Bad marketing decision?

[SoCal Cruiser78]

...It does seem like they are trying to attract new people to the cruise line and from what I saw last week with many blue cards and with many people that I personally spoke with, they were successful. Now whether or not they cruise with Princess again, who is to say. But it got many people on board.

 

I agree. I saw lots of blue cards on my recent 4-nighter on the Golden, and only one black one that I can recall. Also a surprising number of school-age kids in late September, but for the most part well-behaved.

[Lovetocruiseprincess]

Princess is wasting money by paying their marketing department when they can get all this "free" marketing advice on CC.

 

Considering some of the new marketing decisions that might not to bad of an idea. ;)

[pablo222]

Princess is wasting money by paying their marketing department when they can get all this "free" marketing advice on CC.

 

What's the risk -- they have to give cruises away to get passengers?

 

That's where they are now.

[Iamcruzin]

Princess is wasting money by paying their marketing department when they can get all this "free" marketing advice on CC.

Don't kid yourself. Cruise message boards are loaded with unsolicited candid marketing information. How they use it is another story.

[Lovetocruiseprincess]

What's the risk -- they have to give cruises away to get passengers?

 

That's where they are now.

 

Yea but there were loads of new first time cruisers that may not have taken a cruise if it weren't for the deep discount they offered. I heard lots of comments that they woule love to do it again- very soon.

[Iamcruzin]

Yea but there were loads of new first time cruisers that may not have taken a cruise if it weren't for the deep discount they offered. I heard lots of comments that they woule love to do it again- very soon.

 

 

At what Price? Did they love it so much that they would book at full price with no OBC or with the standard TA discount with OBC? I think they fell in love with the great deal and will now hold out for future deals.

 

 

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[RDC1]

At what Price? Did they love it so much that they would book at full price with no OBC or with the standard TA discount with OBC? I think they fell in love with the great deal and will now hold out for future deals.

 

 

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A percentage will like it and rebook. A percentage will not. It is part of the model those goes into making those decisions. Along with the pricing model. I am pretty sure that Princess with have a pretty accurate estimate based upon their historical data.

 

Most cruise line costs are fixed. It costs pretty much the same to sail the ship mostly empty as it does full. Their profit margin on one board sales is probably 50% or more. So even if they give the same OBC as cruise fare, it would correspond to a 50% sale. Since 1/3 of revenue from a cruise is normally from on board sales then the revenue from those passengers would probably run about 36% of normal. Actually probably a bit better since the OBC will probably result in higher excursion sales, bar sales, etc.

 

If that also results in additional sales in the future then the economics for the cruise line is considerably better.