Cruise industry pricing strategy

[whitshel]

Just wondering what everyone thinks about the industry pricing as a whole.

 

We all know Rccl's prices are pretty high with really nothing added in from Rccl. Ncl's pricing is pretty comparable to Rccl but you get a free ultimate drink package or other things. Carnival is pretty basic, value price. Celebrity and princess are also comparable but free drinks on Celebrity.

 

Can Rccl sustain these prices? Again is it supply and demand, they can charge the same or more than Ncl without a free drink package and still fill their ships? Does Ncl need to offer those drink packages to fill their ships or maybe they are taking this as like a lost leader to pull people away from Rccl, Carnival and the other mainstreams to try their ships and maybe they will stay with Ncl then they will stop offering the freebies?

 

Its hard to believe that Ncl can offer a free drink package at the same price as Rccl which really equates to a $350pp savings. And with Celebrity doing the same thing their prices are cheaper than Rccl too. Is Rccl that well liked and can sail full without all those freebies?

 

I guess if you don't have to offer freebies to fill your ships, why would you? Can you imagine if Rccl did offer free drink packages? Oh my.....

 

I know this is very subjective and my findings are very universal, not saying its like this on every sailing but for the most part. And this has nothing to do with Rccl's sales etc, we all know those are just advertising ploys to get folks on their website. The price is the price is the price with Rccl, no matter what promo they have.

[orville99]

Actually, if you look at RCL's prices over the past for years (or so), I think you'd find that the actual transaction value has only gone up by about 10-15%. The "mark em up just to mark em down" pricing scheme is just that - a clever way to entice new cruisers. If you look at the other lines over the same time frame, I believe you'd find that those "freebies" aren't really free, but have been factored into a series of subtle price increases or promotions. The probability of anyone noticing (in the cruise line's view) is remote since most cruisers only sail once, or only sail once every few years.

[whitshel]

Actually, if you look at RCL's prices over the past for years (or so), I think you'd find that the actual transaction value has only gone up by about 10-15%. The "mark em up just to mark em down" pricing scheme is just that - a clever way to entice new cruisers. If you look at the other lines over the same time frame, I believe you'd find that those "freebies" aren't really free, but have been factored into a series of subtle price increases or promotions. The probability of anyone noticing (in the cruise line's view) is remote since most cruisers only sail once, or only sail once every few years.

 

Agree with you but they still are the same price or lower than Rccl. Rccl and NCL sell the same balcony cabins for the same price. So ticket revenue is about the same, lets say. But on board revenue Rccl has to blow NCL out of the water due to a good majority of NCL customers not having to buy a drink package or drinks at all. All those same Rccl balcony customers now have to fork out the $350 or buy drinks. NCL's on board revenue has to take a huge hit with promos like these.

[TubbyMrT]

I frequent Allure and Oasis and they always appear to sell out. That tells me the pricing is right, or actually even a little low for demand. The prices fluctuate greatly throughout the months of the booking process to help ensure a full ship. Whatever they are doing, it appears to be working. My bank account is being emptied!

[orville99]

Agree with you but they still are the same price or lower than Rccl. Rccl and NCL sell the same balcony cabins for the same price. So ticket revenue is about the same, lets say. But on board revenue Rccl has to blow NCL out of the water due to a good majority of NCL customers not having to buy a drink package or drinks at all. All those same Rccl balcony customers now have to fork out the $350 or buy drinks. NCL's on board revenue has to take a huge hit with promos like these.

 

That may be true, but before NCL introduced their "free" drinks, I could always book a balcony on NCL for considerably less than the same category cabin on RCL (same weeks/similar itineraries)

[SPacificbound]

I honestly don't get the "We all know Rccl's prices are pretty high".

 

The cruises I have booked have not been high, they have been reasonable, and certainly not higher then they were previous years.

 

Maybe it depends on when you book, I book early, usually as soon as the schedules are released, and the cruise prices have gone up as the months go by.

 

My upcoming cruises are way more then what I paid for them, almost double.

 

I guess if I was just now looking to book the Med in October 2015 I would think the prices were high. That is why I book early.

[whitshel]

Really I'm just saying they're high because that's all u read on this board. I booked Oasis for about $900 pp in a balcony. I thought that was great

[PLEIKU68]

I honestly don't get the "We all know Rccl's prices are pretty high".

 

The cruises I have booked have not been high, they have been reasonable, and certainly not higher then they were previous years.

 

Maybe it depends on when you book, I book early, usually as soon as the schedules are released, and the cruise prices have gone up as the months go by.

 

My upcoming cruises are way more then what I paid for them, almost double.

 

I guess if I was just now looking to book the Med in October 2015 I would think the prices were high. That is why I book early.

 

 

I booked a cruise in late May that sails in April '16. In this short period of time the price has doubled and that is with their so called BOGO. Moral of story is to book as early as possible. :)

Edited July 3, 2015 by PLEIKU68

[OHCruisinDad]

 

 

I booked a cruise in late May that sails in April '16. In this short period of time the price has doubled and that is with their so called BOGO. Moral of story is to book as early as possible. :)

 

Book early and book often! Seriously, book early and monitor fares. There are many fare adjustments during the year plus before the final payment date. If the fares drop, get your fare adjusted. Over the past several years I have usually gotten a fare drop or two on about 60 - 70% of our cruises. Some of the best were short term drops and the availability of W, X and XN guaranteed cabins. Another option if you have flexibility is to book within 30 - 45 days of sailing. It can be a gamble but if you are tracking a cruise that is not selling that well it may pay to wait until close in to the sailing date. You have to be flexible and be willing to take a guaranteed cabin or a non-prime cabin location.

[teecee60]

Just wondering what everyone thinks about the industry pricing as a whole.

 

We all know Rccl's prices are pretty high. Ncl's pricing is pretty comparable to Rccl. Carnival is basic, value price. Celebrity and princess are also comparable but free drinks on Celebrity.

 

Can Rccl sustain these prices? Again is it supply and demand And with Celebrity doing the same thing their prices are cheaper than Rccl too. Is Rccl that well liked and can sail full without all those freebies?

 

I guess if you don't have to offer freebies to fill your ships, why would you?

 

Rccl's sales, we all know those are just advertising ploys.

 

 

As with just about any product or service, from any company, in any industry...It's almost ALWAYS about supply and demand.

 

Right now, and into the foreseeable future, there is a HUGE excess supply of cruise ships and cabins, with SEVERAL MORE SHIPS and THOUSANDS MORE CABINS being added every single year. :eek:

 

The US economy (along with the rest of the world) is slowly recovering, (as proven by treasury receipts finally back to 2008 levels) but no where NEAR fast enough, to enable enough people to fill the available cabins. ;)

 

THAT excess supply is why you see SO many, pathetically ridiculous marketing ploys to try and get people to FILL ALL THOSE CABINS.

 

Of course there ARE exceptions in "micro markets" where demand equals supply, (a good example is Celebrity's Galapagos Islands ship) and prices are almost always high, with little or no discounts or added incentives.

 

I think I am proof positive of the LOW prices available due to the excess supply. (at least in SOME areas)

 

My most recent cruise was 14 nights in April on Celebrity for $699pp with $450 OBC. As an "elite" Captains Club member, I get free drinks almost every night and some free laundry and internet. I can barely live at home for that price!

 

I just booked a 15 night Celebrity cruise for November @ $799pp with $500 OBC with the same "elite" perks.

 

Last fall I did a 23 night transpacific from San Francisco to Sydney for $799pp with $250 OBC! :D

 

I'm booked on Explorer OTS for a 35 night B2B in April for UNDER $1,700pp with over $500 OBC. Along with Diamond perks.

 

There are multiple cruises on multiple lines in the Alaska market right now for $50pp/dayor LESS with hundred in OBC. I could EASILY go broke saving money on cruises, AND end up on the liver transplant list, all at the same time. :p

 

On the OTHER end of the pricing spectrum, if you demand Crystal, Regent, or Seabourn, or even Grand/Penthouse/Owners Suites on "lesser" lines, I 'm sure prices are fairly steep. :rolleyes:

 

If you avoid the marketing hype, and spend a little time shopping the online sites, there are bargains galore.

Edited July 3, 2015 by teecee60

[Trixie21]

Rccl is giving free drink packages in the UK. I just booked Harmony for next year and got free premium drinks package ( for a balcony. - it was free select package for an inside or oceanview ). Having said that I thought the base price was a bit high but when you factor in the free drinks it was ok. We do not have access to price fluctuations after we book in the UK as you do in the U.S. So we just have to take our chances. Last year a cruise we booked turned up a lot cheaper and my travel agent got some onboard credit to compensate so always worth trying something.

[roquejo]

Like what has been replied:

 

Simple case of supply and demand.

[north29]

Supply and Demand is the correct answer.

Pricing, except for what we booked way in advance on ship, is now beyond our expectations as we usually cruise at least 2-4 times a year.

Land adventures are now more comparable in pricing than most cruises, IF YOU USE A DISCOUNT AGENCy, which we have done before and they are OK. River cruises are in the same price range now days and if booked right, they are comparable to RCI or other lines

I guess we will be doing travel to select/specific places(like Israel) that we have always wanted visit in depth. Cruises were offering us a way to see much of the world or a taste of countries at a price point we enjoyed.

[nbsjcruiser]

We've gotten lucky with RCI. I stumbled on the NOS 9 Day Eastern to the ABC Islands when it first came out and grabbed it for about $1600 for an outside. Same thing with our 8 day Eastern in Novemebr - we grabbed it early for $1500 for a Promenade. However I have found prices considerably higher this year. We booked a 3 day on the Majesty because we'll be in the area at the time but we later cancelled because $1000 for a 3 day cruise was just too much. Same thing for next February. We looked at a Freedom class ship but compared to the Getaway, it was far too much so we booked the Getaway.

 

We're what I call soft RCI loyalists. They're our first line to check for a cruise but this year they've reached our limit and I suspect that we're not the only ones. By looking at other lines, RCI risks losing us. NCL ships compare favourably to any RCI ship out there and we have no problem switching allegiances. This is the Risk RCI is running right now IMO. I especially dislike the BOGO sales. They jack up the price and then claim a sale? I find it insulting and I'm disinclined to give my money to companies that insult me. So in future, our plans are to look elsewhere and compare.

[PLEIKU68]

We have been very Loyal to Royal for well over 30+ years. I honestly feel they would like to see us older cruisers leave and go to another line. RCL would rather focus on the younger family's with mucho disposable income. Get the newer younger cruisers on board and they spend faster than a horse in the Kentucky Derby.:)

[Kayaktom]

While the pricing strategies of the cruise lines is somewhat of mystery to all of us...I have always booked very early and have not regretted it what so ever. We have always seen the prices go up. And, if by chance they go down, I simply take the lower deal.

[whitshel]

.

 

We're what I call soft RCI loyalists. They're our first line to check for a cruise but this year they've reached our limit and I suspect that we're not the only ones. By looking at other lines, RCI risks losing us. NCL ships compare favourably to any RCI ship out there and we have no problem switching allegiances. This is the Risk RCI is running right now IMO. I especially dislike the BOGO sales. They jack up the price and then claim a sale? I find it insulting and I'm disinclined to give my money to companies that insult me. So in future, our plans are to look elsewhere and compare.

 

Really that's what I was getting at. Since RCCL and NCL pricing are pretty comparable and NCL giving up a chunk of change for drinks or dinners, will Rccl lose a lot of customers to NCL? Again tho it doesn't seem like they have to entice pax like some of these other lines.

 

I also think that RCCL was very smart to go more global, limits the number of their cabins in the Caribbean while building a great business in other parts of the world. They can keep their pricing stable

[Kayaktom]

We've sailed RCCL and Princess for years...about a dozen cruises on each. We've booked our first NCL cruise because of the value that I be believe we will get from NCL.