Plans that affect Princess by CCL Corp

[lovevacadays]

Thank you for posting this information. Interesting to read. I sure hope some of the future builds have some solo cabins.

[Roses2]

Before all the gloom and doom, it may be well to look at reality. Price iInflation is an economic reality. As a senior what did you pay for gasoline in the 1950s and 1960s. What do you pay now?

 

What did you pay for a hotel or motel back in the day and what do you pay now? Check Ft. Lauderdale hotel prices and they run from around $100 to $200 up per night. On a Princess cruise you get a room from an inside to a full suite plus all meals and entertainment for that price.

 

Check drink prices at a nice hotel now. Most martinis and mixed drinks run from $12 - $20 and there are very few happy hours.

 

If you can have a vacation at the level of a cruise somewhere else for the same or less money that is great. I believe cruising provides the most bang for the buck now and will continue to in the future. I also believe that Princess is and will continue to be our choice because it is in the best managed cruise corporation.

[Ethel5]

And to reach the point where the price excludes many of us average folks by becoming too expensive. :(

 

Cruising has been a lot of fun however with these trends cruising will be a less affordable option for many retirees. Princess is gearing their ships for the largely untapped Asian market including modifying the 3rd Royal-class ship for Asia. The Diamond was greatly improved for Asia while in my mind they did nothing to improve the Island for the U.S. & European market.

 

I understand the economic issues but hopefully Princess will be able to replace retired passengers like my wife & me who for several years have sailed often. It's one thing to attract new passengers...it's another thing to make it so expensive that their loyal repeat passengers may longer be able to afford to cruise as often.

 

These trends are disappointing to me as a passenger even though on paper my shares value is increasing.

 

I feel betrayed....We loyal cruisers made them what they are today and now that cruising is the "in" vacation, they turn their backs on us.:(

[SoCal Cruiser78]

...As for more "efficient" use of public spaces, sounds like what they did on the Royal and Regal in minimizing the promenade deck.

 

And, I imagine, minimizing any public area that isn't revenue-generating.

[Woobstr112G]

Thanks for the info. Not much is a surprise. For all those who ask, "Why doesn't Princess sail from....?" the answer is supply and demand, Marketing 101.

 

As for the AIBP, I predicted that regular drink prices would increase, and they have. Significantly. Princess and other brands are laughing all the way to the bank.

 

Interesting that they're considering solo cabins. Sure hope they do and that they're not closet-sized.

 

Well said Pam.....:):):)

 

Bob

[SoCal Cruiser78]

I totally agree. The image of tendering ashore with 6000 others at the numerous tender ports in the South Pacific, Australia and New Zealand is really scary.:eek:

 

As I look at future possible cruise itineraries, I am passing over those with tender ports on larger ships, unless they are ports I don't mind skipping.

[Kamloops50]

Before all the gloom and doom, it may be well to look at reality. Price iInflation is an economic reality. As a senior what did you pay for gasoline in the 1950s and 1960s. What do you pay now?

 

What did you pay for a hotel or motel back in the day and what do you pay now? Check Ft. Lauderdale hotel prices and they run from around $100 to $200 up per night. On a Princess cruise you get a room from an inside to a full suite plus all meals and entertainment for that price.

 

Check drink prices at a nice hotel now. Most martinis and mixed drinks run from $12 - $20 and there are very few happy hours.

 

If you can have a vacation at the level of a cruise somewhere else for the same or less money that is great. I believe cruising provides the most bang for the buck now and will continue to in the future. I also believe that Princess is and will continue to be our choice because it is in the best managed cruise corporation.

 

I agree. I have had this talk with DW about hotel meal prices. When I was working (before retiring) I paid $30 for supper and $12 for a pint or sleeve of beer.

[Putterdude]

And to reach the point where the price excludes many of us average folks by becoming too expensive. :(

 

Cruising has been a lot of fun however with these trends cruising will be a less affordable option for many retirees. Princess is gearing their ships for the largely untapped Asian market including modifying the 3rd Royal-class ship for Asia. The Diamond was greatly improved for Asia while in my mind they did nothing to improve the Island for the U.S. & European market.

 

I understand the economic issues but hopefully Princess will be able to replace retired passengers like my wife & me who for several years have sailed often. It's one thing to attract new passengers...it's another thing to make it so expensive that their loyal repeat passengers may longer be able to afford to cruise as often.

 

These trends are disappointing to me as a passenger even though on paper my shares value is increasing.

 

I am afraid that's business; we can't have higher share prices without higher net revenues which at least in part comes from higher fares. We all have cruised for the past 6 years or so in troubled economic times and had the advantage of lower fares; now times are changing. Princess or CCL owes us nothing, we pay for the commodity of a cruise and once it is over it's over. That said, I think there will always be "deals" out there. The cruise however may not be at the prime time and maybe people will have to trade down on the type of cabin they have enjoyed. Still others will be looking more carefully at different cruise lines and some people may cruise a little less but I venture to say, most of us will still be cruising 5 or 10 years from now....God willing.

[cougaraz]

United will be giving me reasonably priced Wi-Fi on a transatlantic airplane tonight. That seems rather harder than a cruise ship.

 

Both technically and practically, not harder, easier. The airplane has a quite steady flight path, especially in clean air, much more so than a ship on even the calmest day (spent a lot of time working on antennas tracking satellites on ships) and the number of users on an aircraft is a tiny fraction of what you can expect on a ship.

[HUNKY]

Putterdude makes a very valid point. If you've cruised in the past few years you've enjoyed overall lower prices. Now that people have more confidence in the economy prices have risen as has demand.

It has always baffled me when unemployment rates are mentioned on the TV news. I'm more concerned about the rate for established professionals and high wage earners than minimum wage workers and high school kids living at home. Princess, and all other cruise lines, want their cabins booked with guests who spend money on board. It doesn't matter if you're a loyal cruiser, or retired, if you are not generating revenue you are not their target guest.

 

Regarding internet access, younger cruisers will demand higher speeds and always on connectivity. The first cruise line to provide this will certainly snare a large percentage of new cruisers.

[Iamcruzin]

Cruise lines are seeking new generations of passengers & many of them desire a high tech active floating hotel experience & they don't really care that much about us old timers. ;)

 

 

Be that as it may I don't think the new generation is looking to "Escape Completely" or to "Come Back New". Princess needs to change their marking direction if they are going to attract the Millennials.

Edited June 25, 2015 by Iamcruzin

[Esprit]

Before all the gloom and doom, it may be well to look at reality. Price iInflation is an economic reality. As a senior what did you pay for gasoline in the 1950s and 1960s. What do you pay now?

 

What did you pay for a hotel or motel back in the day and what do you pay now? Check Ft. Lauderdale hotel prices and they run from around $100 to $200 up per night. On a Princess cruise you get a room from an inside to a full suite plus all meals and entertainment for that price.

 

Check drink prices at a nice hotel now. Most martinis and mixed drinks run from $12 - $20 and there are very few happy hours.

 

If you can have a vacation at the level of a cruise somewhere else for the same or less money that is great. I believe cruising provides the most bang for the buck now and will continue to in the future. I also believe that Princess is and will continue to be our choice because it is in the best managed cruise corporation.

 

Exactly my thoughts.

 

The current stock price is looking great too

[cpcanuck]

...

 

Interesting that they're considering solo cabins. Sure hope they do and that they're not closet-sized.

 

Well...so far the trend has been to stick with closet-sized cabins on other brands as far as I can tell. I highly doubt that they are going to be creative in terms of nicer solo cabins with at least some natural light (recognizing that balconies in this scenerio are likely a pipe dream). I'm not holding my breath!

[AE_Collector]

Exactly my thoughts.

 

The current stock price is looking great too

 

Improving at least but not even close to what Royal Caribbean shares have done over the last several years.

 

When I first heard about the Shareholder Benefits in each of these companies I grabbed a couple hundred shares in each. That was in 2010. CCL cost me $30 a share and RCL $24 a share. Now CCL has finally hit $50 and while RCL was up to $85 not that long ago but it slid off a bit and has now reclaimed $80.

 

So for me CCL has gone up 66% in 5 years while my RCL is up 333%. An amazing difference over the last 5 years. I am glad that I grabbed some more CCL last October when it briefly bottomed out at $35 as it is up more than 40% in only 9 months. A double benefit for me as it hedged some of my falling (against the US dollar) Canadian dollars and I can sell some of these "extra" CCL shares at a profit for US "cruising money" without affecting my ability to use the Shareholder Benefit.

 

Occasionally I manage to avoid getting burned on the stock market!

 

Terry

Edited June 25, 2015 by AE_Collector

[mariakitty]

My family is part of this target market that CCL is seeking: 30-40 something's with kids who like to travel. But increasing prices and decreasing capacity is not going to get me on the ship; it has already had the affect of seeking non-cruise vacations more than we used to. CCL is walking a fine line here and Princess in particular needs to step up their game with better itineraries during the school holiday times if they want to keep our business. When we can take a family of four to Europe for less money than a cruise, something is wrong. We aren't at this point yet, but is getting very close.

 

Oh the joys of capitalism.

[RickEk]

Improving at least but not even close to what Royal Caribbean shares have done over the last several years.

 

When I first heard about the Shareholder Benefits in each of these companies I grabbed a couple hundred shares in each. That was in 2010. CCL cost me $30 a share and RCL $24 a share. Now CCL has finally hit $50 and while RCL was up to $85 not that long ago but it slid off a bit and has now reclaimed $80.

 

So for me CCL has gone up 66% in 5 years while my RCL is up 333%. An amazing difference over the last 5 years. I am glad that I grabbed some more CCL last October when it briefly bottomed out at $35 as it is up more than 40% in only 9 months. A double benefit for me as it hedged some of my falling (against the US dollar) Canadian dollars and I can sell some of these "extra" CCL shares at a profit for US "cruising money" without affecting my ability to use the Shareholder Benefit.

 

Occasionally I manage to avoid getting burned on the stock market!

 

Terry

 

An interesting comparison...

 

http://www.wolframalpha.com/input/?i=ccl+vs+rccl

[caribill]

Be that as it may I don't think the new generation is looking to "Escape Completely" or to "Come Back New". Princess needs to change their marking direction if they are going to attract the Millennials.

 

How about slogans such as "stay connected" or "don't miss work while on vacation"?

[Putterdude]

How about slogans such as "stay connected" or "don't miss work while on vacation"?

 

Say it isn't so!:eek:

[HUNKY]

Caribill - The expectation is that quality Internet service is a given. The "new economy" expects and does work while on vacation, and to be accessible round the clock.

 

Young people are choosing the latest smartphones and top tier data services over new or better vehicles. Heck, they expect in car wi fi!

Edited June 25, 2015 by HUNKY

[cougaraz]

How about slogans such as "stay connected" or "don't miss work while on vacation"?

 

 

Many might mock this idea, but it is neither all bad nor absurd. Good data connectivity is vital to many people for work or vacation and sometimes both simultaneously. When I am on terrestrial travel I am often able to communicate my experiences with friends and family nearly real time. What I see, they see and that interaction is part of the fun. For my wife, the difference between working a few hours per week while cruising via the Internet and not doing so is what allows us to travel.

 

Traditional lines between work and travel, home and office do not exist in many professions the way they have in the past. Whether it is to everyone's liking or not, companies that gain an edge in connectivity will rapidly gain a competitive advantage.

 

 

Sent from my iPad using Tapatalk

[shredie]

How about slogans such as "stay connected" or "don't miss work while on vacation"?

 

LOL! One of my kids teaches for an online university and must be connected. Since vacation time is scarce in a year round school, the opportunities for cruising are limited. I have been donating my and DH's free minutes to the cause, but a cheaper package and faster speeds would be welcome. I think I'd be willing to pay for it in terms of a somewhat higher fare.

[beg3yrs]

How about slogans such as "stay connected" or "don't miss work while on vacation"?

 

How about "Work Away From Your Desk" or "Work Somewhere Far From Your Miserable Colleagues"?

 

OMG, Bill you've really nailed the stereotype given to a large group of people! My condolences to them.

Edited June 25, 2015 by beg3yrs

[caribill]

For my wife, the difference between working a few hours per week while cruising via the Internet and not doing so is what allows us to travel.

 

Traditional lines between work and travel, home and office do not exist in many professions the way they have in the past. Whether it is to everyone's liking or not, companies that gain an edge in connectivity will rapidly gain a competitive advantage.

 

 

 

Those who need to spend those hours working definitely will benefit from the unlimited minutes packages. (And in some cases, their employer may pick up the cost.)

 

But for those who find 30 minutes/day is enough, these packages are more expensive than what they pay today, at least with Carnival pricing.

 

On a recent CCL Corp analysts call, it was said that Internet income is one of three main factors leading to increased onboard profits. (The other two were beverage options (think AIBP) and casino enhancements.)

[gertz]

It is what it is. And predictable.

 

So we all have choices. And Carnival will pay close attention to your choices.

 

Choice 1. Go on a crowded cruise ship like the CB and twins or ---.

 

We took "OR". A good book is hard to beat.

 

We will still cruise but not as much and only still on Princess. Next in Sept on the Coral.

 

Then the Island, we will see what they did to it.

[Iamcruzin]

How about slogans such as "stay connected" or "don't miss work while on vacation"?

 

As unfortunate as this may sound I bet many folks don't book a cruise vacation just because they need to stay in touch with work or family. It's not the 1950's when everything was Monday to Friday 9 to 5. We live in a 24/7 world today and unfortunately people need to be connected. I start my vacation tomorrow night. It's a stay cation. While nobody will call me I know that I will get text messages. If they are going to build ships that carry 6000 passengers there better be more to do than trivia, karaoke or listening to shopping talks.

Edited June 25, 2015 by Iamcruzin