Tuesday, November 11, 2008
Cruise Value Center folds: 3 Ways to Protect Your Investment
Sources tell me that long time wholesale agency Cruise Value Center went out of business yesterday after about 15 years in business, taking with it about 75 jobs. Apparently the entire office was let go midday yesterday, but the website is still up although there is no longer any answer to their phones. Cruise Value Center was one of the largest wholesalers in the country, placing about 100,000 passengers on cruises and tours annually. Many of these people may be affected. To the extent that they are may not be so clear yet.
However, if affected by this closure or any closure - the following steps can be taken to minimize any loss.
1. Check your reservation with your travel provider (Cruise Line, Tour company, etc.) directly.
Your reservation may be paid in full with the travel provider in which case, you're fine. Your trip is still safe and there will be no problems on your vacation - especially if you already hold your tickets or are able to print out your documentation from the travel provider's website. This means that your reservation is considered paid in full and in good standing. Although you may want to review your standing with your travel provider, generally you will be fine. Any additional amenities, however, that were promised with the vacation will probably not materialize.
2. Check your Credit Card statement This is probably the most important part of the equation, especially if your reservation doesn't show paid in full with your travel provider. It is entirely possible that your travel agency charged full or final payment to their account, planning to send net payment due to the travel provider at a later date. If your agency is out of business, this was most likely not done. If your travel agency charged your card within the last 60 days for full and final payment, but the travel provider has not received the payment, don't waste any time at all, but rather call your credit card and dispute the charges immediately. The sooner you can dispute the charges, the sooner you can get that money back. Time is of the essence here, because if the charge is seen as too old, you're stuck with the loss.
3. Ask the travel provider for help directly.
In some cases, your cruise line, airline, or hotel may not help you. But given the current economic climate, they may take steps to at least guarantee your reservation if its not paid in full and give you an opportunity to pay the reservation in full with them. It never hurts to speak with them and ask them for these opportunities. Ask for the customer relations department at most travel provider's reservation lines and you'll be on the right track.
Unfortunately, a lot of people might be financially affected by a travel agency closure. As the economy gets ugly, a lot of agencies that thrive on discount rates will come close to calling it curtains. These are three simple tips that might help if this situation occurs but they are by no means gospel on how to handle a situation like this.
UPDATE: 11/13 5 PM- So more information has been dribbling out of this mess as we speak. Apparently up to $4 million of travelers' money never made it to the travel and insurance providers for services purchased. So a lot of people have been affected by this problem.
If you have been affected, you should contact your cruise line. Some of them have separate hotline desks Here's a partial list.
Carnival - 1-800-327-9501 for regular reservations: ext 70041, for group reservations: ext 70030
Royal Caribbean - 1-866-562-7625 and ask for resolutions
Holland America Line - 1-800-426-0327 (no special desk has yet been set up)
Celebrity - 1-800-647-2251 and ask for resolutions
Princess - 1-800-PRINCESS and ask for Customer Relations
NCL - 1-866-234-7350 and ask for a supervisor. There is no desk yet, but they are assembling one. (NOTE: NCL reservations were booked through sister agency Cruises of Distinction, which also apparently went out of business on Monday so they may have your reservation listed through Cruises of Distinction rather than Cruise Value Center)
Prime Travel Insurance - Contact Best Price Cruises' internet department at 1-800-344-0401. They are dealing primarily with passengers who have received letters of nonpayment on their Prime Travel Insurance policies. They will however assist with affected cruises as best as they can, although they may only be able to answer general information questions at this time on existing bookings.
CORRECTION: Apparently even the cruise lines are a bit confused with this fast moving situation and the number Carnival provided me earlier was the insurance hotline number, not the number to call regarding your cruise. This has been corrected with information that Best Price Cruises (the insurance provider hotline) has provided for me. I apologize for any inconvenience.
UPDATE: 11/20
Ten days after Cruise Value Center has shuttered their doors, they have finally made a public notice of some sort on their website, http://www.cruisevalue.com There isn't a lot of information, but they do provide a mailing address should you choose to contact them. They are not taking emails or phone calls at this time apparently.
However, if affected by this closure or any closure - the following steps can be taken to minimize any loss.
1. Check your reservation with your travel provider (Cruise Line, Tour company, etc.) directly.
Your reservation may be paid in full with the travel provider in which case, you're fine. Your trip is still safe and there will be no problems on your vacation - especially if you already hold your tickets or are able to print out your documentation from the travel provider's website. This means that your reservation is considered paid in full and in good standing. Although you may want to review your standing with your travel provider, generally you will be fine. Any additional amenities, however, that were promised with the vacation will probably not materialize.
2. Check your Credit Card statement This is probably the most important part of the equation, especially if your reservation doesn't show paid in full with your travel provider. It is entirely possible that your travel agency charged full or final payment to their account, planning to send net payment due to the travel provider at a later date. If your agency is out of business, this was most likely not done. If your travel agency charged your card within the last 60 days for full and final payment, but the travel provider has not received the payment, don't waste any time at all, but rather call your credit card and dispute the charges immediately. The sooner you can dispute the charges, the sooner you can get that money back. Time is of the essence here, because if the charge is seen as too old, you're stuck with the loss.
3. Ask the travel provider for help directly.
In some cases, your cruise line, airline, or hotel may not help you. But given the current economic climate, they may take steps to at least guarantee your reservation if its not paid in full and give you an opportunity to pay the reservation in full with them. It never hurts to speak with them and ask them for these opportunities. Ask for the customer relations department at most travel provider's reservation lines and you'll be on the right track.
Unfortunately, a lot of people might be financially affected by a travel agency closure. As the economy gets ugly, a lot of agencies that thrive on discount rates will come close to calling it curtains. These are three simple tips that might help if this situation occurs but they are by no means gospel on how to handle a situation like this.
UPDATE: 11/13 5 PM- So more information has been dribbling out of this mess as we speak. Apparently up to $4 million of travelers' money never made it to the travel and insurance providers for services purchased. So a lot of people have been affected by this problem.
If you have been affected, you should contact your cruise line. Some of them have separate hotline desks Here's a partial list.
Carnival - 1-800-327-9501 for regular reservations: ext 70041, for group reservations: ext 70030
Royal Caribbean - 1-866-562-7625 and ask for resolutions
Holland America Line - 1-800-426-0327 (no special desk has yet been set up)
Celebrity - 1-800-647-2251 and ask for resolutions
Princess - 1-800-PRINCESS and ask for Customer Relations
NCL - 1-866-234-7350 and ask for a supervisor. There is no desk yet, but they are assembling one. (NOTE: NCL reservations were booked through sister agency Cruises of Distinction, which also apparently went out of business on Monday so they may have your reservation listed through Cruises of Distinction rather than Cruise Value Center)
Prime Travel Insurance - Contact Best Price Cruises' internet department at 1-800-344-0401. They are dealing primarily with passengers who have received letters of nonpayment on their Prime Travel Insurance policies. They will however assist with affected cruises as best as they can, although they may only be able to answer general information questions at this time on existing bookings.
CORRECTION: Apparently even the cruise lines are a bit confused with this fast moving situation and the number Carnival provided me earlier was the insurance hotline number, not the number to call regarding your cruise. This has been corrected with information that Best Price Cruises (the insurance provider hotline) has provided for me. I apologize for any inconvenience.
UPDATE: 11/20
Ten days after Cruise Value Center has shuttered their doors, they have finally made a public notice of some sort on their website, http://www.cruisevalue.com There isn't a lot of information, but they do provide a mailing address should you choose to contact them. They are not taking emails or phone calls at this time apparently.
Labels: bankruptcy, cruises, help, tips, travel
Roger, 10:05 AM
8 Comments:
Sandytoes, at November 11, 2008 8:43 PM
Used CVC for the past 15 years with no problems. Presently have reservations for May 2009 with Princess. Present deposit was $200 deposit from future cruise and $110 from fuel surcharge refund for a total of $310.. Final pymt. due in March 2009.. Will have to check with Princess as to where I stand with my reservation.
If your reservation had just a deposit on the reservation, and final payment wasn't due yet you are probably alright. Contact your travel provider - they may have a desk set up to deal with this issue. This was no small agency. Literally thousands of reservations are likely affected.
4Cruises is a separate referral service, and is not something that Cruise Value Center ever owned to my knowledge. They may have, at one time, been a client of the service however.
4Cruises is a separate referral service, and is not something that Cruise Value Center ever owned to my knowledge. They may have, at one time, been a client of the service however.
Booked Princess cruise with CVC for Jan 09, made final $5800 pmnt in Sept. Called Princess Monday 11/17 to confirm - payment never received and have til Ftiday 11/21 to pay balance or lose reservation, including $200 deposit which were previous credits with Princess. They made no effort to assist - will never do business with Princess again !!!
Have a cruise booked through CVC with Princess for 12/10/08.
I contacted Princess and fortunately I am unaffected.
I contacted Princess and fortunately I am unaffected.
As with many others, CVC took our final payment on 18th October (although not due until 31st October) from Amexco card, but never handed it over to Carnival for a cruise out of Miami end December. This was for two suites and a stateroom with balcony (10 persons in total). Contacted VACATIONES TO GO travel agency who took over the booking, and within an hour had sorted out the mess. We still have to pay them again for the final payment, but are confident our payment to CVC will be credited by Amexco.
The travel providers share some of the responsibility and should be held accountable. Generally, when an agent who works for a principal has received money that was meant for the principal it's as if the principal has received the money. And any shortage should be between the principal and the agent.
I know that since the beginning of time the cruise lines and other travel providers have tried to convince the public that the "agent" is really an agent for the traveler and therefore the traveler is responsible however, that argument is false. Just follow the money. Who pays the agent their commission. Does it come from the cruise line? Of course it does. Then cruise line should be held responsible for the action of their agent.
I know that since the beginning of time the cruise lines and other travel providers have tried to convince the public that the "agent" is really an agent for the traveler and therefore the traveler is responsible however, that argument is false. Just follow the money. Who pays the agent their commission. Does it come from the cruise line? Of course it does. Then cruise line should be held responsible for the action of their agent.
I paid my deposit to Cruise Value Center in September (Silver Wind cruise from Cape Town to Mumbai) and my final payment in early October for acruise starting in mid January 2009. The deposit reached Silversea but the balance (90% did not, although CVC acknowledged revceived it more than 4 weeks before they closed their doors. We have lost a huge amount and there must have been some very "crooked" behaviour at CVC to create such a terrible situation.
Customer service was extremely rude, dishonest, and unreliable.
CVC also goes under the names of mycruisevalue,4cruises, Tourvalue.