Stock Benefit

[Miaminice]

I've always believe that you should only invest when the investment furthers your financial goals. Perhaps I'm wrong, but purchasing for any other reason is a mistake. You can get $250 in OBC, but the stock can decline 3 points and you lose.

 

100 % correct!!!

 

Plus, I can not understand the whining and feeling of entitlement with the moaning about the benefit while being happy about the development of the stock at the same time.

 

1. WHY woud a company be overly eager to give away freebies for a measly 100 shares in the grand scheme of the market.

2. As an investor you should be happy about the fact they are not giving away money.

3. In the cold reality of economics the ambitions as a shareholder and as a passenger have very little overlap.

[kevinyork]

100 % correct!!!

 

 

1. WHY woud a company be overly eager to give away freebies for a measly 100 shares in the grand scheme of the market.

 

 

 

Because that 100 shares currently requires a £9,300 investment in their company.............I can see your point when it would cost 25% of that amount but not today.

 

Either have a shareholder benefit and allow its application or get rid of the benefit. Currently many might buy shares which are advertised as having a benefit (on top of the chance of appreciation) but which is rarely given.

 

Their reasons for denying the benefit don’t make sense either.....

 

Book onboard as any non shareholder passenger can do, get an onboard booking benefit then they won’t allow shareholder benefit.

 

Book an inside cabin on Celebrity with no drinks package and get the shareholder benefit, book a balcony at twice the price that includes a “free drinks package” and they deny the shareholder benefit.

 

Do the above scenario booking with Celebrity UK and their terms allow the drinks package to be combined with shareholder benefit, book elsewhere and they don’t allow it to be combined. Do the same booking with Royal UK and get a drinks package and they deny the shareholder benefit.

 

It’s disappointing that there is no logic to their application of the benefit, either it’s there to reward an investor or it isn’t.

 

 

 

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[Miaminice]

Because that 100 shares currently requires a £9,300 investment in their company.............I can see your point when it would cost 25% of that amount but not today.

 

Either have a shareholder benefit and allow its application or get rid of the benefit. Currently many might buy shares which are advertised as having a benefit (on top of the chance of appreciation) but which is rarely given.

 

Their reasons for denying the benefit don’t make sense either.....

 

Book onboard as any non shareholder passenger can do, get an onboard booking benefit then they won’t allow shareholder benefit.

 

Book an inside cabin on Celebrity with no drinks package and get the shareholder benefit, book a balcony at twice the price that includes a “free drinks package” and they deny the shareholder benefit.

 

Do the above scenario booking with Celebrity UK and their terms allow the drinks package to be combined with shareholder benefit, book elsewhere and they don’t allow it to be combined. Do the same booking with Royal UK and get a drinks package and they deny the shareholder benefit.

 

It’s disappointing that there is no logic to their application of the benefit, either it’s there to reward an investor or it isn’t.

 

 

 

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But there is... you can only have one peace of the cake. One way or the other. All you have to do is to see which one gives you more benefit. It is as easy as that. Oh, besides having to be satisfied with what you get.

 

As to the other point... think it through. You are saying you understand if or when it was 25 % of the value.

Without arguing if 9,300 pounds are much to them, you are missing one point: when the stock price was 25 $ your part of the total value of the company was the same percentage as it is now with the stock price being around 100 $. The 25 $ made the same difference to the company as the 100 $ do now.

 

RCI Stock is a good investment - for investment reasons only. It is a solid company making good profits, paying a good dividend etc. That is why many people and funds invest in RCI on a large scale. So you really think they have to make an effort to sell you 100 shares or treat you differently because you did? :confused:

 

If you do, your feeling of entitlement is winning over economic facts.

[Orator]

Not too many companies give more than dividends to the owners of their stock and some don't pay a dividend. Coke and Pepsi don't send coupons to shareholders and Disney doesn't give a discount on products. No discounts on a computer if you have Apple shares. In fact, other than cruise lines what public companies give anything to share holders? In some limited cases you get up to $250 from RCL. Just take the money and run.

[johnnycruise2020]

Not too many companies give more than dividends to the owners of their stock and some don't pay a dividend. Coke and Pepsi don't send coupons to shareholders and Disney doesn't give a discount on products. No discounts on a computer if you have Apple shares. In fact, other than cruise lines what public companies give anything to share holders? In some limited cases you get up to $250 from RCL. Just take the money and run.

 

 

 

Yeah, companies are kinda stingy these days. Have to say carnival have been excellent with onboard credit! Always get it!

[kevinyork]

But there is... you can only have one peace of the cake. One way or the other. All you have to do is to see which one gives you more benefit. It is as easy as that. Oh, besides having to be satisfied with what you get.

 

As to the other point... think it through. You are saying you understand if or when it was 25 % of the value.

Without arguing if 9,300 pounds are much to them, you are missing one point: when the stock price was 25 $ your part of the total value of the company was the same percentage as it is now with the stock price being around 100 $. The 25 $ made the same difference to the company as the 100 $ do now.

 

RCI Stock is a good investment - for investment reasons only. It is a solid company making good profits, paying a good dividend etc. That is why many people and funds invest in RCI on a large scale. So you really think they have to make an effort to sell you 100 shares or treat you differently because you did? :confused:

 

If you do, your feeling of entitlement is winning over economic facts.

 

 

 

The bottom line is they advertise the shareholder benefit, then apply their restrictions in an unpredictable and irregular way. I can book a basic no frills lower cost cabin and pay the same as a non shareholder but get shareholder credit but if I book a higher cost room with a perk, again paying the same as a non shareholder, and get no shareholder credit.

 

The stock might be a good investment looking at past performance but all stock is a risk and past performance cannot be relied upon for future returns.

 

 

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[neilrr]

Yeah, companies are kinda stingy these days. Have to say carnival have been excellent with onboard credit! Always get it!

 

I totally agree with you... We love our stockholder credit with Carnival. The stock pays a nice dividend and actually we have done better with OBC than the dividends. :D We have used it on several of their lines. once we even got the $250 in Australian $ and we ended up with AUS$325. It was great!!!

 

We sold RCCL years ago after they denied the combination with other OBC's. I love Celebrity, but think RCCL's policy is terrible. We still travel on the line, but we really try to get as much out of the cruise deal as possible with Celebrity.

 

Happy Sailing!!!:cool:

[Orator]

I totally agree with you... We love our stockholder credit with Carnival. The stock pays a nice dividend and actually we have done better with OBC than the dividends. :D We have used it on several of their lines. once we even got the $250 in Australian $ and we ended up with AUS$325. It was great!!!

 

We sold RCCL years ago after they denied the combination with other OBC's. I love Celebrity, but think RCCL's policy is terrible. We still travel on the line, but we really try to get as much out of the cruise deal as possible with Celebrity.

 

Happy Sailing!!!:cool:

Have you calculated how much you lost be selling RCL when you did? If you took the money from the sale of RCL and turned it into CLL you'd be behind since RCL has out preformed CCL.

[Jim_Iain]

What benefits? They totally stripped them years ago but still advertise them.

 

I can't complain. I bought my stock in 1993 at about $10.00 a share and the current stock price is around $125. When they were giving the OBC I received more credits than the cost of my stock and they have consistently paid decent dividends.

 

Having said that it was really disappointing when they started rejecting my Stock Holder Benefit because I had "a perk". I don't even bother contacting them anymore and consider it is now a non-perk.

[Orator]

Companies are always changing benefits. At one time RCL eliminated the dividend and then restored it at a later time. Economic pressures and changing conditions bring change. I know what I will say now will cause some anger, but I must be honest: Any company that spends money that doesn't increase profits is acting in a fiscally irresponsible manner. When ships are full you don't need to spend money to increase the number of passengers. Now, you would use incentives, like special offers and perks to fill cruises that are less popular. All businesses need to adjust to market conditions and Celebrity seems to be doing that. As a passenger I want everything I can get at the lowest price I can get it. As an investor I want the largest return on my investment dollars as possible. Is the glass half empty or half full? Guess it depends if you own the bar, or are drinking at the bar.

[ECCruise]

Any company that spends money that doesn't increase profits is acting in a fiscally irresponsible manner.

 

Aye, but here is the rub. There is spending money that increases customer satisfaction, that creates a long term and loyal customer and gives bang for the buck. Sometimes that "profit" you are yearning for doesn't materialize for years in the future. But you have a satisfied customer base.

 

Some of the best corporations in the world operate with precisely that philosophy. Never considered RCCL to be one of those.

[Orator]

Aye, but here is the rub. There is spending money that increases customer satisfaction, that creates a long term and loyal customer and gives bang for the buck. Sometimes that "profit" you are yearning for doesn't materialize for years in the future. But you have a satisfied customer base.

 

Some of the best corporations in the world operate with precisely that philosophy. Never considered RCCL to be one of those.

Celebrity really doesn't care whose in a cabin, just care that the cabin is occupied. They really don't need to do anything at this point to entice one to book. Perhaps at some point they will, but not now as advanced bookings are very strong. What I would argue is that extra OBC might entice some to actually spend more and that would increase the bottom line. Remember the stock holder credit is non refundable so it must be spent or lost. I've used it to buy more than one thing I didn't need.

[Miaminice]

Celebrity really doesn't care whose in a cabin, just care that the cabin is occupied.

 

Again, agree 100 %

 

A cruiseline does not care about YOU, it cares about how much you spend. If you don´t spend it, especially RCI has no problems filling your berth with someone who does.

 

Anyone who does not have a loyalty level, does not book a special or does not receive a shareholder benefit makes them more money. And now don´t tell me about long term customer satifaction. In today´s market that is idealism! All that CEOs and presidents of today´s listed companies do, is to care about the short to maximum mid term numbers - for just as long as they are in charge. And I don´t blame them. The behaviour of investors dictate them what to do.

 

Believe me, it is my every day´s business. As the MD/CEO of a family owned company that is the competition I deal with every day. It is what makes it more and more difficult to act another way.

[lvz2cruz]

The pick 2 perks are not free. We just booked a cruise and it cost $200 additional per person to get "free" gratuities or "free" internet or OBC or drinks.

On some sailings it was 250 per person to add it.

We are used to sailing HAL and it is always applied regardless of package, price, etc. Wish Celebrity did the same.

[rollie]

I"m surprised anyone has stock left. At 130 dollars a share I would think everyone would have sold.

 

Rollie

[ghstudio]

The pick 2 perks are not free. We just booked a cruise and it cost $200 additional per person to get "free" gratuities or "free" internet or OBC or drinks.

On some sailings it was 250 per person to add it.

 

It's always amazing how many folks just never stop to do the very simple math that says...don't pay the "better" upgrade rate to get an additional "free perk" that would cost you less if you just paid for that perk.

[7960Ken]

Carnival and RCC have both been great investments. I bought 100 shares of each just 3 years ago and the appreciation and dividends have added up to 17%. The OBC has been the "icing on the cake".

[Mytravellove]

I just wonder if we could send a rep from Cruise Critic who is also a RCCL shareholder to represent our view and opinions on getting the Shareholder OBC benefit. I have held shares in both RCCL and CCL for about 5 years now. I have always received the Shareholder OBC on Princess with my CCL shares....now that I am Elite on Princess, I have definitely covered the cost of my shares with just the Shareholder benefit. I love it.

On the other hand RCCL has been very frustrating. I only started sailing on Celebrity in 2017. My first being a TA in April 2017 I received the Shareholder OBC benefit. Great I thought. I am doing a longer TA cruise this April and was declined for the Shareholder OBC benefit. When I asked why my request was declined, I was told my travel agent had my reservation as 'NETS'....not sure what that meant. My travel agent assured me that she didn't put me into any strange category. So I am not sure why it is not standard benefit. This has left a bitter taste in my mouth in regards to Celebrity. I know I will enjoy my cruise, but I will curtail my spending on board the ship. I will take the outside tours instead of the ship tours and won't be purchasing any of the 'stuff' they sell onboard. Just too bad.

So I say we should attend the Annual General Meeting and state our opinions....that's how we can make changes.