Service charge ending!

[Selbourne]

What many on here don’t realize is fares can’t be raised to cover this. Now that the tips you pay are part of the price, when P&O compete on the reservation systems the prices for P&O include tips while other lines exclude mandatory tips. This will put P&O at a competitive disadvantage on online reservation systems.

 

 

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I’m afraid that I don’t understand the point you are making. Can you expand or perhaps explain differently?

 

The fact that P&O customers will not have service charges added whilst on a cruise is clearly a positive marketing message which will encourage more people to book with them.

 

P&O will inevitably need to recoup the lost revenue, but it won’t equate to £7 per passenger per day as so many have been opting out. I reckon it could be even less than half that amount.

 

P&O operates fluid pricing and the prices of Cruises go up and down over the 2 years from launch until each cruise, sometimes by as much as 100%. So a few pounds per passenger per day would be undetectable, even if all the lost revenue was recouped through basic prices.

 

The reality is that they will probably recoup the revenue through multiple methods - base Cruise price, reduction in on board credit and on board prices - but, again, it’s such a small amount per passenger per day it will be nigh on impossible to detect, especially as on board credit also varies wildly and follows no clear pattern.

 

So, in summary, although P&O has stated that prices will not go up, there is no way that they are just going to suffer a drop in profit and we will be paying for it somehow. It would be naive to think otherwise. The difference will be that all passengers will now be paying for it equally, rather than only a proportion of the passengers, as happens currently. As I have said, in reality we are talking about a few pounds per passenger per day and it will be undetectable, so I can’t see that it will deter people from booking with P&O.

[grapau27]

I am sure it adds a little happiness to her day. (y)

We have a golden ticket for her.

[davecttr]

Of course Sir Richard, your donation to the tipping pool, called User Pay. No way Carnival will wear it from the general revenue.

 

Can we blame Brexit ? :loudcry:

 

Yes, to a certain extent. The drop in the value of the pound has reduced the dollar equivalent revenue stream from Carnivals P&O operation, The company accountants don't like this so will be seeking ways to increase revenue :evilsmile:

 

I hope they succeed because I am a shareholder ;p

[NSWP]

We have a golden ticket for her.

Plus extra OBC or chocolate bikkies in the cabin.:')

[jeanlyon]

The cruises I have booked fr 2019 are certainly quite a bit more expensive that we are used to, so maybe it has happened already, or is it just because Aurora is now Adult only, so more popular.

[daiB]

The cruises I have booked fr 2019 are certainly quite a bit more expensive that we are used to, so maybe it has happened already, or is it just because Aurora is now Adult only, so more popular.

 

 

 

Aurora tends to be a more expensive ship at any time. The starting prices for 19 would have been sorted in the middle of 17 long before this decision.

 

 

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[sweep2907]

The cruises I have booked fr 2019 are certainly quite a bit more expensive that we are used to, so maybe it has happened already, or is it just because Aurora is now Adult only, so more popular.

 

 

 

These smaller ships are indeed more expensive as far more demand for them and demand means they can charge more. Less cabins and less balconies etc to go around.....

[Selbourne]

These smaller ships are indeed more expensive as far more demand for them and demand means they can charge more. Less cabins and less balconies etc to go around.....

 

But the point that Jean is making is that the prices have shot up from what many of us paid for Aurora cruises at launch, which I know is normal, but the hikes on Aurora have been eye watering.

 

We have a 19 night cruise in 2019 on Aurora which we booked at launch and cost us £4,330 for two persons for a GB grade balcony cabin. Plus we had £300 OBC and free parking on top. Making a Select booking today, for the same grade of cabin on the same cruise will costs a couple £11,144. That's an increase of 257%. Now I've heard of fluid pricing, but that's ridiculous!

[P-L-B]

We have a golden ticket for her.

Excellent !!! (y) I believe that leaves 4 for the lucky finders. ;):D

[Clodia]

But the point that Jean is making is that the prices have shot up from what many of us paid for Aurora cruises at launch, which I know is normal, but the hikes on Aurora have been eye watering.

 

We have a 19 night cruise in 2019 on Aurora which we booked at launch and cost us £4,330 for two persons for a GB grade balcony cabin. Plus we had £300 OBC and free parking on top. Making a Select booking today, for the same grade of cabin on the same cruise will costs a couple £11,144. That's an increase of 257%. Now I've heard of fluid pricing, but that's ridiculous!

 

They wanted to charge me £6200 for single occupancy of a balcony cabin on Aurora. For a small amount more I could afford a cruise on Silversea offering 10% single supplement. Bad move by P and O!

[niddwalker2]

Could it be that the choice of free coach transfers to Southampton or extra OBC could sail into the blue yonder

[Selbourne]

They wanted to charge me £6200 for single occupancy of a balcony cabin on Aurora. For a small amount more I could afford a cruise on Silversea offering 10% single supplement. Bad move by P and O!

 

Yes, we've paid less for Suites (on Select prices) than they are now charging for a balcony cabin, albeit I'm not really comparing like for like as we booked those at launch also.

 

The interesting thing will be to see what the launch prices are like when the summer 2020 cruises are released, especially with Aurora now that she is going to be adult only. I shall be very interested to compare the launch prices on Aurora (per cabin, per night) compared to what we have paid at launch on the same ship previously. Only then will it be a direct comparison.

[Britboys]

I too will be interested to see the launch prices for 2020. If they are anything like the examples above, my days of sailing solo with P&O will be over!

[jeanlyon]

Yes we are on the same cruise - 19 nights on Aurora next April. We paid £1450 each for an inside cabin. It's now £1999. We got £270 OBC as well.

[daiB]

Yes, we've paid less for Suites (on Select prices) than they are now charging for a balcony cabin, albeit I'm not really comparing like for like as we booked those at launch also.

 

The interesting thing will be to see what the launch prices are like when the summer 2020 cruises are released, especially with Aurora now that she is going to be adult only. I shall be very interested to compare the launch prices on Aurora (per cabin, per night) compared to what we have paid at launch on the same ship previously. Only then will it be a direct comparison.

Increases on that scale are an indication of the cruise being close to being sold out, or at least that grade of cabin. It has been happening for a number of years. Since fluid pricing came in.

 

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[yorkshirephil]

I am hoping they cut OBC as we usually book saver so don't get any.:D

[jeanlyon]

Increases on that scale are an indication of the cruise being close to being sold out, or at least that grade of cabin. It has been happening for a number of years. Since fluid pricing came in.

 

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I would agree Dai, normally, but it has been up as high as £2199 for an inside with the Saver at £1999, and now it's £1999 with the saver at £1899, so the saver is not worth having. Also, the usual A deck cabins are available. I wouldn't be up there for any money!

[picsa]

I am hoping they cut OBC as we usually book saver so don't get any.:D

 

An interesting point, especially for the view expressed by a number of people of "doing away with the service charge now means everyone pays as they can't opt out".

 

Any changes are not likely to be the same across the board, with the loss of the service charge simply being added to each fare.

 

P&O will be looking at what is the highest price they can sell each cabin for so the change may impact some more than others.

 

I can see that those booking a suite a year away are likely to be far less price sensitive than someone booking a late saver inside. So quite possible that those booking a suite pick up the service charge bill for lots of inside cabins.

[wowzz]

"P&O will be looking at what is the highest price they can sell each cabin for so the change may impact some more than others."

 

But surely that is what they have always done, with the proviso that it is the highest price at that particular time. What would be the point of offering cabins at less than the market rate, unless they are going down the route of "marginal costing" and we all know where that leads.

 

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[picsa]

"P&O will be looking at what is the highest price they can sell each cabin for so the change may impact some more than others."

 

But surely that is what they have always done, with the proviso that it is the highest price at that particular time. What would be the point of offering cabins at less than the market rate, unless they are going down the route of "marginal costing" and we all know where that leads.

 

It is, but those who thought there was going to be a straightforward £14 a day (or whatever) added to each cabin so "everyone pays" are going to be very disappointed.

 

Going forward those booking higher priced cabins will certainly be paying many multiples of the service charge they used to pay, as they pick up the bill for the lower priced cabins where the charges cannot be added.

[daiB]

I do think that all the talk about the company putting the price up to cover the cost of the missing tips is way off the mark. The price of a cruise is market led and this will not change. The price will be determined by supply and demand.

 

 

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[wowzz]

I do think that all the talk about the company putting the price up to cover the cost of the missing tips is way off the mark. The price of a cruise is market led and this will not change. The price will be determined by supply and demand.

 

 

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Indeed, and launching a ship with a 5000 pax capacity could well lead to supply exceeding demand.

 

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[purplesea]

Could it be that the choice of free coach transfers to Southampton or extra OBC could sail into the blue yonder

 

 

Free coach transfers won't effect me, as we have to travel in the opposite direction to get to a pick up point taking nearly as long as the trip down to Southampton.

[daiB]

Indeed, and launching a ship with a 5000 pax capacity could well lead to supply exceeding demand.

 

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Well, perhaps or perhaps not, as demand is growing, hence the price rises that people are talking about, at a rate of 5% to 8/9%. If they did not bring in another ship then demand would outstrip supply. Of course they are selling Oriana as well which will have a knock on effect on all other sailings before the new ship enters service.

 

 

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[FangedRose]

I still maintain that a large chunk of the money lost by P&O will be funded by the admin costs saved in dealing with the large numbers of pax opting out, and the processing of the forms.