Royal Caribbean CEO Announcement

[realcindylouwho]

While reading through my FB today I came across this announcement from Royal Caribbean. I wonder if this policy will trickle down to NCL as well. While I cannot take advantage of late or last minute booking due to living smack dab in the middle of the U.S.A., I'm positive MANY cruisers who live near a port city enjoy saving money and getting onto a ship less expensively using this method. If NCL were to change their policy, please let us know how this would change your cruising lifestyle. I'm just curious (and jealous) of how some of you vacation!

http://www.cruisecritic.com/news/news.cfm?ID=6795

Edited February 3, 2016 by realcindylouwho

[cdnsteelman]

Well I'm landlocked as well but I just picked up a last minute deal on a cruise this Sunday out of LA that was over $1000 cheaper for my family of four than it would have been a month ago. I would not be taking this cruise if the price hadn't dropped into my "value" zone.

 

A similar policy change at NCL may have some impact for me BUT the key is how this will then actually work in practice. I can only imagine that Royal C will just start discounting lightly booked sailings earlier in the process. They will still be looking to sail at "full" occupancy. My guess is that this will play out more as a PR exercise.

 

Happy cruising all,

csm

Edited February 3, 2016 by cdnsteelman

[sparks1093]

While reading through my FB today I came across this announcement from Royal Caribbean. I wonder if this policy will trickle down to NCL as well. While I cannot take advantage of late or last minute booking due to living smack dab in the middle of the U.S.A., I'm positive MANY cruisers who live near a port city enjoy saving money and getting onto a ship less expensively using this method. If NCL were to change their policy, please let us know how this would change your cruising lifestyle. I'm just curious (and jealous) of how some of you vacation!

http://www.cruisecritic.com/news/news.cfm?ID=6795

 

It was my understanding that NLC was already doing this for most sailings. Del Rio hates having to cut fares to fill ships.

[Sauer-kraut]

I thought NCL has already done this. Although it might be reconsidering as some people on CC have stated they got last minute pricing deals.

[realcindylouwho]

Well I'm landlocked as well but I just picked up a last minute deal on a cruise this Sunday out of LA that was over $1000 cheaper for my family of four than it would have been a month ago. I would not be taking this cruise if the price hadn't dropped into my "value" zone.

 

A similar policy change at NCL may have some impact for me BUT the key is how this will then actually work in practice. I can only imagine that Royal C will just start discounting lightly booked sailings earlier in the process. They will still be looking to sail at "full" occupancy. My guess is that this will play out more as a PR exercise.

 

Happy cruising all,

csm

 

Great job! I pulled up the rates for this cruise and there are fantastic deals for the solo cruisers as well! It looks as though NCL has lowered some cabins by at least 20% since January 11th. To keep your vacation budget in line, how do you keep the last minute traveling to port costs low? We only fly twice a year and buy our tickets months in advance to get the best flight times for us.

 

I'm always learning from fellow C.C.er's!

Edited February 3, 2016 by realcindylouwho

[Kingofwylietx]

To keep your vacation budget in line, how do you keep the last minute traveling to port costs low?

 

You can use airline miles or credits for last minute flights or to be able to cancel them. My parents use Southwest, because they can book last minute or cancel the flight at the last minute when using the Southwest Rewards points to pay for the flight. They use their Southwest credit card to build the points. That might be a good solution for landlocked pax.

[Sauer-kraut]

You can use airline miles or credits for last minute flights or to be able to cancel them. My parents use Southwest, because they can book last minute or cancel the flight at the last minute when using the Southwest Rewards points to pay for the flight. They use their Southwest credit card to build the points. That might be a good solution for landlocked pax.

 

That's great if Southwest is actually in an airport near one. I live 10 mins. away from O'hare and its not worth the hour drive and hassle to get to Midway where Southwest flies out of.

[Sundiego]

NCL is NOT currently doing this. In other words, NCL is drastically cutting prices on last minute bookings.

 

I booked a BX balcony guaranty 18 days out on the Getaway, Feb 14 sailing. I booked through a TA and got what I thought was a good price plus some OBC. I looked at some later sailings, hoping to get a free drink pkg, but you had to book 30+ days out for the packages to apply.

 

Okay, so I've been watching the prices and they are steadily dropping. Whatever. I guess I'm okay with that. I was happy with what I booked to begin with, got my cabin assignment, it's all good.

 

Until today! Not only did my BX balcony fare drop another $40 per person, but they now have the "pick one" deal going again! I could have paid $60 less per person AND gotten the drink pkg. My travel agent has been awesome, but NCL told her no way... I get nothing.

 

I AM NOT COMPLAINING... I booked what I booked and got what I got. But I'm disappointed that NCL offered the "pick one" deal 11 days before sailing.

 

And I wrote a book here. Sorry!

 

~Denise

[sfaaa]

I thought NCL has already done this. Although it might be reconsidering as some people on CC have stated they got last minute pricing deals.

 

Yeah, still around except you have to search for them these days. I saw another deal last week to Mexico.

[Froggitt]

Would he rather maintain his yield (theoretical money) or sell more cabins at lower prices in the last month (real money)?

Edited February 3, 2016 by Froggitt

[sfaaa]

It's a 'short term pain for long term gain' marketing strategy to reposition the company to a higher tier and new clientele market. The anticipated empty cabin cost was already factored into its current business model.

[jingle5616]

I cruise exclusively last minute these days. For me it is the only way to go. The big score is finding a great rate at day 31 and receiving a "freebie" as well when cruising with the "new" NCL.

 

I don't worry much about these deals going away. They keep building new ships every year and they have to fill them some how, some way. Many times it means them blowing the price out in the last couple of months. I'll be more than obliged to take them up on their offers. I don't pay retail......:eek:

[SteveH2508]

Is it me or is there a 'deja vu' moment happening here?

 

I thought that RCL made a similar announcement a year or so ago - NCL are trying the same thing as well.

 

It seems to me that there is a large whiff of BS around these management announcements - they are trying to scare the punters into booking earlier so they do not need the fire sales.

 

I suggest that they read Economics 101 - the Law of Supply and Demand.

 

Build loads of new mega ships = thousands more berths to sell each week. Off peak times for uninteresting itineraries = either sell them cheap or sail empty.

 

It isn't rocket science (and I'm no rocket scientist):rolleyes:

[cdnsteelman]

Great job! I pulled up the rates for this cruise and there are fantastic deals for the solo cruisers as well! It looks as though NCL has lowered some cabins by at least 20% since January 11th. To keep your vacation budget in line, how do you keep the last minute traveling to port costs low? We only fly twice a year and buy our tickets months in advance to get the best flight times for us.

 

I'm always learning from fellow C.C.er's!

 

I'm in the fortunate place where I can use points from a Star Alliance carrier for last minute stuff and then I look to pay for flights to the trips I book further out but I recognize not everyone has this luxury. There are people out there who are really good at accumulating "points" through manufactured spending but I don't have the time to focus on that method of accumulating points.

[Oldgoat61]

The only time I got a fantastic deal was our Panama Canal cruise. We booked 45 days out and got a cabin we were happy with (not a gnty cabin). Are they still offering cabins this way?

 

I periodically look at cruises 45 days out and they tend to be gnty.

[sfaaa]

I

I suggest that they read Economics 101 - the Law of Supply and Demand.

 

Build loads of new mega ships = thousands more berths to sell each week. Off peak times for uninteresting itineraries = either sell them cheap or sail empty.

 

It isn't rocket science (and I'm no rocket scientist):rolleyes:

 

You don't see 3 or 4 star hotels giving away their rooms at $20/nights during offseason just to fill them, do you? Yes, many properties would rather keep their rooms empty to protect their brand image and avoid triggering an all out price war so long as the annual occupancy % and rates average themselves out. Cruise ship industry is no different.

Edited February 4, 2016 by sfaaa

[cdnsteelman]

You don't see 3 or 4 star hotels giving away their rooms at $20/nights during offseason just to fill them, do you? Yes, many properties would rather keep their rooms empty to protect their brand image and avoid triggering an all out price war so long as the annual occupancy % and rates average themselves out. Cruise ship industry is no different.

 

Not really apples to apples now is it? But yes hotels too discount to fill rooms. Cruise lines need to get people on board to get the in the shops, casinos, specialty restaurants, bars, etc. There's a reason the "pick" promotions on NCL are for sailings more than 30 days out so that when they discount the cruise fare the bar and dining tabs aren't included.

[davesgirl51]

Methinks Zica and Isis are causing people to cancel.

[sfaaa]

Not really apples to apples now is it? But yes hotels too discount to fill rooms. Cruise lines need to get people on board to get the in the shops, casinos, specialty restaurants, bars, etc. There's a reason the "pick" promotions on NCL are for sailings more than 30 days out so that when they discount the cruise fare the bar and dining tabs aren't included.

 

Perhaps. But last minute deal seekers are predominately cheapskate and budget cruisers. Many don't plan on spending an extra dime on the ship other than loading up their plates at Lido buffet (not that there is anything wrong with it. I love deals). They are not the type of high rollers and big spenders a cruise company would count on to break even on the ship. NCL was doing this for so long it finally came to realize this is not the way to increase the bottom line.

[dexddd]

Methinks Zica and Isis are causing people to cancel.

 

What does a Chinese car have to do with cruising (j/k)?

[Sundiego]

....There's a reason the "pick" promotions on NCL are for sailings more than 30 days out so that when they discount the cruise fare the bar and dining tabs aren't included.

 

This is not accurate. As I posted above, my Getaway cruise just offered the "pick" promo 11 days out (after previously not offering it under that 30 day rule).

 

~Denise

[hondorner]

Mr. Del Rio has never been in favor of reducing prices as a cruise nears. In fact, for years his Oceania policy has been to increase fares as a cruise nears, based on the law of supply and demand -- as the ship fills, the supply of cabins is less, the demand is the same, so the price increases. Of course, Oceania has always had a very high number of repeat guests -- as high as 80% -- so demand has always been high. Most experienced Oceania cruisers know to book their preferred cabin the very day that new itineraries are announced.

 

While prices are rarely lowered, the number and value of incentives may rise. The bottom line is about the same, but the cruise line has the reputation of holding their price, not cutting to bargain basement pricing. Anyone who has owned a business knows that consistency of pricing is very important to one's reputation.

 

FDR also followed this policy when taking over Regent Seven Seas. The economy was tanking, all the other luxury lines were lowering their prices, but Regent held their pricing while offering free excursions. Regent surged while others slipped.

 

Things are a bit different on mass market ships, which are so large the percentage of repeat guests makes little difference, and on which there are always enough cabins available. Also, if a cruise line is already at the bottom of the heap, like NCL of the past and Carnival, their reputation can't get any worse.

 

Therefore, you will find savvy CEO's following FDR's lead (and the success of Oceania) and offering more perks while holding their prices.

 

So, why are some deals still available on NCL? Simple -- it takes time to change the culture of a cruise line. Richard Fain has been CEO of Royal Caribbean for a long time, and when he says "jump", the leaders of the various cruise lines they own (RCCL, Celebrity, Azamara, among others) say, "How high?". FDR is still new to NCLH and is still feeling his way in the larger company. Eventually, however, his wisdom will be apparent to all and NCL will flourish.

[jingle5616]

Mr. Del Rio has never been in favor of reducing prices as a cruise nears. In fact, for years his Oceania policy has been to increase fares as a cruise nears, based on the law of supply and demand -- as the ship fills, the supply of cabins is less, the demand is the same, so the price increases. Of course, Oceania has always had a very high number of repeat guests -- as high as 80% -- so demand has always been high. Most experienced Oceania cruisers know to book their preferred cabin the very day that new itineraries are announced.

 

While prices are rarely lowered, the number and value of incentives may rise. The bottom line is about the same, but the cruise line has the reputation of holding their price, not cutting to bargain basement pricing. Anyone who has owned a business knows that consistency of pricing is very important to one's reputation.

 

FDR also followed this policy when taking over Regent Seven Seas. The economy was tanking, all the other luxury lines were lowering their prices, but Regent held their pricing while offering free excursions. Regent surged while others slipped.

 

Things are a bit different on mass market ships, which are so large the percentage of repeat guests makes little difference, and on which there are always enough cabins available. Also, if a cruise line is already at the bottom of the heap, like NCL of the past and Carnival, their reputation can't get any worse.

 

Therefore, you will find savvy CEO's following FDR's lead (and the success of Oceania) and offering more perks while holding their prices.

 

So, why are some deals still available on NCL? Simple -- it takes time to change the culture of a cruise line. Richard Fain has been CEO of Royal Caribbean for a long time, and when he says "jump", the leaders of the various cruise lines they own (RCCL, Celebrity, Azamara, among others) say, "How high?". FDR is still new to NCLH and is still feeling his way in the larger company. Eventually, however, his wisdom will be apparent to all and NCL will flourish.

 

All bow to the messiah FDR! Every knee shall bend! Every wallet emptied!:D

[Starflyr3]

I guess this nixes any chance of a repeat deal like I got on Monarch - booked 3 weeks out and got the Owners Suite for $600 total. (3 day cruise, but still).

[Lazz]

Is it me or is there a 'deja vu' moment happening here?

 

I thought that RCL made a similar announcement a year or so ago - NCL are trying the same thing as well.

 

It seems to me that there is a large whiff of BS around these management announcements - they are trying to scare the punters into booking earlier so they do not need the fire sales.

 

I suggest that they read Economics 101 - the Law of Supply and Demand.

 

Build loads of new mega ships = thousands more berths to sell each week. Off peak times for uninteresting itineraries = either sell them cheap or sail empty.

 

It isn't rocket science (and I'm no rocket scientist):rolleyes:

 

I also suggest they read a services marketing book. I agree about sailing cheap or sailing empty. The cruise cabin is perishable. Once a ship sails, the revenue from the empty cabin is lost forever. Unlike a product. the cabin can not be stored in inventory for a later sale. If the sell the cabin at a discount, the also gain potential revenue from food and beverage, merchandise sales, casino, etc.