Celebrity's target clientele

[patrioticgirl]

[quote name='tlmlb']
Nothing is wrong with a targeted demographic, however its defined. One should not feel bad if they are not included. It is the market the cruiseline wants to serve in their particular business model, nothing more and nothing less.[/QUOTE]
I think it's the targeted income issue that started the debate here. I don't believe that most people who are [u]not[/u] included in the targeted demographic are upset at all that their income is below those stated in the original posting. It's the implied comments (by a few) that have insinuated that some people who fall below the targeted income level could not possibly even afford to cruise that started the major problem here. Personally, for me, it was the blatant name calling and snide comments, some of which appeared in the worst form last night (like the one that stated that Celebrity will target the people who can afford it and leave the rabble who can't afford it to other cruise lines, as an example) that prompted me to chime in. Whether one fits the demographic doesn't matter to me at all.... I want to enjoy cruising and the positive experiences of it all. I think C2C put it into words quite nicely:
[quote name='C 2 C']
When we cruise we all meet new friends.... those people who share common interests and keep on bumping into one another during the cruise...

Most revolutions correct the errant behavior of people who think too highly of themselves... the rest of us can enjoy the same sunsets, the same beauty that nature provides no matter how different our backgrounds, no matter how fat our bank accounts...

Cruising is a great equalizer when we can turn to someone and say ... "now isn't that grand?"

"[/QUOTE]
I am finished now and have said all that I will say. Good night, ya'll!;)

[hdawson]

I have always felt good about the fact that cruisers seem to meld together so well, regardless of socio-economic background. I've noticed it on all the lines I've sailed. (16 cruises including 5 on Celebrity).

[Sky Sweet]

[b]One of the things I enjoy most about cruising is meeting interesting people from all walks of life. A person's sense of values are much more important to me than their socio-economic class, and I think that most Celebrity cruisers feel this way. For that reason I would never sail on the Queen Mary because it assigns dining rooms based on cabin category, which is like reverting back to the days when ships had three classes, suburbs were guilded ghettos based on religion, and schools were segreated. [/b]

[WeBeCruisin']

[quote name='patrioticgirl']The first night, the gentleman said that his daughter was married to a doctor and had a big home on Long Island .... and that his youngest son had a bachelor's degree from some school and had attended college on a football scholarship......[/QUOTE]

With today's "slacker'" mentality among so many of the younger adults, it's really hard for those of us whose kids miraculously turned out to be responsible adults with a good work ethic to keep from bragging a little. Oh, by the way, let me show you pictures of my five grandchildren.:cool:

Allen

[Lois R]

Hi:)

Gina, I am guessing you didn't want to get into a ****match with the guy....or more than that, a major fight or argument at the table.:( :confused:
IF talking about it back in your cabin is wrong, well, we have ALL probably done that too.
I probably would have thought about it too...but there would have been just me back at my cabin LOL sailing solo and all;)

Hi Allen, bragging about your grandbabies is great! Doesn't sound like that is what the guy at Gina's table was doing.

[patrioticgirl]

[QUOTE=WeBeCruisin']With today's "slacker'" mentality among so many of the younger adults, it's really hard for those of us whose kids miraculously turned out to be responsible adults with a good work ethic to keep from bragging a little. Oh, by the way, let me show you pictures of my five grandchildren.:cool:

Allen[/QUOTE]
Lois, you are exactly right about not wishing to cause any more discomfort at the table.
And Allen, bring on those pictures, I am sure that we'd all love to see them! :) I know that I would enjoying seeing them in most cases, especially since it's always fun hearing about and seeing the things that bring joy to other's lives. Our friend at the table showed pics, as well... but then went onto say how he'd appointed his son his VP at his company right after college and that his daughter did not work, since she was married to a doctor he'd introduced her to! I am sure they were very nice bright children, but in the statements about their accomplishment, everything was centered around how dad had contributed to their successes. It was almost like the kids themselves had little input into the determination of their own destiny. That's where it was a little over the top, IMHO. I don't mind at all when folks brag about their kids, but most parents tend to at least give partial credit to the kids themselves for turning out so nicely! ;) That is one of the fun rewards in being a parent.... or grandparent!:)

[mari10]

[quote name='Sky Sweet'][b]One of the things I enjoy most about cruising is meeting interesting people from all walks of life. A person's sense of values are much more important to me than their socio-economic class, and I think that most Celebrity cruisers feel this way. [/b]

My feelings exactly!
Years ago, one of my clients gave me a plaque that said:

[i]We travel, initially to lose ourselves.[/i]
[i]and we travel next to find ourselves.[/i]
[i]We travel to open our hearts and eyes[/i]
[i]and learn more about the world.[/i]
[i]than our newspapers can accommodate.[/i]
[i]we travel to bring what little we can [/i]
[i]in our ignorance and knowledge [/i]
[i]to those parts of the globe whose riches are differently dispensed.[/i]
[i]And we travel, in essence to become young fools again-[/i]
[i]to slow time down, get taken in[/i]
[i]and fall in love once more[/i].

[easternLIers]

Wow, this thread has really taken some twists & turns! What was that target clientele again?? ;)

[C 2 C]

[quote name='mari10']
[i]We travel, initially to lose ourselves.[/i]
[/i].[/QUOTE]

Website:[url]http://www.beliefnet.com/story/126/story_12639_1.html[/url]

[hcat]

The focus should not be icome but the type of person & kind of cruise experience preferred. I agree that Radiance Class ships are nice looking but it just isn't the same experience. Also not the same people-we do both but after every Royal trip we long for that extra something that we get on Celeb.--This time esp aftre our Easter week on Brilliance. great ship,, nice cruise but many of the clientele were not the best...also some very nice folks--of course!

[mari10]

[quote name='C 2 C']Website:[url="http://www.beliefnet.com/story/126/story_12639_1.html"]http://www.beliefnet.com/story/126/story_12639_1.html[/url][/QUOTE]

Thanks. I love the title:
[font=Arial][b]Falling in Love With the World[/b]
[size=2][color=#999999][b]How travel keeps our minds and hearts awake[/b][/color][/size][/font]

[C 2 C]

[quote name='mari10']Thanks. I love the title:
[font=Arial][b]Falling in Love With the World[/b]
[size=2][color=#999999][b]How travel keeps our minds and hearts awake[/b][/color][/size][/font][/QUOTE]

Would that not be a wonderful theme for any cruise line?

[katiel53]

Babylene and Pins5
Thanks for the nice comments.

Katie

[tlmlb]

[quote name='hcat']The focus should not be icome but the type of person & kind of cruise experience preferred.[/QUOTE]

From a touchy feely fuzzy wuzzy view, sure its a nice sentiment.....however this is not that kind of discussion because if that is only what Celebrity is concerned with, they will be bankrupt in no time.

From a business point of view they have to identify targeted income levels of their customers. They would go bankrupt or only make money by accident if they did not. Income is the best general predictor of how much someone will spend for a particular service. Income, and the expected revenue (fare and on-board) stream, is the most important part of the targeted demographic if you want Celebrity to be profitable and survive.

If they did not consider income in their demographic studies then they would not be a company I would want to invest in or give a hard earned cruise deposit to.


It's too bad that everything has to be so PC that you can't discuss what kind of income Celebrity's desired client earns. If the cruiseline executives do their job, they will do everything in their power to encourage their targeted clientele to be repeat loyal customers. They will also do everything they can to discourage (through advertising, subjective experience, fares etc.) those who do not meet the demographic because they will not generate the needed revenue.

The folks who don't meet the demographic generally will not produce the optimum revenue stream outlined in their business model, those that meet it will. Simple as that.

[Sky Sweet]

[quote name='tlmlb']From a touchy feely fuzzy wuzzy view, sure its a nice sentiment.....however this is not that kind of discussion because if that is only what Celebrity is concerned with, they will be bankrupt in no time.

From a business point of view they have to identify targeted income levels of their customers. They would go bankrupt or only make money by accident if they did not. Income is the best general predictor of how much someone will spend for a particular service. Income, and the expected revenue (fare and on-board) stream, is the most important part of the targeted demographic if you want Celebrity to be profitable and survive.

If they did not consider income in their demographic studies then they would not be a company I would want to invest in or give a hard earned cruise deposit to.


It's too bad that everything has to be so PC that you can't discuss what kind of income Celebrity's desired client earns. If the cruiseline executives do their job, they will do everything in their power to encourage their targeted clientele to be repeat loyal customers. They will also do everything they can to discourage (through advertising, subjective experience, fares etc.) those who do not meet the demographic because they will not generate the needed revenue.

The folks who don't meet the demographic generally will not produce the optimum revenue stream outlined in their business model, those that meet it will. Simple as that.[/QUOTE]

[b]If Celebrity was interested in just attracting affluent cruisers, their fleet would be limited to all suite ships that only sail to exotic ports during prime season. As you know, there is a substantial difference between the fares for their suites and low end cabins, while pricing varies significantly between prime and off season for each itinerary. [/b]

[easternLIers]

One of the reasons the topic got heated was because of the stated( Have an income of $75,000 or more ) line. Is that per cruiser or per household?? I don't know, but if it is per cruiser then Celebrity has set there sights pretty high. It is interesting that they would even set a specific number.

[autumrhythm]

Hahahha.. I have to agree, Celebrity was the best bang for my buck this year. I am really not their type of cruiser. I make $30k a year, have a masters degree and I am 26 years old. However I have traveled all over the world so I guess that makes me well cultured and well educated. Just without the big bucks right now! This is an interesting post!

[Sky Sweet]

[quote name='easternLIers']One of the reasons the topic got heated was because of the stated( Have an income of $75,000 or more ) line. Is that per cruiser or per household?? I don't know, but if it is per cruiser then Celebrity has set there sights pretty high. It is interesting that they would even set a specific number.[/QUOTE]

[b]There is something else to consider. With current interest rates, a retired person would need to have around two million dollars worth of income producing assets, in addition to the equity in their home, to generate an income of $75,000 a year. Since retired people have more time to cruise than people who are still in the work force, I am sure that Celebrity wants to target this group. Does anyone really think that the majority of retired cruisers on Celebrity are multi millionaires?[/b]

[tlmlb]

[quote name='Sky Sweet'][b]If Celebrity was interested in just attracting affluent cruisers, their fleet would be limited to all suite ships that only sail to exotic ports during prime season. As you know, there is a substantial difference between the fares for their suites and low end cabins, while pricing varies significantly between prime and off season for each itinerary. [/b][/QUOTE]

Just wait, this line is evolving. You can tell from their behavior. Look at their discounting policy, look at their advertising campaigns, the addition of Xpeditions, etc. Its all aimed at bringing in a more affluent guest. I was a member of their survey group a while back. If you saw some of the questions they asked it would be pretty apparrent that they want to get out from under competing on price. They want those baby boomers who have substantial bucks.

[Sky Sweet]

[quote name='tlmlb']Just wait, this line is evolving. You can tell from their behavior. Look at their discounting policy, look at their advertising campaigns, the addition of Xpeditions, etc. Its all aimed at bringing in a more affluent guest. I was a member of their survey group a while back. If you saw some of the questions they asked it would be pretty apparrent that they want to get out from under competing on price. They want those baby boomers who have substantial bucks.[/QUOTE]

[b]Do you think they are looking for very affluent guests, or people who are well educated with intellectually challenging careers, who are willing to spend money for a unique cruise experience? [/b]

[Bruin Steve]

One of the reasons the topic got heated was because of the stated( Have an income of $75,000 or more ) line. Is that per cruiser or per household?? I don't know, but if it is per cruiser then Celebrity has set there sights pretty high. It is interesting that they would even set a specific number.

At the risk of offending people again... :)

 

First, I am fairly certain when such numbers are thrown out there, they mean "Family Income" not individual...If one spouse earns $300,000 and the other $50,000, it's not like they intend to market to one spouse and not the other...No, that's a COMBINED $350,000 income and probably a good COUPLE to market to...

 

The problem, again, if I may, is in QUANTIFYING the income at all...

Because annual income is only ONE of a great number of variables that allow one to cruise or not...

 

Truth is, that if you want to cruise, say once each year...be it on Celebrity or any other line, you really need anywhere from around $2,000 to $20,000...

 

If you live near a port city and are willing to sail in an inside cabin during an "off-peak" season...and are willing to search around for those $100 per night or less rates, throw in the tips, a few on board expenses and taxis, etc., safe to say you can cruise, even on Celebrity for around that $2000 mark, all included...

 

If you have to fly long distances, take longer cruises, tack on hotels and a lot of pricey shore excursions and like to book balconies or even suites, you may get up towards that $20,000 mark...

 

But every ship, even Celebrity, has its assortment of cabins from low insides to suites...So, too, it has its assortment of budgets...

 

So, knowing that it takes only about $2,000 for some people to cruise, what income does it really take? Well, it MIGHT take well under $75,000...If you have an income of, say, $50,000 but your home is paid off, you are retired and you don't drive to a job every day and your kids are grown and out of the house and your spending, otherwise, is fairly minimal, you might have enough expendable travel cash to cruise multiple times each year...

 

OTOH, you could make $250,000 a year and live in a $2 million house with a $1.5 million mortgage with 2 kids in private schools, commuting 80 miles each day to work on that $3 per gallon gas...and, at the end of the day, you're running negative...You've got to borrow money just to meet your expenses...so, you're not really able to cruise...at least not without throwing yourself further into debt...

 

So, some marketing geniuses sat around in a room and tried to figure out the "target" clientele...(and there's a valid reason to do this--if you know who your target clientele is, you can diredt your marketing dollars efficiently...If the viewing audience of NCAA College Basketball more reflects that target than the viewing audience of NASCAR races - intended only as an example, not meant to offend, NASCAR fans - then you spend your advertising dollars during college basketball broadcasts, not during NASCAR races)...

 

Well, the marketing guys described a target fairly well - EXCEPT for the attempt to quantify it by a precise dollar amount...

 

And everyone has a different take on the dollar amount...

To some $75,000 sounds like a LOT of money...After all, the average family in America makes only around $30,000...To others, $75,000 sounds awfully LOW - because, in places like Southern California or New York City or San Francisco, it would be extremely hard to survive on $75,000 a year, let alone think about cruising...

 

And there in lies the problem...$75,000 to one person is not the same as $75,000 to another...Average incomes, housing prices, gasoline prices, restaurant and food prices, etc. all vary considerably from place to place...

and spending habits, needs and budgets, etc. vary considerably from person to person...

 

The only real mistake they made was trying to put a quantifyable dollar amount on it...The actual "target" is anyone with a reasonable amount of expendable income...it's that discretionary income that falls in the gap between income, whatever that may be, and expenses...

 

Now, even though you have a target (which is where you direct most of your marketing), it doesn't mean you're looking to drive away or turn down anyone who doesn't fit the description...If someone doesn't have much discretionary income but is willing to save up for a longer period of time and squeeze themselves in at the minimally affrordable range, well...welcome aboard...

 

But, I do think the target...or the idea of targeting a slightly higher level of clientele...is another way of saying "We're not aiming at the "entry level" cruiser, the folks who don't care much what line they cruise, they're just looking for the biggest bargain, the lowest price, the "no-frills, keep costs low" deal...

 

...and, for that, they need to target at people who may not care that much if they pay a few bucks extra- -they're willing to pay for what they want to get...

[tlmlb]

Do you think they are looking for very affluent guests, or people who are well educated with intellectually challenging careers, who are willing to spend money for a unique cruise experience?

 

They want to attrach guests that fit both descriptions. The subjective experience they present is aimed at the latter but they need the affluent to generate enough revenue (because their upscale subjective experience has higher presentation costs than the commodity type (Carnival) cruise).

 

Note, in their demographic the age of guest they want to serve is not the retiree but that of those who are still working. Working people's incomes are generally higher than those who are retired and they don't feel bad about splurging on extras.

 

They also have recognized that guests may change lines as they get older. For example, they may be more likely to go on Holland America than stay with Celebrity. Thet are being smart by trying not to be all things to all people.

[BB5953]

I think whenever people's incomes come up their insecurities come out. X obviously targets people who have expendable income.

 

OT - one thing I have noticed in my line of work is that people with more experience tend to get very insecure when someone with less experience comes in making more $$$.

 

My point is that money is a very gray area especially when you may or may not be speaking to people at opposite ends of the spectrum.

[tlmlb]

 

Well, the marketing guys described a target fairly well - EXCEPT for the attempt to quantify it by a precise dollar amount...

 

Steve,

 

enjoy your posts...

 

I think people don't understand that they have to quantify it because it is the best predictor of what people will spend. Folks that are looking for that bargain 7 day cruise are not the ideal Celebrity client. They want folks who will spend the dollars in the spa, for the excursions etc. Your statement about them not wanting the entry level client is spot on. Its a more sophisticated, refined experience and they are going to make you pay for it.

 

imo, it will be worth it if for no other reason than it provides choice.

[BB5953]

Steve,

 

enjoy your posts...

 

I think people don't understand that they have to quantify it because it is the best predictor of what people will spend. Folks that are looking for that bargain 7 day cruise are not the ideal Celebrity client. They want folks who will spend the dollars in the spa, for the excursions etc. Your statement about them not wanting the entry level client is spot on. Its a more sophisticated, refined experience and they are going to make you pay for it.

 

imo, it will be worth it if for no other reason than it provides choice.

 

I agree! Perhaps the people who took offense were from an area where $75K was a large salary. IMO.