Flat Pricing Policy - A real turnoff

[steviek49]

We are in the process of planning our Christmas, 2011 vacation.

We are fortunate that we generally go on 2-3 vacations a year.

We like to switch it up so sometimes we do a regular resort vacation, sometimes an all inclusive vacation and sometimes a cruise vacation.

One of the things we like to do is shop for a very nice vacation and at the same time look for the best value for the type of vacation we want.

We donot believe, for a second, in the phrase that many people use..."you get what you pay for."

Many times we stay at more upscale resorts and take better flights to get there than people who pay more than double our price(and stay at more modest hotels)

Smart shopping, early shopping, price comparisons as well as being loyal members of hotel chains, airlines and cruiselines as well as credit cards can save you hundreds and many times thousands of dollars on exactly the same vacation/same dates/hotel/cruise ship/type room or cabin/airline.

Indeed, most people taking the same cruise or staying at the same hotel or sitting next to eachother on the same plane pay different fares/prices.

I understand that cruiselines still have types of discounts for their loyal cruisers, there are group rates and you can save more by using their credit card.

But while I am currently shopping for my next vacation I get lots of different prices for hotels/resorts and all inclusives but exactly the same prices for cruises for the cruiselines that have flat pricing (ie. NCL, RCI, Celebrity, and Carnival).

Although I'm not sure it will totally stop me from cruising with these lines (since TA's are getting around it with free insurance and/or bottles of wine and/or OBC), I certainly am more attracted to a better bargain/bang for the buck/lower prices available with resorts and other cruiselines don't don't have this policy.

I have also found that it is much easier to score a free week vacation at a hotel/resort than it is with a cruiseline (ways of earning points) It took us less than a year to score 2 free Oceanview Rooms with free breakfast and free open bar happy hour for a week at a 4 Star Hilton in Mexico during Chistmas, 2010.

I'm not here to slam cruising- just venting a bit about this policy.

Anybody else feel this way?

Reminds me of Price Fixing!

Anyway, people have more serious problems to worry about than this but I couldn't help sharing what a turnoff this relatively new policy is to my family.

PS. We were still able to find a great price on the NCL Sky for Easter vacation 2011. It was a group rate.

[terrymtex01]

I thought all cruise lines priced their cruises the same way. Can you give examples of the cruise lines you are thinking of that don't, so I can research their pricing on the net and understand this? I knew you might could find better deals with online TA's than on a cruise lines own website, but that is because the TA buys a block of rooms or is giving up part of their own commission. As a future TA, this wold be a great help. Thank you.

[steviek49]

I thought all cruise lines priced their cruises the same way. Can you give examples of the cruise lines you are thinking of that don't, so I can research their pricing on the net and understand this? I knew you might could find better deals with online TA's than on a cruise lines own website, but that is because the TA buys a block of rooms or is giving up part of their own commission. As a future TA, this wold be a great help. Thank you.

To my understanding, unless there is a group rate, most cruiselines price their cruises the same way. However, the cruiselines that have this "flat pricing policy" don't allow TA's to give up some of their commissions to offer a lower price. When I googled which cruiselines have this sort of policy, NCL, Carnival, Royal Caribbean and Celebrity came up. Even though Carnival owns Princess, HAL and others- only Carnival Cruise Ships have this policy. The policy is slightly different for each cruiseline.

Before this policy, when I did my research for cruises, prices can vary by hundreds of dollars for the same ship and on the same date and same cabin.

This week I "competed" on line for cruises on a certain date and the prices from all the TAs were almost exactly the same.

I hope this helps clarify.

[Anginette]

If cruising is not affordable for you anymore, that's unfortunate, but many people still consider it a great bargain so I don't think the mass market cruise lines (which is what NCL/RCI/Carnival are) have any reason to do away with this policy, from a business standpoint. Pricing in this manner allows the cruise line to control its own pricing as opposed to the TAs offering heavy undercuts.

 

To me, OBC is just as good as a lower price.

[pmd98052]

To my understanding, unless there is a group rate, most cruiselines price their cruises the same way. However, the cruiselines that have this "flat pricing policy" don't allow TA's to give up some of their commissions to offer a lower price. When I googled which cruiselines have this sort of policy, NCL, Carnival, Royal Caribbean and Celebrity came up. Even though Carnival owns Princess, HAL and others- only Carnival Cruise Ships have this policy. The policy is slightly different for each cruiseline.

 

Certainly feels like anti competitive practices. Why should a cruise line be able to dictate how a TA sells a block of rooms that they've purchased?

[steviek49]

If cruising is not affordable for you anymore, that's unfortunate, but many people still consider it a great bargain so I don't think the mass market cruise lines (which is what NCL/RCI/Carnival are) have any reason to do away with this policy, from a business standpoint. Pricing in this manner allows the cruise line to control its own pricing as opposed to the TAs offering heavy undercuts.

 

To me, OBC is just as good as a lower price.

 

I never said it's not affordable. I said I didn't like the policy.

If Walmart wants to sell it's Sony HDTVs for less money than Best Buy, they should be allowed to. Sony should not say that everyone has to sell it for the same price.

From a business standpoint that's a better policy IMHO.

TA's are also business people and they should be able to decide how much of a profit they earn. Some TA's know that they can earn more money by selling lower but getting more customers.

I can still afford the SONY TV but without this type of policy I would just buy it at Walmart or another store for less.

[steviek49]

Certainly feels like anti competitive practices. Why should a cruise line be able to dictate how a TA sells a block of rooms that they've purchased?

 

 

That's similar to my feelings.

[garycarla]

I have tried to read this post three times.

 

My only response is:

 

HUH?

 

what is the issue or question or comment?

[Anginette]

I have tried to read this post three times.

 

My only response is:

 

HUH?

 

what is the issue or question or comment?

 

OP wants more discounts.

[steviek49]

I have tried to read this post three times.

 

My only response is:

 

HUH?

 

what is the issue or question or comment?

It is a pretty simple comment.

I don't like the flat pricing policy.

I think travel agents and/or agencies should be able to charge less or whatever they feel like charging.

The cruiseline should not force all TAs to charge the same price.

I think what might have been confusing was the various examples I gave concerning the competitive pricing allowed in land resorts and other cruiselines w/o this policy.

[jeffstew]

It is a pretty simple comment.

I don't like the flat pricing policy.

I think travel agents and/or agencies should be able to charge less or whatever they feel like charging.

The cruiseline should not force all TAs to charge the same price.

I think what might have been confusing was the various examples I gave concerning the competitive pricing allowed in land resorts and other cruiselines w/o this policy.

 

Princess still allows TA's to discount.

[bakerintn]

It is a pretty simple comment.

I don't like the flat pricing policy.

I think travel agents and/or agencies should be able to charge less or whatever they feel like charging.

The cruiseline should not force all TAs to charge the same price.

I think what might have been confusing was the various examples I gave concerning the competitive pricing allowed in land resorts and other cruiselines w/o this policy.

 

It seems to me that one should only care about the bottom line price, after all goodies are included. The TA's now can't cut the base price, but can still offer other benefits with stated values from a list that NCL provides. I guess what they can offer doesn't have the same appeal as cash to you, but they may very well be perceived by others to have an equal value.

 

This pricing model for authorized resellers is a common one across many products and distribution channels. Look what has happened in the big box stores...different model numbers / upc codes for Wal Mart vs Costco (et al)..technically, then, the product is not the same, and so price matching policies just become marketing fluff. Mattress companies started this 40 years ago....different product codes for different resellers for the same mattress so that price comparisons could not be made.

 

If the company wants to follow that model, that is up to them.

[steviek49]

OP wants more discounts.

 

Not exactly.

OP doesn't like this policy and wants to allow TA's and agencies to price the cruise.

The cruiseline will get the same money. The TA's bottom line will only be affected.

This policy has only been around for a few years.

Princess, HAL, Costa, MSC and all of the luxury lines don't have this policy.

[njhorseman]

Not exactly.

OP doesn't like this policy and wants to allow TA's and agencies to price the cruise.

The cruiseline will get the same money. The TA's bottom line will only be affected.

This policy has only been around for a few years.

Princess, HAL, Costa, MSC and all of the luxury lines don't have this policy.

 

If you shop around you can still get a discount in the form of an OBC.

[njhorseman]

Not exactly.

OP doesn't like this policy and wants to allow TA's and agencies to price the cruise.

The cruiseline will get the same money. The TA's bottom line will only be affected.

This policy has only been around for a few years.

Princess, HAL, Costa, MSC and all of the luxury lines don't have this policy.

 

Alllow me to present the following hypothetical scenario:

 

Cruise executive notices their inbound sales call centers arer underutilized by 5%.

 

Cruise line executive determines that a change in policy which prohibits TAs from offering cash discounts might fill that 5% void as a certain percentage of cruisers will decide it isn't worth their while to book through a TA without a cash discount.

 

Call centers no longer underutilized. The new business that formerly would have been booked by a TA but is now booked directly with the cruise line produces a higher profit margin for the cruise line as they will not have to pay TA commissions on it.

 

So...the cruise line doesn't make the same money, it makes more money by shifting a percentage of sales from commissionable to non commissionable.

[Anginette]

Not exactly.

OP doesn't like this policy and wants to allow TA's and agencies to price the cruise.

The cruiseline will get the same money. The TA's bottom line will only be affected.

This policy has only been around for a few years.

Princess, HAL, Costa, MSC and all of the luxury lines don't have this policy.

 

Yes, but the reason you want TAs to be able to price the cruise is because you want a bigger discount.