If a party member drops after PIF.....

[squirk]

But DCL would have to give you $500 worth of stuff, so it IS costing them. I would be really surprised if they offered any credit after PIF.

They’d ostensibly still be “giving” $500 worth of stuff if the fourth person had sailed - e.g., food, ship services, housekeeping/etc.

So the interesting question is (setting aside tips and incremental spending), which allocation has more profit margin for DCL - $500 of OBC or $500 of cruise fare?

 

[LeiaOfAlderaan]

I don’t know why Disney would have any incentive to not impose the cancel penalty. The two options for them are get an easy $500 in their pocket or give away $500 of goods and services in the form of OBC. I’m not seeing your logic here at all but maybe I’m missing something.

 

[squirk]

I don’t know why Disney would have any incentive to not impose the cancel penalty. The two options for them are get an easy $500 in their pocket or give away $500 of goods and services in the form of OBC. I’m not seeing your logic here at all but maybe I’m missing something.

Well, I think it’s already been established that the cancellation penalty would apply per passenger, even if the reservation remained intact, so the discussion is all academic at this point. Yes, DCL will keep some or all of the $500 and that’s that.

I’m just wondering now IF DCL was willing to swap out the fare for OBC, would it make sense for them financially?

To simplify:

DCL has $500 in its pocket either way, whether Dad sails or not.

If Dad sails: $500 - $250 (ship resources he uses up) = $250 net profit.

If Dad doesn’t sail and the $500 is converted to OBC: $500 - $250 (overhead for the merchandise/services purchased) = $250 net profit.

I made those net profit numbers equal for the sake of example, but I am certain they’re not equal in practice.

And that’s my question - again, setting aside any incremental spending Dad might have engaged in, which of the above is more profitable for DCL?

 

[FigmentSpark]

You've forgotten that if they allow it, then it sets a precedent. They may not want that "good will" obligation to become a practice that will in future cost them money.

 

[squirk]

You've forgotten that if they allow it, then it sets a precedent. They may not want that "good will" obligation to become a practice that will in future cost them money.

Understood. But that's the crux of it - does converting to OBC cost them money in the end? Again, in my hypo, DCL is not giving the family back the entire $500. DCL is giving them $250 of "at-cost" merch, and pockets the rest as profit. For example, that $60 sweatshirt in Mickey's Mainsail probably costs DCL far less than half that amount, even after factoring in labor and other storefront costs.

Ultimately, I think the answer is that you can't, in practice, parse out the incremental revenue that Dad would add if he sails - port adventures, drinks, spa treatments, tips, etc. You have to factor in that spending, in which case, Dad's $500 as a fare (meaning Dad is on the ship to spend extra) is far more profitable than $500 as OBC (where Dad is not on the ship to spend extra)

 

[FigmentSpark]

I think your situation is simply the cost of them keeping the money vs cost of giving it back. (don't forget the accounting to make it happen). But you're cancelling, so no one is sailing. No one is buying or eating and drinking or tipping. So you can't count that as a benefit to DCL. It won't happen either way. What you're saying is why don't they give it back in a means that will get it spent. But as a PP said, that's essentially giving the stateroom free stuff in the amount of the cancelled fare. And if you're close to the sail date, then they've probably purchased food, et al, expecting you to be there and consuming. It's a small thing, but I bet they buy x amount per person. They may have also declined another room's sailing due to a maxed out lifeboat which will now have an extra spot. They may even assign wait staff and room attendants according to the number of people in a room to even out tipping.

So think of the (hidden to you) operating costs that go with each passenger. What's the upside for DCL to give the remaining passengers that fare in the form of OBC?

 

[squirk]

And if you're close to the sail date, then they've probably purchased food, et al, expecting you to be there and consuming. It's a small thing, but I bet they buy x amount per person. They may have also declined another room's sailing due to a maxed out lifeboat which will now have an extra spot. They may even assign wait staff and room attendants according to the number of people in a room to even out tipping.

I think that's an excellent point that I had not considered - what costs did DCL incur expecting that Dad would be sailing? How much extra food? How much additional staff? How much extra merchandise? And how much money might be spent trying to attract another passenger at the last minute to fill that gap?

Granted, for one guy, the amount would be miniscule compared to the entire operating budget of the sailing. But in the aggregate - i.e., if 100 Dads or 500 Dads were dropping out after PIF - it could be real money.

 

[PrincessShmoo]

does converting to OBC cost them money in the end?

"Does" it? Maybe. I know it's somewhat rare, but there are people who have OBC left over. And, depending on the type of OBC, it's refunded. Although, I suppose, if DCL did convert a cancelled person's cruise fare into OBC, they could make it non-refundable.

As this scenario will most likely never happen, I doubt that anyone has a definitive answer.

 

[squirk]

I had too much time on my hands today.

 

[auntlynne]

I’ve heard that it is important to sail with a full ship, which is why you will see discounted rates close to a sailing date (more so on other lines - or maybe even why DCL has FL rates). The “soft” sales of photos, liquor, excursions are their real profit (like McD’s in the old days - fries and drinks were profit; burgers were a wash).

And the wait staff and room attendants are pretty much dependent on tips for their income; cruise line pay is nearly non-existent.

As for food, they are bringing it onboard whether or not you actually get on the ship. I imagine it gets tossed in the end and that the next sailing’s food order is in the computer long before you don’t show.

It would be fascinating to know how much it actually costs for an individual to sail. (And yet 3rd / 4th passengers cost less - but they use same amount of resources).

... OP - have you decided to go with the family while your wife attends the wedding?

 

[squirk]

... OP - have you decided to go with the family while your wife attends the wedding?

Oh, yes. We're going.

We live in NOLA, and at the time we made the decision, we didn't know if DCL was going to be back here in 2021. So we didn't want to let (what might have been) our one shot at a NOLA sailing get away.

 

[varkgirl]

I have heard one thing to do is show up for the cruise and have the person not sailing be classified as a "no show". Evidently that has some financial advantages to the people sailing but I would feel kind of strange standing at the port and telling them my husband isn't going to show up to sail. Maybe someone will know more about this situation and can respond just for our education.

This is what I want to know... If there are 2 people in a room and one is a no-show, does the remaining person have to pay additional to make double occupancy or do they just get to board as-is?

 

[lanejudy]

This is what I want to know... If there are 2 people in a room and one is a no-show, does the remaining person have to pay additional to make double occupancy or do they just get to board as-is?

They board as-is because the funds have already been paid by the guest who didn't show. Those boarding do not actually pay more, but the person who doesn't show will not get refund other than port taxes + fees.

 

[wombat_5606]

This is what I want to know... If there are 2 people in a room and one is a no-show, does the remaining person have to pay additional to make double occupancy or do they just get to board as-is?

Having never experienced that, I just don't know. I will tell you that when I purchase travel insurance, I have coverage for that very scenario.

ETA: Thanks @lanejudy for your reply

 

[lanejudy]

I will tell you that when I purchase travel insurance, I have coverage for that very scenario.

Correct, insurance may cover the no-show or late cancellation. But as far as what gets paid to DCL, nothing new paid for a no-show, just minimal refund of port-taxes and fees.

 

[Ralph&Pam]

This is what I want to know... If there are 2 people in a room and one is a no-show, does the remaining person have to pay additional to make double occupancy or do they just get to board as-is?

For DCL, the single-occupancy supplement is already 100%, so the only difference in cost between a single or a double is the cost of taxes and port fees for one person. You may be thinking of cases where a single-occupancy fare has a smaller supplement, as might be the case on some other cruise lines, but not for DCL.

 

[Laundress]

Our experience was 5 passengers in the cabin. (three adults two children ) 2 month before sailing One adult was not able to go. We did call DCL and canceled that person. We asked about onboard credit and were told no.

 

[MomOTwins]

As a lawyer, I always go back to the contract. "Changes to the vacation commencement date or changes of Guest names will be considered cancellations."

In fairness to DCL, when a ship is sailing close to full, a single guest in a room can make a difference financially because if that person fills up a muster station, or puts the ship at the limit of children in a given club age group, they might miss out on selling another stateroom. I've seen at least one cruise where if I search for three adults, rooms are available, but two adults and one kid, it shows up as "sold out", so the kids club limits are a real thing. So I understand why they do it: they don't want people adding guests "just in case" a friend/relative can join them.