receiving cash or checks for final that do not arrive in time.

If in fact that is the case then with those clients that pay by cash or check an even earlier deadline needs to be set.. I put this all on the TA...
The cruise lines set the rules for their game..its our responsibility to conform..and as I said before .. if we don't like the rules we can play elsewhere..
Sue not being "critical" or anything...It kinda puts me in mind of those people who complain about a business or a cruise forum but still post or shop there.. .

LOL Joey I do understand

Originally Posted by JoeyandDavid

If in fact that is the case then with those clients that pay by cash or check an even earlier deadline needs to be set.. I put this all on the TA...
.

I agree with that cash or check should have an earlier deadline.

This new rule is nothing we have not always done anyway.

Our TA just puts it on our credit card when it is due and lets us know it's been done.

Originally Posted by JoeyandDavid

It seems to me.. that as long as we clearly tell our clients of this new policy and we as agents continue to be diligent in our duties I see no problem..
as it is now, I believe most agencies have already build in a small 7 day grace period..(making final payment due a week before the cruise lines system says it's due) in order to process payments in a timely fashion, and in full compliance with the rules.
Any agent that lets these bookings elapse should in my opinion be held held responsible and the penalty of re-booking their client is the price they have to pay.

In other words it's the cost of doing business..if agents don't like it don't book them..

That is my take..

Joey, I have at least two clients who don't regard final payment dates. I've always had to use extensions to ease them by, and this is after reminding them two weeks in advance and their reply is "Ok thanks", so that's what this agent is talking about.