New Trends in Cruising

[MissBreezy]

Not trying to start another passenger age/celebrity sucks thread but I found this article really fascinating. It starts out mostly geared toward what RCL is doing to attract new customers but really gets into the reasoning and science behind why there seems to be such a dramatic change in the cruising experience....good and bad.

 

http://www.buzzfeed.com/peterlauria/royal-caribbeans-newest-ship-represents-a-critical-test-for

 

This site doesn't usually do such long form informative articles, 'twas a good read!

[cruzsnooze]

One myth it clarified is that revenue comes from other then tickets when it states 75% of revenue comes from tickets and single digit revenue from drinks, shore excursions and other ways.

[richsea]

Great article! It seemed factual, & full of keen insights. Nice to read something in the media that is not predicated on sensationalism. Thanks for sharing it!

[AnJ]

Interesting read... Thanks for the link.

[USNUZULOOSE]

I would love to try it. The new dining sounds like it will be good. All different kinds of food to try.

[Seatbelt_Bag_LOVE]

Interesting read. I think the part about younger people being put off by cruising is pretty accurate. My husband and I are early 30s, and it has been extremely difficult to convince any of our friends to cruise with us. It would have been interesting to see what the individual profit margins are for the different Royal Caribbean brands and also Disney's profit margin.

[Happy2cruise]

Thanks for posting.....interesting article.

[Elusive_Cruiser]

Thanks for sharing this article. It is, indeed, very interesting and insightful.

 

A thought for the cruise lines would be to offer incentives for the 50somethings to cruise with, and introduce, their 20 & 30 yr old children. We're doing this in Feb 2015 and are excited to see how they enjoy it. We've chosen the itinerary carefully to make sure they get exposed to a variety of what the Caribbean has to offer. Hoping to do our part to create a younger generation of cruise addicts!

[cle-guy]

One myth it clarified is that revenue comes from other then tickets when it states 75% of revenue comes from tickets and single digit revenue from drinks, shore excursions and other ways.

 

This is proven out in RCI's annual 10k SEC stock filings.

 

However over time, as cruise fare itself stays steady while expenses rise, the ancillary revenues will trend up, but it would be hard for them to approach more than half.

[existentialtraveler]

Not trying to start another passenger age/celebrity sucks thread but I found this article really fascinating. It starts out mostly geared toward what RCL is doing to attract new customers but really gets into the reasoning and science behind why there seems to be such a dramatic change in the cruising experience....good and bad.

 

http://www.buzzfeed.com/peterlauria/royal-caribbeans-newest-ship-represents-a-critical-test-for

 

This site doesn't usually do such long form informative articles, 'twas a good read!

 

I found the crime rate, illness rate and profit percentage statistics particularly interesting. Finally, some real facts.

[hcat]

It was interesting to read the aftilce, but feel we are lucky to have enjoyed crusing under the old style. much more quality, less hype and gimmicks than now. Wonder if they are correct in guaging what new pax really will enjoy.

 

We found our recent cruise on Oasis to be an anonymous experience except for the Diamond gathering each evening and a stop in at the Lounge for morning coffee. Did not feel like a cruise ...just a large barge with many people scurrying by.

 

We enjoyed the aft adult only garden spa area, and our dtr and her bf enjoyed the zip line and surfing but they also felt a certain lack of connection having been on smaller cruise ships.

 

It was essentailly a floating mall with a mediocre food court and unremarkable shops. As to Specialty Restaurants, while we enjoyed Giovannis table, Chops, and the Aqua spa type cafe in the evening, none were as good as Celeb dining or spedialty venues on other Royal ships.

 

Becasue we had to reserve ahead for shows and events, we felt less freedom then on a traditional ship where you just show up to things...in the end pehaps bigger and more choices may not equal better and repeat cruisers loyal to brand. While we would return to Royal now and then as we have in the past we would not consider Allure, Oasis or Quantum..

 

For the direction cruise lines must take...Time and the bottom line will tell.

[MissBreezy]

Great article! It seemed factual, & full of keen insights. Nice to read something in the media that is not predicated on sensationalism. Thanks for sharing it!

 

Yeah, I quite enjoyed the read considering it didn't come from some huge provocative news story as well. I do like the previous poster's suggestion that they offer incentives for established cruisers to get the younger set involved in cruising. Our cruise in September is one were taking with DH's parents so that's very much the scenario for us (except we are paying for ourselves).

 

It seems they are in quite the bind, having to balance costs and adapt to the new trends in travel without alienating their current clientele. It's seems complicated!

[Johnny Heedless]

One myth it clarified is that revenue comes from other then tickets when it states 75% of revenue comes from tickets and single digit revenue from drinks, shore excursions and other ways.

 

Revenues and margins are two very different things...

 

While 75% for their revenues comes from tickets, there is very little margin in those revenues. On the other hand, the remaining 25% of revenue is extremely margin rich.

 

Companies exist to grow margins, not to grow revenues.

[cpj]

Revenues and margins are two very different things...

 

While 75% for their revenues comes from tickets, there is very little margin in those revenues. On the other hand, the remaining 25% of revenue is extremely margin rich.

 

Companies exist to grow margins, not to grow revenues.

 

I think they exist to do both. Hard to increase margins if revenues are down. Also they look at dollars earned. You can increase dollars earned if revenues are way up and still have the same margins. Pecentage is not that important as to total dollars earned.

[Iamcruzin]

I enjoyed the read. Thanks for posting

 

 

Sent from my iPhone using Tapatalk

[chamima]

Interesting article.

Thanks for posting.

 

What I STILL fail to understand is why the parent company of RCCL doesn't understand they can't be all things to all people successfully.

Why not aim at attracting younger people with their Royal Caribbean line and then leave Celebrity as a little more upscale line to move into as their tastes mature?

Since they own both lines (and loyalty "rewards" even cross over) why not distinguish each separately and profit from both markets?

That used to be the direction they were going in but lately seem to have adopted the all things to all people philosophy.

[fortinweb]

While interesting, it's unfortunate that the author relies on the owner of CruiseJunkie.com as a source of information. That site's only intention is to post negative information about the cruise industry. It is not at all "fair and impartial", and information posted there is never positive, and often sensationalized. Whenever statistics from biased sources with negative agendas are introduced, it makes the information in the entire article suspect. What other misleading statistics has the author introduced?

Edited April 17, 2014 by fortinweb

[mcrcruiser]

Thanks .I enjoyed reading the article ;).We would enjoy the food variety ,bumper cars ie ;but ,not going to the Caribbean ;as we have seen it all .

 

We would like to see this new ship sail the West Coast Pacific waters :p

[NLH Arizona]

Interesting article.

Thanks for posting.

 

What I STILL fail to understand is why the parent company of RCCL doesn't understand they can't be all things to all people successfully.

Why not aim at attracting younger people with their Royal Caribbean line and then leave Celebrity as a little more upscale line to move into as their tastes mature?

Since they own both lines (and loyalty "rewards" even cross over) why not distinguish each separately and profit from both markets?

That used to be the direction they were going in but lately seem to have adopted the all things to all people philosophy.

I'm glad that RCCL is trying to attract younger people to Celebrity; there needs to be a mix of ages, not just one age group, it will keep the line fresh and exciting. Also, many younger cruisers are not interested in the bumper cars, ziplines, etc. which are on some of the newer ships and wants the cruising experience that Celebrity offers and if you just cater to the mature customer, they will be forced to go to another cruise line.

 

And let's not forget brand loyalty. There are cruisers on every line that would never consider cruising on another line, even if it is a sister line. So, if Celebrity only caters to the mature traveler, by attrition over the years, they might not have enough customers to fill their ships.

Edited April 17, 2014 by NLH Arizona

[boogs]

Thanks .I enjoyed reading the article ;).We would enjoy the food variety ,bumper cars ie ;but ,not going to the Caribbean ;as we have seen it all .

 

We would like to see this new ship sail the West Coast Pacific waters :p

 

According to Cruise Critic news:

 

Quantum of the Seas, Royal Caribbean's splashy new build that debuts in November 2014, will make Shanghai, China, its homeport beginning in May 2015.

 

The ship will sail out of Cape Liberty in Bayonne, New Jersey, as scheduled before redeploying to China in spring 2015.

 

Full article at: http://www.cruisecritic.com/news/news.cfm?ID=5821

Edited April 17, 2014 by boogs

[chamima]

Interesting article.

Thanks for posting.

 

What I STILL fail to understand is why the parent company of RCCL doesn't understand they can't be all things to all people successfully.

Why not aim at attracting younger people with their Royal Caribbean line and then leave Celebrity as a little more upscale line to move into as their tastes mature?

Since they own both lines (and loyalty "rewards" even cross over) why not distinguish each separately and profit from both markets?

That used to be the direction they were going in but lately seem to have adopted the all things to all people philosophy.

 

I'm glad that RCCL is trying to attract younger people to Celebrity; there needs to be a mix of ages, not just one age group, it will keep the line fresh and exciting. Also, many younger cruisers are not interested in the bumper cars, ziplines, etc. which are on some of the newer ships and wants the cruising experience that Celebrity offers and if you just cater to the mature customer, they will be forced to go to another cruise line.

 

And let's not forget brand loyalty. There are cruisers on every line that would never consider cruising on another line, even if it is a sister line. So, if Celebrity only caters to the mature traveler, by attrition over the years, they might not have enough customers to fill their ships.

 

 

I never said mature traveler - I said as people's tastes mature.

Our children, now in their 20s and 30s, cruised with us a teenagers and, maybe as a result of all that cruising, have no desire for all of the "amenities" that Royal Caribbean offers but prefer the things you describe as for mature (read "old") customer.

My point, which I guess I failed to make, is why not distinguish each line within the parent company as offering something different?

[NLH Arizona]

I never said mature traveler - I said as people's tastes mature.

Our children, now in their 20s and 30s, cruised with us a teenagers and, maybe as a result of all that cruising, have no desire for all of the "amenities" that Royal Caribbean offers but prefer the things you describe as for mature (read "old") customer.

My point, which I guess I failed to make, is why not distinguish each line within the parent company as offering something different?

They do offer something different. On Royal Caribbean they offer bumper cars, skydiving, some type of capsule that goes 300 feet above the sea, etc. Don't think I have ever seen any of these on a Celebrity ship. Your children may like the more mature activities, but not all children like the same things. My friends grandchildren want all the bells and whistles, while another friends teen daughters think they are silly. BTW, mature is middle aged and up.

 

I think Celebrity is going in the right direction; let's freshen up things, get some new activities that appeal to different age groups, not just one or two, play music at different venues so everyone can enjoy some music, not just a few, etc. I enjoy cruising with all age groups and hope Celebrity continues to try and woo both young and older age groups to the line. It would be pretty boring to me if everyone were my age!!

[Beachdude]

It was interesting to read the aftilce, but feel we are lucky to have enjoyed crusing under the old style. much more quality, less hype and gimmicks than now. Wonder if they are correct in guaging what new pax really will enjoy.

 

We found our recent cruise on Oasis to be an anonymous experience except for the Diamond gathering each evening and a stop in at the Lounge for morning coffee. Did not feel like a cruise ...just a large barge with many people scurrying by.

l.

 

I also feel lucky to have enjoyed the old style cruising. I call it elegant cruising.

 

But cruising use to be a luxury that requires an above average cost for vacationing. Cruise lines now are marketing for a more affordable demographic and those folks prefer a resort type vacation over luxury and elegance. It seems the party barge is the new cruise ship and the cruise experience is being redefined. Also, the changes are more reflective of increasing the margin by reducing the staff. The restaurant changes we see on Royal Caribbean reduce the staff that is normally required in the MDR. That I think is the main driver for that change, and one that we will eventually see on other cruise lines.

 

Americans on vacation think of meals differently. Americans eat to satisfy their hunger pains. They like to get in and get out in less than an hour. And the less dressy, the better. Most other nations, especially Europeans use their evening meals an event for social gatherings with friends and family. They typically enjoy spending a couple hours dinning and like to dress more formally than Americans. So it will be interesting to see how the cruise lines adapt to these arrangements in other parts of the world

 

Burt

[wallie5446]

I'm glad that RCCL is trying to attract younger people to Celebrity; .

 

I feel they always have, we sailed Celebrity the first time in 1994, I was only 40, the wifester was 37. we took our kids 12 & 7. Dec 2000 at 17 for her Christmas gift the DD said she wanted to cruise on the Horizon out of Aruba, this was well before RCCL bought them. So I dont quite get that X has marketed itself to an older passenger.

[tarheelmjfan]

Americans on vacation think of meals differently. Americans eat to satisfy their hunger pains. They like to get in and get out in less than an hour. And the less dressy, the better. Most other nations, especially Europeans use their evening meals an event for social gatherings with friends and family. They typically enjoy spending a couple hours dinning and like to dress more formally than Americans. So it will be interesting to see how the cruise lines adapt to these arrangements in other parts of the world

 

Burt

 

That's not true of many Americans. Our #1 priority on vacation is excellent food. We also like dressing up on occasion. That includes my DH & DS. That was the good thing about Celebrity. X offered everything we look for in a vacation, with the added benefit of a moving ocean view. After a disappointing cruise on Mercury several years ago, we took a break from cruising. For our 20th anniversary a year & a half ago, we decided to take another cruise. We spent our honeymoon at sea, so it was the natural choice. We chose itinerary first & went with Princess. The food was not up to par with what we experienced on Celebrity & formal nights were formal in name only. I felt very overdressed. We decided to return to X in the near future, but it appears it's no longer the cruise line we remember. I'm glad I came here to read about the changes to get a better feel for the way things are now. Realistic expectations are important on any vacation. When we sail with X again, we'll know what to expect.