Wednesday, October 21, 2009

Does price protection mean anything for travellers booking cruise holiday packages?

It is a usual process that travellers booking cruise holiday packages will wait for the prices to drop. But, this is often considered as a wrong strategy. For, the waiting for the price to drop often costs you money when the ship sells out or the price increases. So, it is always better to book your cruise holiday packages and wait for the prices to drop. You will gain if the price drops, and the additional cost you are paying will be adjusted for other on board services. In the incidence of price hype, you will also gain by not paying the additional amount.


Royal Caribbean introduced price protection under the name of “Lowest Price Guarantee" program. Accordingly, if the price dropped on their cruise before the ship sailed, the cruise fare will not be lowered nor partial refund will be given. The additional amounts will be adjusted as onboard credit. In the state of things, the travel agents were to lose, as "Commissions will not be price protected." To claim refund the cruise travellers must notify the cruise line company at least 72 hours prior to the ship sailing.


Before Royal Caribbean made its stance clear, the travel agents supported onboard credits. Both, the traveller booking cruises and travel agents got the benefit. The customer could book a cruise and save money, and the commission received by the travel agent stayed the same. But Royal Caribbean's price protection will for sure effect the travel agents' with lower margins to take.

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