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New Wine Policy - no more whining about wine


kazu
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I am amazed at how many people think that $18 dollars is a fair price for opening a bottle!!!?????????:eek::eek::eek: Why not much less? after all it still all profit!:confused:

 

The average corkage fee at a restaurant is about $20. It's often less in wine country where most diners bring their own bottles. It's often higher in big cities. It's $85 at Jean Georges in Manhattan and $90 at Per Se. The latter two allow a 2 bottle maximum for their corkage fee.

 

Corkage is a way for restaurants to recover the lost profit from wine sales but also helps defray the service cost, glassware, etc.

 

We bring wine with us and expect to pay the fee. We try to make sure that we never bring wines that are on the restaurant's list.

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The average corkage fee at a restaurant is about $20. It's often less in wine country where most diners bring their own bottles. It's often higher in big cities. It's $85 at Jean Georges in Manhattan and $90 at Per Se. The latter two allow a 2 bottle maximum for their corkage fee.

 

Corkage is a way for restaurants to recover the lost profit from wine sales but also helps defray the service cost, glassware, etc.

 

We bring wine with us and expect to pay the fee. We try to make sure that we never bring wines that are on the restaurant's list.

 

Exactly!! That's how we look at it as well :D Well said and explained IMO:D

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Has anyone purchased a wine package, had a bottle opened at one of the bars and then kept at that bar to be poured a glass at a time?

 

Not at a bar but certainly in the MDR. It's even been retrieved for dining in the Lido and the Lido Barbeque. They've never lost one yet.

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Has anyone purchased a wine package, had a bottle opened at one of the bars and then kept at that bar to be poured a glass at a time?

 

We usually bring our own wine for the dining room but always purchase a HAL wine package and have a few bottles delivered to the Piano Bar where they serve my wife one glass at a time. We ask the wine steward we buy the package from to keep the rest of the bottles on hold and request them when we go to the aft Seaview Bar or the Lido Bar for lunch. Never had a problem.

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The average corkage fee at a restaurant is about $20. It's often less in wine country where most diners bring their own bottles. It's often higher in big cities. It's $85 at Jean Georges in Manhattan and $90 at Per Se. The latter two allow a 2 bottle maximum for their corkage fee.

 

Corkage is a way for restaurants to recover the lost profit from wine sales but also helps defray the service cost, glassware, etc.

 

We bring wine with us and expect to pay the fee. We try to make sure that we never bring wines that are on the restaurant's list.

 

Same here POA1.

 

In fact many restaurants will not allow you to bring a wine that appears on their list. This is about CHOICE, not trying to get one over HAL.

 

I thought we weren't "whining about wine" anymore...

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We live in Puerto Vallarta in the winter, and there is a local bar/café owner (who is actually a pretty savvy American) who sells good beer and lousy margaritas for $1. That is $1...all day long. Most of his competitors think he is nutz as they sell the same beer for $2- 4 and their Margaritas often are sold for about $5. But the man (his name is Troy) who sells that $1 stuff has his two places packed all day (and evening) with folks drinking lots of inexpensive booze...and even buying his inexpensive food. While he is make a good profit on volume, many of his competitors that thought he was nutz have already gone out of business for lack of sales.

 

So here is a message for cruise lines. Instead of marking-up some wines over 1000% it might be nice to settle on a simple formula of marking up lower cost wines (say less then $40 retail) by $10 a bottle. And higher cost wines could be marked-up by $20 a bottle. Wine sales would quickly go through the roof, passengers would be happy, they would be willing to try to better wines, and all would be good! Instead, the cruise lines have these ridiculous mark-ups....many passengers settle for a free glass of water...wine sales are not very good...and everyone is sad.

 

We know one local restaurant in the states that marks-up all their wines by only $10 a bottle. Just about every customer in that restaurant buys a bottle of wine..and what the restaurant loses on their low mark-up they more then make-up on very high wine sales and a restaurant that is always full. Folks eat their mediocre food, because they are attracted by the wine. The place next door that marks up his wine by over 300% has lots of empty tables, and not much wine is sold at the full tables.

 

And this idea makes even more sense in alternative restaurants. If the Pinnacle would sell excellent wines at a small mark-up...passengers would be lining up around the block (I guess there are no blocks on ships) to eat at the Pinnacle....even with the new higher prices charged in that restaurant. We often cruise on another line where they get up to $45 a person for some of their restaurants, and they are often not full. So the line quietly discounts that $45 fee to attract more diners. But if they offered good wines at low mark-ups they would not have to discount that $45 fee. If I could buy an excellent $60 wine for $75....I would have no problem paying the $45 restaurant fee. But that $60 wine would now cost me over $250 so there is no way I would buy that bottle...and most of the time we will not even pay the $45 restaurant fee.

 

Hank

 

Your Mexican friend's idea is a sound one - but only in a restaurant that can make a profit selling food.

In Mexico - like many other countries - restaurant owners actually make profit selling meals to people.

In America, only fast food restaurants can make a profit selling food - and that food is Coca-Cola.

If McDonalds started selling soft drinks at cost - maybe 10 cents or so - they would be incredibly busy until they went into bankruptcy a week later.

 

Cruise lines are quite different.

Firstly, we make no profit selling food - even in the specialty restaurants.

The specialty extra charge Steak House on my ship loses an average of US$10 on every passenger we serve (even considering the part of their cruise fare they already paid for the food).

The very last thing I want to do is encourage more people to dine there.

 

Then we need to deal with the accountants.

Have you ever wondered why there are so few wine bars around - even in places like Oregon and California? In wine country, one might expect to find a wine bar on nearly every corner. But no.

 

Most wine bars serve wine at very reasonable prices - which means it is nearly impossible for them to make a profit.

 

The typical land-based bar in America - in order to be profitable and remain in business - must maintain a beverage cost percentage under 15%.

 

If they purchase a bottle of spirits for $15, they must sell it for at least $100.

When they sell spirits by the shot or drink, that is not a problem. In fact, they usually get quite a bit more than $100 for that bottle.

 

Beer is a bit more problematic. If one serving costs them $1, they must charge $7 for that beer in order to make a profit. But often times they charge less, and end up losing money on beer sales.

That's still OK, so long as they serve mostly spirits - making a good profit there and covering the losses on the beer.

 

Then we have wine.

A $10 (cost) bottle of wine must be sold for at least $70 in order to remain profitable at 15% cost. But that's ridiculous. Nobody wants to pay that much money for a cheap bottle of wine.

But so long as they do not sell too many bottles of that wine, they can afford to sell it cheaper - at a loss - and hope to sell enough spirits at a good profit margin to cover for the losses on the beer and wine sales.

 

But if they make the prices on beer and wine too attractive, the average patron will buy mostly beer and wine INSTEAD of spirits - wiping out any profits and putting the bar out of business.

Now you know why most bars in America do not have great wine lists and do not push wine sales. They can't afford to do it.

 

As I mentioned, cruise ships are a bit different.

We don't really sell food - and could never make a profit on it anyway.

 

Then we need to forget that old grandma story about cruise ships getting duty-free alcohol and saving a bundle. It no longer works that way. The average cruise ship that purchases alcohol in US ports pays about the same - or a bit more - for alcohol than the average land-based bar does.

The average cruise ship purchasing alcohol outside the USA pays substantially more in transportation, handling, and warehousing fees.

 

Most cruise line accountants have never worked on a ship - but they have worked for land-based hotel and restaurant companies.

They believe that a cruise ship should make the same beverage profits as a land-based hotel.

We never do, by the way.

 

While a land-based bar or restaurant must make at least an 85% profit on beverage (including the 15% maximum cost) to remain profitable, cruise ships are very lucky to make a 75% profit on beverages (with a 25% cost). We do have the advantage that the beverage department on a ship is not absolutely required to make a profit in order for the cruise line to remain in business. But if we do not make a certain profit there, we are going to have to make up the difference by charging you more somewhere else.

 

Then we have a few other factors to consider.

1. The American public is not very fond of drunks. They disapprove if we push alcohol too actively.

2. More alcohol sales results in more drunks, which results in more fights, accidents, broken bones, and more lawsuits against the cruise line. Already most of the legal departments have put a stop to pub crawls, 2 for 1, and other promotions that encourage more drinking.

3. The Beverage staff, Bar Manager, F&B Director, Hotel Director, Corporate Beverage Manager, Corporate F&B Director, and VP of Hotel Operations all receive bonuses for reaching sales targets AND cost percentage targets in the bars. And of course we all lose those bonuses if we do not reach those targets.

 

So what do we do?

We need to protect bonuses and satisfy the accountants by staying profitable with a good cost percentage, without increasing overall pushing of alcohol in order to remain politically correct and keep our lawyers happy with minimal lawsuits.

 

Easy answer - Concentrate on the high profit / low cost items (spirits), and reduce the opportunities to purchase low profit / high cost items (wines and some beers).

 

Do you see what is happening?

We do not want you to purchase any wine on a cruise ship (and certainly do not want you to increase your wine purchases). But we do want you to purchase other alcoholic beverages. - especially those drinks of the day in the souvenir glasses with the paper umbrellas.

 

And please try to restrict your visits to the extra charge restaurants. My budget can't handle it.

Edited by BruceMuzz
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Your Mexican friend's idea is a sound one - but only in a restaurant that can make a profit selling food.

In Mexico - like many other countries - restaurant owners actually make profit selling meals to people.

In America, only fast food restaurants can make a profit selling food - and that food is Coca-Cola.

If McDonalds started selling soft drinks at cost - maybe 10 cents or so - they would be incredibly busy until they went into bankruptcy a week later.

 

Cruise lines are quite different.

Firstly, we make no profit selling food - even in the specialty restaurants.

The specialty extra charge Steak House on my ship loses an average of US$10 on every passenger we serve (even considering the part of their cruise fare they already paid for the food).

The very last thing I want to do is encourage more people to dine there.

 

Then we need to deal with the accountants.

Have you ever wondered why there are so few wine bars around - even in places like Oregon and California? In wine country, one might expect to find a wine bar on nearly every corner. But no.

 

Most wine bars serve wine at very reasonable prices - which means it is nearly impossible for them to make a profit.

 

The typical land-based bar in America - in order to be profitable and remain in business - must maintain a beverage cost percentage under 15%.

 

If they purchase a bottle of spirits for $15, they must sell it for at least $100.

When they sell spirits by the shot or drink, that is not a problem. In fact, they usually get quite a bit more than $100 for that bottle.

 

Beer is a bit more problematic. If one serving costs them $1, they must charge $7 for that beer in order to make a profit. But often times they charge less, and end up losing money on beer sales.

That's still OK, so long as they serve mostly spirits - making a good profit there and covering the losses on the beer.

 

Then we have wine.

A $10 (cost) bottle of wine must be sold for at least $70 in order to remain profitable at 15% cost. But that's ridiculous. Nobody wants to pay that much money for a cheap bottle of wine.

But so long as they do not sell too many bottles of that wine, they can afford to sell it cheaper - at a loss - and hope to sell enough spirits at a good profit margin to cover for the losses on the beer and wine sales.

 

But if they make the prices on beer and wine too attractive, the average patron will buy mostly beer and wine INSTEAD of spirits - wiping out any profits and putting the bar out of business.

Now you know why most bars in America do not have great wine lists and do not push wine sales. They can't afford to do it.

 

As I mentioned, cruise ships are a bit different.

We don't really sell food - and could never make a profit on it anyway.

 

Then we need to forget that old grandma story about cruise ships getting duty-free alcohol and saving a bundle. It no longer works that way. The average cruise ship that purchases alcohol in US ports pays about the same - or a bit more - for alcohol than the average land-based bar does.

The average cruise ship purchasing alcohol outside the USA pays substantially more in transportation, handling, and warehousing fees.

 

Most cruise line accountants have never worked on a ship - but they have worked for land-based hotel and restaurant companies.

They believe that a cruise ship should make the same beverage profits as a land-based hotel.

We never do, by the way.

 

While a land-based bar or restaurant must make at least an 85% profit on beverage (including the 15% maximum cost) to remain profitable, cruise ships are very lucky to make a 75% profit on beverages (with a 25% cost). We do have the advantage that the beverage department on a ship is not absolutely required to make a profit in order for the cruise line to remain in business. But if we do not make a certain profit there, we are going to have to make up the difference by charging you more somewhere else.

 

Then we have a few other factors to consider.

1. The American public is not very fond of drunks. They disapprove if we push alcohol too actively.

2. More alcohol sales results in more drunks, which results in more fights, accidents, broken bones, and more lawsuits against the cruise line. Already most of the legal departments have put a stop to pub crawls, 2 for 1, and other promotions that encourage more drinking.

3. The Beverage staff, Bar Manager, F&B Director, Hotel Director, Corporate Beverage Manager, Corporate F&B Director, and VP of Hotel Operations all receive bonuses for reaching sales targets AND cost percentage targets in the bars. And of course we all lose those bonuses if we do not reach those targets.

 

So what do we do?

We need to protect bonuses and satisfy the accountants by staying profitable with a good cost percentage, without increasing overall pushing of alcohol in order to remain politically correct and keep our lawyers happy with minimal lawsuits.

 

Easy answer - Concentrate on the high profit / low cost items (spirits), and reduce the opportunities to purchase low profit / high cost items (wines and some beers).

 

Do you see what is happening?

We do not want you to purchase any wine on a cruise ship (and certainly do not want you to increase your wine purchases). But we do want you to purchase other alcoholic beverages. - especially those drinks of the day in the souvenir glasses with the paper umbrellas.

 

And please try to restrict your visits to the extra charge restaurants. My budget can't handle it.

 

Thanks for explaining things. It makes sense. Why hasn't Hal decided they want to make money selling coca cola and water. This baffles me? I'm sure all the sporting venues and concerts make tons of cash selling soda for $4-6 and water for $5. Why do they leave this money on the table and let passengers bring their own? I'd love to know. Thanks

 

P.S. when passengers were given a free Pinaccle dinner with the explorer 4 program they then complained they were assigned a certain time? Rough crowd.

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Then we have wine.

A $10 (cost) bottle of wine must be sold for at least $70 in order to remain profitable at 15% cost. But that's ridiculous. Nobody wants to pay that much money for a cheap bottle of wine.

But so long as they do not sell too many bottles of that wine, they can afford to sell it cheaper - at a loss - and hope to sell enough spirits at a good profit margin to cover for the losses on the beer and wine sales.

 

But if they make the prices on beer and wine too attractive, the average patron will buy mostly beer and wine INSTEAD of spirits - wiping out any profits and putting the bar out of business.

Now you know why most bars in America do not have great wine lists and do not push wine sales. They can't afford to do it.

 

I'm assuming you are simplifying this. Otherwise, we have to assume that you pay $7.80 for Franciscan Chard and $30 for Dom Perignon. If you have a 667 percent markup across the board, (15% wine cost) passengers should expect really good wine service, even better than the Four Seasons & Ritz Carlton.

 

If you really do try to keep a consistent 15% beverage cost, that explains a lot. Soft drinks should have the lowest cost percentage, followed by liquor, draft beer, bottled beer and then wine. (Glasses of wine, then bottles.)

 

Interesting stuff. Thanks.

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I'm assuming you are simplifying this. Otherwise, we have to assume that you pay $7.80 for Franciscan Chard and $30 for Dom Perignon. If you have a 667 percent markup across the board, (15% wine cost) passengers should expect really good wine service, even better than the Four Seasons & Ritz Carlton.

 

If you really do try to keep a consistent 15% beverage cost, that explains a lot. Soft drinks should have the lowest cost percentage, followed by liquor, draft beer, bottled beer and then wine. (Glasses of wine, then bottles.)

 

Interesting stuff. Thanks.

 

I don't work for HAL, so I cannot speak for their markup or service.

But it is common practice to have an average markup on certain categories of beverages (some higher and some lower than the average).

Champagne is a completely different conversation, as most cruise passengers only drink it if it is free. Champagne sales in the cruise industry are near zero - at any price point.

 

Equating price to service quality is a great concept - but I rarely see it very well demonstrated in practice.

 

Starbucks has one of the highest markups on coffee in the business.

They charge you $32 per gallon for so-so coffee that you could make at home for a few pennies - and they don't give you any service at all. You have to wait in a long line to pay the extortion fee.

And they give you a Styrofoam cup?

What's that all about?

At those prices you should get Inari China - and a kiss.

 

The Hilton Hawaiian Village beverage vending machines now sell you a 12 ounce can of Coca Cola for $3.25. No glass, no ice, no napkin, no straw, no lime slice, no smile.

That's about a 1200% markup.

Service quality?

You are lucky to find a machine even working.

 

I fly Asian airlines exclusively because they provide far greater quality and much better service at fares that are much lower than the American carriers.

So much for equating price and service quality..................

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............................The Hilton Hawaiian Village beverage vending machines now sell you a 12 ounce can of Coca Cola for $3.25. No glass, no ice, no napkin, no straw, no lime slice, no smile.

.....................................................

 

 

 

 

And most certainly no kiss :cool:

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I don't work for HAL, so I cannot speak for their markup or service.

But it is common practice to have an average markup on certain categories of beverages (some higher and some lower than the average).

Champagne is a completely different conversation, as most cruise passengers only drink it if it is free. Champagne sales in the cruise industry are near zero - at any price point.

 

Equating price to service quality is a great concept - but I rarely see it very well demonstrated in practice.

 

Starbucks has one of the highest markups on coffee in the business.

They charge you $32 per gallon for so-so coffee that you could make at home for a few pennies - and they don't give you any service at all. You have to wait in a long line to pay the extortion fee.

And they give you a Styrofoam cup?

What's that all about?

At those prices you should get Inari China - and a kiss.

 

The Hilton Hawaiian Village beverage vending machines now sell you a 12 ounce can of Coca Cola for $3.25. No glass, no ice, no napkin, no straw, no lime slice, no smile.

That's about a 1200% markup.

Service quality?

You are lucky to find a machine even working.

 

I fly Asian airlines exclusively because they provide far greater quality and much better service at fares that are much lower than the American carriers.

So much for equating price and service quality..................

 

Ahoy Bruce!

 

Thank you for your reasoned & thoughtful replies. It explains a lot.

 

Logic (profitability-wise) would then lead one to conclude that HAL should encourage everyone to bring aboard a case (plus 1 "freebie" bottle) of wine at embarkation and pay the $18 corkage fee per bottle ($18 X 12 = $216).

 

Thus the $216 would pretty much be 95% pure profit for the cruise line (exempting 5% for the actual corkage & labels that would need to be placed on the bottles at embarkation). It was also reduce transportation costs, warehousing, etc.

 

Hmmm....'food', as it were, for thought.

 

Be well. I enjoy your posts.

Bob:)

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Mr Joseph S Schmoe (representing the Schmoes of Tallahassee) thinks that HAL is regressing to the mean. This is unfortunate. There are many travelers who would prefer to book on NCL if they desired the NCL experience.

 

would I like to bring on wine for free? of course. However, things change. I think the change is a fair meeting of the minds. I am still trying to convince DH of that - but we have been spoiled. For me, it's understandable and fair. We were NCL cruisers for years until things changed - fortunately HAL has not gone that far yet IMO ;)

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would I like to bring on wine for free? of course. However, things change. I think the change is a fair meeting of the minds. I am still trying to convince DH of that - but we have been spoiled. For me, it's understandable and fair. We were NCL cruisers for years until things changed - fortunately HAL has not gone that far yet IMO ;)

 

Jacqui,

 

Those are my thoughts as well. None of us are happy about the change, but we accept it. It could have been worse...they had us on pins and needles for a LONG time, before they announced the corkage fee. Since they waited until the last minute, I was convinced they would not allow a corkage. I never bought a wine skin or whatever they are called for that reason. The last time we were at Costco, I bought a couple of inexpensive bottles of red from Spain and Portugal....because of our experience buying wine there in Sept.! It brings back memories of that trip with every glass I drink!

 

Linda

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Jacqui,

 

Those are my thoughts as well. None of us are happy about the change, but we accept it. It could have been worse...they had us on pins and needles for a LONG time, before they announced the corkage fee. Since they waited until the last minute, I was convinced they would not allow a corkage. I never bought a wine skin or whatever they are called for that reason. The last time we were at Costco, I bought a couple of inexpensive bottles of red from Spain and Portugal....because of our experience buying wine there in Sept.! It brings back memories of that trip with every glass I drink!

 

Linda

 

When we're in Barcelona this fall, I will buy some to bring on board...I found some very good wine for not much money. It will still be worth paying the corkage fee (except for the 2 bottles I can bring on "free"). I became "addicted", I think, to the rose wines I tried from France, Spain, and Italy...so that will be a real treat once again.

 

HAL does not have a rose in their packages. They had one in Canaletto that was good but their "per bottle" prices are outrageous.

 

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Starbucks has one of the highest markups on coffee in the business.

They charge you $32 per gallon for so-so coffee that you could make at home for a few pennies - and they don't give you any service at all. You have to wait in a long line to pay the extortion fee.

And they give you a Styrofoam cup?

What's that all about?

.......

 

Starbucks doesn't use styrofoam cups. For hot liquids, it's paper. For cold drinks, they use plastic. That's what it's all about.

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When we're in Barcelona this fall, I will buy some to bring on board...I found some very good wine for not much money. It will still be worth paying the corkage fee (except for the 2 bottles I can bring on "free"). I became "addicted", I think, to the rose wines I tried from France, Spain, and Italy...so that will be a real treat once again.

 

HAL does not have a rose in their packages. They had one in Canaletto that was good but their "per bottle" prices are outrageous.

 

 

Not sure if you are going to Lisbon, but there is some really good bargains to be had in the 4-8 euro range close to the ship.

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So what has been the experience with folks embarking over the last month with carried on wine? Things did not happen as I expected and I am curious what the boarding scenario has been for others.

 

So what happened? Could you provide a few details?

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I am mildly consoled by the newest version of the policy but can't help but wonder why HAL continue to serve such sub standard wines on board. A helpful exercise might be for them to monitor the labels that guests bring on board to get a real idea of what we actually like to drink, and modify their stock accordingly.

 

RIGHT ON! Why pay big money for cruise and have to lower your accustomed standards because the ship's wines are substandard or outrageously marked up in price.Selections are limited; if stopping in Spain or Italy, Chile,etc, why can;t we taste the local area wines? That is part of the travel and culture experience. This policy and their restrictions are beyond all reason and they are shooting themselves in the foot as they'd really have more wine sales by improving their selections and making more sales with reasonable prices. And for more demanding wine-loving passengers, allow wines in baggage and pay a moderate service charge/corkage when opened at the table.:mad:

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So what has been the experience with folks embarking over the last month with carried on wine? Things did not happen as I expected and I am curious what the boarding scenario has been for others.

 

I am sailing a week from today and would love to hear about your experience wiht the new policy!

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RIGHT ON! Why pay big money for cruise and have to lower your accustomed standards because the ship's wines are substandard or outrageously marked up in price.Selections are limited; if stopping in Spain or Italy, Chile,etc, why can;t we taste the local area wines? That is part of the travel and culture experience. This policy and their restrictions are beyond all reason and they are shooting themselves in the foot as they'd really have more wine sales by improving their selections and making more sales with reasonable prices. And for more demanding wine-loving passengers, allow wines in baggage and pay a moderate service charge/corkage when opened at the table.:mad:

 

I remember the days when they did bring wine onboard. They still bring some local beers on board on certain cruises.

 

you have a choice - bring the wines on board that you want if you want to and pay the fee.

 

I am not a cheerleader but it seems like a compromise to me. We really enjoy our wines when we travel - Europe, Australia, New Zealand, wherever - so going back to Europe I am happy to be able to bring wines on board.

 

If they brought local ones on we probably would not bother, but they don't so until things change - we'll go with the flow.

 

I see no need for wine in baggage - personally if it breaks I don't want your wine spilling into my luggage - it's no big deal to carry it on board - at least not for us.

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