Carnival nickel and diming

[jmcdon7230]

There's a reason for cruise lines nickel and diming....after a while it adds up to real money. Here is an excerpt from the Pensacola News Journal explaining why Carnival left the port of Mobile, in order to get five to ten dollars more per person per cruise:

 

"In March, after seven years operating under a year-to-year contract out of the Port of Mobile's $20 million cruise ship terminal, Carnival announced it was moving to the more lucrative market of New Orleans.

 

The loss was a major blow to Mobile's economy and leaves the city, which owns the cruise-ship terminal, with an annual debt service and operating costs of nearly $3 million.

 

David Randall, executive director of the Mobile Convention and Visitor Center, has been given the task of finding a replacement for Carnival's ship the Elation, which sailed out of the port city for the last time Oct. 22.

 

Carnival's departure caught Mobile officials flat-footed, Randall said, in large part because the Elation was booked solid for most of its weekly cruises.

 

"We were told it was strictly a business decision," he said. "Carnival felt it could generate another $5 to $10 per person, per voyage in onboard passenger spending sailing out of New Orleans."

 

With about 200,000 passengers a year sailing the Elation, the company determined that additional revenues — gambling, photos, alcohol sales, etc. — could exceed $2 million by sailing out of New Orleans.

[AWCHIEF]

Actually sort of old news that Carnival has left the building in Mobile and why.

[sparks1093]

There's a reason for cruise lines nickel and diming....after a while it adds up to real money. Here is an excerpt from the Pensacola News Journal explaining why Carnival left the port of Mobile, in order to get five to ten dollars more per person per cruise:

 

"In March, after seven years operating under a year-to-year contract out of the Port of Mobile's $20 million cruise ship terminal, Carnival announced it was moving to the more lucrative market of New Orleans.

 

The loss was a major blow to Mobile's economy and leaves the city, which owns the cruise-ship terminal, with an annual debt service and operating costs of nearly $3 million.

 

David Randall, executive director of the Mobile Convention and Visitor Center, has been given the task of finding a replacement for Carnival's ship the Elation, which sailed out of the port city for the last time Oct. 22.

 

Carnival's departure caught Mobile officials flat-footed, Randall said, in large part because the Elation was booked solid for most of its weekly cruises.

 

"We were told it was strictly a business decision," he said. "Carnival felt it could generate another $5 to $10 per person, per voyage in onboard passenger spending sailing out of New Orleans."

 

With about 200,000 passengers a year sailing the Elation, the company determined that additional revenues — gambling, photos, alcohol sales, etc. — could exceed $2 million by sailing out of New Orleans.

 

Sucks for Mobile but why did they have a year to year contract? I would think with that kind of infrastructure investment they would have had a multi-year contract locked in.

[shof515]

Considering the tough economy times we are in, business will do everything they can to cut back on things and still earn 2x more the profit

[ItsAllAboutTheSass]

Yep, it's a business decision. A friend of mine was able to increase his revenue by moving his business from one county to another. Just so happened, that move consisted of moving across the street.

[agc291]

How is this "nickel and diming"?

 

Companies need to make profit. You are telling me that if there was an oppurtunity for your company to make an extra $2 million/year, you wouldnt take it?

[jmcdon7230]

How is this "nickel and diming"?

 

Companies need to make profit. You are telling me that if there was an oppurtunity for your company to make an extra $2 million/year, you wouldnt take it?

 

 

 

Ten bucks a head on a six hundred dollar cruise isn't nickel and diming?

[discjoker]

Ten bucks a head on a six hundred dollar cruise isn't nickel and diming?

 

Not at all. I don't blame Carnival at all. They are in the business to make money and if moving to another market will allow them to that that, they will. By not moving they are actually taking a loss which is very bad business.

[elcuchio24]

FYI--Carnival is a business, businesses try to make the most money they can for their shareholders. That's what we call capitalism.

[sparks1093]

Ten bucks a head on a six hundred dollar cruise isn't nickel and diming?

 

Watch the nickels and dimes and the dollars take care of themselves.

[agc291]

Ten bucks a head on a six hundred dollar cruise isn't nickel and diming?

 

 

Are you serious?

[frito58]

I was looking at new car last night , I was commenting on a fact this didnt have a certain feature , I was like what could that cost? The guy was telling me a story when auto companys quit putting cigarette lighters in cars they saved like , I dont rememeber how many Millions of dollars each year. So I guess when you multiply it out over their company those nickels add up.

[biker1972]

And why didn't Mobile find an answer that saved Carnival $15 per person thus adding to C's bottom line? Perhaps they couldn't and Carnival knew this. Albert P. does not want to chage teams but he will if St Louis can't pay him what the market says he is worth.

[Smart Arsenal Fan]

I was looking at new car last night , I was commenting on a fact this didnt have a certain feature , I was like what could that cost? The guy was telling me a story when auto companys quit putting cigarette lighters in cars they saved like , I dont rememeber how many Millions of dollars each year. So I guess when you multiply it out over their company those nickels add up.

 

Or there's that story where an employee came up with a way to save an airline boatloads of money by putting just one less olive (or something) in their first class salads...

[PCHENG]

Being from the east coast, I don't care whether the Elation sails from Mobile or New Orleans since I don't see myself taking the ship anytime soon. But if I am going to cruise out of the south, I will definitely prefer New Orleans since it has more flights and more things to do both pre and post-cruise in my opinion.

[kr8z]

I've cruised from both Mobile and NOLA. There is a ton of stuff to do in NOLA and I think getting to the terminal is about the same hassle in both cities. Mobile seemed like a bigger PITA though - long lines and short streets. Given a choice I'd drive the few extra hours to sail from NOLA simply because I can tack on another mini vacation in that city. Mobile could have come up with ways to save Carnival money thereby keeping the business there in that city.

[B and C Blake]

From a business perspective you also have to take into account the losses that CCL has had in Mobile due to river fog.

How much have they lost due to compensation costs .. even if it is a simple free phone call for each pax to get re-adjusted travel plans.

They don't own the ship to shore phone company. That would play an important role on their P&L.

 

Cruise fares are not considered nickel and diming charging for a bar of soap is just like charging for USE of pool/beach towels would be as well, LOL

[papilliontraveler]

Ten bucks a head on a six hundred dollar cruise isn't nickel and diming?

 

Do the math.

$10 x 2,000(or whatever the ship holds)=$20,000

[RuthlessBoss]

How is this "nickel and diming"?

 

Companies need to make profit. You are telling me that if there was an oppurtunity for your company to make an extra $2 million/year, you wouldnt take it?

That would be my thought too.

[iTouch]

With about 200,000 passengers a year sailing the Elation, the company determined that additional revenues — gambling, photos, alcohol sales, etc. — could exceed $2 million by sailing out of New Orleans.

 

This isn't new, this is their revenue. If they don't hit their projective sales it's time to move on....

[Illbethejudge]

Very Disappointed in Carnival Cruise Lines right now over dispute for on-board credit. RECOMMEND AGAINST buying credit for future trips. Two years ago, I paid $100 for $200 credit. They say they screwed up, never charged me the $100 (to my CC). I can't prove it one way or another. They want another $100 for the $200 credit. I just want my credit. They say no.

[discjoker]

Very Disappointed in Carnival Cruise Lines right now over dispute for on-board credit. RECOMMEND AGAINST buying credit for future trips. Two years ago, I paid $100 for $200 credit. They say they screwed up, never charged me the $100 (to my CC). I can't prove it one way or another. They want another $100 for the $200 credit. I just want my credit. They say no.

 

What does this have to do with this thread?

[Simplertimes]

Do the math.

$10 x 2,000(or whatever the ship holds)=$20,000

 

Going one step further:

 

$20,000 x 52 weeks = $1,040,000/yr

[ccartman2]

Going one step further:

 

$20,000 x 52 weeks = $1,040,000/yr

 

1,040,000x2 = 2,080,000 since I believe the Elation was 3 & 4 day cruises. Worse case ilt was a combination of 3, 4 & 5 day cruises. pretty sound decision if you ask me.

[madoris]

Its sad that profit is becoming a dirty word in this country.