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Author Topic: Carnival Bumps Hundreds of Baltimore Passengers
joe at travelpage
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posted 08-04-2004 01:36 PM      Profile for joe at travelpage   Author's Homepage   Email joe at travelpage   Send New Private Message      Edit/Delete Post  Reply With Quote 
From the Baltimore Sun

quote:

Cruise line customers left high and dry

Overbooking by Carnival forces cancellations; 'Ruined these people's vacation'

By Paul Adams
Sun Staff

August 4, 2004

After months of rehabilitation from injuries suffered in a racing accident at Pimlico Race Course in May, veteran jockey Rick Wilson and his family were looking forward to a seven-day cruise on Carnival Cruise Lines' recently minted ship, Miracle.

It was to be the family's big vacation after an awful spring and summer spent in hospitals.

But yesterday, the family members found out they are among a large number of would-be vacationers who have seen their plans disrupted in recent weeks because of overbooking on Carnival cruises from Baltimore.

Travel agents said they fear the cancellations are souring passengers and endangering Baltimore's booming cruise business.

Though they couldn't disclose exact figures, Carnival officials said yesterday that hundreds of passengers who had hoped to sail on one of the line's eight cruises from Baltimore this summer have been "bumped" because of overbooking.

"After what we've been through this year, we were really, really looking forward to it," said Jean Wilson, Rick's wife. The family was part of a group of 57 people -- about half of them horse racing enthusiasts -- bumped from the cruise.

"This was going to be our good vacation at a time when it's well needed," Wilson said.

Several Baltimore-area travel agents said their customers have been among those disappointed by Carnival as the city's years-long efforts to attract more cruise ships is finally bearing fruit.

Port of Baltimore officials said they anticipate handling 240,000 cruise passengers this year, more than double the 115,813 last year and far more than the 5,103 it saw in 1999, before cruise lines started to give Baltimore a second look. Several lines began sailing directly from Baltimore after the Sept. 11, 2001, terrorist attacks to attract passengers who were reluctant to fly.

Committed customers

The problem, a Carnival spokeswoman said, is that the cruise line hasn't been getting nearly as many cancellations in Baltimore as it does at its other ports.

Cruise patrons in the mid-Atlantic, it turns out, are more committed than the average passenger. As a result, the complex computer algorithms that Carnival employs to figure out how many passengers are likely to back out failed to anticipate the region's pent-up passion for cruising. Similar systems are used by airlines to predict passenger behavior.

"We have a formula, if you will, that is pretty reliable in terms of estimating the amount of attrition that we're going to have," said Jennifer de la Cruz, a spokeswoman for Carnival. "But we didn't have nearly the attrition [in Baltimore] that we normally see."

The problem is remarkable given that Carnival, which transports nearly 2 million passengers a year, is a new entrant in the Baltimore market. Often, cruise lines find it takes a few years before vacationers warm up to a new service, which leads to light bookings in the beginning. Not so in Baltimore.

"They didn't realize the strength of the Baltimore market, I guess," said Patty Sroka, a travel agent who booked the Wilsons and dozens of others on the Sept. 26 cruise out of Baltimore. She said several groups, including hers, were bumped from the sailing.

"Since 9/11, people don't want to fly, and if there's something local and they can avoid flying, they would prefer to do that," she said.

Sroka, who operates a small travel agency out of her Woodbine home, booked the cruises almost a year ago on behalf of her uncle, John Divver, who organizes a large trip every few years for a growing number of family members and friends. Divver, owner of B&B Auto Sales in Gaithersburg, raises horses on the side and is well connected in the racing world. Many group members, who have vacationed together for years, are horse trainers, jockeys and owners.

"It's ludicrous," Divver said. "It basically ruined these people's vacation."

The situation poses particular problems for the horse trainers, who must arrange months in advance for others to care for their animals while they are away on vacation.

"For trainers to be gone a week is big time," Divver said.

Carnival offered to send the group on an alternative cruise out of New York with more luxurious accommodations and some spending money thrown in.

But the new dates are unworkable, and the group was set on cruising out of Baltimore. The cruise line will refund the group's money and offer incentives on future cruises, but it's little consolation for the disappointed members.

"I think Carnival is out of our vocabulary now," said Shirleyan Benham, a retired Salisbury nursing instructor who, along with her husband, planned to join the group. "People have lost a lot of money and time."

Agents frustrated

Royal Caribbean, Celebrity, Norwegian Cruise Lines and Holland America also sail out of Baltimore.

A spokeswoman for Royal Caribbean, which began extensive service in Baltimore this year, said the cruise line has not had to involuntarily bump passengers from its voyages.

But travel agents, who report strong interest in Baltimore cruises, are frustrated and worried that the problem could spread.

"We're drawing folks from as far away as Indiana," said Barbara Cooper, a travel agent with Bennett World Travel in Ellicott City, which books cruises. "It's disconcerting because you don't want to not sell the local cruises, but then again you're afraid to book anything because you're afraid they're going to get bumped."

That's what happened to Cooper's colleague, Florine Smith, who had booked a group of 27 for a Carnival cruise that departed on Mother's Day. Most had paid in full and booked almost a year in advance, but Carnival told them they would have to reschedule for a different date. Only nine members did so. The rest got a refund.

"Many of them became disillusioned," Smith said.

De la Cruz stressed that it is rare for passengers to get bumped. But when it happens, the cruise line tries to inform passengers quickly in hope of finding them alternative accommodations.

"It doesn't necessarily make people feel better ... but if we are in an oversold situation, it's going to be noted a few months prior [to departure]," she said.

Copyright © 2004, The Baltimore Sun



Posts: 29976 | From: Great Falls, Virginia | Registered: A Long Time Ago!  |  IP: Logged
lasuvidaboy
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posted 08-04-2004 02:11 PM      Profile for lasuvidaboy     Send New Private Message      Edit/Delete Post  Reply With Quote 
How do you overbook a ship? If the passenger's ticket must be paid by a certain date (unless they are 'stand-by' passengers) prior to sailing, I don't get it. The difference say with airlines is that there is a certain 'no-show' factor and false/double bookings by some travel agents. If reservations were only confirmed with a 100% non refundable payment and a cancellation penalty, overbookings would almost disapear. Can you imagine if the cruise and airlines treated their customers as say theatre patrons (you miss the show, you do not get a refund-you have to buy a new ticket) people would not miss their trip! Of course if there are weather/airline delays, accidents or sickness, passengers should of course be given a break.
Posts: 7654 | From: Hollywood Hills/L.A. | Registered: Mar 2004  |  IP: Logged
eroller
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posted 08-04-2004 02:45 PM      Profile for eroller     Send New Private Message      Edit/Delete Post  Reply With Quote 
Overbooking cabins on major cruise lines is a common practice just like overbooking seats on an airline. The difference is that airlines use a formula to determine the no-show factor at departure, based on past history of the date and flight. Major cruise lines use a yield management formula to predict "fall-out" of a sailing, both before and after the penalty period begins. A cruise line will oversell a sailing during the deposit phase, based on historical data of how many passengers will likely cancel prior to the final payment period. If too many passengers actually make final payment and firm up the bookings, then the sailing could find itself in an over-sell situation as is the case with CARNIVAL MIRACLE. There is also a certain amount of fall-out after the penalty period begins, as people still cancel within 60-90 days of sailing. The formula also takes this attrition into account as well. If the yield management team has done their job well, the sailing will go out with all berths full, and no involuntary buy-offs. Carnival actually has an excellent history with yield management. It's pretty rare they have involuntary buy-offs.

Princess Cruises is actually the most notorious for overselling. I actually think it's part of their yield management strategy. Oversell some very popular sailings beyond the attrition factor, and then petition volunteer passengers to move to a less desirable sailing with a token on-board credit (which gets spent onboard anyway). Now you have two sailings going out full. It's my understanding Princess has a team in place where their sole responsibility is calling travel agents for buy-off offers.

I worked in Inventory for Princess Cruises years ago. Once in a great while we would have a major oversell situation which would require voluntary and even involuntary buy-offs. I was one of the people that would call travel agents with the offer. The offer sweetened as the sailing closed in. As I stated, this was quite rare and really got everyone worked up. Now I understand it's an everyday occurrence at Princess Cruises.

Ernie


Posts: 7046 | From: Miami, Florida USA | Registered: Oct 2000  |  IP: Logged
lasuvidaboy
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posted 08-04-2004 02:59 PM      Profile for lasuvidaboy     Send New Private Message      Edit/Delete Post  Reply With Quote 
Thanks for the good info Ernie!
Posts: 7654 | From: Hollywood Hills/L.A. | Registered: Mar 2004  |  IP: Logged
PamM
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posted 08-04-2004 03:13 PM      Profile for PamM   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
I see why they oversell & may end up with having to buy off pax.. but what I don't see is why they seem from the report above to have 'bumped' the groups.

It is a lot easier and far more likely for a lone cabin's occupants to transfer to another date, but hardly unlikely, impossible even, for a group of 50+ people to be able all regroup on another date. Seems they want to take the easy route and clear 25 cabins all at one go, rather than make 25 separate pleas.

Pam


Posts: 12176 | From: Cambridge, UK | Registered: Jun 2001  |  IP: Logged
eroller
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posted 08-04-2004 03:21 PM      Profile for eroller     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by PamM:
I see why they oversell & may end up with having to buy off pax.. but what I don't see is why they seem from the report above to have 'bumped' the groups.



When time is of the essence and not enough individual passengers have volunteered to move sailings, then the easiest alternative is to move an entire group involuntarily. It takes one phone call and the cruise line gets a huge chuck of cabins back in availability in a very short time.

Calling passengers for buy-offs is VERY time consuming. First the cruise line has to call the travel agent with the offer. Then the travel agent has to call the passenger. Then they discuss it. Eventually the travel agent calls back the cruise line and relays the passengers concerns, and maybe if they said yes or no. Then the process starts all over again. This process can take days and days, and even longer. Eventually it gets to a point where the cruise line must take more immediate action to release the space, or they get too close to the sailing and it becomes impossible to contact the passengers.

No doubt Carnival has tried the "individual route" and no one is budging. Now they are taking the quickest and easiest steps to free up the space. No matter how they do it, people are going to be pissed off.

Ernie


Posts: 7046 | From: Miami, Florida USA | Registered: Oct 2000  |  IP: Logged
markymark
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posted 08-09-2004 09:44 AM      Profile for markymark        Edit/Delete Post  Reply With Quote 
At least with the airlines, they can usually send you on your way within a couple of hours on a later flight.
Posts: 6 | From: planet earth | Registered: May 2004  |  IP: Logged
Namlit
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Member # 1940

posted 08-09-2004 12:56 PM      Profile for Namlit     Send New Private Message      Edit/Delete Post  Reply With Quote 
would booking a specific cabin, as opposed to booking a "cabin guarantee", offer any protection from being involuntarily bumped?
Posts: 309 | From: Greene County, Indiana, USA | Registered: Apr 2001  |  IP: Logged
eroller
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posted 08-09-2004 02:02 PM      Profile for eroller     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Namlit:
would booking a specific cabin, as opposed to booking a "cabin guarantee", offer any protection from being involuntarily bumped?

That technically shouldn't make any difference. If they get down to involuntarily removing individual bookings, it should go by booking date, regardless of whether a cabin has been assigned or not. Of course when they get desperate who knows? I have a feeling unwritten rules get thrown out the door. Unlike airlines which have specific rules and obligations when involuntarily bumping passengers, cruise lines pretty much do whatever they want.

Ernie


Posts: 7046 | From: Miami, Florida USA | Registered: Oct 2000  |  IP: Logged
saltydog
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posted 08-09-2004 06:09 PM      Profile for saltydog   Email saltydog   Send New Private Message      Edit/Delete Post  Reply With Quote 
I am a travel agent in the Baltimore area and as the Sun reported, Carnival used the same formula for this area as they do for Florida. Florida with many seniors seems to have a large number of cancellations due to illness or even death. The Baltimore market is hungry for cruises and every line, RCCL, Carnival and Celebrity have been sailing with full ships in the last 2 years. The people who book in this area do not cancel and thereby cause the formula to backfire on them. I, fortunately, did not have anyone booked on the Sep sailing of the Miracle. It is tough to explain to a client who has been waiting for months to travel that there is no room. The compensation the line offers is chump change for the amount of money spent and disappointment felt by the clients.
Posts: 32 | From: Kent Island, Maryland on the beautiful Chesapeake Bay | Registered: Jun 2003  |  IP: Logged
Green
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posted 08-09-2004 09:52 PM      Profile for Green     Send New Private Message      Edit/Delete Post  Reply With Quote 
In the travel industry for many years, I never had to contend with passengers being bumped. Working with an Agency that organized many 'group' cruises, perhaps I was lucky.
For a 'group' we had X number of cabins throughout the ship - travellers had the choice of any cabin in any category. They paid the required deposit and were 'confirmed'. The reservation could be cancelled, without penalty, at any time before the balance payment was due, i.e. in the hands of the cruise Line a minimum of 75 days prior to departure. The balance paid, passengers were (in my day) assured of travelling. If the ship didn’t sail as planned, all monies were refunded. A passenger cancelling ‘for cause’ received a refund as per the Lines schedule – cancellation outwith the schedule was a matter for the pax insurance company. I did have a client who slipped, getting ready to leave for her cruise, on a bar of soap in the shower - she broke her leg - unable to travel she was eligible for a full refund - inurance paid - cruise line had it's money and could resell the cabin, albeit at short notice.

I really don’t understand how cruise lines, in good faith, can overbook –concellations are refundable on a well spelled out schedule and there’s always the chance that the space can be re-sold – I question that much money is lost by any Line.

In the situation under discussion, the balance payments would, I believe, have been made sometime the week of July 19. Carnival, in my estimation is definitely on the hook for full reimbursement + + + to all bumped pax. And what about the booking agents – are they also to be penal ized and denied payment for their work. Were I still in the business, I’d for sure be boycotting Carnival ships!


Posts: 2913 | From: Markham, Ontario, Canada | Registered: Jul 99  |  IP: Logged
merobro
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posted 08-25-2004 02:35 PM      Profile for merobro   Email merobro   Send New Private Message      Edit/Delete Post  Reply With Quote 
I have just received the dreaded call from Carnival. My group of 58 passengers who were to cruise on the 'Miracle' out of Baltimore in October have just been bumped. I know this has happened to hundreds of people this year and it is beyond belief. These passengers booked on 28 May 2003.
Carnival has had their deposits and payments for 15 months. They are family members flying in to cruise with two of their children planning honeymoons. Also booked are police officers and fireman and their families.
Carnival has offered to put them on a December 19th sailing.Even if they could change their vacations dates who wants to cruise a week before Xmas and what about the wedding group. They have paid for invitations, wedding arrangements, airline tickets etc. The explanation we got from Carnival was that they had overestimated the amount of passengers who normally cancel.
Why couldnt they have advised this group months ago so that could make alternative plans. Carnival explained that they didnt want to cancel in case they had others who were cancelling and then they could have sailed.
No. Carnival wanted to keep the money and also what about the interest that Carnival has earned on these cruise payments. I am very disgusted that a large cruise line such as Carnival has chosen to treat passengers this way.

Posts: 3 | From: California | Registered: Aug 2004  |  IP: Logged
eroller
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posted 08-25-2004 02:44 PM      Profile for eroller     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by merobro:
I have just received the dreaded call from Carnival. My group of 58 passengers who were to cruise on the 'Miracle' out of Baltimore in October have just been bumped. I know this has happened to hundreds of people this year and it is beyond belief. These passengers booked on 28 May 2003.


This is pretty bad. May I ask what other compensation Carnival is offering besides just moving your pax to another date.

I feel bad for you as the travel agent and also for your passengers. It's a no-win for anyone, including Carnival.

Ernie


Posts: 7046 | From: Miami, Florida USA | Registered: Oct 2000  |  IP: Logged
Cassandra
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posted 08-25-2004 03:44 PM      Profile for Cassandra   Author's Homepage   Email Cassandra   Send New Private Message      Edit/Delete Post  Reply With Quote 
No! Not acceptable! I would call Carnival back & tell them to go bump another group of people due to the fact how long ago you guys booked the trip. First come - first serve!
Posts: 46 | From: Connecticut | Registered: Feb 2004  |  IP: Logged
Brian_O
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posted 08-25-2004 04:26 PM      Profile for Brian_O     Send New Private Message      Edit/Delete Post  Reply With Quote 
What is Carnival's policy on cancellations by passengers? If they charge large penalties (such as 50% or more) they have no business whatsoever overbooking. Class action suit time?


Brian


Posts: 2698 | From: Pointe-Claire, QC Canada | Registered: Jun 2003  |  IP: Logged
PamM
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posted 08-25-2004 04:48 PM      Profile for PamM   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
I won't repeat my post above, but even if buy-offs are time consuming for Carnival, they are the ones who have put themselves in this position and quite honestly I do not find it acceptable to bump a group such as merobro's who booked so far in advance.
Obviously they are not going to be able to regroup, and who wants that week offered anyway [in the UK it would be a cheaper sailing too]. Couples & families, locals in Baltimore, the retired set, can probably all do it with not much hassle, for a few $'00s onboard credit & an upgrade. Just it takes Carnival more time [& money].

People are gumbling about NCL having ditched a 'Monster in the morning' group due to sail sometime next year and are filing a 1m lawsuit or something, which afaics they [NCL] are prefectly within their rights to do so, yet Carnival are playing far dirtier in my book.

People will lose confidence on booking sailings out of Baltimore.

Pam


Posts: 12176 | From: Cambridge, UK | Registered: Jun 2001  |  IP: Logged
Johan
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posted 08-25-2004 05:06 PM      Profile for Johan   Email Johan   Send New Private Message      Edit/Delete Post  Reply With Quote 
They will not only lose of confidence of sailings out of Baltimore
but of sailings of "Carnival" tout court.

These aren't exactly the best ways to treat customers who have contracted so far in advance.

These are manners of big arrogant corporations against the defenseless consumer, and such things are long remembered.

If the fundamental contract between two parties is abused in such a blatant way by the most powerfull, it hurts many people deep. Both parties are deemed to be equal and freely contracting.

Still, I hope an acceptable solution can be found.


Posts: 1895 | From: Antwerpen, Belgium | Registered: Feb 2004  |  IP: Logged
Globaliser
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posted 08-25-2004 05:12 PM      Profile for Globaliser     Send New Private Message      Edit/Delete Post  Reply With Quote 
It is truly disgraceful.

I wonder if this might provide an incentive to the (some?) US cruise lines to start trying to manage their overbooking problems with non-refundable deposits. That would inevitably lead to fewer cancellations. At present, you can book now in the US for a cruise in late April 2006 (yes, I know someone online who is booking a group for then), put down a deposit, and then cancel in January 2006 without any penalty whatsoever.


Posts: 1869 | From: UK | Registered: Sep 2003  |  IP: Logged
NWLB
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posted 08-25-2004 05:15 PM      Profile for NWLB   Author's Homepage   Email NWLB   Send New Private Message      Edit/Delete Post  Reply With Quote 
Did Carnival ramp up the number of cruises leaving from Baltimore too fast? No matter how I slice it, they seem to have seriously botched things. I understand the math, but to have this going on to the extent it is make me think somebody dropped the ball. I can understand wanting to fill the ships, but at the same time, I would have to think a cautious exec. would know that he or she may have to spend a season or so with less than full ships to simply establish a presence. I'm not well versed on how long and how man ships they have sent out of some of the newer ports.
Posts: 329 | From: Bowling Green, Ohio | Registered: May 2001  |  IP: Logged
merobro
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posted 08-25-2004 06:20 PM      Profile for merobro   Email merobro   Send New Private Message      Edit/Delete Post  Reply With Quote 
Thanaks for your replies and suggestions. I am sending letters to the CEO and others.
They have offered $100.00 per cabin shipboard credit but they have to purchase their own air to fly to Florida.
If they cancel they get their money back and a discount off a future cruise.

It will not be on a Carnival ship.!!!!


Posts: 3 | From: California | Registered: Aug 2004  |  IP: Logged
PeterUK
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posted 08-25-2004 06:24 PM      Profile for PeterUK   Email PeterUK   Send New Private Message      Edit/Delete Post  Reply With Quote 
This looks suspiciously like Carnival is trying to increase earnings at the expense of passengers. This way if people cancel and forfit part of the fare they are able to take the originlly overbooked person's fare as well as long as the cancellation rate is OK. Clearly in Baltimore it wasn't.

Carnival is now the size that increased earnings has to come from lower overall growth on account of size and more from squeezing the existing financial model. Expect more of this and other nickel and dimes in futute until there is nothing less and the group just grows with inflation.


Posts: 217 | From: North of England | Registered: Apr 2001  |  IP: Logged
newmexicoNita
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posted 08-27-2004 03:03 PM      Profile for newmexicoNita   Email newmexicoNita   Send New Private Message      Edit/Delete Post  Reply With Quote 
To BrianO and others: I have heard and dealt with overbookings both on cruises and hotels, but never anything to this magnitude. But, when I hear the those words "class action suite" my blood boils. Why do some people always think of sue, sue, sue?

NMNita


Posts: 7 | From: Belen, NM | Registered: Aug 2004  |  IP: Logged
Brian_O
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posted 08-27-2004 04:50 PM      Profile for Brian_O     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by newmexicoNita:
To BrianO and others: I have heard and dealt with overbookings both on cruises and hotels, but never anything to this magnitude. But, when I hear the those words "class action suite" my blood boils. Why do some people always think of sue, sue, sue?

NMNita


Because these hucksters are not operating in "good faith" or anything that even remotely resembles it. This case is so disgraceful, Carnival deserves to be forced to pay a huge penalty. Don't try to equate my suggestion of a class action suit with "ambulance chasing". They DESERVE to be sued.

Brian


Posts: 2698 | From: Pointe-Claire, QC Canada | Registered: Jun 2003  |  IP: Logged
merobro
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posted 08-29-2004 02:26 PM      Profile for merobro   Email merobro   Send New Private Message      Edit/Delete Post  Reply With Quote 
Thank you Brian, Nita needs to see the whole picture. these people who were bumped and offered a cruise in December were Firefighters and Police officers that cant change their dates of leave. They were also told they would have to pay their air fare to Florida. Also many of the passengers had purchased their air tickets to fly to a wedding in Baltimore and couldnt get their money back. Plus think of the expense for the parents of the bride. Money spent on invitations, bookings for a church and reception and then to find that the Honeymoon had to be cancelled and many of the bridal group were sailing on the ship. If it was a last minute booking the cruise ship may have made a mistake but this group booked a year ago in 2003. If they had been informed of the overbooking they could have made other arrangements.
This is not the only group. Hundreds of passengers have been cancelled this year from the 'Miracle' and some I hear had got as far as the pier to be told they were being flown to Florida.If you were booked on this for a honeymoon with your family mabye you would have a better understanding of what they are going through.
These people are not considering sueing over a cup of hot coffee spilling onto their lap.

Posts: 3 | From: California | Registered: Aug 2004  |  IP: Logged
Green
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posted 08-30-2004 09:00 PM      Profile for Green     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Brian_O:

Because these hucksters are not operating in "good faith" or anything that even remotely resembles it. This case is so disgraceful, Carnival deserves to be forced to pay a huge penalty. Don't try to equate my suggestion of a class action suit with "ambulance chasing". They DESERVE to be sued.

Brian


HERE HERE!!!!

Carnival is not operating in "good faith" or anything that even remotely resembles it.

merobro - regardless of who was bumped.......Carnival is not playing fair.
I'm not big on law suits but in this instance I'd be in favour of 'throwing the book' at it. As you say, "These people are not considering sueing over a cup of hot coffee spilling onto their lap."

I'd be very [

[ 08-30-2004: Message edited by: Green ]


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