Is Lindblad overpricing its offerings?

Lindblad is, first and foremost, a business. Whatever social mission the company may be undertaking on behalf of the environment, the company exists to make money for the family and their partners.

Prices are regularly rising 5-10%/year on their cruises, and the brochure price is pretty much what you pay. Returning guests get 10% off, but that still leaves rates at/above $1000 pp/day.

The trips we were on were about 80-85% full with paying clientele. People I know that have traveled since have reported 70-90% paying occupancy. In a margin business, is that the target?

Lindblad has increased its own Antarctic capacity and entered the S. Pacific market by purchasing Orion. Ponant is adding expedition ships. Other luxury lines are in the game (Silversea) or getting in (Seabourn)...particularly in the polar regions.

We're starting to see cracks in the Lindblad pricing: a lot more "limited offer air credits", free charter airfare, free stayaboard on post-cruise repos. But is Lindblad coming to the point where, to maximize profit, it will need to freeze prices, or even lower them, to raise occupancy?

My missus and I thought the Antarctica trip was great and we would consider using Lindblad again to get to very remote locations. For places closer to civilization, Lindblad's recurring price hikes are pushing us toward other operators.

Hi Shawnino,

There are a lot of Lindblad self-admitted junkies out there, just as there are people who wouldn't consider traveling on anything other than a Silversea ship. Or wouldn't consider a ship where the native language is German or French and English is a second language. This tends to make up a core set of passengers on any expedition.

Those of us concerned with budgets and itineraries, tend to look at other ships and assess the value. For example, for my next expedition to the NZ and Australian sub-antarctic islands, the difference in price for me as a single traveller between Ponant and Silversea is $10k. Naturally I'm going with Ponant ! New ship, was impressed with the comfort and handling of Le Boreal in the Arctic, good crew etc. Le Soleal is a triplet sister to Le Boreal, so it's a no brainer for me.

Oh for sure.

I'm just wondering... do they have enough fans? They're not running full.

I am eager to check out Ponant. Silversea less so after the latest news about ships returning early to Ushuaia for storms that may or may not exist. Thanks again for the pointer to Cheesemans: I find their charters seriously attractive with the promise of 8+ hours of shore time/day on S. Georgia.

No need to be full....if every ship had to be full to turn a profit, there would be a lot of cancellations and companies out of business. I think of it like an airline business model - so long as business class is full, the flight has broken even, and every economy fare is profit. Same deal for the ships - so long as the expensive cabins are taken, the 'cheap' seats are profit.

So as long a couple is prepared to pay $40k for a cabin for 16 days in the Arctic (the cash cow destination) on NGE, it's all good :)

Interesting take.

And you likely have a point -- particularly if you compare to, say, hotels.

The airline comparison may be valid in your part of the world... in mine, airlines go bust every time you turn around. The ones that are consistently solvent are the ones that don't emphasise different classes of service (Southwest, Jet Blue, West Jet...).

...and yet: wouldn't it make sense, then, for Lindblad to hold the line on "economy" (we use that word very loosely) cabin pricingif that's where the extra revenue comes from? I guess there's a chance that the lower-cost rooms could start cannibalising the higher-cost rooms, but my claim is that if everything's going up 5-10%/year anyway, far faster than inflation, cannibalisation will come in regardless.

I guess part of my confusion stems from not really understanding the value proposition of the more expensive cabins. More space (good), but we were in our cabins rather little during waking hours. Wilder trip across the Drake (not my cup of tea...).

In the Antarctic Lindblad IMHO is considered one of the leaders and many will pay the price. The Lindblad/Nat Geo pairing sounds really, really good.

I am about to book an Amazon cruise and the Lindblad offering is about 40% higher for the Delfin II, a ship that they don't own but contract with, as compared with a comparable ship from International Expeditions. It is hard to justify the higher cost.

Skinny brochure arrived last week for Orion cruising the Indian Ocean. Basically a handful of trips breaking up Tanzania to Bali via the Seychelles and Sri Lanka.

Free gratuities

10% off for life

Air credits.

I'll be away the next few weeks in the Med ("slumming it" on NCL :) )