Peter Greenberg: Recovering a Cruise Deposit

By: Peter Greenberg | Source: AARP.org | 2009-08-04

Q: Peter, I need your help.

I booked a cruise on Holland America through Expedia.com in July 2008 and put down a $600 deposit. Holland America’s "rules and advisories," as posted on Expedia.com, state that customers are entitled to full refunds if they cancel 76 days or more before the cruise date. I tried to cancel on March 16 for my June 5, 2009 cruise (85 days before departure).

I contacted Expedia, who in turn contacted Holland America. Expedia was told by Holland America that I was not entitled to a refund of my deposit, because the 76-day cancellation policy listed on the Expedia Web site was wrong. It should have said 120 days. As of today, the cancellation policy of 76 days is still posted on the Expedia Web site. How do I get my $600 deposit back?

–Charlie
Knoxville, Tenn.
 
A: If the Expedia Web site said that you could cancel without penalty up to 76 days before your trip, then as far as I am concerned, Expedia should honor that policy, even if it was posted incorrectly. But keep reading: I have good news for you.
 
We've all heard stories of airlines being forced to honor $1 published fares—even if the price was a typographical error and should have been listed as $100. The general rule is that the airline (or hotel, travel agency, or cruise line) is obligated to get its facts and figures straight, and if they don't, not to penalize the customer for assuming the facts were correct.
 
Expedia should not have deferred to the cruise line's "correct" policy, of which you were unaware. Since Expedia was acting as a booking agent for Holland America, it is Expedia’s responsibility to make sure customers know the correct cancellation policies, and if they mess up, it is their responsibility to absorb the costs of their errors, not to make you forfeit your hard-earned money.
 
I called Expedia on your behalf and explained why the way the company treated you was unacceptable. Within a few days, a representative called me back and said that upon closer examination, Expedia realized that there had been an error in how it had handled your request. The company has now refunded your $600 deposit. The rep added that the company was working with Holland America to update the cancellation policies on the Expedia Web site.