Difficult Choices in a Real World

[Island Cruiser]

Gads uk1 and seadoc, I just enjoyed reading your posts. I only hope my insurance carrier won't get a debit! We're planning a November SS trial run. Glad you approve.

[Seadoc]

On to the work product:

1. Poor soul plaintively wailing "why, why, why?..." on the X board importuning X to both remain what it's traditionally been and what it markets itself to be - in this particular case the issue is formality vs informality of dress (and presumably decorum). Bottom line: Bye bye X forever.

2. Jim Avery and "Its my dime" on the SD board - both with (opinion) class and standing - importuning SD (now on notice for more than one year) to publicly identify itself (is it a line for "55 sophisticated couples seeking a sybaritic experience" or is it a line which "encourages/tolerates gobs of little ones and/or large affinity groups"...the two identities being manifestly mutually exclusive). Bottom line: absent both a public identity from SD AND an unequivocal policy allowing cancellation and full refund at ANY time prior to sailing (and only for those two demographic reasons)... Bye bye SD until or unless.

3. "Sea Hawk" confirming on the SS board not only 2. above (on SD) but a counter-productive single large affinity group experience on SS. The latter hopefully an isolated occurrence.

 

The spreadsheet has been detroyed. The analytic illness has been cured (sublimated?). The toothpaste has been successfully reinserted in the tube and all's right with the world.....

 

#1 - Seabourn

#2 - Silversea

 

Game plan: Extended cruises with both separated only by a few months. If sense of "ownership" prevails with either, that'll become "home on the sea" for the duration of the trip through the coil. If found on neither or both, that'll be OK too.

 

Thanks to all for your assistance (intended or otherwise).

 

Craig

[uk1]

Bless you my son (or dad) you have done the right thing.

 

Jeff ..... he say .... "Make it your own, go forth and multiply (or divide if you wish) .... take no prisoners and do unto others before they do it unto you"

 

Leave the walkie talkies, children and tuxedos behind.

 

Jeff

[its_my_dime]

As a number cruncher, I have read this thread with interest. I've sailed on the Seadream and Seabourn but it seems to be that all thee lines are in the same "boat".

 

I have read that the marginal cost (added cost per additional passenger -- essentially food and clean sheets) on an already reasonably full mass market cruise ship is $25.00 day. (The average cost -- total cost of the cruise divided by the number of passengers -- is probalby $200-$300/ day.)

 

Because of the many, many high profit extras on the mass market ships (I don't need to list them here), it literally pays the ships to give away any remaining cabins to anyone with a good credit rating and a valid credit card because the profit on the extras will easily exceed the $25/day (and lets not forget the gratuities that are added to the bill)..

 

Indeed, given the extras, they can probably put the average price at less than the average cost and still make money.

 

I am sure that the bean counters can tell you to the penny how much and on what the passengers spend.

 

It seems to me that the three "all inclusive" lines face very different economics from the mass market ships. I would guess (but have no solid evidence), that their marginal cost is at least $50 per head and would not be surprised if it were well over that ....even at the wholesale prices that the ships pay. I estimated on another board that the retail cash value (with no consideration for the intangible values that all-inclusive offers) for moderate drinkers just for what they would normally have to pay on other ships could be in the $1,000 week/couple range.

 

Further, the number of extras on the all inclusive ships are limited as is the hard sell merchandising. Finally, given the smaller size of the ships and higher quality of service and staff, the average cost per person is probably well over that of the mass market ships.

 

Accordingly, the economics of discounting is very much against the all- inclusive ships, first because their marginal cost is higher and second because they have fewer opportunities to increase the average revenue per passenger once they get them on board.

 

But again, very few people actually cruise and even fewer have tried (assuming they can afford) the all-inclusive ships and those that do seem to like them (I sense that there are many repeat customers, either within or among the 3 lines). So off season discounting, as long as the fare is over the marginal cost and when the ship wouldn't be full anyway, makes sense for building a loyal customer base.....but the discounts are probably best directed to people who have the possibility of paying full freight on future trips assuming they can be selected.

 

Seems like a really good business school case.

[uk1]

Accordingly, the economics of discounting is very much against the all- inclusive ships, first because their marginal cost is higher and second because they have fewer opportunities to increase the average revenue per passenger once they get them on board.

 

 

................... and also (more importantly) because on this line once you offer a discount to all new customers you have to reprice for existing customers if they ask you to.........

 

An interesting thought in my view is to move even further up market (clearer water) with a size max of Cloud and charge even more for even more.

 

Jeff