Upgrade question

[reefgirl]

I'm confident this has been addressed in existing upgrade threads but I don't have the mental fortitude to search through 20+ page threads, I received an upgrade offer yesterday for my July 2 Pearl to Alaska trip. I'm in an aft suite. I placed a bid for an H2 but when I go to NCLs site it shows Haven is sold out. So...I assume they are not truly sold out? Or will existing H2 guests be dragged out of their suite if NCL gets a better offer on the room?

[hoopics]

My understanding is it's neither. All those H2 guests have a chance to bid on H1, or between now and sailing they might cancel. So NCL wants your bid on H2 in the system in the event that one frees up. If it happens, they can take your money and slot you into it. That process will then repeat with the aft suite you're leaving. But only if you win a bid and leave the after suite.

 

It's quite straightforward when you think about it, really. Any cabin that opens up between now and two days prior to your sailing, they can put available for sale to the public at full rate (or even above full rate, as someone booking last minute might really want that sailing). If it fills, it falls out of the upgrade inventory. The person sailing in the cabin goes into their pool of people potentially making bids. If it doesn't fill, then at 2 days prior to sailing it's in the pool of cabins for upgrade.

 

By two days prior to departure, NCL will have all of their bids. At that point, it's a pure math exercise. If H1 is open, they take the bid that gets them the greatest additional revenue to fill that cabin. With that filled, they go to H2. They take the bid that gets them the greatest additional revenue to fill THAT cabin. Then H3, and on down the ladder.

 

Each person who wins a bid for a higher cabin opens their own cabin. At least down through the OV level, that cabin is likely in a class that's of value to someone lower than them on the ladder. So they fill the cabins level by level, top to bottom, and get extra $$ for each cabin that gets swapped out. And they're doing it at the highest price the market will bear on that sailing. When it's all said and done they're unlikely to have any open cabins other than inside cabins -- or maybe outside cabins they hold vacant as emergency reserves for changes needed during the sailing. And if they do have open cabins, its because their bidding model failed and they set the minimum bid prices too high.

 

While their per-cabin yield on the upgraded cabins is less than if they'd sold those on the open market at full rate [because they've now sold for the price of the cabin in the class below + upgrade amount], they're only filling upgrades because they DIDN'T sell some number of cabins on the open market at full rate. The ship would have sailed with those cabins unsold, meaning every upgrade dollar is pure profit -- not even their food costs go up, as the upgrade cabins are all being filled with people who'd have been on the boat anyway.

 

It's absolutely brilliant, and I'm frankly shocked that other cruise lines haven't gone there prior to now. Look for the model to start popping up on other cruise lines, then in hotels, airlines, etc. I'm certain it'll be a giant winner for them. The only people who may not like it are frequent cruisers who were buying last minute upgrades via the 1-800 number and getting better deals as fewer people were competing.

[reefgirl]

That makes perfect sense. Thank you!

[dekohman]

I think that's the BEST explanation of NCL's upgrade process that I've ever seen. Nice job... thanks!!

 

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[EmeraldCoastCruisers]

Does everyone get emailed? Even if they booked through a travel agent?

 

 

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[beckslash]

My understanding is it's neither. All those H2 guests have a chance to bid on H1, or between now and sailing they might cancel. So NCL wants your bid on H2 in the system in the event that one frees up. If it happens, they can take your money and slot you into it. That process will then repeat with the aft suite you're leaving. But only if you win a bid and leave the after suite.

 

It's quite straightforward when you think about it, really. Any cabin that opens up between now and two days prior to your sailing, they can put available for sale to the public at full rate (or even above full rate, as someone booking last minute might really want that sailing). If it fills, it falls out of the upgrade inventory. The person sailing in the cabin goes into their pool of people potentially making bids. If it doesn't fill, then at 2 days prior to sailing it's in the pool of cabins for upgrade.

 

By two days prior to departure, NCL will have all of their bids. At that point, it's a pure math exercise. If H1 is open, they take the bid that gets them the greatest additional revenue to fill that cabin. With that filled, they go to H2. They take the bid that gets them the greatest additional revenue to fill THAT cabin. Then H3, and on down the ladder.

 

Each person who wins a bid for a higher cabin opens their own cabin. At least down through the OV level, that cabin is likely in a class that's of value to someone lower than them on the ladder. So they fill the cabins level by level, top to bottom, and get extra $$ for each cabin that gets swapped out. And they're doing it at the highest price the market will bear on that sailing. When it's all said and done they're unlikely to have any open cabins other than inside cabins -- or maybe outside cabins they hold vacant as emergency reserves for changes needed during the sailing. And if they do have open cabins, its because their bidding model failed and they set the minimum bid prices too high.

 

While their per-cabin yield on the upgraded cabins is less than if they'd sold those on the open market at full rate [because they've now sold for the price of the cabin in the class below + upgrade amount], they're only filling upgrades because they DIDN'T sell some number of cabins on the open market at full rate. The ship would have sailed with those cabins unsold, meaning every upgrade dollar is pure profit -- not even their food costs go up, as the upgrade cabins are all being filled with people who'd have been on the boat anyway.

 

It's absolutely brilliant, and I'm frankly shocked that other cruise lines haven't gone there prior to now. Look for the model to start popping up on other cruise lines, then in hotels, airlines, etc. I'm certain it'll be a giant winner for them. The only people who may not like it are frequent cruisers who were buying last minute upgrades via the 1-800 number and getting better deals as fewer people were competing.

 

Very good explanation, thank you!

 

Follow up question: I have a B2 balcony because that's the only balcony that was available when we booked. Since, many more balcony tiers have opened up but not the afts. If someone in an aft-facing balcony bids for an upgrade and is accepted, would that cabin show up in the inventory so that I can upgrade (not through the Upgrade Advantage program, just paying the difference)? I thought those afts, which I can't bid for, would be taken by those in Inside or OV rooms through the bidding process.

[BirdTravels]

I'm confident this has been addressed in existing upgrade threads but I don't have the mental fortitude to search through 20+ page threads, I received an upgrade offer yesterday for my July 2 Pearl to Alaska trip. I'm in an aft suite. I placed a bid for an H2 but when I go to NCLs site it shows Haven is sold out. So...I assume they are not truly sold out? Or will existing H2 guests be dragged out of their suite if NCL gets a better offer on the room?

 

It is like any other trains, planes and automobiles. People cancel train tickets, plane tickets, rental cars, and yes,,,, even cruises before they embark. We have cancelled week-of-cruise due to conflicts at work. And with or without the fancy automated system, NCL's upsell department has always tried to sail the ship's Havens and Suite full on every cruise.

[BabsinTX]

I think that's the BEST explanation of NCL's upgrade process that I've ever seen. Nice job... thanks!!

 

Sent from my XT1575 using Forums mobile app

 

Ditto. Brilliant!