New Celebrity Bundle Pricing (Go! Big, Go! Better, Go! Best)

[Ma Bell]

It has been so obvious that this was the plan ever since the "promotions" started. As always, the consumer has to decide how much the product is worth and how much he is willing to pay.

 

For those who are concerned about changing prices on cruises that have already been booked and deposited....they have been encouraging people to book before 123 was over for good. They're not going to change your booking.

[Lois R]

Hi Lois,

 

How are you ? Hope all is well. You're right. A lower Single supplement would be awesome. While we can always hope, I suspect it's not in Celebrity's game-plan. We'll find out next Monday.

 

Hi Andy, doing ok thanks.....I know they won't do anything for

those of us who sail solo....I was just thinking out loud.

[Charles4515]

It has been so obvious that this was the plan ever since the "promotions" started. As always, the consumer has to decide how much the product is worth and how much he is willing to pay.

 

For those who are concerned about changing prices on cruises that have already been booked and deposited....they have been encouraging people to book before 123 was over for good. They're not going to change your booking.

 

They can't change bookings already made. None should even worry about that.

[ChucktownSteve]

As I see it, Celebrity is trying to build the value added (with THEIR low out of pocket cost) so they can raise the price. The bottom line is what is important to me. What can I get for the total cost. If another cruise line is close or better, they become a consideration as well.

 

Right now I perceive Celebrity as a better value/quality. When they elevate their cost to Oceania or Azamara, they have more competition for my booking $$$.

Edited July 1, 2015 by ChucktownSteve

[K.T.B.]

With all this bundling going on, I feel like I'm watching a Geico commercial.

 

:D

[The_Big_M]

Thanks for sharing. This is very interesting, as it gives customers a choice.

 

Currently, customers also have the same choices.

 

It just changes how those choices are paid.

[teecee60]

 

I think we already know that the strategy is intended to raise prices.

 

One of the four stated guiding principles of this new pricing structure was to "...raise APDs (average per diems).."

 

Of course Celebrity is a business. They are supposed to be working towards increasing profit for their share-holders.

 

It will interesting to look back on how this strategy ultimately affects the bottom line.

 

Jane

 

I guess I am just one of those "aging dinosaurs" that believe the BEST way to increase both SALES, as well as PROFITS, is through well satisfied customers, returning often and bringing their friends. :eek: :o :rolleyes:

 

 

 

 

If they raise the basic package price of a cabin by $300 and give $300 spending credit...nothings changed.

 

If they charge another $300 for the next level and you can now pick both....again, nothing's changed.

 

 

Yours SOUNDS like a reasonable explanation, but it only APPEARS that way.

 

Increasing the base price by 600 bucks immediately boosts the Cruise Lines' hard cash profits up front, with basically no effort/cost.

 

The cruiser pays the ridiculously overpriced full retail markup for two "perks" that only cost the cruise line a few pennies on the dollar.

 

I would LOVE to sell an $8-12 bottle of wine (cost) for $40-$60 to a few hundred people in the MDR every night.

 

Or A THOUSAND $1 drinks (cost) for $12-$14 at the pool every day and the Martini Bar every night.

 

ESPECIALLY if you can get the customer thinking... "HEY! it's FREE... a part of the deal!" :rolleyes:

Edited July 1, 2015 by teecee60

[AtlantaCruiser72]

The cruise lines currently see "value adds" and "bundling" as the way of the future. Building more value, or inclusions, into the base price gives them the potential to charge higher fares upfront and capture revenue they might otherwise lose out on from passengers who spend little to nothing once onboard.

 

I suspect he prices will still fluctuate up and down across all three bundle levels, based on supply and demand, just as they do now. I'm also guessing that there will be targeted lower fares - senior, resident, exciting deals, etc - that are excluded from the bundle levels/options, just as they currently are from 123GO and PYP promos. In essence this is nothing more than a rebranding of the previous promos and it puts more control in the consumers hands as to how inclusive they wish to make the experience with their initial purchase.

 

Celebrity has been the leader in the mass market / premium sector for bundles and value adds for a long time - first to offer beverage packages, first to offer beg package as a perk, first to offer a choice of perks, now first to offer perks in a customizable bundle.

[Bruin Steve]

I just got off the Millenium/Alaska a few days ago...

As the cruise neared and I watched for price drops, at one point they were offering a Pick Your Perk promo with OV cabins dropping as low as $699 pp...

I had my TA call only to find out that the PYP deal didn't apply to the $699 rate. If someone wanted an OV with PYP, the rate was $1099 pp...

 

IOW, in order to get free gratuities-worth $91 per person...or an OBC worth $150 pp...or a drink package worth $400 pp, all one had to do is to pay a rate for the cabin $400 higher! Makes for a heck of a "bundle"...

 

Now, I have two cruises booked for March and July next year, both long ago booked with a 123Go! Promotion...Reluctantly, I took the drink package as one of my perks on each...

 

You see, the drink package isn't really worth that much to me...As an Elite Plus CC member, I get free drinks from 5 to 7 and I really don't drink much more than that...plus, I also get free Cappuccinos and the like...So really not much extra value in it for me...Only question is whether I can get more use out of it than the $13 a day I save with the Gratuities perk...or the little value I get with use it or lose it cruise line OBC when I pre-book excursions or book my own private tours...So we'll see how it works...but it really isn't worth paying a cruise rate $400 a week pp higher than without the perk!

 

And yes, I find the perks to dilute my Elite Plus perks incredibly...I've been promised 1) free drinks from 5 to 7, 2) free specialty coffees, 3) 200 minutes of free internet...but, now, with no "cruise only" pricing, I am forced to also pay for perks which duplicate these perks...

 

I guess Celebrity no longer values MY business...They'd rather have cruisers who need to pay for these perks in a "bundle"...rather than those of us to whom they've promised them as free in exchange for our long term loyalty...

Edited July 1, 2015 by Bruin Steve

[insidecabin]

I think this is a good idea. It will be interesting to see if anyone follows.

 

NCL have been doing similar since Dec 2014, no sign of them dropping choice promotion yet.

[insidecabin]

Can't see the GTY no perks rates going away for long if ever

 

They need them to fill the ships.

[woodyren]

I think while there will be a lot of clicking around the decisions will be simple for us. I don't mind clicking around and am always on the lookout for best bang for my buck.

 

We will always choose the bev pkg as it is the most significant cost saving. As we are diamond on RCL and get reciprocal elite (happy hours, 3 drinks etc) on X I value this (to us) at around $20 pp pd. So I will just compare the price for the lowest bundle to what similar lines offer without any perks.

 

The next choice is the two perks. Our choice will always be free grats because that is the next most expensive cost for us and if the price hike is lower than the grats price then the choice is a no brainer.

 

To add 4 if it's a bit less (say 30%) than the cost of upgrading to the premium and the internet/OBC value then they have got my business there.

 

The big spanner in the works will be what bones my TA is willing to throw back from their increased commissions. Will probably have to be all OBC that hopefully will be refundable as we will have no need for it.

Edited July 1, 2015 by woodyren

[The_Big_M]

And yes, I find the perks to dilute my Elite Plus perks incredibly...I've been promised 1) free drinks from 5 to 7, 2) free specialty coffees, 3) 200 minutes of free internet...but, now, with no "cruise only" pricing, I am forced to also pay for perks which duplicate these perks...

 

None of those Elite Plus perks include gratuities.

 

So all you need to do is select the gratuities pack, and there's no dilution to your benefits at all.

[UniPac]

Another promotion? But this is supposed to permanent.......

 

And I am also in the group of solo cruisers.....I doubt they are going to

do anything for us. A lower SS would be awesome but I won't hold my

breath.

 

Maybe the new ships will also feature "solo" cabins like Anthem and Quantum!

[Iamcruzin]

I guess I am just one of those "aging dinosaurs" that believe the BEST way to increase both SALES, as well as PROFITS, is through well satisfied customers, returning often and bringing their friends. :eek: :o :rolleyes:

 

This worked back in the day when quality was valued more than quantity. Now everyone needs to believe they are getting something for nothing or a great deal. Look how many use a Travel Agent just to get perks after they did their own leg work. Some go through the trouble to transfer a booking to a TA when it would be easier to book through the cruise line. Now even the repeat customers, Elite and Elite plus are still looking for more freebies so they don't have to spend anything on board. Seems to me repeat customers cost the cruise line money.

Edited July 1, 2015 by Iamcruzin

[CruisingChick]

Maybe the new ships will also feature "solo" cabins like Anthem and Quantum!

 

I doubt it since they are going to be smaller than the S Class ships. Anthem and Quantum are huge ships.

[billet]

The big spanner in the works will be what bones my TA is willing to throw back from their increased commissions. Will probably have to be all OBC that hopefully will be refundable as we will have no need for it.

For the minimal extra amount your TA will make he/she will probably be able to buy you a Snickers bar. This will make it easier for your agent to focus on giving great person service rather than being distracted by having to understand all the fine print of yet another promotion

[kenevenpar]

Increasing the base price by 600 bucks immediately boosts the Cruise Lines' hard cash profits up front, with basically no effort/cost.

 

 

ESPECIALLY if you can get the customer thinking... "HEY! it's FREE... a part of the deal!" :rolleyes:

 

What are hard cash profits up front?

 

Cash for most companies is a function of cash flow and has nothing to do with profits (Cash accounting basis, which Celebrity is not, excluded).

[ghstudio]

For the minimal extra amount your TA will make he/she will probably be able to buy you a Snickers bar. This will make it easier for your agent to focus on giving great person service rather than being distracted by having to understand all the fine print of yet another promotion

 

Irrespective of anything Celebrity says, there will still be (confusing) promotions...add one more level for $off or special $ off on a level upgrade for seniors, etc. It will be just as confusing to agents....just different. And forget the "no last minute discounts" financially crazy statements....won't happen in your lifetime or mine.

[hcat]

I think while there will be a lot of clicking around the decisions will be simple for us. I don't mind clicking around and am always on the lookout for best bang for my buck.

 

We will always choose the bev pkg as it is the most significant cost saving. As we are diamond on RCL and get reciprocal elite (happy hours, 3 drinks etc) on X I value this (to us) at around $20 pp pd. So I will just compare the price for the lowest bundle to what similar lines offer without any perks.

 

The next choice is the two perks. Our choice will always be free grats because that is the next most expensive cost for us and if the price hike is lower than the grats price then the choice is a no brainer.

 

To add 4 if it's a bit less (say 30%) than the cost of upgrading to the premium and the internet/OBC value then they have got my business there.

 

The big spanner in the works will be what bones my TA is willing to throw back from their increased commissions. Will probably have to be all OBC that hopefully will be refundable as we will have no need for it.

 

This is what I was saying...more math to see the value!

With a new CEO ,we would have preferred her to focus less on marketing gimmicks and instead lead a return to an upscale product...sorbet at the pool, soft towels, esp in AQ class, flowers, more live music on board ,more staff, trained better to deliver superior service...all the little touches and other things that once made Celebrity a great cruise line. And absolutely fix the website, technology product on land (green grass) and sea (blue seas).

Edited July 1, 2015 by hcat

[CruisingChick]

This is what I was saying...more math to see the value!

With a new CEO ,we would have preferred her to focus less on marketing gimmicks and a return to an upscale product...sorbet at the pool, soft towels, esp in AQ class, flowers, more live music on board ,more staff, well trained better to deliver superior service...all the little touches and other things that once made Celebrity a great cruise lineservice

 

Agree with you 100%. Stop the gimmicks and confusing promotions and go back to focusing on service and quality. Then you won't need to trick people into booking a cruise. They will come to you.

 

When we first started sailing Celebrity 13 years ago, we never thought much about price because we were getting a great product. Then the quality and service started to go downhill and they started nickel and diming, so then we started to book after final payment or looking for senior or resident discounts before we will book.

[Bru92]

Many people do not want all inclusive vacations. Especially if that means overall prices will be higher. If I don't drink alcohol why should I pay for it in my cruise prices.

 

And again...the people in steerage (inside staterooms) are left out in the cold.

 

If I read the article correctly, you have alternate perks other than alcohol: On board credit, gratuities, or internet. That doesn't seem to leave anyone out.

 

If you wish to squeeze in one additional cruise on the cheap, you can still go ala carte.

 

It seems like a reasonable approach to me but the devil is always in the details (or price points).

 

Mike in Ohio

[CruisingChick]

If I read the article correctly, you have alternate perks other than alcohol: On board credit, gratuities, or internet. That doesn't seem to leave anyone out.

 

If you wish to squeeze in one additional cruise on the cheap, you can still go ala carte.

 

It seems like a reasonable approach to me but the devil is always in the details (or price points).

 

Mike in Ohio

 

I guess. We shall see what happens once it is rolled out.

[Bruin Steve]

None of those Elite Plus perks include gratuities.

 

So all you need to do is select the gratuities pack, and there's no dilution to your benefits at all.

 

But that's a pretty BAD deal for me...especially when they up the cabin price by $400--as they did with my Alaska cruise...

 

Hmmm...

I can pick, for my $400, free gratuities worth $91!

 

IF, in fact, these perks really were FREE, then, yes, ANY perk is a bonus...though some might be worth more to some people than others...

 

But, I think you miss the point--they are NOT free...Celebrity is merely taking a cruise that used to cost, say, $1500 and for which you MIGHT have purchased a $400 drink package--IF you really think you'd get your money's worth drinking at least 6-7 drinks per night...and are, instead, charging you $1900. BUT, if you don't want that drinks package you've basically paid for, they will gladly give you $150 in nonrefundable OBC or $90 in paid gratuities instead!

 

They are, basically, making each customer guarantee that they will spend an additional $400 (or whatever premium they decide to increase the price by) up front.

 

People who would have already been given drinks and internet as Elite members, people who don't drink or don't drink much, children under the drinking age--they are the targets. They are the ones who rarely run up a tab on the ship of greater than $400 per week. Now their fare goes up--and all they might get from the extra fare is that $90 in gratuities.

[DYKWIA]

... under the new pricing structure since =X= has also excluded inside cabins from the all-inclusive strategy.

 

....

 

This means that they will be able to advertise really low lead in prices (even if the leap up from an inside will probably mean a hefty price increase)