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Friday, November 24, 2006

Holland America pricing error won't be honored

In a move that surprised us, Holland America bought itself an ocean of negative publicity by refusing to honor a Noordam balcony stateroom $849 per person cruise fare that it says was a data-entry mistake. The correct fare should have been $550 higher, and the cruise line is insisting that paid-and-confirmed passengers either send the additional money, or cancel with a full refund. Holland did offer a slender olive branch in the form of a $100 onboard credit for those who decided to go ahead and travel.

One big reason for our surprise is that our experiences dealing with Holland America correcting problems of all kinds, including price discrepancies, have been entirely positive. In fact we would single them out as one of the cruise lines most dependable about "doing the right thing."

Whether Holland was within its legal rights is not the issue, as even without going to look we're sure they have fine print, someplace, permitting such "error corrections." Our question is whether Holland's move made sense.

Other travel companies have reaped a windfall of positive publicity for honoring fares that were clearly erroneous, such as US Airways' buck-or-less roundtrips. We wouldn't have faulted US Airways for cancelling those bookings, since the customer must have known when they purchased their ticket that the price was a mistake.

And that's why we disagree in this case with Holland's decision. An $849 cruise fare for a balcony stateroom on an 11-night trip, working out to $77 per person, per night, doesn't sound crazy. It seems like an unusually good, but within-the-realm-of-possibility, price. Those passengers who paid for this trip, and got their confirmations, were likely truly dismayed when Holland came around looking for another $550 per person.

Nonetheless, our years of positive experience with Holland America have us hoping that this move was either an aberration, or that there was more to Holland's side of this story than meets the eye.

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2 Comments:

Anonymous said...

I am left wondering what the company was thinking. Nearly everyone checks reviews on cruise lines and this looks a giant stinker.."hello your cruise just went up 60%. Happy vacation". The company should at least explain the reasoning. We are regular cruise people and have traveled on the Noordam before however this time we will pass. The chance that some other issue may surface that could become unsolvable from the companys viewpoint is to great. Why support bad business behavior?. This makes cruising difficult since this company operates a lot of the cruise industry. I'm looking for a cruise this spring and will try to avoid them.

12/5/06 6:55 PM  
Anonymous said...

I too was affected by the "error" in pricing on the Noordam. I booked the cruise at $849.00 per person originally, and then I chose to pay the additional $450.00 per person when Holland America told us the original, advertised, price was an "error." We were required to make our final payment on November 24, 2006. On December 3, 2006, (9 days later), the price of the cruise was reduced to $999.00, and subsequently, my travel agent told me there was yet another reduction to $899.00. Since we are now in the penalty time frame, we would lose $1200.00 if we canceled. When I called Holland America, to inquire about the current price reduction, I was told they lowered the price to fill the ship. I was asked to put my complaint in writing and I wrote to Holland America to point out that when they originally lowered the price, Holland America claimed they made an "error," now they lowered the price to fill the ship. I was told by a Holland America representative that they lowered it on a different balcony category (VH) and I'm booked in (VD). I further checked and there are no (VH) cabins available. They are booking it with a guarantee, which means people booking it at the lower price will be upgraded to a higher category cabin. I am very frustrated. It was bad enough when they made a pricing "error." Now that people who booked it are in penalty, they were able to lower the price.
Holland America said, "I would direct you to speak to your travel agent, as Holland America Line policy does require that we do not give any information to anyone other than the booking agent." I cannot believe that customer relations does not want to speak to its customers since they, Holland America, control the pricing. I feel they are using unfair business practices and deceiving the public.

12/28/06 11:19 AM  

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