RCL Stock Plunges 8% on bad Earnings Report

[Stateroom_Sailor]

I have not had that experience with Celebrity pricing out my cruises. An inside after final payment is much cheaper than and OV with perks.

 

Do you typically drive to port? Flying I wouldn't want to chance it. Though I'll say the 123GO is probably still benefiting you. All the unsold inside cabins, due to being left out of the promo, are keeping prices down. I'm see a lot of Carnival/Norwegian loyalists looking at Celebrity for Bermuda, which makes them pretty darn competitive.

Edited April 21, 2015 by Stateroom_Sailor

[CruisingChick]

Do you typically drive to port? Flying I wouldn't want to chance it.

 

Yes we can drive to Bayonne in an hour. Those are the only cruises we wait on. Although we have driven to Fort Lauderdale once in the past and could do so if we got a good deal.

[ghstudio]

What Fain is talking about is similar to the "moral hazard" argument at the time of the bank bailouts. Consumer have gotten used to the super-sale prices and now think that is the true cost of a cruise. This is designed to reset expectations. Yes, RCL will suffer short-term revenue loss from empty cabins. But they expect greater long-term revenue gain from breaking the habit of waiting for a super-sale. Many companies find themselves in this same bind after years low prices during the weak economy, and many will similarly try to break out. When handled correctly, it works and you re-educate your consumers about cost. When it doesn't work, you look like JC Penney.

 

reading CC, I think there are more that shop price/value than we may think. Irrespective of whatever "modern luxury" means in the ads, Celebrity has to be price competitive with the other mass market lines...it is, like it or not, a mass market cruise line. There certainly appears to be a glut of cabins available for 2015 from all the mass market lines....so it's hard to believe that Celebrity is going to hold their prices without making 1-2-3 or similar offers. In essence that's just creating an artificial list price...much like most car dealers.

 

It's a very interesting approach....but I stick to my very simple assertion that a person in a cabin on a boat that's covering their portion of "fixed costs" is someone who may book excursions, may gamble, may buy drinks...may spend on board. A person sitting at home doesn't.

 

I think celebrity may be able to hold their prices on suites...assuming luminae is a big success (the jury is out on this)....but they have not been able to hold their prices or price premium on aqua/blu and there's no reason to believe that they can hold prices on other cabins....at least in highly competitive cruise areas like the Caribbean and perhaps the Mediterranean where everyone is competing and places where the strong $ is raising prices irrespective of Celebrity's prices...e.g. Europe.

[The_Big_M]

I think Royal Caribbean has already announced that there will be no more last minute discounts in an effort to shore up its pricing.

 

Yes, but last minute could be as short as 10 days.

 

Many discounts are made prior to then, and often the ships sold out by then, and rarely does the price need to go further.

 

Does it mean much in the scheme of things? Doesn't sound like it.