Did Celebrity Management Get the Message

[Cruise Junky]

Dang, I thought you were going to say that the April 2016 Honolulu to Vancouver was included in the promotion....I was ready to call my TA. See you on that cruise!!!!

 

I got the beverage package on the Honolulu to Vancouver route. It was classified as a Hawaii Cruise not a repositioning or TransPacific cruise.

[bob278]

I got the beverage package on the Honolulu to Vancouver route. It was classified as a Hawaii Cruise not a repositioning or TransPacific cruise.

There's that consistency thing again. We will be on a cruise in August and I will try again. Maybe I'll get a different answer.

[jkgourmet]

I tend to put it all into the cabin price right up front and be done with it :D part of the reason I am looking forward to Suite Perks roll out, even if cabin fare increases a bit to cover those add ons, and if I need a beverage package I buy in advance and upgrade in advance...the times I've bought additional specialty dining again I booked in advance. The cabins I sail in have specialty dining once or 2 times a cruise and then the elite coupons make up a lot of the other extras that were earned with the spend along the way along the way. Not sure what is really left to spend on at that point LOL.

 

Just how I like to budget, I like it all paid for and done so when I go, I have no worries about the bill when I leave the ship! The OBC is just monopoly money then at that point to indulge...!

 

I think that basically after the 1st 2 or 3 cruses, not much need to spend on the extras anymore, and I really don't do shore excursions either or if I do book with 3rd parties or with my group. I really just like to generally vegetate on a cruise to recharge listening to the silence of the waves passing by on the veranda - why the cabin itself is of so much importance to me.

 

Cle-guy, I'm not picking on you personally. In fact, we generally sail the same way (though we book inside cabins, upgrading only when an incentive like 123 requires it.) And MaBell, you are an exception to the usual repeat customer.

 

I've repeatedly posted my 'opinion' (fact) that cruise lines are an anomaly to the normal business model that values and needs repeat customers. Many have disliked that 'opinion' (fact).

 

BUT here we have Cle-guy's comments as an experienced and loyal X customer. This is the perfect example of why the cruise lines want and desperately need NEW customers. They are the ones that spend money on the most profitable revenue areas of cruising.

 

X (and other cruise lines) will continue to change and "improve" their product to attract new cruisers regardless of how it affects the small portion of the vacationers who are Elites. Follow the money to a more profitable bottom line.

Edited May 22, 2014 by jkgourmet

[insidecabin]

I have posted my theory is they are ramping up to go to an all-inclusive program come the 2016 season that will include the equivalent of the classic beverage package in the cruise fare.

 

I also think they will then change from the current $10 +gratuity per day upgrade fee to something more like $15 or $20. Doing this will make people feel like they are getting a bargain, "for only $20 bux I get unlimited good drinks!" without noting the daily cabin fare had increased slightly to cover the initial package. SO now lots more people pay the upgrade fe, and it;'s a higher dollar amount, so it's a bonanza for the revenue generation and profit growth...

 

In order to minimize disruptions at that time, they need to phase out the beverage package as a perk, which would in effect be unnecessary at that time...

 

Sure some already have reservations for that time with the beverage package selection, but those are relatively insignificant in number this far out, and I'd assume they will be sent notification of an option to select the OBC or gratuities that were options when selecting the package.

 

I come to this conclusion based on some comments in an article I read last year where they said they are looking at the Azamara all inclusive model, and another that said a big announcement is coming this October that guests and shareholders alike will be excited about.

 

Doing this would let Celebrity market themselves as the only mainstream cruise line that includes beverages I believe (not 100% positive none of the others do...but as far as I do know, they don't). That would create a lot of buzz in the cruise world.

 

I agree the move is testing the price people will pay for the AI option.

they started with the US and that seemed to go OK so they rolled it out world wide(under various names and combinations) .

UK is still

http://www.celebritycruises.co.uk/cruise-deals/world-of-extras.aspx

 

The need to change the value proposition for people looking at cruises and get themsleves into a unique position.

 

Issue is a lot of people don't drink and the cruise fare may just be too high to keep them.

 

The ACC change,

 

They basicly said we are throwing in more booze(there was plenty anyway and the rest was cheap) giving you a special shore excursion and only want rich people so are putting up the price of all our cruises.

 

 

edit: I think it is also the reason the prices are going up X must be one of the highest priced now for drinks it is setting itself up at the premium end, people that like premium product like to pay premium prices at the bars(think hotels).

Edited May 22, 2014 by insidecabin

[cle-guy]

 

Issue is a lot of people don't drink

 

I'd say it's true SOME don't drink, but reading all these various threads, we see post after post say how many people are drinking and tying up all the bartenders making bar service non existent due to demand.

 

I've read multiple posters state that their TA's have told them the pickup rate for the drinks perk on their bookings is 80%. So while yes some don't drink, seems a vast majority are enjoying the drink perk versus selecting another of the offered perks.

 

And many post that the fares increase when the drinks promotion comes on, and drop when it goes away, so in essence, the drinks and perks/promotions are already being subsidized in the cruise fares, unless all these anecdotal observations from posters are not true.

 

I honestly haven't been able to prove out 100% that the fares do rise and drop, as there are many other factors that are involved in setting the prices, but can see a general trend of this fare/perk relationship over time.

[insidecabin]

I really don`t see X going all inclusive. We too have sailed and loved Azamara, however we have not been back since the prices went up quite a bit. As Elite + we already have pre dinner drinks and Morning Bloody Mary`s and free special coffee`s. We most often have at least $300. OBC. We use that for wine at dinner or Specialty Dine. On our last two week cruise our final bill was $152. and that was with 2 bottles of duty free to take to friends. I know free drink package would not be worth it to us. Nor would the new all inclusive Celebrity.

 

Maybe this is part of the plan, the stats are showing that the loyalty perks mean the loyal customers are are revenue voids so how do we get them to spend money, I know add it to the cruise fare for something they don't need.

[Christine Frances]

Has anyone noticed any price drops since the 123 promo ended last month?

 

 

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[NLH Arizona]

Has anyone noticed any price drops since the 123 promo ended last month?

 

 

Sent from my iPad using Forums mobile app

My January cruise went up $300.

[insidecabin]

I doubt anyone does, but many of us already are.

 

• I never eat breakfast, just a cup of coffee, but I am paying for breakfast foods in my cabin fare certainly.
   
  
• I no longer see the shows in the Theatre, so why am I subsidizing those now?
   
  
• I don't do trivia or any of those games, so why should my cabin fare go towards paying for the staff that run those?
   
  
• I never use the outdoor pool, only the indoor pool. I find the outdoor one's water too chilly for me. So I only want to pay partially towards pool maintenance.
   
  
• I don't like the hot glass show and don't go there.
   
  
• I sometimes eat in specialty restaurants, so why shouldn't I get a credit back for the cruise fare that's paying for my meal in the MDR that night? What about a night I eat in port if it'a a late call or overnight? Or lunch in a port?
  

Maybe everyone should have to swipe their sea pass cards and be charged for everything we do to ensure no one pays for something they don't use.

 

I realize it's a bit extreme, but point is we are all already subsidizing things we all don't use. That so many people take the drinks package when offered as a perk, some here say it's 80% of people take it - though I have no way of knowing for sure - it seems like the majority do use the drinks and therefore having drinks as part of the already subsidized things like meals and entertainment isn't really a far reach. Many here also say the free drinks are actually part of their cruise fare so the argument can't be made that that it isn't already being paid for by those who take it as a perk.

 

What people seem to forget is the micro costing for a lot of stuff just make it convenient to lump it together the numbers are tiny

 

All your food is under $15pd

Cruise directors staff probably less than a $1pd

 

Not sure on the others needs another look at the accounts on the running costs but it won't be much.

 

 

Booze package is somthing like 40% of the average cruise fare and more than 50% of the part of that that is all ship costs.

[cle-guy]

Booze package is somthing like 40% of the average cruise fare and more than 50% of the part of that that is all ship costs.

 

With booze and food costs, one need to measure the actual COST to the company versus the actual Value/Price to the consumer.

 

A 750 ml bottle of Grey goose costs $40 or so pending where you live and buy it from. It will make 16.9 1.5 oz pours of liquor for flavored martinis at martini bar. A martini costs $12. So that bottle will generate $12 x 16 drinks = $192 in revenue, yet cost only say $60 to include costs for the bottle and the mixers and garnish etc. So the ship sees $132 in profit from that bottle, yet as a consumer I see almost $200 in value from those 16 drinks I had over a cruise.

 

And coffee...in school one of our lab projects was to cost out a cup of coffee, include creamer, sugar etc. It was something like 6 or 8 cents all in with the coffee beans etc. but without regard for the equipment needed to brew and the cost of the china to serve it in. Sell it for $5.00 a cup at albaccio even fancied up, lets call it 50 cents in costs for an americano....$4.50 gross profit before ammortized costs and labor....

 

So the cruise WANTS us to take the free drinks, as the cost is relatively nothing to them. The OBC people may use at the spa or someplace else with larger hard costs.

 

What they are doing is getting us used to the perceived value of the package right now, so the value can be transferred into the all inclusive cabin fare. They could raise ALL cabin fares $100 and make money. Especially when some are not huge drinkers. And then if they were to increase the price to "upgrade" people are gonna jump on that upgrade fee as it looks so small for such big benefit.

[jkgourmet]

Maybe this is part of the plan, the stats are showing that the loyalty perks mean the loyal customers are are revenue voids so how do we get them to spend money, I know add it to the cruise fare for something they don't need.

 

The cruise lines already know how to get them to spend more money: Make the product attractive to NEW CUSTOMERS. You said it quute accurately "the loyal customers are revenue voids".

[MVPinBoynton]

I will cruise on X whichever way they go. If it is all inclusive, when there are sales it will be even more attractive. I will say though that all inclusive drinks does devalue the Elite Happy Hour benefit.

[NLH Arizona]

The cruise lines already know how to get them to spend more money: Make the product attractive to NEW CUSTOMERS. You said it quute accurately "the loyal customers are revenue voids".

I don't know if I actually believe that all loyal customers are revenue voids. Certainly some are, just as some new customers will be. There has to be a balance of the loyal customers and the new customers for a cruise line to be financially stable. Just as I think there has to be a balance of the old and new things on the ships. A company can only rest on their laurels for so long (meaning they can't stay the same forever without change) and I think Celebrity is trying to get a more modern feel on the ships. I don't think they are necessarily looking for a particular age demographic (as they have said over and over), but I think they are looking for customers who are willing to experience new and different things. It doesn't necessarily mean that everything must change, but, for example, instead of having an activity person conduct 6 trivia games a day, why not have 2 or 3 and free up that activity person to do some other activities that others on the ship might enjoy. Little changes like this can freshen up the ships in a big way. Same goes for music, don't always have the same type of music playing everywhere, mix it up with current hits and those from years past.

Edited May 22, 2014 by NLH Arizona

[cle-guy]

The best model for the ships to fill and maximize revenue and onboard spend is to get as many new cruisers who will buy everything they see, and then fill the remaining cabins that are unsold to the always reliable loyal customers.

 

Much like hotels have standard rates, then deep discounts for major clients...they know they can count on those loyal clients taking 10-15% of their nightly inventory that will pack the remaining beds after all alternative selling strategies have happened. It's a balancing act for sure.

[Ma Bell]

I don't know if I actually believe that all loyal customers are revenue voids. Certainly some are, just as some new customers will be. There has to be a balance of the loyal customers and the new customers for a cruise line to be financially stable. Just as I think there has to be a balance of the old and new things on the ships. A company can only rest on their laurels for so long (meaning they can't stay the same forever without change) and I think Celebrity is trying to get a more modern feel on the ships. I don't think they are necessarily looking for a particular age demographic (as they have said over and over), but I think they are looking for customers who are willing to experience new and different things. It doesn't necessarily mean that everything must change, but, for example, instead of having an activity person conduct 6 trivia games a day, why not have 2 or 3 and free up that activity person to do some other activities that others on the ship might enjoy. Little changes like this can freshen up the ships in a big way. Same goes for music, don't always have the same type of music playing everywhere, mix it up with current hits and those from years past.

 

They've been doing the things you describe for years.

[Ma Bell]

The cruise lines already know how to get them to spend more money: Make the product attractive to NEW CUSTOMERS. You said it quute accurately "the loyal customers are revenue voids".

 

Wow, what a generalization. Strange, I know a lot of frequent cruisers who are far from revenue voids.

[rucruisn2]

Has anyone noticed any price drops since the 123 promo ended last month?

 

 

Sent from my iPad using Forums mobile app

 

They raised the price of our Dec. cruise and now more so with the take 2 plus. Ends out to be about the same price after the discounts.

[mcrcruiser]

Wow, what a generalization. Strange, I know a lot of frequent cruisers who are far from revenue voids.

 

I agree;) .We tend to spend way more on a cruise than we do on any other vacation