Royal Caribbean UK Chief Hints at Higher Cruise Prices...

[Doc Rick]

Stuart Leven, the managing director of RC in the UK says that since the economy is rebounding, we should expect cruise prices to rise. He believes people will pay a premium to cruise RC vs. other cruise lines because of the "brand" and innovation of Royal Caribbean's ships vs. others.

 

Any thoughts... ?

[orville99]

With four ports and a half dozen cruise lines within driving distance, there are a lot of other choices out there equal to or better than RCI - for us at least. I suppose he can believe all he wants, but every line is innovating and bringing on new fleet, and in economic terms, a rising tide lifts all boats;)

[CapeGal]

That's a pretty arrogant view of his. Hope that he doesn't shot himself in the foot with that.:mad:

[Doc Rick]

I agree with you Orville. People will continue to cruise as long as there is a perceived value, once the value is gone - so will be a lot of loyal customers. I can easily jump on a beautiful NCL ship out of the New York area - which I'm sure is very comparable to RC's ship's amenities. Price will remain an important factor on my vacation decisions.

 

Although We cruise exclusively with Royal Caribbean and Celebrity, if prices rise, we will definitely try other cruise lines if they are competitively priced. It may also be a good time to go back and do a few "all inclusives."

[squadron]

Stuart Leven, the managing director of RC in the UK says that since the economy is rebounding, we should expect cruise prices to rise. He believes people will pay a premium to cruise RC vs. other cruise lines because of the "brand" and innovation of Royal Caribbean's ships vs. others.

 

Any thoughts... ?

 

My computer for the RCI website is set up for CDN dollars which may account for some increase but I've noticed that prices are up quite a bit when I play with a dummy booking as compared to a year ago. I pay a solo rate which means the cost per day is almost at the stage that I may have to look elsewhere - but would like not to as I like the familiarity of cruising with the same line and the perks that I do get. I think the amusement park additions push the prices up - but also feel that many cruisers really don't care about them and probably don't use them.

[negc]

The key to explaining the prices is, as it has always been, supply and demand and all cruise lines will charge whatever they believe the market will bear. Ass long as people perceive that they are getting value for their money, they will pay the going rates. When they perceive the value is lacking, they will hesitate to book and prices will fall. Since the numbers seem to indicate a growing number of cruisers each year, any expectation that prices will remain steady or decline just isn't a reasonable assumption.

[Big_G]

That's not exactly what he said. :rolleyes:

 

Royal Caribbean Blog

“My observation is it is very hard to differentiate between the brands,” Leven said.

“[During the recession], we fell back on the deals that you have to get to fill your ships and that led to price [wars].

“The market is coming out of recession and the more you differ your brand as a brand, then you can charge a premium, and the cruise companies are looking at that now.”

[cruisingsince94]

Prices are already higher in some markets than they were a couple of years ago. I think in the U.S. with so many ships that the Caribbean is oversaturated and deals will still be available. More ships are sailing Alaska and prices have been steady or in some cases dropping. A few years ago the cruise lines shifted focus to Europe and did well until the economy tanked. Now, they feel its returning and the rates reflect it.

All the major cruise lines CEO'S have been touting the Asian market and they are seeing $$$ signs everywhere as they know Asians love to travel and tend to spend freely. RCI is all in and that's evident with their plans to put an Oasis class ship in Europe and Quantum class ship in Asia.

We love to cruise but we have to save and budget carefully to do so. We stick to Celebrity & Royal but if prices continue to rise we also will start to look at other lines.

Edited May 22, 2014 by cruisingsince94

[Dave85]

They seem to be, at least, testing higher prices in markets they think will yield those higher prices. Prime example, Liberty Summer '15 and Anthem Winter '15-'16 out of Bayonne. I haven't followed Liberty Winter '15-'16 in Galveston as closely but I seem to recall people complaining about higher prices there as well. Time will tell if the market accepts the higher price points.

[dz9yvr]

Stuart Leven, the managing director of RC in the UK says that since the economy is rebounding, we should expect cruise prices to rise. He believes people will pay a premium to cruise RC vs. other cruise lines because of the "brand" and innovation of Royal Caribbean's ships vs. others.

 

Any thoughts... ?

 

I think Stu was talking about the cruisers in the UK market. Other than the Oasis/Allure RC isn't perceived to be any different than several other cruise lines and RC doesn't command premium prices in the US for the other ships.

[LuvBNatC]

Fine to talk about raising prices. The ships are all grand but the erosion in dining and service is obvious, so why pay for a badly run Hyatt when you can get the same value at a less expensive Motel 6 (Carnival, NCL)?

 

I think RCI is going through a phase of inflated ego that will be brought into line after their lovely new ship Quantum gets the hell beat out of it in China.

 

Will higher fares offset destruction of the vessel? As a short-term strategy, maybe. Penny wise, pound foolish.

[jticarruthers]

Depends on how you differentiate your brand. If its by offering me better service then I consider that a value, if its by adding gimmicks like the floating eye that I might use once in a cruise then I am not seeing a significant brand value increase that I want to pay more for.

Took me years to swallow the "premium" for Allure (and having paid it once, I don't plan to do it again).

[besberry]

Plenty of other cruise lines sailing out of UK. Maybe it's time to try them. Or wait until a couple of weeks before sail date and grab a bargain then!

[BamaGuy44]

Fine to talk about raising prices. The ships are all grand but the erosion in dining and service is obvious, so why pay for a badly run Hyatt when you can get the same value at a less expensive Motel 6 (Carnival, NCL)?

 

I think RCI is going through a phase of inflated ego that will be brought into line after their lovely new ship Quantum gets the hell beat out of it in China.

 

Will higher fares offset destruction of the vessel? As a short-term strategy, maybe. Penny wise, pound foolish.

 

Could be, but none of us really have enough information to have any idea what's a good or bad long term strategy for RCI. I remember when the Oasis class was announced. The general consensus among the armchair analysts was that it would be the death of RCI. Guaranteed doom.

 

RCI is run by morons, obviously nobody will want to sail on those ridiculous giant floating theme parks, blah blah. I'm pretty sure that worked out ok. Not everyone loves them but the demand is high enough to make them build 2 more.

[Adayatatime]

Maybe p&o will come down in price then - from a UK perspective I don't think RC is any better than P&O, they just work out cheaper for us. They are in competition with P&O in the UK

[Adayatatime]

Plenty of other cruise lines sailing out of UK. Maybe it's time to try them. Or wait until a couple of weeks before sail date and grab a bargain then!

 

I agree.

[Tyron]

RCI and the rest of the cruise industry will get a run for their money once MSC newest ship enters the market.

 

http://www.travelweekly.com/Cruise-Travel/MSC-Cruises-places-order-for-two-4170-passenger-ships/

 

 

[Dave85]

RCI and the rest of the cruise industry will get a run for their money once MSC newest ship enters the market.

 

http://www.travelweekly.com/Cruise-Travel/MSC-Cruises-places-order-for-two-4170-passenger-ships/

 

 

 

 

That's one interesting looking ship!

 

 

Sent from my iPhone using Cruise Critic Forums mobile app

[BamaGuy44]

RCI and the rest of the cruise industry will get a run for their money once MSC newest ship enters the market.

 

http://www.travelweekly.com/Cruise-Travel/MSC-Cruises-places-order-for-two-4170-passenger-ships/

 

 

 

Intreresting, I'm curious what that black structure on the top is

[framboesa]

I cruise other lines too... until now i prefer Royal Caribbean, but there are plenty of cruise lines to chose :)