The Right Thing

TMM Announced they will give all charterers one full year to rebook with no penalty. This kind of management is why we would never charter anywhere else. They simply did the right thing

Indeed...quality outfit.

THE BEST!!!

We’ve chartered with TMM a couple times and know that they are a quality organization, so I’m not surprised. We are booked for July and we won’t cancel until we know flights are a problem, if there are any. How do we quit on something that is so important that we think about it every day? Thank you TMM!

If the BVI is not permitting entry why isn't TMM giving complete refunds?

Moorings is currently doing the same thing...it will be interesting if it changes to refunds. They refunded 3 trips outright for the hurricane and we were back out the 1st week they allowed boats out.

I have a beach house in NC that I rent for 1.5 months in late June/July and the management company has been wrestling with this issue of refunds because of "loss of access" as opposed to "loss of the product" due to hurricane by example since the Outer Banks are closed to visitors. From the management/charter companies perspective obviously credits are better since they already paid some of the cash out to the owners and like a lot of businesses dont have a large cash reserve and now need to go back and collect it from owners.

They just sent a legal opinion last night that "loss of access" should require a refund and that owners should have cash ready (they advance out 50% of rentals on Jan 1) . Obviously it goes without saying regardless of whatever they decide if you cant get to my beach house then you are getting a refund period, but this is an interesting question.

I wonder if the charter companies business interruption insurance covers something like this?

I believe a refund is the correct thing to do. Some of the charter companies I am sure do not have the cash to provide refunds. They also don’t want to extend rebooking windows beyond the low season for the same reason. For owners time I have booked in May I am offering a full refund even though If can’t rebook them it will be a 5 figure hit to me.
G

It's a complicated situation. It's neither party's fault that virus happened and travel is restricted. The charter company is prepared to provide the service contracted. It's not their fault the guests didn't purchase the insurance they recommended. It's not the guests fault they can't get to the BVI. Very difficult position because most guests are expecting a change to the contract they agreed to even though the charter company did nothing wrong.

When Irma struck, we were unable to meet the contract both parties agreed to and offered refunds before anyone even asked. This is different; we have open property going to waste. The guests gambled by not buying insurance and are now expecting the host to pay for their gambling loss.

I think allowing a date change at no cost is a fair compromise, but many do not. I see both sides. I do think making decisions past a 4 week window is extreme because the situation is changing daily.

I've been thinking about offering a "Cancel For Any Reason" insurance option to our guests that they could purchase to cover the villa stay. Would people consider this a good idea?

Regards,
Jason

Jason, did the insurance option you recommended cover this situation? My understanding is most travel insurance will not.
G

Cancel For Any Reason insurance is very expensive, because it's very risky on the part of the "insurer". The word alone is a problem, because of insurance regulations. Jason, in essence what you are talking about is two different rates: refundable and non-refundable. Many hotels do that, especially through the OTAs. It forces people to confront the fact that they are rolling the dice.

Bailau, your beach house may be sounding pretty good to some people right now! Drive down and avoid your germy city neighbors.

We don't recommend a specific policy, just that people should consider travel insurance. Everyone has their own tolerance for cost vs. risk.

LOL...it would be great and we were planning on going with a couple of close friends but our trunk is only so big as it is owners only...

Funny thing is it is totally stocked for about 2 years worth of TP and beer...:)

Although when I sit on the beach I look southeast and think of you all in the BVIs all the time...

I was on a video conference this morning with the property management of our NC Outer Banks home and they indicated the trip insurance carrier that they offer to guests will not cover loss of access due to a bridge closure due to a pandemic. By way of background our beachhouse is in Currituck County NC but the only way to get there is to cross a bridge that is actually in Dare County, NC and Dare shut the bridge to non owners....

There is regulatory pressure to change that apparently...

Here is the link for any property owner interested with the understanding this in US and not BVI...clearly we are in uncharted waters even here in the states...

https://twiddy.us10.list-manage.com...ade03&id=7eee7ca27e&e=fdb944d731

Self funded insurance as even CFAR seems to have exceptions after this occurrence:
Select one:
A) Refund 90 days or more is full refund . 45-89 days Forefiet deposit (50%), Less than 45 days ,ABSOLUTELY no refund for any reason except boat or comparable replacement not provided.
B) Refund 90 days or more is full refund . Less than 90 days, Cancel for ANY Reason prior to start of trip and get 75% refund. (ADDED cost for this option, is 10%)

How many people do you think will chose Option B?