Azamara fares up 70%. Is the product 70% better?

[Mercruiser]

Per the USA Today article, "Pimentel says average fares at the line's ships have jumped 70% over the past five years, which he notes is unusual for vessels that are more than a decade old.*"

 

As a customer, it seems very odd to hear management boasting of a 70% price increase. I've yet to cruise on Azamara, so I'm wondering if the long term customers think the value provided has kept up with the price increases?

 

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[Phxazzcruisers]

I am not sure why he thinks the prices are up 70%. We are not paying anywhere near 70% more than when we first cruised on Azamara in 2008.

[BBMacLaird]

Here's my interpretation...

When Mr Pimentel refers to 'average fare' I believe he means the average fare paid of all berths on all voyages in a given year. It boils down to an average annual fare, net of discounts. And while I haven't seen the actual numbers I think 70% increase in net fare over five years is absolutely achievable.

 

As popularity and demand have grown the ships are sailing fuller, and this means every voyage, including the shoulder season voyages and any traditionally less full voyages such as trans-ocean repositionings. Since the cruise fares are revenue managed, the earlier a voyage fills up, the sooner (farther out from departure) the fares rise to brochure rates, i.e., the less likely there are promotional discounts offered on that voyage.

 

So while the savvy frequent sailing cruise shopper knows to watch for and buy at the best fares (far in advance and when the promotion comes along that they like), most cruisers are not planning years in advance or have the flexibility in when they can travel, and/or they are fixed on the destinations they want to visit.

 

It's thus a combination of many variables: higher demand, earlier demand, and more of a younger, still working, demographic.

[nordski]

Here's my interpretation...

 

When Mr Pimentel refers to 'average fare' I believe he means the average fare paid of all berths on all voyages in a given year. It boils down to an average annual fare, net of discounts. And while I haven't seen the actual numbers I think 70% increase in net fare over five years is absolutely achievable.

 

 

 

As popularity and demand have grown the ships are sailing fuller, and this means every voyage, including the shoulder season voyages and any traditionally less full voyages such as trans-ocean repositionings. Since the cruise fares are revenue managed, the earlier a voyage fills up, the sooner (farther out from departure) the fares rise to brochure rates, i.e., the less likely there are promotional discounts offered on that voyage.

 

 

 

So while the savvy frequent sailing cruise shopper knows to watch for and buy at the best fares (far in advance and when the promotion comes along that they like), most cruisers are not planning years in advance or have the flexibility in when they can travel, and/or they are fixed on the destinations they want to visit.

 

 

 

It's thus a combination of many variables: higher demand, earlier demand, and more of a younger, still working, demographic.

 

 

Thanks for that explanation.

 

At the risk of repeating myself from a much earlier thread, when we first sailed on Azamara the prices were, in our view, artificially low, perhaps to attract cruisers to a different experience. Once the message spread, it was possible to raise fares in order to make Azamara more financially viable.

 

As fares rose, a "more" inclusive product was introduced (including complementary beverages) but, despite the claims made by others, as Larry P. commented on this forum this new policy was only partly responsible for this increase.

 

The success of this approach can be seen in the present plans for refitting the ships, and exciting plans for, we hope, new additions to the fleet.

 

Perhaps my analysis here is too simplistic, and others can clarify, correct, or augment.

[factor30]

Thanks for that explanation.

 

At the risk of repeating myself from a much earlier thread, when we first sailed on Azamara the prices were, in our view, artificially low, perhaps to attract cruisers to a different experience. Once the message spread, it was possible to raise fares in order to make Azamara more financially viable.

 

As fares rose, a "more" inclusive product was introduced (including complementary beverages) but, despite the claims made by others, as Larry P. commented on this forum this new policy was only partly responsible for this increase.

 

The success of this approach can be seen in the present plans for refitting the ships, and exciting plans for, we hope, new additions to the fleet.

 

Perhaps my analysis here is too simplistic, and others can clarify, correct, or augment.

Absolutely agree with your second paragraph i.e. 'artificially low prices'. We first sailed Azamara 2 weeks after its launch in 2007 being attracted by the price. We had two further Az cruises - 2008 and 2009 still at very competitive prices, and then the price started to increase considerably. At the time, we thought that the company had underpriced the product but were 'testing the waters'.

Before the news of Journey's refit, we had already booked Jan 27 2016 so are very excited to be taking our first Az cruise since 2009 next year.

 

Rita

[hubofhockey]

70% is around 10% a year. The mass market lines have kept prices steady, but have made significant cuts to service and entertainment levels. They have also gone to a la carte pricing. They are depending on introducing new passengers at low base rates and maintaining old ones through brand loyalty and rewards perks. It's one of the things that pushed us into trying Az. I'll have a good idea after our short 7-day pearl of adriatic itinerary next summer whether we feel the price provides greater value.

[Redtravel]

Compared to my first Azamara cruise, my recent cruise was triple what I paid in 2009. Both were 14 nights in western Europe. Is it worth it? Depends upon you. If you drink, it may be okay. Simce I don't drink, i don't want to pay for drinks. There are many cruises to pick from. Usually I pick cruises for time and place.

[bob278]

I choose to compare and analyze more current situations. We have been cruising fairly steadily for about 10 years, mostly on Royal Caribbean and Celebrity. Prices on those lines have gone up over the years as well.

 

We took our first Azamara cruise in 2008 just after the Quest joined the fleet. The early-on prices for Azamara were not as inclusive and I agree that they were probably lower to attract new customers. Our next cruise on Azamara was in March of this year and when I compare it to comparable cabin categories on Celebrity on similar itineraries within the last year, I see a price differential of about 20-25%. Do I think the product is worth the difference? Since we have 5 cruises booked on Azamara in the next 20 months, the answer is, obviously, yes.

 

I think Bonnie's explanation is valid. On every cruise you have a mix of prices paid. Some examples:

 

• Some booked right after cruises opened up and got relatively lower prices plus a sale
  
• Some got a sale with slightly higher prices
  
• Some booked on board for discounts
  
• Some booked late with higher prices and no sale
  
• Some combined timing, sales and booking on board(all 5 of our future cruises were booked on board and took advantage of the 2nd person half off sale)
  

 

If you average the prices paid today to a cruise 5 years ago, I can easily believe that the result might be in the 70% range. Keep in mind that this forum represents an experienced base of cruisers and I would expect that, as a group, we pay a good bit less than the average consumer, especially new cruisers. There will always be examples of extreme variance in both directions, but looking at the big picture smooths those out.

 

Considering that the more inclusive approach alone probably added 15-20% then the actual increase year-over-year on the fares is more like 50-55% which is about 9% per year compounded. And Bonnie didn't even mention charters which bring a very attractive return to Azamara that raises the annual average price calculation even more.

[BBMacLaird]

Hi Bob,

Your explanation is accurate and much more eloquent than mine was.

I left off the charter variable since the mere mention can cause a solar flare-up ;)

[Mercruiser]

Do I think the product is worth the difference? Since we have 5 cruises booked on Azamara in the next 20 months, the answer is, obviously, yes.

 

This was a very helpful answer. Thanks.

[marinaro44]

We've done eleven Azamara cruises, starting when the fares were in the, shall we say, "introductory stage." We have five more booked starting in three weeks through next February.

 

I think the correct question to be asking is: "Is the product worth the current Azamara fares?" My answer is a resounding "YES." Azamara's fares from three and four years were not nearly an indication of the quality of the product offered at the time, so a comparison of today's fares with those as phrased by the OP is really not valid. My basis for my "YES" answer above is a comparison of the Azamara experience with the experiences I've had on Regent, where fares significantly exceed Azamara's, and the experience has not been as satisfactory.

 

And always be sure to be on the lookout for BOGOHO promotions, or book a veranda for the price of an inside, or whatever Azamara may be offering at the time you are planning a cruise.

[DaKa2002]

Thanks, Bonnie and Bob, for the very interesting analysis of management's comment. After years of watching AZ closely, we are excited and anticipating our Journey cruise later this year! I can say that so far we have been very pleased with our direct contacts with Azamara's customer service folks.

[BBMacLaird]

Thanks, Bonnie and Bob, for the very interesting analysis of management's comment. After years of watching AZ closely, we are excited and anticipating our Journey cruise later this year! I can say that so far we have been very pleased with our direct contacts with Azamara's customer service folks.

 

You're welcome DaKa2002. And must say it is WE who should be thanking YOU for choosing Azamara.

I hope you'll check back in after your first cruise later this year.

[DaKa2002]

I hope you'll check back in after your first cruise later this year.

 

I have been "Lurking" around here for a long time, even before being able to log on to the site. I figure by now I really owe many folks for what we have learned over the years in preparation for our many trips.

 

Usually by the time I find something to comment on, several people who are probably far more experienced at cruising than we are, have already put in my 2 cents for me! So I rarely have much of value to add.

 

My first attempt to publish a review got "lost" in the ionosphere somewhere, never to be found again; I had spent a lot of time writing that review. After that, I decided I would try again, and it will be for our first Azamara Cruise experience - on the Journey this fall! By the time we sail, it will be over three years in the researching, booking, planning, and anticipation for this highly anticipated "bucket list" experience.

 

Azamara was very carefully selected by the four of us for this very port-intensive travel and cruise experience!

[Host Jazzbeau]

My first attempt to publish a review got "lost" in the ionosphere somewhere, never to be found again; I had spent a lot of time writing that review.

 

I've had the same experience, which is why I always post first as a new thread on the appropriate forum, then submit the actual review.

[critterchick]

I have been "Lurking" around here for a long time, even before being able to log on to the site. I figure by now I really owe many folks for what we have learned over the years in preparation for our many trips.

 

Usually by the time I find something to comment on, several people who are probably far more experienced at cruising than we are, have already put in my 2 cents for me! So I rarely have much of value to add.

 

My first attempt to publish a review got "lost" in the ionosphere somewhere, never to be found again; I had spent a lot of time writing that review. After that, I decided I would try again, and it will be for our first Azamara Cruise experience - on the Journey this fall! By the time we sail, it will be over three years in the researching, booking, planning, and anticipation for this highly anticipated "bucket list" experience.

 

Azamara was very carefully selected by the four of us for this very port-intensive travel and cruise experience!

 

I always write my reviews in Word and then copy & paste.