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Will Cruise Prices come down due to decrease in oil prices?

kruisey

By kruisey,
in Princess Cruises

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kruisey

kruisey

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Prices at the moment are higher than last year.

Suppliers of oil have lowered their prices to the consumer. I would consider this rather unfair for Princess not to follow suite. A little greedy?

Lets hope sale prices might make up for this.

I do not hold my breath due to my being over the border. Princesses rates of exchange showing on their Canadian website built in the price.

Edited by kruisey
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sprinkles

sprinkles

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I don't know what cruises it affects, but I just saved $600 for my TA cruise in April. Thanks to someone posting on my roll-call. Princess wanted to say that it was for new bookings only, but the website did not say that. After I said, OK, cancel and re-book me I was told I would have to re-book my flight (which I did not want to loose).

 

Long story short, I asked to speak to customer relations and I was put on hold for 10 minutes. Rep came back on and said I was re-booked in same cabin with same flight. One big note for solo cruisers, when I first booked, it was taking away the $200 OBC for a solo in an inside so I had booked a window. Today I could have booked that inside for another $300 in savings AND kept the $200 OBC. I decided to keep my window on Plaza. I also thought that I had lost the specialty dining, but no - it's still on there too!

 

Tammy

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Loonbeam

Loonbeam

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Have airfares gone down?

 

Oil prices have very little to do with actual prices for a cruise, other than setting what is known as a price floor. Oil prices help determine what the minimum price Princess can sell a cabin for an expect to break even. If people are still willing to pay more, the system will happily sell them at that price.

 

There are other factors as well, such as hedging, contracts, price differences in grades, spot market pricing, due to refining costs, transit fees. Lower oil costs will certainly help line profits but not necessarily as much as you may think.

 

What the lower prices will do is eliminate any risk of a fuel surcharge for some time.

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kruisey

kruisey

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Last January local and metro transit fare prices were increased guess what?

The ridership has gone down..Although more folks have moved to Vancouver areas.

I priced a Transatlantic with Princess the other day and it would have cost me $864 more than my fare cost me just over a month ago returning to North America (solo) with three less days in the journey.I mentioned this in another thread I started.

Am not a shareholder of this Company just an ordinary Joesy:D.Fortunately I live by the sea in a beautiful area of the world.:)

Princess will have to tempt folks like myself,before I take the bait;)

Edited by kruisey
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Colo Cruiser

Colo Cruiser

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I don't know what cruises it affects, but I just saved $600 for my TA cruise in April. Thanks to someone posting on my roll-call. Princess wanted to say that it was for new bookings only, but the website did not say that. After I said, OK, cancel and re-book me I was told I would have to re-book my flight (which I did not want to loose).

 

Long story short, I asked to speak to customer relations and I was put on hold for 10 minutes. Rep came back on and said I was re-booked in same cabin with same flight. One big note for solo cruisers, when I first booked, it was taking away the $200 OBC for a solo in an inside so I had booked a window. Today I could have booked that inside for another $300 in savings AND kept the $200 OBC. I decided to keep my window on Plaza. I also thought that I had lost the specialty dining, but no - it's still on there too!

 

Tammy

 

Cruise prices will come down when cabins go unsold; they have nothing to do with the price of fuel.

 

 

I agree.

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Kenswing

Kenswing

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Prices at the moment are higher than last year.

Suppliers of oil have lowered their prices to the consumer. I would consider this rather unfair for Princess not to follow suite. A little greedy?

Lets hope sale prices might make up for this.

I do not hold my breath due to my being over the border. Princesses rates of exchange showing on their Canadian website built in the price.

What does fairness have to do with anything? They charge whatever the market will bear.. If people stop booking they will lower prices to a point in which people start to book again.. The consumer decides what is fair..

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kruisey

kruisey

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What does fairness have to do with anything? They charge whatever the market will bear.. If people stop booking they will lower prices to a point in which people start to book again.. The consumer decides what is fair..

 

It is up to we sensible ones to call the piper.:D

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kruisey

kruisey

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They didn't institute the fuel surcharge over the last few years, when they certainly could have, so I would think they would make up for that loss of revenue now.

Not from this little old lady;)

Come on Princess tempt me.:D

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Pam in CA

Pam in CA

Posted
Posted (edited)
Suppliers of oil have lowered their prices to the consumer. I would consider this rather unfair for Princess not to follow suite. A little greedy?
Princess didn't raise prices when the price-per-barrel went up. Would you have considered it "fair" if Princess had raised rates as a result? It averages out in the long term. Carnival Corp. is a for-profit corporation. Follow the money.
I looked at some of the discount travel agents and they were quite a bit higher than what Princess had on their website.
The only way to get a "discount" from a TA is to actually request a quote for a specific cruise and cabin category. "Looking" doesn't mean a thing since Princess doesn't allow TAs to promote or advertise fares other than official Princess fares. Edited by Pam in CA
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kruisey

kruisey

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Princess didn't raise prices when the price-per-barrel went up. Would you have considered it "fair" if Princess had raised rates as a result? It averages out in the long term. Carnival Corp. is a for-profit corporation. Follow the money.

The only way to get a "discount" from a TA is to actually request a quote for a specific cruise and cabin category. "Looking" doesn't mean a thing since Princess doesn't allow TAs to promote or advertise fares other than official Princess fares.

Pam not out of my bank account till I get a reasonable offer:cool:

Remember the banking interest Princess gathers on foreign Exchange for Canadians.See the pricing on the Canadian site then you will see a big difference above the normal banking exchange rate

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caribill

caribill

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Due to fuel contracts that Princess has in place, for 2015 Princess will get the full benefit of $80 oil and half the benefit of oil priced below $80.

 

9 cents/share of the just reported quarterly earnings was due to lower fuel prices.

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chipmaster

chipmaster

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I do hope that Princess will adjust their pricing accordingly

 

For cruises selling well, I highly doubt it!

 

For cruises that aren't selling well the fuel drop will give them good pricing flexibility provided they didn't lock themselves into some complicated fuel hedge where they are paying higher than market.

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thinfool

thinfool

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As posted, cruise prices have little to do with fuel prices and everything to do with supply and demand (see Capitalism 101)

 

Ex: Alaskan cruises, last minute pricing, has been really low the last couple of years. Over supply of ships and low demand due to sluggish economy were major contributors. Fuel prices were certainly not low last summer. And the ships have to use special fuel in Alaskan waters which adds to the cost.

 

As far as tempting someone....I wish you the best.

 

We just finished a lovely 7 days on the Ruby Princess. About 70% of the passengers were repeat customers. (the 'most traveled' had over 1300 days on Princess ships)

 

Princess has quite a loyal following.

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caribill

caribill

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As posted, cruise prices have little to do with fuel prices and everything to do with supply and demand (see Capitalism 101)

 

 

During the recent recession, oil prices skyrocketed but cruise prices (not just on Princess) did not increase significantly and did not cover the increased costs of fuel.

 

Pulling out of the recession has meant higher pricing on many itineraries.

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