This article has been updated since originally published.
Questions are being raised in international media about whether cruise lines are beginning to adopt overbooking strategies similar to those used by airlines – a practice currently under investigation in South Africa.
Earlier this month, Royal Caribbean Blog reported that Royal Caribbean had sent notices to some passengers asking if they would consider changing their plans for the June 7 Adventure of the Seas sailing from Port Canaveral. Passengers could change to a different 2025 sailing, and get a 50% refund of the cruise fare and onboard credit or cancel and get a 100% refund and 100% cruise credit.
It was not explicitly stated that the cruise was overbooked, however similar notices over the past year have indicated that some sailings may have been oversold.
However, Thaybz Khan, Head of Commercial at Cruises International said that while cruise lines do factor in a percentage of cancellations, she has never experienced a situation where customers were turned away because of a ship being oversold. “This strategy is supported by yield management and always carefully controlled.”
She says overbooking is not a strategy applied to ensure business. Instead, this happens as a result of a sailing being very popular or group space allocation. “Strategies such as group space recalls for those who are holding allocation without names is implemented early in the process, to help with the oversale long before departure,” said Khan.
Not common practice
Ross Volk, MD of MSC Cruises South Africa, and Gaynor Neill, CEO of Cruise Vacations, both said that overbooking was not a common practice.
“Unlike airlines, most of our travellers book their cruise holidays in advance, there is a longer lead time and therefore much more time to plan. We monitor this closely and can pick up the trends in bookings and strategise accordingly,” said Volk.
Cruise cancellations are not as common as airline cancellations, but to safeguard against last-minute cancellations, Neill explained that a waitlist option was available. “Once all cabins and categories are sold, a guest can pay a refundable waitlist deposit,” said Neill. This means that guests can be placed on a waiting list in case a cabin becomes available later due to cancellations or inventory changes.
Neill added that some room categories were also placed on a ‘Guarantee Basis’. “Guests will be accommodated in their booked category or upgraded if it is not available – at no additional charge. Once all categories are sold out the voyage is put on waitlist.”
