Does a cruise line do better in bad or good economy

[mcatmcat]

Cruise lines offer you a great value for your money depending on how you are looking at it. But is it always true that a great economy is better for a cruise line?

 

 

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[Clarea]

Not an accountant, but they seem to be able to charge higher prices when the economy is doing better.

[Sitzmark]

I can do great vacations for a lot less than what a cruise costs. In a good economy people have more disposable income. A cruise is not a great value, it's just a different type of vacation.

[Lionesss]

Also it probably is affected by supply and demand.

 

If cabins are selling quick, the price would go up......

 

or if getting closer to the sailing date the price will go down......

 

or

 

 

the BOGO offers will be thrown in along the way to confuse us more:eek:

 

Sea Ya

[Cuizer2]

Cruise lines offer you a great value for your money depending on how you are looking at it. But is it always true that a great economy is better for a cruise line?[ATTACH]326333[/ATTACH]

 

 

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If a cruise line charges less for the same product because the economy is in the dumps, then it is making less money. Very few businesses do better in a bad economy than a good economy. The cruise lines do better in a good economy.

[FLACRUISER99]

I can do great vacations for a lot less than what a cruise costs. In a good economy people have more disposable income. A cruise is not a great value, it's just a different type of vacation.

I can be a great value, it just depends on the cruise as each one is different.

[iancal]

We took a number of Med cruises in 2011 and 2012 because we had never seen the prices so low. Plus our currency was very strong. Prices seem higher this year. We will do fewer cruises and more land trips. We usually book inside the final payment window and we are noticing fewer and fewer attractive offers compared to the last three years.

[rjrpar]

I can do great vacations for a lot less than what a cruise costs. In a good economy people have more disposable income. A cruise is not a great value, it's just a different type of vacation.

 

A cruise in an inside cabin for less than $200/couple/night is a very inexpensive vacation. If you are booking higher end suites, I don't think it is a good value

[temple1]

I can do great vacations for a lot less than what a cruise costs. In a good economy people have more disposable income. A cruise is not a great value, it's just a different type of vacation.

 

DS and I both want to do another girls' trip to NYC but each time we look at the numbers - a cruise wins.

 

To stay in the hotel we like in the city it is about $300 per night, if we get a package we don't have to worry about breakfast but lunch and dinner we will need to budget about $40 a day, transportation to the city is not bad we can get a cheap flight for about $200 each if we are careful with our luggage. Shows can run from $50 - $100 each. Museum admissions $10 and up. Ground transportation to and from the airport - $40 or more each plus cabs etc in the city - $50+. Add a cocktail or two at dinner and we are easily looking at $1000 each for a 3 night 4 day trip to NY.

 

OF course the ambiance and excitement is almost impossible to match on a 3 or 4 nighter on Enchantment of the Seas, but as far as my purse is concerned it is a much better deal.

 

On longer vacations we're looking at much higher transportation costs, more meals out, car rentals, hotels, if DH and I are traveling - parking at the airport, etc.

Edited September 28, 2014 by temple1

[negc]

When the economy is performing poorly, more people are likely to defer their vacations than they are likely to take advantage of lower fares. (The lines aren't reducing fares out of the goodness of their hearts, but to try to salvage something out of the situation.) Thus, fewer people are going to sail and those who do will be providing the cruise lines with less revenue. Fewer passengers, lower fares, and reduced on board spending are in no way good for the cruise industry or the economy in general.

[Sitzmark]

DS and I both want to do another girls' trip to NYC but each time we look at the numbers - a cruise wins.

 

To stay in the hotel we like in the city it is about $300 per night, if we get a package we don't have to worry about breakfast but lunch and dinner we will need to budget about $40 a day, transportation to the city is not bad we can get a cheap flight for about $200 each if we are careful with our luggage. Shows can run from $50 - $100 each. Museum admissions $10 and up. Ground transportation to and from the airport - $40 or more each plus cabs etc in the city - $50+. Add a cocktail or two at dinner and we are easily looking at $1000 each for a 3 night 4 day trip to NY.

 

OF course the ambiance and excitement is almost impossible to match on a 3 or 4 nighter on Enchantment of the Seas, but as far as my purse is concerned it is a much better deal.

 

On longer vacations we're looking at much higher transportation costs, more meals out, car rentals, hotels, if DH and I are traveling - parking at the airport, etc.

 

NYC is definitely not a budget friendly town. Having been there for business I can say the only way I'll go back is if someone is paying me. With that said I can rent vacation homes or condos in Florida for less than $100 a day for my entire family.

 

I've traveled to Austria and gone skiing in the Alps for less than a boardwalk balcony on Oasis. Like I said, I don't think its a high value vacation, it's just a different kind of vacation.

[Big_G]

NYC is definitely not a budget friendly town. Having been there for business I can say the only way I'll go back is if someone is paying me. With that said I can rent vacation homes or condos in Florida for less than $100 a day for my entire family.

 

 

 

I've traveled to Austria and gone skiing in the Alps for less than a boardwalk balcony on Oasis. Like I said, I don't think its a high value vacation, it's just a different kind of vacation.

 

 

Does that cover at least three meals a day, shows, and travel to multiple exotic islands? ;)

 

 

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[Sitzmark]

Does that cover at least three meals a day, shows, and travel to multiple exotic islands? ;)

 

 

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Covered everything we wanted, no islands in Austria but we did drive through Bavaria and visited some awesome castles. As I said, it's just a different kind of vacation. I know that many people equate going on vacation with going on a cruise. I just don't see it that way. We have one more cruise booked, but after that I just don't see any reason to continue with them.

[LMaxwell]

All leisure travel industries suffer when the economy is poor and do better when the economy is strong.

[mcatmcat]

Prices seem higher this year. We will do fewer cruises and more land trips.

 

And that's my point. People are saying that the economy is doing better so prices are going up. If more people pick land trips and I don't see how the cruise line will do better

 

 

 

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[temple1]

NYC is definitely not a budget friendly town. Having been there for business I can say the only way I'll go back is if someone is paying me. With that said I can rent vacation homes or condos in Florida for less than $100 a day for my entire family.

 

I've traveled to Austria and gone skiing in the Alps for less than a boardwalk balcony on Oasis. Like I said, I don't think its a high value vacation, it's just a different kind of vacation.

 

$100 a day for a house in Florida? Where was it, in Tallahassee? I'm not in Florida, but a decent vacation house in my neck of the woods is going to run a $1000 a week or more and that is in the winter.

 

So that vacation in the Alps included round trip air and ground transportation plus all meals and evening entertainment? That was a great deal. Which decade? ;)

 

As I mentioned in my original post, we also travel to the west coast. Vacations there we have to factor in airfare for 2, parking, rental cars for a week or more, hotels and food - either 2 or 3 meals a day, fees for sight seeing locations, etc. On our last trip to CA we used points for our flight, points for our car, and points for all but 1 hotel night. We still spent over $1000 for food, sight seeing and a few souveneirs.

[temple1]

And that's my point. People are saying that the economy is doing better so prices are going up. If more people pick land trips and I don't see how the cruise line will do better

 

 

 

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Hotel prices are notably on the rise, along with air fares.

[Sitzmark]

$100 a day for a house in Florida? Where was it, in Tallahassee? I'm not in Florida, but a decent vacation house in my neck of the woods is going to run a $1000 a week or more and that is in the winter.

 

So that vacation in the Alps included round trip air and ground transportation plus all meals and evening entertainment? That was a great deal. Which decade? ;)

 

As I mentioned in my original post, we also travel to the west coast. Vacations there we have to factor in airfare for 2, parking, rental cars for a week or more, hotels and food - either 2 or 3 meals a day, fees for sight seeing locations, etc. On our last trip to CA we used points for our flight, points for our car, and points for all but 1 hotel night. We still spent over $1000 for food, sight seeing and a few souveneirs.

 

That would be this decade. And yes it included round trip air and a rental car. We've been west to Tahoe, also cheaper than cruising. I'm not going to argue it with you, you found something you like so go do it. If you want to say it's the best bang for a buck well I'm going to disagree. If you look around there are other options. Depending on the measuring stick many have a much bigger return on the dollar. If you like cruise ships go do it, don't let my experience of the cost of travel bother you.

[bighairtexan]

Also not everyone lives in FLorida; so even for a cruise many of us have to factor in flights to the port, transfers to the pier, and perhaps a night in a hotel w/ food and beverages.

[orville99]

IMO, comparing cruises to land based vacations is somewhat like comparing apples to aardvarks. In a down economy, on a cruise I can go with a lower category cabin. On a land based vacation, I may have to switch hotels completely, or sacrifice convenience to what I want to do in favor of lower cost accommodations farther away (or even set up a tent in a local campground and cook my own meals) - on a cruise, my accommodations stop exactly where I want them to stop, and move when I want to move. On a land based vacation, I can substitute McDonald's for Ruth's Chris, and still eat - on a cruise, the food is the same if I'm in a suite or an interior cabin. About the only thing that's not variable is how I get to the starting and ending points - if I fly to one, I'm likely to fly to the other, and if I drive, I pick a vacation that fits how far and how often I want to drive.

[OCruisers]

In a robust economy more people have more disposable income to spend on cruises. :D

[2004corvette]

an economy can be faltering in one country while prospering in another.....so with that in mind a cruise line could always relocate their fleet to an area that would benefit them and maximize profits if a given area/country was not producing ships sailing at full capacities....:)

 

to me it is not the economy that has the biggest impact on the cruise industries well-being & financial stability but instead ship disasters (example ~ Costa Concordia ~ onboard fires ~ loss of engines & power ~ etc.) and if any aggressive acts of terrorism directed towards cruise ships was to happen that would be the biggest factor affecting the bottom line and keeping a cruiseline afloat since many including myself would be reluctant to cruise fearing for their own safety & well being both asea and in foreign ports....:(

[fishtaco]

an economy can be faltering in one country while prospering in another.....so with that in mind a cruise line could always relocate their fleet to an area that would benefit them and maximize profits if a given area/country was not producing ships sailing at full capacities....:)

 

to me it is not the economy that has the biggest impact on the cruise industries well-being & financial stability but instead ship disasters (example ~ Costa Concordia ~ onboard fires ~ loss of engines & power ~ etc.) and if any aggressive acts of terrorism directed towards cruise ships was to happen that would be the biggest factor affecting the bottom line and keeping a cruiseline afloat since many including myself would be reluctant to cruise fearing for their own safety & well being both asea and in foreign ports....:(

 

This has been done with Australia the past few years.

 

We have had a stable economy while many others were in crisis. The problem for cruise lines is population numbers, we have a relatively small population but during the world financial crisis our government had enough money to give every man woman and child $1000 each free cash to spend into our economy, not once but twice lol

 

Both Carnival and RCI have a good foothold now in Australia with many more other visiting lines than in previous years but to relocate an entire fleet from US it would have to go to SE Asia and China and then you wouldnt get them back.

 

I simplified the free money bit but it did happen! USA with all its Trillions of spending could have done the same and still would be no worse off with Debt.

 

No wonder so many want to live in Australia, our government gives us free money to spend lol:D:D:D

[iancal]

Cruise ship oversupply can also cause prices to drop. It could be oversupply in general or in one area. I believe that for a time ther were simply too many cruise ships operating in Europe. Carnival pulled theirs our. Alaska was like that this year.

[Cruising.Lovers]

It's all about supply and demand, the cruise lines have it all figured out, they pay people a lot of money to watch the economy, they know how to fill a ship believe me, why is it I pay 329.00 a week from sailing while you on the other hand spent 599.00 for the same cabin