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An Interview with Celebrity Cruises CEO in Forbes


mahdnc
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I think it's funny that she talks about the biggest challenge being that most people have never been on a cruise. That has been all cruise lines mantra for years - I took my first cruise 43 years ago, and at that time one of the lines, I can't remember which, ran commercials where the tag line was "Most people who say they don't like cruising...have never been on a cruise".

 

Obviously they are doing something "wrong" if it's the same story 45 years later!

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What an interesting amount of double talk saying a lot, and saying nothing at the same time. A real talent!

Right on, that's how she doesn’t see much changing but doesn’t see much staying the same.

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That sentence means "Evolution instead of Revolution" (small changes everywhere, not big changes which changes the experience). But so why calling "Celebrity revolution" the retrofit program?

 

 

No really new things, but I learned what they mean with "modern luxury", or better, that this is contrary to "real" luxury (posh side).

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Sounds like the standard marketing pitch for almost any industry.

 

The entire concept of brand marketing is to take a couple of examples and apply them to the entire brand. Celebrity has been offering Signature cruises that have some unique destinations but in reality these are only a handful of cruises per year. Brand marketing tries to extend the illusion of these unique destinations to rest of the standard cruises where all of the cruise lines visit the same ports. Or perhaps she is referring to the concept where Celebrity has started to offer private excursions to a few people at a port when the majority of people still find themselves in a large tour bus. Hardly a unique experience.

 

I also enjoyed her comment about more people want to entertain in their cabins? Really? Personally, this is the last thing I would think about. I would hope there are enough interesting locations on the ship where I can socialize. I really like the infinite veranda concept, but this is not a feature that transforms my cabin into a place to entertain friends. This may be the rational to reduce the amount of public space.

 

The mention of the concierge is also interesting. I’m sure the concierge help the suite guests and perhaps a few other passengers, but the concierges really don’t help the average passenger. However this style of brand marketing will try to create the illusion that concierge s help everyone.

 

Just more smoke and mirrors.

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Thanks for posting the link, mahdnc.

 

The interview was conducted in a language in which both people are fluent, business-speak pablum. Given that the discussion was conducted between an assistant professor currently affiliated with UVA and a CEO, and was posted in FORBES magazine, I don't think I was the target audience for LLP's presentation. Not being a shareholder or industry peer, that is.

Without being asked, I would like to suggest a modification to LLP's statement, an edit: "If you think about it, we need 300,000 new customers without alienating our existing customer base over the next few years and to do this we have to deliver an experience that is worthy of being talked about, shared, and repeating."

 

That the speaker left out the above underlined concept is...... curious.

 

I would also like to acknowledge that being the master of a ship and being at the helm of an international company is no easy task, requiring a broad skill set, and it is not make easier when your every word and action can be scrutinized.

Edited by cruisefam38
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Thanks for posting the link, mahdnc.

 

The interview was conducted in a language in which both people are fluent, business-speak pablum. Given that the discussion was conducted between an assistant professor currently affiliated with UVA and a CEO, and was posted in FORBES magazine, I don't think I was the target audience for LLP's presentation. Not being a shareholder or industry peer, that is.

Without be asked, I would like to suggest a modification to LLP's statement, an edit: "If you think about it, we need 300,000 new customers without alienating our existing customer base over the next few years and to do this we have to deliver an experience that is worthy of being talked about, shared, and repeating.

 

Commercially they'd be better off recruiting first timers rather than loyal cruisers. How many times have you read "We don't need the beverage package because we get out free booze as part of the loyalty program". Or "our free minutes are enough for us".

 

They don't care about 'loyal' customers, only filling the ship. New cruisers are more likely to spend more as they're yet to learn all of the money saving tips etc.

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Good points Mynki, however, while measured in millions, possibly tens of millions, there is a finite pool of people who can afford to cruise in "approachable luxury", and are willing to do so. Repeat, or even better loyal, customers may not have the one time expenditures that tally up to today's massive profits, I am inclined to believe they are necessary to keep the fuel tanks topped and the galleys stocked.

 

So it is a high-wire act, undoubtedly. And yes, retaining the existing customer base, while recruiting new customers, particularly if the newbies have open wallets.

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Commercially they'd be better off recruiting first timers rather than loyal cruisers. How many times have you read "We don't need the beverage package because we get out free booze as part of the loyalty program". Or "our free minutes are enough for us".

 

They don't care about 'loyal' customers, only filling the ship. New cruisers are more likely to spend more as they're yet to learn all of the money saving tips etc.

 

Very much disagree. Old business axiom - it's much more expensive to recruit new customers than to retain existing ones. Maybe the new ones will buy a few pics and take some excursions, but after a couple of sailings that revenue falls off. Even before Edge, X has 25k berths to fill 365 days a year. Her ships offer little of the onboard sizzle offered by the competition so they absolutely have to rely on repeat business.

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Jeez.... :-

 

"We talk about sitting in a modern luxury – it straddles between premium and luxury"

The sooner this muppet is replaced as CEO the better IMHO. She's just full of it!

 

 

I totally agree as she has ruined the Celebrity brand.

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I totally agree as she has ruined the Celebrity brand.

Been feeling this way since she took over. They have priced us almost out of cruising with no improvements. AND we have sailed Celebrity since 1992. Nothing there much for loyal customers. Yes, love some Elite Plus benefits but will NEVER reach Zenith. That's the sad part. Oh well. We are trying Edge in January.

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Jeez.... :-

 

"We talk about sitting in a modern luxury – it straddles between premium and luxury"

The sooner this muppet is replaced as CEO the better IMHO. She's just full of it!

She certainly is raising the pricing between premium and luxury as of late!! Wonder how long that can be sustained. In truth, what is being offered that will make the chosen group (rich millennials) want to cruise on Celebrity? And are there enough of them to fill the ships?? I understand always needing to recruit new, and I also understand not wanting Celebrity to turn into a nursing home cruise line. At the same time, those of us in our 50's and 60's, God willing, have many, many more years of cruising ahead of us. We would love to continue those cruises on Celebrity but not sure how long we will be able to as the prices are skyrocketing. We are the ones who helped Celebrity reach the status it enjoys today with our loyalty. Too many of us feel we are being pushed to the side in this big effort to make way for new.

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LOTS of double talk and platitudes.

"one touch"... concierge/guest services.... ?

Food in MDR has declined

 

They "need 300,000 new clients" over the next few years? Is this based on new ship building? That the pricing is going up? That they have strayed from their brand ?

She makes a note about "features" yet RCCLtd owns RCCL, X and Azmara

 

Destinations--are the same for all of the major lines... In fact its because the itineraries aren't so imaginative that we are looking elsewhere for service/value/food and interesting ports

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For someone who has been in the cruising business for as many years as she has it's amazing that she still doesn't understand the difference between a cruise and a land vacation. The survival of cruising depends on older loyal cruisers who have the time and money to cruise frequently. It's always been true and probably always will be. The older loyal cruisers are usually the ones who introduce the cruising experience to their younger family members and friends. If they don't take care of them they are losing their best advertising.

 

They need a lot of new cruisers to expand but they need to understand that these people will be getting older too and will really become more valuable to them if they can make them loyal cruisers.

 

I may be wrong but it seems to me that very young adults are not really attracted to cruising for a variety of reasons. They are busy establishing careers and starting families. They are also part of a generation that rarely even looks up from their devices to see what's going on in the real world. Their attention span is short and they are a generation who are used to instant gratification.

 

The cruising experience is not like just being in a hotel where people are coming and going every day and it's a fairly anonymous experience. When you go on a cruise you are spending an extended period with others in a closed environment. One of the real delights of cruising is the ability to find like minded individuals to enjoy time with. Many people develop life long friendships with others they have met through cruising. Those of us who have been cruising for many years really appreciate that this is the thing about cruising that you don't find in other vacations. In general, as people mature a little more they are more inclined to enjoy a cruise vacation, and focusing on the middle aged cruiser is probably going to be a lot more productive.

 

It seems to me that there is a lot of confusion as to what Celebrity wants to be and where they are going. In order to have brand loyalty they really need to decide what the focus is. This interview makes it very obvious they the CEO has no idea what that is. The perfect example to me was going to the "Le Petite Chef" dining experience in June. It was a nice evening with good food and a cute presentation and something that people may enjoy once or twice but it certainly isn't something that is going to keep people coming back for more.

 

It's necessary to find a balanced approach between innovation and long term satisfaction.

 

I've been a loyal Celebrity cruiser for a long time so I hope they can figure it out.

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I am amazed at the number of you loyal cruisers who haven’t walk away. The recent ridiculous price hikes made us open our eyes and are very pleased with results. Two land based holidays and a MSC cruise booked for next year, if these are as good as their reviews it’s Celebrity loss...........wakey, wakey everyone. :cool:

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Here is an article that appeared on Forbes.com: CEO of Celebrity Cruises, On Creating A Differentiated Customer Experience

 

I guess you are supposed to figure out that CX in the article means Customer Experience.

Sounds like the pleasantries exchanged just be for the Dr. says "Turn & cough" ;) I do expect all management will say that about their cruise lines. Celebrity offers a decent product, but cut backs have caused us to venture over to Oceania for a couple of cruises.

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