Free Promos are Not Free

[Two Wheels Only]

Everything from drinks to toilet paper is paid for in one way or another. Nothing is free. Obviously, people are paying for what they receive.

 

 

When people use the "$17.80pppd" number, they are basically saying "...you've already decided to pay X amount of money...for an additional $18 a day, you can get your drink on...". If drinks aren't worth the service charge they can just pay X.

 

 

 

If people are happy when paying X plus UBP service charge, more power to them.

 

 

If people think that X is too high (if part of X pays for the promos) and can get onto the ship for less and have a good time, more power to them as well.

 

 

Neither is more right than the other.

[teamflames]

I don’t think it’s a scam, it’s a marketing ploy by NCL that most people fall for.

 

 

 

How?

 

 

 

1. Cruise fares are inflated to partially offset the cost of the beverage package.

 

2. The UBP cost is inflated purposely so that NCL collects a much greater amount on the 20% service fee that also partially offsets the cost of the UBP.

 

3. Drink prices are higher on NCL then most other cruise lines...which once again partially offset the cost of the UBP.

 

 

 

People that think the UBP is free as a perk and those that Toni they’re only paying $17.80 for it are exactly who NCL is goin after. Those not intelligent enough to figure out how it is all just a strategy to get more revenue.

 

 

 

It’s not a matter of being scammed it is a choice. I am many others have said many times we work out what a total cost of the trio is and what we want. My wife and I always get a beverage package whether it is a perk or we buy it (on other cruise lines not ncl) as it makes sense for our preferences. What we know is when all costs are processed ncl usually comes out cheaper all up per day, yes the “value” of the drinks package is inflated and yes they annoyingly add service charges (find a good ta and maybe included) but when totalled that is still cheaper than cruising on other lines for us.

 

 

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[broberts]

Very few people would select their cabin if there were no perks and the room was $150-300 more per person. People end up willing to pay that extra because they get the perk, not because they can select their room. So in essence you are paying for your perks.

 

I think the evidence disputes this. Other cruise lines do not offer perks and yet most of those who book want a particular cabin/location and are willing to pay for it.

[DaCruiseBug]

I think the evidence disputes this. Other cruise lines do not offer perks and yet most of those who book want a particular cabin/location and are willing to pay for it.

 

Right off the bat I can think of Princess, Celebrity, and MSC that offer “perks”. Thanks for making my point.

[DaCruiseBug]

I certainly wouldn’t agree that very few people would select their cabin if it wasn’t for the perks. For years, guarantee cabins were offered that are cheaper than standard cabins, with no difference in perks, and lots of people (I’d guess the majority, but have no evidence of that) paid the extra.

 

Even now, there are many people for whom this isn’t an option. We usually stay in specific cabins (large balconies, aft rooms, specific rooms with differences from the usual). There are no sail away versions of these rooms. The same goes for suites, spa rooms etc.

 

There are a significant proportion of cruisers for whom other factors mean that the rates without perks are not options that they will be looking at.

 

Being able to choose your cabin has a certain value. On most cruise lines and on the Sky/Sun that value is around $50 per person. Yes, people will pay a certain amount to choose their cabin. However, in many cases the difference on NCL between a sail away rate and a category that allows you to pick a cabin is $200-300 per person. Most people would NOT pay that if the perks weren’t there. That’s why I say that the price of the UBP is basically included in that...you’re paying for it!

 

Would you pay $300 more per person to choose the specific cabin (within a category) if there were no perks included? Probably not...and most people feel that same way. That’s the point.

[KeithJenner]

Being able to choose your cabin has a certain value. On most cruise lines and on the Sky/Sun that value is around $50 per person. Yes, people will pay a certain amount to choose their cabin. However, in many cases the difference on NCL between a sail away rate and a category that allows you to pick a cabin is $200-300 per person. Most people would NOT pay that if the perks weren’t there. That’s why I say that the price of the UBP is basically included in that...you’re paying for it!

 

Would you pay $300 more per person to choose the specific cabin (within a category) if there were no perks included? Probably not...and most people feel that same way. That’s the point.

 

I'm not going to disagree with you at $300 per person. I don't know where my limit is when talking about different cabins within the same category. In your post that I quoted you stated an amount of $150-300 which I missed when I replied. At that level, I think that quite a few people would prefer to pick (I certainly would at $150 pp, maybe not at $300).

 

However, the main point I was making is that this is irrelevant for many people. We select cabins in categories where there is no cheaper rate without the perks. For us, we are not paying anything extra for the rate that includes the perks, and we are usually paying a lot more than $300 extra for that room.

 

As an example, there is a particular room we book on the Spirit, which is a lot bigger than all the other balcony rooms on that ship. We have booked it for cruise in 2019. Based on current prices, that room would cost about $300 per person per week more than a just cruise balcony (which is a guarantee without all inclusive). I would certainly pay quite a bit more than that for the room we have selected over a guarantee, regardless of any booking perks. The just cruise rate just doesn't come into my thinking.

 

Similarly, we have an aft balcony on the POA next month, and a Mini with large balcony on the Breakaway next Easter. Those are specific cabin categories we want, and as far as I am aware there is no way of booking those specific categories without getting the perks. Booking a just cruise rate is not an option to us for any of our three upcoming cruises, regardless of any perks.

 

There are quite a few people in similar situations (for example, all those in Spa rooms or suites).

[broberts]

Right off the bat I can think of Princess, Celebrity, and MSC that offer “perks”. Thanks for making my point.

 

You might want to reread the point you tried to make.

[littlelulu01]

I know it’s a little more clear cut for folks who really benefit from the ubp. We don’t but could potentially benefit from the other perks depending on the price and sailing.

 

I just booked a last minute trip on the Bliss for Alaska. The lowest priced mini suite with perks and pick your stateroom was $250 pp more than the sail away mini suite rate. They had only one room available in the pick your room rate with perks. It was a handicap mini suite so I felt we could potentially get bumped out and I wasn’t crazy about a handicap bathroom setup. My pcc recommended we go with the sail away rate. the internet perk has a $105 value compared to pre purchase discount. We saved a good chunk on the sail away rate and were immediately assigned the same exact accessible mini suite available with pick your stateroom and perks. I figure we might still get bumped. Never sailed this class of ship I don’t have any particular room I care about.

 

For our next med sailing we booked almost 2 years early and got the dv perks plus obc and free at sea for what I felt was a great price. We booked a suite so could have all the perks. It was less $ to bag my, “free” ultimate Bev pkg and just purchase a soda package instead. It’s my pet peeve they won’t exchange the ubp for a soda pkg on suite bookings or come out with a non alcoholic beverage package alternative.

[Expat Cruise]

The bottom line is these free programs provide a lot of profit to the cruise lines. Just look at the 10K reports they are required to file as publicly traded corporations. The following is from Royals report for 2015 (Do not have NCL but they are similar) .

 

The average Royal Passenger paid $1,536 dollars in total $1,121 cruise fares and the remainder $415 on ship spending. The total profit Royal returned to shareholders after all costs was $123 dollars per passenger or about 8%. Now you can see how adding $250 dollars in "free" service charges world have a big impact. The same report says of the $1536 royal spends about $89.00 5.8% for food and beverages per passenger. And interestingly $ 160.00 10.4% for payroll from the $1536. So you can see what a very big impact adding a extra $125 dollars would have (7 days, 1 passenger, free drinks service fee).

 

Again as the Chairman of NCL Mr Del Rio said for every extra dollar profit he adds per passenger NCL makes 16 million dollars. The free at sea program is just a way for NCL to make extra profits with fees and charges on free items. It is not free it is a profit center for the cruise line.

 

Here is a link to the 10K as filed by Royal, if you want the 10K from NCL it is public record, do the work find it if you think it is not the same.

 

http://phx.corporate-ir.net/phoenix.zhtml?c=103045&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwNzYwMjAxJkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3

[drsel]

The bottom line is these free programs provide a lot of profit to the cruise lines. Just look at the 10K reports they are required to file as publicly traded corporations. The following is from Royals report for 2015 (Do not have NCL but they are similar) .

 

The average Royal Passenger paid $1,536 dollars in total $1,121 cruise fares and the remainder $415 on ship spending. The total profit Royal returned to shareholders after all costs was $123 dollars per passenger or about 8%. Now you can see how adding $250 dollars in "free" service charges world have a big impact. The same report says of the $1536 royal spends about $89.00 5.8% for food and beverages per passenger. And interestingly $ 160.00 10.4% for payroll from the $1536. So you can see what a very big impact adding a extra $125 dollars would have (7 days, 1 passenger, free drinks service fee).

 

Again as the Chairman of NCL Mr Del Rio said for every extra dollar profit he adds per passenger NCL makes 16 million dollars. The free at sea program is just a way for NCL to make extra profits with fees and charges on free items. It is not free it is a profit center for the cruise line.

 

Here is a link to the 10K as filed by Royal, if you want the 10K from NCL it is public record, do the work find it if you think it is not the same.

 

http://phx.corporate-ir.net/phoenix.zhtml?c=103045&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwNzYwMjAxJkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3

Very interesting analysis, Expat. So if I spend less than $1413 altogether on a 7 night cruise, Royal (and it's shareholders) will actually be losing money on me!

Of course, there will be many others who will more than offset that loss by spending well over $2000

Edited July 28, 2018 by drsel

[Expat Cruise]

Very interesting analysis, Expat. So if I spend less than $1413 altogether on a 7 night cruise, Royal (and it's shareholders) will actually be losing money on me!

Of course, there will be many others who will more than offset that loss by spending well over $2000

 

That is just based upon the average cruise length, and the numbers reported by Royal to the SEC, since the exact information will never be given this is about as close I I believe we can get. It shows a few things I believe:

 

How important the on ship spending is.

 

How small the profit per guest is (after all costs)

 

How small charges can have a big impact on the bottom line. .... If they increase funds from guest, or cut costs somewhere... just a few dollars it has a very big impact on profit.

 

I also thought the food number is very low (cost of food and drink) and the staff number at only about 10.4%. It shows why cruise lines push the daily service fees so hard. The daily service fee it seems is equal to or greater than the crew total cost.

[newmexicoNita]

I don’t think it’s a scam, it’s a marketing ploy by NCL that most people fall for.

 

How?

 

1. Cruise fares are inflated to partially offset the cost of the beverage package.

2. The UBP cost is inflated purposely so that NCL collects a much greater amount on the 20% service fee that also partially offsets the cost of the UBP.

3. Drink prices are higher on NCL then most other cruise lines...which once again partially offset the cost of the UBP.

 

People that think the UBP is free as a perk and those that Toni they’re only paying $17.80 for it are exactly who NCL is goin after. Those not intelligent enough to figure out how it is all just a strategy to get more revenue.

Most of us realize it is a way for the cruise line to make a few bucks and yes, the rates have gone up since the promo, but for many it is still a good deal. this is the same with any perk, it is a way to sell a product. You have your views, which is fine and we have ours. No one is ever going to change your way of reasoning. I know, for me, I think I will just close out on this topic. It has been run into the ground.

[beerman2]

Here is an apples to apples comparison on how close in price Carnival and NCL are.

 

7 day Eastern from Miami, Jan 5/6-12-13

 

NCL Bliss 3,600.00 -UBP, SDP, Spa Balcony, DSC, Travel Insurance , and all other taxes and fees . ( This is what I paid)

 

Carnival Magic 3,400.00 Added in Cheers, 3 Specialty Dining ( Steakhouse only choice), Spa Balcony, DSC, Travel insurance, and all other taxes and fees. (This is what I priced out 2 days ago.)

 

Magic is 9 years old, Bliss will be 9 months old when we sail.

 

So is 200.00 more "worth" it. To us YES to others NO. You do get more choices of Specialty Restaurants on NCL.

 

It's a real shame that Carnival Cheerleaders bash NCL Cheerleaders and vice versa.

 

Just go on whatever cruise line you prefer and enjoy it, at the end of the days it's what the pax can afford/enjoy.

[JamieLogical]

Here is an apples to apples comparison on how close in price Carnival and NCL are.

 

7 day Eastern from Miami, Jan 5/6-12-13

 

NCL Bliss 3,600.00 -UBP, SDP, Spa Balcony, DSC, Travel Insurance , and all other taxes and fees . ( This is what I paid)

 

Carnival Magic 3,400.00 Added in Cheers, 3 Specialty Dining ( Steakhouse only choice), Spa Balcony, DSC, Travel insurance, and all other taxes and fees. (This is what I priced out 2 days ago.)

 

Magic is 9 years old, Bliss will be 9 months old when we sail.

 

So is 200.00 more "worth" it. To us YES to others NO. You do get more choices of Specialty Restaurants on NCL.

 

It's a real shame that Carnival Cheerleaders bash NCL Cheerleaders and vice versa.

 

Just go on whatever cruise line you prefer and enjoy it, at the end of the days it's what the pax can afford/enjoy.

 

Wow, only $200 more total to sail on a brand new ship? That sounds like a great deal to me. Who wouldn't pay that? I'm not even comparing NCL to Carnival... if this were say the Bliss versus the Gem or something, I would still pick the Bliss. Being on a brand new ship has value.

[jimd909]

Do $9 drinks include umbrella drinks?

 

I believe it includes any mixed drink that is $9 or less.

[ukbecky]

Here is an apples to apples comparison on how close in price Carnival and NCL are.

 

7 day Eastern from Miami, Jan 5/6-12-13

 

NCL Bliss 3,600.00 -UBP, SDP, Spa Balcony, DSC, Travel Insurance , and all other taxes and fees . ( This is what I paid)

 

Carnival Magic 3,400.00 Added in Cheers, 3 Specialty Dining ( Steakhouse only choice), Spa Balcony, DSC, Travel insurance, and all other taxes and fees. (This is what I priced out 2 days ago.)

 

Magic is 9 years old, Bliss will be 9 months old when we sail.

 

So is 200.00 more "worth" it. To us YES to others NO. You do get more choices of Specialty Restaurants on NCL.

 

It's a real shame that Carnival Cheerleaders bash NCL Cheerleaders and vice versa.

 

Just go on whatever cruise line you prefer and enjoy it, at the end of the days it's what the pax can afford/enjoy.

 

Nice try, but still not apples to apples.

 

Cheers is far more inclusive than UBP:

 

Cheers includes

 

Specialty coffees

Bottked water

Milkshakes

Drinks under $50 per glass(not a misprint)

15 alcoholic drink minimum, unlimited non alcoholic

 

Gratuities 15% on $51.95 per day. Not 20% on $89.95 a day

 

Book what you want-- but know what you're getting

[Two Wheels Only]

15 alcoholic drink minimum, unlimited non alcoholic

I think that you mean 15 alcoholic drink maximum. ;)

[beerman2]

Nice try, but still not apples to apples.

 

Cheers is far more inclusive than UBP:

 

Cheers includes

 

Specialty coffees

Bottked water

Milkshakes

Drinks under $50 per glass(not a misprint)

15 alcoholic drink minimum, unlimited non alcoholic

 

Gratuities 15% on $51.95 per day. Not 20% on $89.95 a day

 

Book what you want-- but know what you're getting

I know what I'm getting and true there is more included with Cheers, if Milkshakes, bottled water, and specialty coffee are your thing.

 

I can do without those. As far as the drink costs go there are plenty of name brand liquor's that are included with NCL's "free" perk that fall under 15.00.

 

 

BTW my coffee becomes a specialty coffee when I add Bailey's LOL. And yep that's included.

[Jana60]

I think that you mean 15 alcoholic drink maximum. ;)

 

 

 

I don’t think I have ever in my lifetime drank 15 drinks in one day but the thing I like about the UBP at Norwegian Cruise line is that I don’t have to count. I take that as an opportunity to try drinks that I would never order elsewhere just to taste them and if I don’t like the drink?...no harm done! I can just walk away from it and order another drink that I do like. It’s sort of like going to a winetasting except that you are tasting mixed cocktails. Realistically it would be difficult to even drink the amount of liquid contained in 15 drinks! Each drink usually contains at least 5 ounces of liquid so you would have to drink 2.25 liters of fluid not including things like water or coffee! But if you only taste but not drink many of those drinks you could exceed 15.

 

 

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[Tatka]

If you drink shots of let’s say brandy rather than huge cocktails, it is easy to go over a limit.

[U4icmusic]

I don’t think I have ever in my lifetime drank 15 drinks in one day but the thing I like about the UBP at Norwegian Cruise line is that I don’t have to count. I take that as an opportunity to try drinks that I would never order elsewhere just to taste them and if I don’t like the drink?...no harm done! I can just walk away from it and order another drink that I do like. It’s sort of like going to a winetasting except that you are tasting mixed cocktails. Realistically it would be difficult to even drink the amount of liquid contained in 15 drinks! Each drink usually contains at least 5 ounces of liquid so you would have to drink 2.25 liters of fluid not including things like water or coffee! But if you only taste but not drink many of those drinks you could exceed 15.

 

 

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On sea days I have had more than 15 drinks, for sure.

 

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[FLOURTOWN]

At first we didn't take the drink package like everyone else did. Then I thought of it in a different way. I could not drink 89. worth a day. At 20 percent it's 17.80 a day we are being charged so if I paid for two drinks plus tip a day it would come to 24.00. Drinks have really gotten expensive now. So why wouldn't I get the deal. This way I wouldn't feel bad about ordering another drink.

[cruiserssandr]

I believe it includes any mixed drink that is $9 or less.

$15 or less. If over you pay the difference. Hope this is right because we have this for one of our perks on our next cruise

[JamieLogical]

$15 or less. If over you pay the difference. Hope this is right because we have this for one of our perks on our next cruise

 

For NCL, you are correct. $15 or less per drink and if over $15, you pay the difference plus 20% service charge on the difference.

[Love Blue]

I don’t think I have ever in my lifetime drank 15 drinks in one day but the thing I like about the UBP at Norwegian Cruise line is that I don’t have to count. I take that as an opportunity to try drinks that I would never order elsewhere just to taste them and if I don’t like the drink?...no harm done! I can just walk away from it and order another drink that I do like. It’s sort of like going to a winetasting except that you are tasting mixed cocktails. Realistically it would be difficult to even drink the amount of liquid contained in 15 drinks! Each drink usually contains at least 5 ounces of liquid so you would have to drink 2.25 liters of fluid not including things like water or coffee! But if you only taste but not drink many of those drinks you could exceed 15.

 

 

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Exactly! The opportunity to try different drinks - it's freestyle!