Royal Caribbean to Cruisers: Stop Expecting Last-Minute Discounts

[Canadian Tyler]

Haven't seen a thread for this yet, but apologies if I've missed it.

 

http://www.businessweek.com/articles/2014-10-27/royal-caribbean-to-cruisers-stop-expecting-last-minute-discounts?campaign_id=yhoo

 

I'm one of the early birds, but I wouldn't say it bothers me that there's last minute deals. They simply don't affect me, nothing I can do. I see it as a way to fill the ship, make onboard revenue that in turn subsidizes my rates in a way. Less onboard revenue = higher fares in the beginning IMO.

[jticarruthers]

Generally I am with you, I book way ahead with a good rate and get my choice of rooms.

 

It can be a little frustrating at the last minute though to see both great rates and good choice available (like my Thanksgiving cruise in 20ish days that has rates falling like a rock and great cabins still open, couple of Aft E1s, etc.)

[Winston Wolf]

 

I'm one of the early birds, but I wouldn't say it bothers me that there's last minute deals. They simply don't affect me, nothing I can do. I see it as a way to fill the ship, make onboard revenue that in turn subsidizes my rates in a way. Less onboard revenue = higher fares in the beginning IMO.

 

A good perspective to have!

 

We book early too. Room location and type are more important to us. It allows us to plan our calendar way in advance and gives us something to look forward to. Our lives simply don't allow for last minute vacations like this right now.

Edited October 29, 2014 by Winston Wolf

[njmomof2]

I don't plan last minute, but I buy the air in advance and then wait to see which cruise will work.

 

I booked our August 2014 cruise in June, and about 3 weeks later prices dropped way down...about $250/pp. I ended up upgrading to connecting JS cabins for only $100/pp which I was happy with.

 

Now I was hoping to do the same for next year, but the air prices, which I purchased in October 2013 (at $214/pp rt) are running over $400 for the same flights for 2015. No way am I paying that, at least not this far out.

 

So I'll sit and watch and wait for something to come into my price comfort zone before I buy.

[OKC Cruisers]

Haven't seen a thread for this yet, but apologies if I've missed it.

 

http://www.businessweek.com/articles/2014-10-27/royal-caribbean-to-cruisers-stop-expecting-last-minute-discounts?campaign_id=yhoo

 

I'm one of the early birds, but I wouldn't say it bothers me that there's last minute deals. They simply don't affect me, nothing I can do. I see it as a way to fill the ship, make onboard revenue that in turn subsidizes my rates in a way. Less onboard revenue = higher fares in the beginning IMO.

 

Hey, Tyler! We sailed together not that long ago and did the Cozumel Bar Hop with you! I still have the keychain you gave me! We are early bookers as well. We are also of the same opinion. I understand that the cruise lines want to fill the ships up by offering deep discounts at the last minute. Why have an empty cabin which generates zero revenue when you can get someone in the cabin at a reduced rate and have them still generate revenue from drink sales, on board shopping, etc. I don't believe that I am necessarily due the same price. I knew how much I was spending when I booked originally.

 

Conversely, I don't want the cruise line charging me more if the rate of my category cabin goes up. Fair is fair when it comes to fare.

 

Pete

Edited October 29, 2014 by OKC Cruisers

[Robo1098]

The way I read that story is there will be less total cabins available. That is why there will be less discounting. Moving more ships to Asia. I have never understood people getting mad about prices going down at the last minute. People book early usually to get a better choice of cabins. It's all a game if you want the lower fare wait and take your chances. If you want a certain cabin book it and enjoy the vacation.

[Canadian Tyler]

Hey Pete! Hope all is well. Didn't get a chance to chat as much on bard as I had hoped. I think the fog the first night threw everything off!

 

Good points. I just don't see how they believe late booking discounts impact customer satisfaction so much. I couldn't care less how much the people beside me paid. Will be interesting to see how this plays out.

 

 

Sent from my iPad using Tapatalk

Edited October 29, 2014 by Canadian Tyler

[arkking]

If I reserve and price goes down I want it. After I pay in full I quit watching

 

 

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[deedeetoo]

I think making a statement like this is pretty funny. If they want people to stop expecting last minute discounts, then they should stop offering them. As long as they continue to offer them, people will expect them. Actions speak louder than words.

[DirtyDawg]

I think making a statement like this is pretty funny. If they want people to stop expecting last minute discounts, then they should stop offering them. As long as they continue to offer them, people will expect them. Actions speak louder than words.

 

This statement was not just for Royal's potential customers. It was also for the company's shareholders (See we are doing things to try to improve profitability), and I suspect for the CEO's of the other two large cruise companies (OK guys between the three of us we have a 75% market share in this industry. Can we now try to practice a little more pricing discipline? nudge, nudge ;) ;)).

Edited October 29, 2014 by DirtyDawg

[cruisegirl06]

We'd been watching the Navigator thanksgiving sailing for almost a year. Prices were high and we didn't book until they just had a huge sale last week - wound up with 2 rooms for significantly less than 1 room would have cost with normal "sale" pricing we'd been seeing (don't get me started on their 3rd/4th person rates, but I will gladly take the extra space!) if prices had been more moderate all along, we may have booked a while back, paid a bit more and been happy. But I'm not willing to pay the recent "kids sale free" or similar sale prices for many of these cruises.

 

If they can fill the ships without last minute rates, more power to them. But, as long as I've been cruising, I can remember last minute sales.

[silentbob007]

We've heard this tune before. Sure ... It's definitely true in the summer when the ships are scattered everywhere. However, come the winter, there is still a ton of inventory to fill to the Caribbean. Even with a few ships being sent elsewhere, there is still a lot of capacity in production right now.

 

I think they believe they made a mistake with their price guarantee a few years ago. They trained people to be vigilant about price drops ... something not a lot of people were aware of outside of cruise critic and honest, hard working travel agents. Now they want it to be like most airline travel ... book it and forget it ... though use our website to upgrade your experience. I just don't see them letting too many empty cabins go ... if there are fewer people drinking, gambling, shopping, tipping, and taking excursions they are going to feel the pinch more than letting a few hundred passengers onboard at bargain prices. There are just too many fixed costs to make this viable no matter how much the lines wish it to be true.

[jewopaho]

We've heard this tune before. Sure ... It's definitely true in the summer when the ships are scattered everywhere. However, come the winter, there is still a ton of inventory to fill to the Caribbean. Even with a few ships being sent elsewhere, there is still a lot of capacity in production right now.

 

I think they believe they made a mistake with their price guarantee a few years ago. They trained people to be vigilant about price drops ... something not a lot of people were aware of outside of cruise critic and honest, hard working travel agents. Now they want it to be like most airline travel ... book it and forget it ... though use our website to upgrade your experience. I just don't see them letting too many empty cabins go ... if there are fewer people drinking, gambling, shopping, tipping, and taking excursions they are going to feel the pinch more than letting a few hundred passengers onboard at bargain prices. There are just too many fixed costs to make this viable no matter how much the lines wish it to be true.

We'll see ... looks like a battle between supply-and-demand and the adage that empty staterooms produce zero revenue. The result will likely be somewhere in the middle.

 

We've got five Royal Caribbean cruises booked ... from 12/2014 (W. Caribbean) through 2/2016 (Australia) ... so when we book is inconsequential. We have the time, so we've been able to take advantage of those last-minute incentives ... we've cruised for as little as $400/week (can't afford to stay home at those prices), and are currently booked in a balcony stateroom at just over $700/pp including all taxes and prepaid gratuities. If they're offering it, we're taking it ... but if the policy changes, we'd likely cruise a bit less. It has nothing to do with price ... we won't be getting those e-mails, so there won't be anything to consider.

 

Interesting to see how this plays out ...

 

Al

[Biker19]

This sort of played out on the Legend TA last month. There were over 100 cabins available up till final payment and prices were quite high - no inventory sold. The regular cabin rates stayed the same all the way to sailing. However, at 30 days out, they offered crazy low Z GTY rates ($409 for a 16 night sailing w/ 5 ports). Then, when all the insides were gone, they discontinued the Z rate and nothing else sold. In the end the ship sailed with about 60 empty cabins (~8%). It was quite unusual to see no price movement when clearly nothing was being sold at those high prices.

[danielsumner]

I'm one of those that only book last minute. I just love a great deal. Now that I'm retired it's even better. My favorite cruise line has been Holland. Booked the Freedom of the seas last year this time, great deal. Same this year, leaving on Sunday on the Freedom. Promenade Cabin, taxes and gratuities for less that a thousand bucks for two people. We live within driving distance (5 hours) so no airfare. We lived in Miami for 30 something years. Cruises are plenty and cheap last minute. Before 9/11 we many times booked on a Wednesday and cruised on Saturday. Those were the really cheap days. I however do not book GTY rates, I like to have cabins in the front of the ship. I'm not loyal to any one cruise line. We were on the Royal Princess in April (Another wonderful last minute deal). If they cut out last minute specials, they are going to lose a huge source of revenue and will sail with a lot of empty cabins.

[LMaxwell]

With $100 rate for 4 night Majesty next let's just say I don't expect higher rates on last minute deals for 3, 4, 5 night cruises any time soon.

[robtulipe]

This sort of played out on the Legend TA last month. There were over 100 cabins available up till final payment and prices were quite high - no inventory sold. The regular cabin rates stayed the same all the way to sailing. However, at 30 days out, they offered crazy low Z GTY rates ($409 for a 16 night sailing w/ 5 ports). Then, when all the insides were gone, they discontinued the Z rate and nothing else sold. In the end the ship sailed with about 60 empty cabins (~8%). It was quite unusual to see no price movement when clearly nothing was being sold at those high prices.

 

Well it's not playing out that way for the Serenade 16 nights TA we are going in a week. It was an almost sold cruise and the few remaining cabins were at a high cost then about three week ago over 60 cabins, almost all balconies, became available. The price is now down to $426US for a Z inside gty.

Our friends booked one of these to join us on this cruise and are waiting for their cabin to be assigned. There are currently only three insides showing available, two Cat K and a Cat F. For a while there were no insides or OV cabins available and the Z gty was still showing. That's when they booked. To select a K cabin would have and still cost double.

Currently there is even more balconies available, 64 to be exact and three OV cabins so an upgrade cabin for them is a good possibility.:)

Edited October 30, 2014 by robtulipe

[Biker19]

Well it's not playing out that way for the Serenade 16 nights TA we are going in a week. It was an almost sold cruise and the few remaining cabins were at a high cost then about three week ago over 60 cabins, almost all balconies, became available. The price is now down to $426US for a Z inside gty.

Our friends booked one of these to join us on this cruise and are waiting for their cabin to be assigned. There are currently only three insides showing available, two Cat K and a Cat F. For a while there were no insides or OV cabins available and the Z gty was still showing. That's when they booked. To select a K cabin would have and still cost double.

Currently there is even more balconies available, 64 to be exact and three OV cabins so an upgrade cabin for them is a good possibility.:)

The difference is that the current Serenade prices are somewhat reasonable - the Legend prices were double that. Heck, if I wasn't going on the Quantum this weekend I'd go on the Serenade as well.

[Reijo]

Question about early booking. All but about two of our cruises have always been booked anywhere from 7-9 months out. We have done a couple of last minute cruises on a few ships and will probably do more. Question is......I see more and more people who book a year or more out. I have also talked to others about booking on board. I've never seen there is much of an advantage in doing so other than getting a particular room. Can anyone enlighten me? What am I missing in early EARLY booking?

[Clarea]

Question about early booking. All but about two of our cruises have always been booked anywhere from 7-9 months out. We have done a couple of last minute cruises on a few ships and will probably do more. Question is......I see more and more people who book a year or more out. I have also talked to others about booking on board. I've never seen there is much of an advantage in doing so other than getting a particular room. Can anyone enlighten me? What am I missing in early EARLY booking?

Booking on board gives you a reduced deposit and onboard credit for the future cruise.

 

Booking early gives you the best choice of staterooms. It may also give you the lowest prices.

[Canadian Tyler]

Booking on board gives you a reduced deposit and onboard credit for the future cruise.

 

Booking early gives you the best choice of staterooms. It may also give you the lowest prices.

 

Exactly, if booking early one can watch for price drops throughout the year and get the lowest price available (up until final payment date).

[MichaelCMTX]

...and I suspect for the CEO's of the other two large cruise companies (OK guys between the three of us we have a 75% market share in this industry. Can we now try to practice a little more pricing discipline? nudge, nudge ;) ;)).

 

I suspect that statement was mainly directed at them. After all, plans like this aren't even worth making if the competitors are going to say "go on then, more for us."

 

We may test this theory. We normally book the following January's cruise on the next one, but this time we may just pay the Deposit and start looking this time next year at what's available.

 

Having said that: GS in the one coming up still $900 a person more than when we booked in January.

Edited October 30, 2014 by MichaelCMTX

[Dave85]

Fain's saying what his investors want to hear, but I'll believe it when I see it. There will be plenty of peak season cruises where this approach works perfectly, but then November and early December will roll around and they'll be staring at an unacceptable number of empty cabins and will have to discount. It's not just Royal Caribbean. I'm cruising in 10 days on Norwegian Breakaway from NYC (7 nights) and there were such an incredible number of cabins available, from suites to insides, after final payment that insides were down into the $300s pp, balconies the $500s, and Haven suites into the mid-teens.

 

Regardles, it'll be interesting to see going forward whether RCI is actually willing to sail with more empty cabins to pursue this approach. I have my doubts.

Edited October 30, 2014 by Dave85

[steveru621]

There are discounts for the Quantum!

[jewopaho]

Fain's saying what his investors want to hear, but I'll believe it when I see it. There will be plenty of peak season cruises where this approach works perfectly, but then November and early December will roll around and they'll be staring at an unacceptable number of empty cabins and will have to discount. It's not just Royal Caribbean. I'm cruising in 10 days on Norwegian Breakaway from NYC (7 nights) and there were such an incredible number of cabins available, from suites to insides, after final payment that insides were down into the $300s pp, balconies the $500s, and Haven suites into the mid-teens.

Sad ... and on a new ship, no less. I'm thinking that it had as much to do with the homeport as anything else.

 

I agree that, (1) Fain is blowing smoke, and, (2) the time periods in less demand will determine whether the strategy will be successful. He can always say, "Hey, we gave it a shot, and it didn't work."

 

Don't think for a moment that the competition won't be all over this ... if they see that fares are holding steady, but bookings are less than brisk, watch them lower prices. Even here in Texas, we have four competing cruise lines sailing out of Galveston/Houston ... and the itineraries are identical. So it's going to boil down to price ... a few bucks either way won't make a difference, but a significant reduction will certainly grab our attention.

 

Al