Cost-Cutting vs. Company's Financial Health

[css5]

My first cruise was in 2011, last was in 2014, next week will be my first on RC. I have read a lot on here about how the quality of the food has gone downhill in the last few years, and the “nickel and diming” and cost-cutting that was always there, is even more blatant. But I see that RCCL stock is near an all-time high, and the CEO is gushing about the company’s financial health. So why all the cost-cutting? You would think that if the company is doing so well, they wouldn’t need to squeeze every last penny out of us, lol – what am I missing?

[Cigar King]

Maybe the cost cutting is playing a role in the companies financial health. It has worked well for the airlines.

[Clarea]

Maybe the cost cutting is playing a role in the companies financial health. It has worked well for the airlines.

Exactly.

[klfrodo]

In the business world, it's not about the customers, the small fry stock holders, or even the CEO and what they'd like to see. It's all about the huge major investors, like the Warren Buffets and the major banking corporations who own billions in stock who really run the show. If they don't like the performance of the companies financials,, they have the power to remove the board members and CEO's and put someone in who will increase growth.

 

If the large investors are happy with the current direction and rate of return,,,, there is no reason or incentive to increase costs and "give back" to the customer. They are not going to increase costs of food items to give the cruiser a higher quality of produce or meats. They are not going to reduce Return on Investment to give back a free drink party.

 

We as the cruiser may not like it,,, but it is reality.

[NateUpNorth]

Just a normal business cycle.

 

Step 1 - Perks and offers until you're booking at/over capacity.

Step 2 - Start cutting back for profits until you notice #1 is no longer the case

Step 3 - Back to step 1, as long as you haven't gone too far and killed the brand

 

Cruises, Hotels, Airmiles, any points program ever.