Time To For A Reality Check For Mr. Fain

[insidecabin]

Isn't it correct that the ships sail at around 104% of capacity. :what:

 

Standard capcity 100% is based on 2pax per cabin.

(might be some adjustment for the multi room ones)

 

max capacity will be quite a few more.

Edited April 23, 2015 by insidecabin

[Cruiseathoning]

They can't abandon the large ships in the American market. And I think they will adjust their discounting window, not their frequency. The ships have to sail full, because of fixed costs.

 

But the pricing will be what the people are willing to pay. If they will pay through the nose then I might have a Dyson attached to my beak if I want to cruise with my family. If they won't the prices will stay moderate. They will charge what they can get as is the way of the free market economy.

[Debde]

It does not have to be smaller ships just fewer berths to sell overall.

 

Send a load of ships to China, fewer berths in the American market to sell.

 

 

China is going to play a huge roll in cruising for the immediate future I'm thinking. The company has this option and knows it!! So of course the huge discounts here in the US are going to be gone. Like I said earlier, someone will get a reality check but I think not Mr. Fain!!

[insidecabin]

There is still the option for RCI to over winter a ship in europe.

 

NCL is swaping the Spirit and Jade for the Epic similar capacity and itineraries.

 

Revenues are ok for NCL with no transatlantics and the Xmas NY premium 4000 fewer berths in the caribbean.

[sross6019]

Well said!

[jebl]

oops

Edited April 23, 2015 by jebl

[Cruiseathoning]

China can not replace the American cruising market. RCI will sink or swim on the American market. Many of you understand business, but few of you know the politics that rules the business.

 

Leave it at that. But don't worry about China.

[Big_G]

Too funny.:D

 

Biker, who hopes the milenials take the time to research and find out about Gilligan's Island.

 

 

Ginger or Mary Ann Quiz

[Big_G]

China is going to play a huge roll in cruising for the immediate future I'm thinking. The company has this option and knows it!! So of course the huge discounts here in the US are going to be gone. Like I said earlier, someone will get a reality check but I think not Mr. Fain!!

 

China can not replace the American cruising market. RCI will sink or swim on the American market. Many of you understand business, but few of you know the politics that rules the business.

 

Leave it at that. But don't worry about China.

 

I too am thinking it's not Fain that needs a reality check but someone here just might. ;)

[merlindog22]

So with empty cabins and fewer people in the dining rooms, bars, etc. who is paying the gratuities that their contract employees will lose? In my view this will drive the experienced ones away and we will definitely get worse service!

 

There are many facets to this but all in all we like the experience with RCI/Celebrity; but, if their employees aren't happy I guarantee that we won't be either. RCI is making too many changes/additions too soon and the loyal guest base will soon erode!

 

If you read a lot of the reviews made by people that have sailed on the Quantum recently then, what you have said doesn't stand up. The staff are as misable as sin, they shout at each other, they are not keen to do what they are supposed to do - They are not happy. So if they arn;t happy now, goodness knows what they will be like in the future. I think from what I have heard is that RCC have cut back so much on staff numbers and training they the staff that are there are so rushed off their feet its unbelievable,

[Big_G]

If you read a lot of the reviews made by people that have sailed on the Quantum recently then, what you have said doesn't stand up. The staff are as misable as sin, they shout at each other, they are not keen to do what they are supposed to do - They are not happy. So if they arn;t happy now, goodness knows what they will be like in the future. I think from what I have heard is that RCC have cut back so much on staff numbers and training they the staff that are there are so rushed off their feet its unbelievable,

 

Are you sure you understand what Scotty G wrote? :confused:

[Lynnees]

They can't abandon the large ships in the American market. And I think they will adjust their discounting window, not their frequency. The ships have to sail full, because of fixed costs.

 

But the pricing will be what the people are willing to pay. If they will pay through the nose then I might have a Dyson attached to my beak if I want to cruise with my family. If they won't the prices will stay moderate. They will charge what they can get as is the way of the free market economy.

 

Methinks you need the reality check. They will do extremely well in China. Take their population alone even with only the upper end being able to cruise.

 

Based on the politics of China, the Chinese do not argue therefore will not be looking for discounts nor whining because they can't get them. However they will gamble because that's their favourite past time.

 

Let's see, no arguing for discounts and lots of gambling. Oh yea, Mr. Fain needs a reality check NOT.

[LMaxwell]

Methinks you need the reality check. They will do extremely well in China. Take their population alone even with only the upper end being able to cruise.

 

Based on the politics of China, the Chinese do not argue therefore will not be looking for discounts nor whining because they can't get them. However they will gamble because that's their favourite past time.

 

Let's see, no arguing for discounts and lots of gambling. Oh yea, Mr. Fain needs a reality check NOT.

 

Have you dealt at a business level with mainland China businesses? They are known to be fierce and relentless negotiators. Not sure why you say they will not be looking for discounts. Why would they not? Yes, they do love gambling and the ships are being modified based on that. But to claim they happily pay asking prices with no negotiation I feel is not correct.

[Lynnees]

Have you dealt at a business level with mainland China businesses? They are known to be fierce and relentless negotiators. Not sure why you say they will not be looking for discounts. Why would they not? Yes, they do love gambling and the ships are being modified based on that. But to claim they happily pay asking prices with no negotiation I feel is not correct.

 

I wasn't referring to the business. Businesses don't sail - rank and file do. Totally different.

 

They will of course want the best price they can get but they aren't going on the internet to complain yell and scream because others got better prices. Nor are they going to be constantly complaining to the CEO that they should be getting cheaper prices.

[LMaxwell]

They will of course want the best price they can get but they aren't going on the internet to complain yell and scream because others got better prices.

 

Because they aren't allowed to...

 

Expression of opinions is something we take for granted as an inalienable right. But half a world away...

[RDC1]

Isn't it correct that the ships sail at around 104% of capacity. :what:

 

 

 

APCD is a cruiselines measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period.

 

 

Occupancy is number of passengers/APCD

 

RCL's q1 2015 occupancy was 105.0%

RCL's q1 2014 occupancy was 104.5%

 

 

100% would be the ship fully occupied with 2 people per cabin.

Edited April 23, 2015 by RDC1

[Lynnees]

Because they aren't allowed to...

 

Expression of opinions is something we take for granted as an inalienable right. But half a world away...

 

Which is what I said but for RCCL which has no doubt played a big part of why RCCL is going there.

 

btw - expression of opinion is not the same as constantly whining.

[John&LaLa]

APCD is a cruiselines measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period.

 

 

Occupancy is number of passengers/APCD

 

RCL's q1 2015 occupancy was 105.0%

RCL's q1 2014 occupancy was 104.5%

 

 

100% would be the ship fully occupied with 2 people per cabin.

 

Understood, my comment was an attempt to state that it is possible to exceed 100%. ;)

[RDC1]

Understood, my comment was an attempt to state that it is possible to exceed 100%. ;)

 

I just figured I would put the reported actuals out there to put it into perspective. RCL's occupancy rate was up, capacity was up, yet ticket revenue was down.

[John&LaLa]

I just figured I would put the reported actuals out there to put it into perspective. RCL's occupancy rate was up, capacity was up, yet ticket revenue was down.

 

Good info. Any idea what drove revenue down

[Scotty G]

If you read a lot of the reviews made by people that have sailed on the Quantum recently then, what you have said doesn't stand up. The staff are as misable as sin, they shout at each other, they are not keen to do what they are supposed to do - They are not happy. So if they arn;t happy now, goodness knows what they will be like in the future. I think from what I have heard is that RCC have cut back so much on staff numbers and training they the staff that are there are so rushed off their feet its unbelievable,

 

Merlindog22, I believe we are in agreement. The Contract employees of RCCL I referred to are the cabin stewards, waiters/assistants/trainees and housekeeping folks that share in the mandatory gratuities. They have already added cabins and tables to their workload by reducing staff. Barmen and servers are telling me that they are not benefiting from the drink packages or increase in prices/gratuities. None of the latter want to go on Quantum or other ships to China as they will not make any money!

 

The result is the unhappiness being reported. I have also heard that at contracts end they now go home not knowing if they are coming back. They will be notified at home whether to return or not. There is unease and uncertainty amongst all those that I have personal contact with!

 

By the way, a number of officer positions took significant salary cuts last year and they were not happy about that I can tell you! Ships moral is at a low ebb :(

[Paul65]

Good info. Any idea what drove revenue down

 

Some of it can be attributed to a stronger dollar vs last year, so European revenue, when converted to US dollars ends up lower.

[RDC1]

Good info. Any idea what drove revenue down

 

Hard to say for sure. The strong dollar impacted ticket revenue for both RCL and CCL so that is certainly a factor. It also helped both companies on the expense side, but more for CCL.

 

A big difference is RCL also dropped in onboard revenue, compared with CCL where on board went up. That might be a function of RCL including drink packages in many of their sale incentives.

 

RCL is more heavily concentrated in the US market than CCL, especially the Caribbean. Over capacity and heavy discounting in that area may have contributed as well. CCL is far more distributed both in ship locations, as well as having more of their operations headquartered in foreign countries (P&O, Princess Australia, etc) where ships use those local currencies for on board sales.

 

I know that I sold my RCL stock position about a month ago when I decided that I did not like the direction they were going. That decision followed a reduction in the rate that I cruise RCL lines. I now do 1 in 6 cruises on RCL lines where I used to cruise about 1 in 3 cruises on RCL. They appear to be shifting from traditional cruise line approach to more of a Vegas style resort hotel style (especially on Celebrity) that just happens to move from one location to another. They seem to be a bit unfocused in the direction they are going in. Sometimes acting like their primary competition is NCL and taking some things from that line and other acting like they are trying to move more towards all inclusive.

 

In many ways they look like they are just throwing ideas out to see what sticks and what doesn't, without having a clear plan other then change. Fain's comments about eliminating last minute discounting appears to be more of the same.

Edited April 23, 2015 by RDC1

[JohnSnowGOT]

Methinks you need the reality check. They will do extremely well in China. Take their population alone even with only the upper end being able to cruise.

 

Based on the politics of China, the Chinese do not argue therefore will not be looking for discounts nor whining because they can't get them. However they will gamble because that's their favourite past time.

 

Let's see, no arguing for discounts and lots of gambling. Oh yea, Mr. Fain needs a reality check NOT.

 

Ok Let Mr Fain take all his "eggs" to China. If the average American is anything like me... I have been losing interest in RCi. This is from a family who has cruised with RCI 2 to 6 times a year and has been(used to be) loyal to RCi since 2000. We still love cruising bu t RCI has gotten so gimmicky and the nickel and diming is ridiculous. RCi has lost interest in its loyalty members too. OKAY fine I understand its a big world out there......I have chosen to take my discretionary disposable income elsewhere.

Edited April 23, 2015 by JohnSnowGOT

[Debde]

Ok Let Mr Fain take all his "eggs" to China.

 

I don't think he'll take All-but some more one might think!!

Edited April 23, 2015 by Debde