The trade has raised concerns over Royal Caribbean’s decision to introduce refundable deposits to the UK market, fearing it could lead to a higher cancellation rate and confusion among customers.
However, the line insisted the new option catered for guests looking for flexibility around their holiday purchases and said standard fares remained available to allow customers and agents the ability to chooose the best option.
Agents and customers booking direct have had the choice since Wednesday (December 11) between a standard deposit or a new refundable option 20% higher in price.
Guests opting to pay the additional commissionable fee to ensure their desposit is refundable can cancel their booking and receive a full refund up until the final payment is due.
The option can be chosen for cruise-only and fly-cruise bookings, but the line warned “flight and hotel components may be non-refundable”.
It added it had launched this type of deposit, which is available only on individual bookings, in the UK having successfully rolled it out in other destinations, including the US, to give passengers “more choice and flexibility”.
Travel Village Group chief executive Phil Nuttall said the move would “100% lead to a higher cancellation rate” and would create additional worry for agents.
“It creates this whole uncertainty because there’s no commitment there,” he said. “As an agent you’ll be on tenterhooks, worried sick about whether your customer might cancel up until the full payment is due.”
Nuttall urged agents not to be deterred from booking Royal’s “fantastic product”, but said they should continue to promote non-refundable deposits.
World Travel Holdings UK managing director Alison Earnshaw said: “While I appreciate the need to provide flexibility for customers, this refundable deposit will likely create customer confusion and additional work for agents.
“It will also result in very late stock being returned, which doesn’t support the cruise industry’s desire to bring forward the booking curve and reduce late availability and pricing.”
Earnshaw added: “I understand this policy is widely adopted in the US, but the model here is very different, with a far higher proportion of flight-inclusive bookings, so this will cause customer confusion as flights will not always be refundable.”
Mel Whites, director of Whites Travel, said: “I can understand this working in the US market to some degree. [But] the client is so price-focused in the UK retail market, so paying more for the flexibility may not work.”
Clare Dudley, managing director of Ponders Travel, said: “I am always nervous of anything that does not involve total commitment, because it is too easy for people to book with no intention of taking the actual holiday.”
Aaron Langford, senior sales director for the UK and Ireland at Royal Caribbean, said: “When you look at what guests find important when making a big purchase, like a holiday, flexibility is high on the list.
“So, to now give that flexibility to our guests is something we are really excited about.
“Customers can now pay a small fee, which is fully commissionable, to make their booking deposit refundable up until final payment.
“We continue to offer standard, non-refundable fares so our guests and travel partners can choose the most suitable option.”
Royal Caribbean’s standard deposits range from £75 to £430. The line said the average deposit in the UK is £150 per person.