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Celebrity's Next Big Move???????

2SeaAll

By 2SeaAll,
in Celebrity Cruises

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2SeaAll

2SeaAll

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On another thread reporting on the New Year's sailing of Reflection someone reported on a conversation that took place with the CD as follows:

 

NEW SHIP PLANS FOR CELEBRITY: During his question and answer period at "Behind the Stage Door" on Friday afternoon, Andrew, our cruise director, answered a question about Celebrity's future plans for new ships. He said that Celebrity had built the 5 S-Class ships over a very short period of time and as they opened each new ship, Celebrity would assign experienced persons from the existing ships to the new one and that resulted in staffing and performance problems in some of the other ships. Celebrity realized this problem and has decided not to embark on any new ship construction projects for the next 3-4 years at least. Instead they are concentrating on improving the ships that are already in the fleet with better crews, better on-board entertainment, and new cruise destinations.

 

Andrew then went on to say, (I am not quoting, this is my memory of what he said) I know this might not sound exciting, but I can tell you that within the next year Celebrity is going to make a very exciting announcement that will make our loyal Celebrity cruisers and our shareholders very happy. It will be a significant event in Celebrity history. He gave no further hints or information despite a couple of follow up questions from the audience. So something else we can have fun speculating about on the boards for the next 3 or 4 years as we know that it is what 1 year means in Celebrity time, right!

 

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Can we speculate on what Celebrity is likely to do next -- the "Next Big Move" ???

 

The reference to shareholders makes me believe that it is strategic rather than operational. I cast my speculative vote on the launch (possibly by acquisition, but more likely by start-up) of a river cruise line.

They seem to have concluded both that the premium ocean cruise market is nearing a short to mid-term saturation point in which financial returns and risk do not support new builds [reading between the lines and not stated that way, but plausible that it is their belief], and that they need to pause and consolidate their expansion and lock-down their quality standards [our recent experience is that Celebrity is accomplishing this goal].

In Europe and elsewhere river cruising is expanding faster than ocean cruising. Many dedicated ocean cruisers are now on second, third and fourth visits to certain coastal ports and desperate to find wholly or mostly new itineraries; river and ocean cruises can be connected b2b in many ports. and cross-promoted. The core competencies (hotel and transport) are the same, just different execution ---- and economies of scale can be realized! Finally, from past readings I vaguely recall that buried in RCCL's 10-K is information about their varied interests in Europe, Asia and elsewhere beyond their three brand names familiar to most of us; I found one or two very brief notes indicating that RCCL does have some joint venture/investment interests on a small, quiet scale in river cruising.

 

All just wild speculation on my part based on what I would do if I were in senior management of RCCL; what would you do as THE NEXT BIG MOVE???

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shoelover536

shoelover536

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Inclusion of drink packages (and possibly other add ons) into the cruise fare?

 

Seems that the free classic with 123 go could be them testing this, since prices often go up during the times when the promotion is offered and it is still a success. It could be they were gauging whether having this included was something people like, which a lot of people (myself included) seem to. Just a thought.

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retired067

retired067

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]QUOTE=shoelover536;41302528]Inclusion of drink packages (and possibly other add ons) into the cruise fare?

 

Seems that the free classic with 123 go could be them testing this, since prices often go up during the times when the promotion is offered and it is still a success. It could be they were gauging whether having this included was something people like, which a lot of people (myself included) seem to. Just a thought.

 

I think it's only a matter of time and some forum of the drinks package will be included in the cruise fare.

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CaroleSS

CaroleSS

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Not sure, but I do know that Viking - a big river cruise line - has recently begun doing ocean cruises.

 

Our upcoming river cruise for July is already sold out. Granted there are only 60 cabins, but the European market seems pretty saturated....lots of boats already on the rivers. Not sure what effect more boats on the rivers would do.

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FRMPEI

FRMPEI

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During Mr. Bayley's first President cruise last March(Silhouette) during his Q&A forum he did kind of hint that Celebrity was looking into the idea/expanding all the inclusive theme. This was a year ago and now my memory is a little foggy.

 

Regards,

Kevin Reid

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cruise kitty

cruise kitty

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We had several hints on our cruise that they would be going all inclusive, pricing would include a classic bev pkg (which you could pay to upgrade) & gratuities... makes sense & would align with their goal for increased pricing, I guess we'll see in the next few years if this is true.

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kevinyork

kevinyork

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I hope they dont automatically include the classic package. How will I get my satisfaction from speaking to others that booked when it wasnt on offer???

 

If X become the first mass market cruise line to become 'all-inclusive' then this would be a unique selling point and I reckon would be a success.

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PORT ROYAL

PORT ROYAL

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Posted (edited)
I hope they dont automatically include the classic package. How will I get my satisfaction from speaking to others that booked when it wasnt on offer???

 

If X become the first mass market cruise line to become 'all-inclusive' then this would be a unique selling point and I reckon would be a success.

 

 

With a price reduction for those who do not drink, or do not wish to participate.

Do we have this at the moment?

Could be just a surcharge for a drinks inclusive. Premium only to satisfy all demands?

Edited by PORT ROYAL
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2SeaAll

2SeaAll

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We had several hints on our cruise that they would be going all inclusive, pricing would include a classic bev pkg (which you could pay to upgrade) & gratuities... makes sense & would align with their goal for increased pricing, I guess we'll see in the next few years if this is true.

 

I appreciate the responses and the willingness to speculate. I was very focused on the inclusion of "shareholders" in the CD comments - I translate that to expanded profitability which most classically comes from expanded service offerings e.g. more sailings and/or more ships.

 

I look at the idea of all-inclusive as having several warts:

 

  • Would it increase profitability? Probably yes if the added price was high enough, but not a lock
  • Would the market accept higher all-inclusive pricing by Celebrity? It seems to work (in various permutations) for a few luxury lines whose aggregate passenger load is somewhere between 2-3 S Class Ships. I doubt that Celebrity's demographics, including all passenger classes on all its ships, would broadly support it -- far too much pricing resistance in about 50% +/- of Celebrity's market
  • Could Celebrity's Bars, servers etc. support a scenario where mixed drinks and wines were ordered as freely as sodas/coffee/tea/water because already-included? I doubt it. Service would deteriorate, physical crew quarters for added crew would be strained, may be added customer disorder etc.

All IMHO. I know we are part of the way there with 123 Go, but that next step would be a quantum leap . . . . . but it is possible. Remember not everyone on the ship got on with 123 Go as their promotion and promotions/pricing is cycled as necessary to fill the ships; some people including minors [many more of them onboard Celebrity than luxury lines] are ineligible.

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miched

miched

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I am all for the drink package to be included. I would never purchase it outright for many reasons, and every one is because my wife tells me that I don't need it.

 

When it is included she can't stop me from having it.

 

 

.⛄💨🍻🍸

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Spartan Tartan

Spartan Tartan

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Maybe they will offer a one time or new opportunity to combine past cruise points accumulated on RCL to Captain's Club points. Celebrity allows Azamara points to be combined. Parent company Royal Caribbean owns all 3 cruise lines. Why not honor all the RCL family brand to passengers cruising with RCL, Azamara or Celebrity? Now that would be true reciprocation!

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Adammara

Adammara

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Another option: Land based resorts? Along the Sandals lines...

 

Don't think it will be anything to do with ocean cruising, the market is over saturated at the moment, hence the current discounting.

 

Some P&O ships are rumoured to be sailing with lots of empty cabins at the moment.

 

Richard

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drychi

drychi

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As the original poster of this piece of information I have followed with interest the ideas on this thread. IMHO the river cruise line or all inclusive ideas seem the most compatible with what I believe Andrew was hinting about. He said it in the context of No new ships does not mean Celebrity is not going to take some other type of bold action to advance the brand and excite it's loyal cruisers within the next year. Keep up the speculation and Happy Cruising.

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DebbieMacG

DebbieMacG

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As the original poster of this piece of information I have followed with interest the ideas on this thread. IMHO the river cruise line or all inclusive ideas seem the most compatible with what I believe Andrew was hinting about. He said it in the context of No new ships does not mean Celebrity is not going to take some other type of bold action to advance the brand and excite it's loyal cruisers within the next year. Keep up the speculation and Happy Cruising.

 

River cruises would be exciting! Viking are about to start with the bigger sea going cruise ships and they look great :)

 

I think the key word is loyal, what would excite loyal cruisers?

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