When Cory Belkov cancels his Carnival cruise, he gets a refund — minus a $500 cancellation fee. It’s the first he’s heard of the fee. Does he have to pay?
Question
I booked a Carnival cruise through American Airlines Cruises travel agency in February for a July sailing. I paid $3,738 upfront, plus $342 for trip insurance.
When we canceled in mid-March, the travel agent said Carnival would refund $3,300 but withhold a $500 penalty for a “nonrefundable promotion rate.”
Nobody mentioned this fee when we booked! The travel agent told us to take it up with Carnival, and Carnival told us to contact the agent. The insurance company also refused to cover the $500.
When I asked Carnival to explain the “promotion rate,” they redirected me to the agent, who claimed they couldn’t access fare details. I’m stuck in a loop. How can I get my $500 back? — Cory Belkov, Virginia Beach, Va.
Answer
Carnival and your travel agent had a duty to clearly disclose cancellation terms before you booked. Federal Trade Commission rules prohibit unfair or deceptive practices, including burying fees in fine print. If your rate was nonrefundable, that should have been prominently stated in your confirmation — not revealed retroactively.
Carnival’s “Super Saver” fares often carry strict terms, and consumers deserve to know exactly what they’re trading for a discount. The terms aren’t exactly spelled out on Carnival’s website. It only says, “A nonrefundable and nontransferable deposit is required at the time of booking,” but it doesn’t say how much. Your travel agent, American Airlines Cruises, should have disclosed that to you.
Agencies have a legal obligation under state consumer protection laws (like Virginia’s Consumer Protection Act) to accurately explain booking terms. Passing you between Carnival and the agent is a breach of that duty.
Your travel advisor should have also acted as your advocate when you raised questions about Carnival’s $500 fee. Based on the correspondence you showed me of the back-and-forth between you and the agent, it appears that didn’t happen.
I notice that most of your communication between you, your agent and the cruise line happened by phone. Certainly, a phone call can be helpful if you need immediate action to resolve something — like a cancellation or rebooking. But when it comes to a refund request, you need something in writing.
There’s an important lesson for all of us here. Always scrutinize the terms of your purchase before booking. The confirmation you received did not mention a $500 cancellation fee. When frontline reps stonewall you, contact an executive. I publish Carnival’s leadership contacts on my consumer advocacy site, Elliott.org. That’s sometimes enough to break the logjam.
Fortunately, Carnival’s ticket contract suggests cancellation penalties must be outlined at the time of booking. If yours wasn’t, you’ve got some leverage.
Companies love blaming each other, but consumers shouldn’t pay for their chaos. I contacted American Airlines Cruises on your behalf. The company refunded the $500 as a “goodwill gesture.”
