Del Rio's EXACT comments on the recent Fees and Price Increases

[Lanzador]

I listened to the answer (thanks to OP for the transcript), and what I heard was a CEO talking to investors. Unfortunately, some of those investors are also passengers. The investor in me thought, "That's why the stock is up." The passenger thought, "I'm a piece of meat with a wallet."

 

I had the same thoughts since I'm a shareholder, and a loyal customer as well.

 

I was able to resolve this conflict once I realized that the 10% increase in stock price after first quarter earnings were announced, would pay for a lot of room service. ;)

[AndyT3]

Being a new cruiser, and having never sailed any line before, I think I'm that new clientele that FDR is trying to pull in. Having nothing to compare this to, I'm looking forward to my cruises with NCL. I can completely understand how the long time NCL customers are upset about these changes, but if I don't know any better, then I will have to become accustomed to these new fees and rules, and they will become the norm for my family and I on any cruises here on out.

 

Just trying to keep an open mind for my upcoming vacations.

[eroller]

I had the same thoughts since I'm a shareholder, and a loyal customer as well.

 

I was able to resolve this conflict once I realized that the 10% increase in stock price after first quarter earnings were announced, would pay for a lot of room service. ;)

 

 

I suppose that is true if you plan to sell your stock at a profit. Does NCLH offer a dividend? I can't seem to find a history if one was ever offered.

[SissasMomE]

There's a difference between social media people and the message actually getting across. As someone who familiar with how social media teams work, most things don't get escalated unless you have people get on the phone. The social media folks do a fine job at "listening" and trying to do "customer support", but truthfully most cases of customers complaints, they've already been warned and told how to respond. If you want to get on someone's case, you need to call or email them directly. Period. I would strongly suggest calling them since emails can be easily ignored as well.

 

I can't get into too much detail here, but my firm handles certain types of accounts for several big corporate entities. As a result, we are privy to their internal policies. A red flag "trigger" is social media. It's a huge trigger, and cause for immediate escalation very high up the corporate ladder. While responses to phone call complaints are indeed scripted, the social media complaints are handled much differently, and taken very seriously.

 

It does not take long at all for something to spread like wildfire on social media.

[coldflame]

But with regard to policy complaints (like what is going on on here), they don't seem to react to the complaints.

 

That was exactly my point. Thanks.

 

People here need to understand, as I already said in my reply to tinfool, there is a difference between social media reps and how the information gets escalated. No matter how much you complain. You can have hundreds of irate threads, it will matter not a bit. Unless you reach out directly, via phone or email, your effort, outrage, or complains will be for naught. Simple as that.

[insidecabin]

I think one area where getting more money off people is potentialy going to come unstuck is the cabins.

 

Inside and OV are the smallest in the industry so the value proposition around the rest of the ships has to be good and on the whole it has been for the prices we have to pay.

 

Push up the prices and the other fleets start to become more attractive for the bottom end cruiser.

 

Our entry point on many of the NCL ships is OV and it has to be a really good deal to get us in an inside shoe box(except the large cabins on the Spirit).

 

Many other lines the insides seem masive compared to NCL inside/OV.

 

.................

On the captive audience thing, once on the ship you get yout cokes beers whatever but at the end of the cruise once home and looking at your final bill you think about the next booking, thats when the follow through happens the impact of that 10c on everything could be reflected in a booking for 2016.

.

...............

The other thing is where do prices and the choice promotions go next, UK still has UBP and looking ahead there are still some good value trips closer in there are the odd OV reductions that with the UBP are bargains.

 

Star 9 nights for $600inc tax and UBP whats not to like.

[AndyT3]

If I'm reading this right, you're basically saying that its OK if they screw you over as long as they do it right from the start as long as you won't know any better?

 

Or am I missing something here?

 

Basically, yes. For the typical new cruiser, I imagine they won't go out and search these forums and educate themselves on all these changes. Therefore, they won't know these changes ever took place. They go on their cruise, pay these new fees, and then from there on out, they accept these fees as the norm, because that's all they knew.

 

I've never sailed before, so I don't know how these new rules of not being able to bring leftovers back to my cabin will effect me. Thinking about it, I wouldn't mind having some leftovers from dinner out on my aft balcony later in the evening, but I guess if I wanted to, I would have to order room service. But who knows, maybe I would never use room service, and just fill up at dinner and not have anything left to bring back to the room.

 

I'll just have to wait and see how it will effect me.

[SeaShark]

Basically, yes. For the typical new cruiser, I imagine they won't go out and search these forums and educate themselves on all these changes. Therefore, they won't know these changes ever took place. They go on their cruise, pay these new fees, and then from there on out, they accept these fees as the norm, because that's all they knew.

 

I've never sailed before, so I don't know how these new rules of not being able to bring leftovers back to my cabin will effect me. Thinking about it, I wouldn't mind having some leftovers from dinner out on my aft balcony later in the evening, but I guess if I wanted to, I would have to order room service. But who knows, maybe I would never use room service, and just fill up at dinner and not have anything left to bring back to the room.

 

I'll just have to wait and see how it will effect me.

 

Ignorance may be an excuse, but it makes a poor defense.

 

"Its always been this way...I don't know any better" isn't going to be good for ANYONE.

[coldflame]

I can't get into too much detail here, but my firm handles certain types of accounts for several big corporate entities. As a result, we are privy to their internal policies. A red flag "trigger" is social media. It's a huge trigger, and cause for immediate escalation very high up the corporate ladder. While responses to phone call complaints are indeed scripted, the social media complaints are handled much differently, and taken very seriously.

 

It does not take long at all for something to spread like wildfire on social media.

 

So, this is how it looks from the back end with social media complaints:

 

* Media team reports huge outrage, whether via ticket or email.

* Said ticket or email gets picked up and forwarded to other people.

* Those other people add more people, possibly including a company global mailing list of "customer care/communications"

* Eventually someone high enough read it and says something along the lines of: "make no statement about it. We will post official information soon"

* End of story.

 

This is how it looks when your email and phone switchboard are lit up with irate/upset customers:

 

* Fire, fire fire call for backups

* Mayday, Mayday, Mayday

* CEO/Board give instructions (or delegate) to communications chief

* Official statement takes place (but more importantly the exec suite knows about it)

[AceDoc]

I disagree. The Internet is a wonderful tool, especially when one is displeased. FDR may not admit it, but he's watching.

 

Not only do they listen, they also post.

 

Cheers

[SuiteCruiser]

So, this is how it looks from the back end with social media complaints:

 

* Media team reports huge outrage, whether via ticket or email.

* Said ticket or email gets picked up and forwarded to other people.

* Those other people add more people, possibly including a company global mailing list of "customer care/communications"

* Eventually someone high enough read it and says something along the lines of: "make no statement about it. We will post official information soon"

* End of story.

 

This is how it looks when your email and phone switchboard are lit up with irate/upset customers:

 

* Fire, fire fire call for backups

* Mayday, Mayday, Mayday

* CEO/Board give instructions (or delegate) to communications chief

* Official statement takes place (but more importantly the exec suite knows about it)

 

I think you're dreaming. Most times when an irate person calls, they say the supervisor/manager or whatever is out of the office and take your number. You're lucky if you hear back the next day. Social Media is such a huge deal because complaints reach thousands or sometimes millions of people.

 

The person on the phone is just one, and add in the 5 people they told because they were mad = very limited impact.

[buckirj1]

 

This bothers me more than anything else he's done. In comparing the Real FDR's Real New Deal and what it did for the United States to NCL's blatant money-grubbing under his leadership, Del Rio displays an appalling lack of historical knowledge and a crude disrespect for one of the most important social programs in history. I've been disappointed in some of the changes, and concerned about the direction in which NCL has been heading, but I haven't been truly offended until now. I think I'll express my displeasure to NCL directly this time.

[xriva]

I suppose that is true if you plan to sell your stock at a profit. Does NCLH offer a dividend? I can't seem to find a history if one was ever offered.

 

 

No, they don't. I think it was mentioned on the call that it is being considered.

[electro]

I just sent the following email to the public relations email.

I will post if I get a response.:

 

I am writing to express my displeasure with the recent changes made my NCL.

I will be on the Epic in less than a week, May 13th, 2015 , and some of the change that have been made since I made my final payment are:

 

raise in drink prices,

raise in gratuity from 15% to 18%

added gratuity of 18% to specialty restaurants

$7.95 charge to room service

not allowed to take food (that I paid for) back to my cabin. This is the most ridiculous change of all.

 

There are more but you get the point.

 

All of these changes have been made since final payment of my cruise so what I agreed to and paid for is not what I am receiving.

That seems to me to be obvious bait and switch.

 

The other thing that is very upsetting is that I was not informed of any of these changes by NCL.

If I was not a member of cruise critic I would have found out when I got on my cruise.

This is unacceptable.

I paid in good faith but NCL is not showing any good faith to their customers.

 

I currently have 3 other cruises booked with NCL, 2 of which are in suites.

If these policies on room service and bringing food back to your cabin do not change by my final payment date, I will be canceling all 3 cruises.

I have very much enjoyed all of my cruise with NCL and will be sad to leave them but I must take my vacation dollars to a cruise line where I feel valued as a customer and not just another captive mark.

 

Sincerely

Edited May 9, 2015 by electro

[sparks1093]

Didn't he say that they didn't hear any complaints on the two ships? He also did comment that there are comments on the blogs and he did realize that people don't want to pay more. I always wonder if a company dismisses some sites because of the way complaints are handled, etc. I know if I was Mr. Del Rio and read a post calling me Mr. Del FeeO or ignorant or arrogant or changing my logo from freestyle to feestyle, I would probably tell my folks to ignore those kind comments and since there are so many like that, I bet those that have real concerns just gets lost . I think one can complain about an issue in a professional manner, without name calling and dramatics, and that usually gets more attention than those that do. Just saying.

 

I do agree with Mr. Del Rio, that we are a captive audience, but we still have the power to spend our money as we like it; they can't force you to spend your money.

 

I actually think a better way to get the $5 per person per day from his passengers would have been to stop allowing water, soda and wine to be carried on the ships and I would think that, even though some would refuse to purchase those items on the ship, enough would to make up for those that wouldn't and he would have done what he was challenged to do.

 

The $5 per person per day is only the start, he wants to take NCL in a completely different direction and raise it on the cruise line food chain. As I said in a different thread I will miss the old NCL and will likely never have the opportunity to sail with the new one.

[Lanzador]

I suppose that is true if you plan to sell your stock at a profit. Does NCLH offer a dividend? I can't seem to find a history if one was ever offered.

 

I don't believe they've ever paid dividends, but if his decisions begin to backfire, I'll dump it quick.

[NLH Arizona]

That's my point..use a better analogy.

You are at the airport and your plane leaves in an hour and you are hungry, you can't leave so you have to purchase their high priced food.

[Flip2cruise]

Ignorance may be an excuse, but it makes a poor defense.

 

"Its always been this way...I don't know any better" isn't going to be good for ANYONE.

 

Sadly,many people get in "vacation mode" and just spend without even thinking about pricing. Its a hard concept for me to grasp, yet I see it all to often when people get their final bill and wonder how it got so high.

[mom2tcdx2]

My mom and I had the discussion this morning that with the direction he is wishing to take NCL would likely make us the type of customer he doesn't wish to have. Though I am a bit confused as I though Oceania and Regent were a bit more on the all inclusive side. If he were pushing NCL in that upscale direction I would think more overall things would be included with costs being raised instead?

 

I have no need to call and complain directly to NCL, what shows better my displeasure than to spend my money with another cruise line Perhaps they don't care whether they lose customers or not, sure seems that way.

 

Though we did call with a few questions regarding some changes, we have an Alaska cruise booked in September for 9 of us and another friend of my mother has a huge Alaska trip booked (including a suite and multiple cabins) in July. When my mom and her friend called they were told some strange things.

 

First they were told those of us given the free beverage package would still be billed the gratuity on every drink we order. I really didn't think this was true, not sure if rep was confused or if this actually is the policy?

 

Second when asked about the food being taken back to the cabin, the rep wouldn't answer the question. Seemed to indicate they had no idea.

 

Third was told there was still free room service, and the $7.95 fee only applied if you ordered specific items. Again not overly sure if this was correct or not either.

 

Fourth - our friend went to pay the gratuity/service fee. The rep told them they didn't have to pay it and that it wasn't an issue if they chose to not pay it on their sailing.

 

But it is sad that since we booked the cost of shore excursions went up, the dining package price went up, the service/fee gratuity increased and there is now a room service fee. Sadly what started as a fairly reasonable priced sailing has now turned into all the extras costing us more. Sadly we already booked airfare and no other line has a sailing date that works with what we already have booked.

[mking8288]

No, they don't. I think it was mentioned on the call that it is being considered.

Question was asked, the reply was that NCLH would do stock buyback first before consider declaring any dividend.

Others in the "industry" has a consistent quarterly dividend payout and good stockholder's perk across all the brands within. There are far, far better investment choices out there now to choose from.

Disclaimers - consult with your own investment advisor & always do your own due diligence.

[NLH Arizona]

The $5 per person per day is only the start, he wants to take NCL in a completely different direction and raise it on the cruise line food chain. As I said in a different thread I will miss the old NCL and will likely never have the opportunity to sail with the new one.

Every cruise lines changes. On Celebrity some of the old times lament about how it was in the old days. Sure the waiters wore white gloves to serve your dinner on fine china, but did it really have that much of an impact on a cruise. It didn't for me and now that it is gone my food taste just the same.

 

I really don't think that there would be much success raising NCL up the cruise food chain. They have found their niche and I believe they do a great job at doing it. I'm not entirely sure that when Mr. Del Rio said he want more affluent passengers, that he was talking about wanting customers who were richer, I think he might have meant passengers that spend more onboard the ships. I've seen on here people bragging about how less they spend on their cruises and I have to say that some really don't spend at all. One could actually have a great cruise without spending anything other than their fare and DSC. Cruise lines make a substantial amount of their revenue on onboard spending and when people are bringing on things like water, soda, wine (even though there is a corkage fee), they can go through a cruise not spending anything else. I'm sure Mr. Del Rio and Mr. Stuart are both being challenged to increase revenue (I don't know of any company who is satisfied with what they are making) and they can do that one of two ways. They can raise the fares, which could put them at a competitive disadvantage or they can raise the fees of some of the, what I call, choice items on the ships. By raising the choice items, they are not forcing anyone to pay for them, but they are hoping that enough people do and they will have met their goal. Some may not like the changes, some may feel they are inconvenienced by them, but in the end if the changes stay, people have to make their own decisions if they will continue to be a customer or not.

 

I have a feeling, even if the changes stay in place, in a year the majority will still be on here posting and the few that leave will be enjoying their cruises on another line and those that said they won't cruise with NCL, even though they never had, will still not be cruising with NCL.

Edited May 9, 2015 by NLH Arizona

[jaja]

I listened to the answer (thanks to OP for the transcript), and what I heard was a CEO talking to investors. Unfortunately, some of those investors are also passengers. The investor in me thought, "That's why the stock is up." The passenger thought, "I'm a piece of meat with a wallet."

 

Yup--I am in the same boat..(so to speak;))

[jaja]

Have just sent a very long email to customer relations . Hope some more of you do the same . They might get the idea that we`re not happy with all these changes . x

 

I also sent an email to public relations...and have made my opinions here on a few threads.....at this point...it is all I can do. I will be sailing in June and plan on having a great time ! I have a cruise booked for 2016..and only time will tell on that one.

[SissasMomE]

I don't understand all of the "upscale" talk. NCL is nowhere near being upscale. The suites are the cheapest of any of the mainstream lines ... so I don't get that theory at all. I think FDR is trying to keep the initial costs down, while milking passengers once they get on board.

[S.S.Oceanlover]

It *never* ceases to amaze me why people think what they say here or on any Internet forum has any relevance or influence out side them? These forums are invisible to them. Not just NCL, but every single other cruise line, company, or congress representatives. If you want answers or change you need to take the time and take action. Period. Whining, complaining and asking for official comment in an Internet forum is worthless unless you take action.

 

not always the case. I had a problem with RCI which they refused to deal with. I posted on RCI's facebook page and got enough replies not in RCI's favor that they called me and finally rectified the situation to my satisfaction.

 

So in my case complaining on the internet wasn't worthless.

 

Bill