The cruise of a lifetime turned into a loss of thousands of dollars for two lifelong travel companions stymied by a new health condition and a difficult cancellation policy.

Twyla Graeme and Karel Ley, best friends and travel buddies for 63 years, booked a 37-day dream cruise through the South Pacific this spring, but realized they needed to cancel after Ley developed a severe case of sleep apnea that Graeme said bothered "her sensitive ears."

Combined with a recent change in medication that prevented Graeme from travelling for six months, the lifelong friends were forced to cancel their March 2012 cruise last December.

The ladies had already each put down a $1,925 deposit with Holland America, and were told it was non-refundable because they didn't have travel insurance.

"I assumed because we got in under the three-month deadline that we would get a refund. I just assumed that," Ley said.

Allison Wallace of Flight Centre says their story is common and it's important to read the fine print before you book with any cruise line.

"Cancellation policies with cruise lines are very different, and they're among the strictest in the travel industry," she told CTV's Steele on Your Side.

Cruises don't work the same way as air flights, which often have multiple departure times each day. If you cancel, you can't just catch the next one. And if one person cancels the other passenger is asked to pay thousands of extra dollars to travel as a solo passenger.

The Better Business Bureau recorded 1,300 complaints about the cruise industry in 2011 alone, ranging from high pressure sales tactics, to the infamous "you've won a free cruise" phone call that starts with a fog horn sounding.

"As soon as I hear that I hang up. We know that that's a scam and we know that we're probably going to have to pay money to win a prize," said BBB President Lynda Pasacreta.

She says the cruises are never free and are often linked to a time share promotion. But even if your cruise booking is legitimate, it's almost impossible to cancel no matter what the circumstances.

"Sometimes that's the hardest thing to deal with, when you can't go on that trip and you can't get your money back," said Pasacreta.

Ley and Graeme say they've learned an expensive lesson about the cruise industry.

"We're both on fixed incomes and it took two years of our RRSPs for me to save that kind of money," said Graeme.

"I think it's just a huge disappointment," Ley added.

Steele on Your Side contacted Holland America after it refused to give the ladies a credit for a future cruise. After more than a month of emailing with its head office, the company said it would reimburse Graeme and Key close to $4,000 – the total amount of their initial deposits.

Ley said while the "loss of enjoying the cruise is priceless," they hope to take another trip once her breathing problems are cleared up. She thanked CTV's Steele on Your Side for helping them secure a refund.

"To get back the amount you have managed is wonderful and will allow us to travel sooner than we might have due to loss of funds," she said. "We are incredibly indebted to you."

Key said she has always felt secure booking with Holland America, and will again, now that they have received a refund. The ladies are still out $1,000 each for the non-refundable airfare they booked to get to New Zealand.

Cancellation policies vary slightly depending on the length and destination of the cruise, but all last-minute cancellations carry a 100-per-cent penalty. As a last resort, disgruntled travellers can file a claim under B.C.'s travel assurance fund.

In order to qualify, you have to book through a registered B.C. travel agent.  There are also certain eligibility requirements.

Watch CTV News for a full report from Lynda Steele…