If you were carnival what would you cut?

[Aplmac]

There's nothing left to cut! so get over it.

 

Cost-cutting results in a crappy product, eventually.

[soremekun]

Cut fuel in half 

 

[sfaaa]

5 hours ago, Aplmac said:

There's nothing left to cut! so get over it.

 

Cost-cutting results in a crappy product, eventually.

And cheaper cruise price. All balance out. 

[lazydayz]

Don’t count on cuts meaning lower Cruise fares.  Might just mean larger salaries for the executives and more profits for the shareholders in the short-term. 

 

Cruising is very competitive.  Once the cuts impact the quality of the cruise, some cruisers will pick other lines.

[Organized Chaos]

7 hours ago, sfaaa said:

And cheaper cruise price. All balance out. 

 

LOL They haven’t made the cuts (true cuts) that they have to lower their fares. They made them to lower their costs & improve their bottom line. 

[Joseph2017China]

Food has already been cut....table clothes removed, and they cut out the table service staff, and made serving yourself bread in water common.  I say the biggest cut could be just getting rid of the MDR, and making it into a giant buffet.  Less staff, self serve and everyone can wear what they want, and go when they want.  Big win for Carnival, and they can sell the naming rights of the new improved dining room to buffet chain.

[ray98]

7 minutes ago, canes20 said:

What do you think the biggest source of income is for these islands? I would dare say they are glad to have the ships docked.

 

Absolutely correct.  They are just like most looking for their next outrage....short on facts.

[pc_load_letter]

I am always surprised just how much soda people drink. Meh, I am always surprised people still smoke too.

[coevan]

3 hours ago, Joseph2017China said:

Food has already been cut....table clothes removed, and they cut out the table service staff, and made serving yourself bread in water common.  I say the biggest cut could be just getting rid of the MDR, and making it into a giant buffet.  Less staff, self serve and everyone can wear what they want, and go when they want.  Big win for Carnival, and they can sell the naming rights of the new improved dining room to buffet chain.

 

 

Total deal breaker, we never eat in the buffet and don't want a Golden Corral cruise, no thanks

[Joebucks]

Cutbacks are the most annoying topic in the history of travel discussions. Having spent many years in business, you learn it is inevitable that things change. You look at all of your investments, and the ones that don't make sense, go away.

 

Try running your own business with a bunch of nonsense costs that please 1 out of 50 customers and see how successful you are. If cruise companies wanted to "cut everything to save money," cruise companies would be charging for all food and entertainment. That would be a shot to the foot. Some people would be shocked to hear that companies often spend MORE in other areas, where that investment makes sense. For example, people in my organization love to complain that some positions that became irrelevant are now gone and hours reduced in others. They ignore the fact that many new positions in growth areas were created that pay more than double. Just always focusing on the negative.

 

Most cuts come from one of these two camps, both associated with areas of low importance:

- Overall unimportant to most people

- Things that have a very low utilization, but a select few people run up the most expenses

 

With that said, I see cruise ships of the future holding fewer crew members than they currently do and replaced with more automation. Do the math of what that entails.

[sfaaa]

7 hours ago, Organized Chaos said:

 

LOL They haven’t made the cuts (true cuts) that they have to lower their fares. They made them to lower their costs & improve their bottom line. 

And not raising cruise price like other cruise lines. Work for me. 

[silvercrikhix]

8 hours ago, lazydayz said:

Don’t count on cuts meaning lower Cruise fares.  Might just mean larger salaries for the executives and more profits for the shareholders in the short-term. 

 

Cruising is very competitive.  Once the cuts impact the quality of the cruise, some cruisers will pick other lines.

 

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^I agree with this 10,000% ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

 

[buckeyefrank]

On 9/7/2019 at 7:06 PM, silvercrikhix said:

 

Thumbs way up! 

Except it wasn't Carnival who got dinged for this... It was Princess.

[Organized Chaos]

1 hour ago, buckeyefrank said:

Except it wasn't Carnival who got dinged for this... It was Princess.

 

You're partly right. Princess's incidents are what caused the $40 mil. fine and had Carnival Corp. put on a 5-year probation. Within the first two years of that probation, some of Carnival's ships have been caught dumping illegally by the court appointed monitors that have been put onboard. Hence, their court hearings that were in the news earlier this year.

[Chervil]

On 9/9/2019 at 9:51 AM, PhillyFan33579 said:

 

I don’t think you are in the minority. It always appears to me that most guests in the MDR are participating (waiving napkins, clapping, dancing, etc.) when the staff is singing and dancing. 

My wife is generally somewhat shy and does NOT like to be the center of attention.

One of her favorite parts of the cruise is waving her napkin and then getting up and dancing with the waiters because, as she says "No one here knows me". 
It is her time to cut loose a bit and I love watching her do that.

That being said, since they cut wait staff down, it does interrupt service a bit more. However unless it is your first cruise, you know it is part of eating in the MDR.
If you don't like it you can hit the buffet or one of the specialty restaurants.

As far as cuts, I heartily agree that not delivering a paper copy of the Fun Times to each room would go a long way.
With the app, I can see not only what is happening today and tomorrow, but for the entire cruise.
That includes the menus for the MDR, so we can plan things out easily.
Keep some paper copies available at the service desk, like they do now, for those who don't have access to an electronic device.

Also agree with cutting out the paper photos. We were so pleased with being able to view the photos in our app and purchase them digitally when we sailed the Vista.
Although if they were to  cut the price a little, or offer better packages, they would sell more photos.
We usually only purchase a few photos each trip because they are so expensive.
However if they were less expensive, we would definitely buy more.

The cost really doesn't make sense now that they can't justify it with the waste of the prints that they used to just pulp after every cruise.
Sell them to me for $2-5 bucks each for the candid and destination tourist photos and maybe the current price for Elegant Evening photos, and I would buy a lot more.
Better yet, sell an "all you can smile" package that includes any photos taken of you or your group for one flat rate.

 

 

[ParrotRob]

37 minutes ago, Chervil said:

However if they were less expensive, we would definitely buy more.

The cost really doesn't make sense now that they can't justify it with the waste of the prints that they used to just pulp after every cruise.
Sell them to me for $2-5 bucks each for the candid and destination tourist photos and maybe the current price for Elegant Evening photos, and I would buy a lot more.

 

 

Yes, but they'd make less money overall.

[VentureMan_2000]

50 minutes ago, eroller said:

 

 

No, I think it's most suited to Carnival.  Got to keep those prices low!

 

I think Carnival has done a fantastic job keeping prices low while increasing the "FUN".

Carnival's prices are low... they are lower today than they were 32 years ago... and you get a whole lot more bang for your buck.

My 1987 inside cabin 7-day Caribbean cruise was $1512.  Today, the same cabin is closer to $1200.  Monetary value has more than tripled since the pricing in 1987 due to inflation.  So, doing the math ( I like doing the math ), the inflation index for 1987 to 2019 is 3.0065585.  So that same 1987 cruise should now cost $4546, everything being equal.  But instead, a cruise today is about 1/4th the price (1200 / 4546 = 0.26) of what it should be if the cost of a cruise increased at the rate of inflation.

The same is true for gratuities... they were $6.25 per person, per day, back in 1987.  Factoring in inflation, they should now be $18.79 per person, per day.  So you are also getting a 26% discount on gratuities.  

Again, I think Carnival has done a fantastic job keeping prices low while increasing the "FUN"... providing more bank for the buck. 

[ParrotRob]

4 minutes ago, Chervil said:

 

If you use the Hub app, it has a way to view your photos and as jumbo5544 said the facial recognition will tag you and you can pretty easily scroll through them on your electronic device.
 

 

Not on every ship.  At least not yet.  It's in the works they say.

[coevan]

4 minutes ago, VentureMan_2000 said:

 

I think Carnival has done a fantastic job keeping prices low while increasing the "FUN".

Carnival's prices are low... they are lower today than they were 32 years ago... and you get a whole lot more bang for your buck.

My 1987 inside cabin 7-day Caribbean cruise was $1512.  Today, the same cabin is closer to $1200.  Monetary value has more than tripled since the pricing in 1987 due to inflation.  So, doing the math ( I like doing the math ), the inflation index for 1987 to 2019 is 3.0065585.  So that same 1987 cruise should now cost $4546, everything being equal.  But instead, a cruise today is about 1/4th the price (1200 / 4546 = 0.26) of what it should be if the cost of a cruise increased at the rate of inflation.

The same is true for gratuities... they were $6.25 per person, per day, back in 1987.  Factoring in inflation, they should now be $18.79 per person, per day.  So you are also getting a 26% discount on gratuities.  

Again, I think Carnival has done a fantastic job keeping prices low while increasing the "FUN"... providing more bank for the buck. 

 

 

You love your numbers, math teacher?

[ParrotRob]

2 minutes ago, Chervil said:

While I agree they are likely always looking at cost efficiency, I would think that their model has not caught up to what they are currently doing.
From what I understand, they still have ships with paper photos.
Until the entire fleet is running completely digital PIXELS, then it would probably cause more problems to try and have different pricing structures.

Also, they will likely keep pricing the same as they test customer reaction to purchasing photos digitally.
Once they can do a complete cost analysis, including how many people are purchasing digital vs. paper, they will likely revisit it with the new data and adjust accordingly.

 

We agree.  They will constantly adjust to maximize profit.  NOT to maximize sales or revenue.  Joe817 might have a fantastic plan to maximize sales or revenue, but that's not what it's about.

 

[eroller]

1 hour ago, VentureMan_2000 said:

 

I think Carnival has done a fantastic job keeping prices low while increasing the "FUN".

Carnival's prices are low... they are lower today than they were 32 years ago... and you get a whole lot more bang for your buck.

My 1987 inside cabin 7-day Caribbean cruise was $1512.  Today, the same cabin is closer to $1200.  Monetary value has more than tripled since the pricing in 1987 due to inflation.  So, doing the math ( I like doing the math ), the inflation index for 1987 to 2019 is 3.0065585.  So that same 1987 cruise should now cost $4546, everything being equal.  But instead, a cruise today is about 1/4th the price (1200 / 4546 = 0.26) of what it should be if the cost of a cruise increased at the rate of inflation.

The same is true for gratuities... they were $6.25 per person, per day, back in 1987.  Factoring in inflation, they should now be $18.79 per person, per day.  So you are also getting a 26% discount on gratuities.  

Again, I think Carnival has done a fantastic job keeping prices low while increasing the "FUN"... providing more bank for the buck. 

 

 

I agree but I don't think Carnival is unique in this regard.  I started cruising in the late 70's thanks to my grandmother taking my brother and I on amazing trips.  Cruising was part of that.  I still have a cruise ticket from the NORWAY back in 1980.  My grandmother paid more for an inside triple on that cruise than a balcony on a brand new ship today.  And she had to book it a year in advance as the ship was that popular (and it was an amazing ship).  Today I sail on pretty much all the lines and most offer an amazing value proposition especially compared to 20-30 years ago.  The experience is different, more mainstream, but in many ways it's improved.  More impressive ships and more options, but also more extra costs if you're tempted and more people.  If you want the quality of what the MDR experience used to be, you generally have to pay for a speciality restaurant.  But I get it, something has to give.  

 

I'm glad Carnival still offers you (and many others) a great value proposition.  For me its faded.  Perhaps I have outgrown it.  I don't see the fun like I used to, not when I witness fights, rude behavior, crowds and lines for everything, and excessive security.  I just don't see that on other lines, not to say it doesn't happen.  So for me I see the value proposition in other cruise lines that offer nicer and less crowded ships, better food and entertainment, and a bit more refined atmosphere all at a price equal to Carnival or slightly more.  I'm willing to pay a bit more because I see value in it.  Others don't and that is perfectly acceptable too.  We are all different.   I'm also not loyal to any one cruise line.  I enjoy them all, even Carnival but not so often any more.  Not being loyal has its advantages.  No emotional attachment to any one company and I'm free to sail what I want at the best value.  No pressing need to defend "my" cruise line.  I love the variety.  Not to say I don't have favorites, but nothing so extreme that it would prevent me from sailing a different line with a great deal.  I'm Platinum on Carnival and I like to return every now and then to see how the line has evolved.  They all evolve, and they generally all go through periods of ups and downs.  It's one reason I never judge a line on one cruise.  They all have one-off disappointments.  I'm planning to sail on Mardi Gras and looking forward to it.  I sailed on the original (along with CARNIVALE, FESTIVALE, and many others) and I can't wait to see how Carnival has evolved.  The ship looks impressive and I think a big upgrade in decor for Carnival, but it will be crowded for sure.  Also it's not inexpensive, so not sure the value proposition is there but I want to try her out anyway.  The more you pay, the higher the expectations.  Hopefully Carnival will deliver with this ship.    

 

Happy Cruising!   

Edited September 11, 2019 by eroller

[Chervil]

21 minutes ago, ParrotRob said:

 

We agree.  They will constantly adjust to maximize profit.  NOT to maximize sales or revenue.  Joe817 might have a fantastic plan to maximize sales or revenue, but that's not what it's about.

 

Having managed for others and owned our own retail stores (both brick & mortar and online) for years, I can tell you that there is a magic point in pricing where even though you are making less profit per item, you can motivate the customers to purchase more of that item than normal, thus raising overall profit.
I used to manage the family owned home decor store in a tourist town in the central coast of California.
For years it had been considered a higher end shop (tiffany style lamps, $500 wall art, statues, etc.)
We would have a lot of tourists coming through, and while you had some people buying, a lot just liked looking at the selection and then walked without purchasing anything (because of the price points). Kind of like walking through a Smarter Image where its still fun to look even if you can't afford anything.
It wasn't a big deal since while our sales volume was low we were still extremely profitable.

When the economy dropped about 6 years ago, people stopped buying the higher end decor, and sales dropped.

We decided to change the direction of the store to make it more profitable. 
We wanted to start filling the hands of the the people walking out empty handed and made the decision to mix in lots of good quality but lower cost items. We also lowered our prices to entice buying. If I could get even $5 out of everyone coming through the door, we could do good.

For example:

One of the items we sold was a wall decor in the shape of a sun with a smiling face.
Our cost was $15.
For years we sold them for about $75 each (they were great looking items and very well made).
We sold maybe one or two a week.
So the price was dropped to $30 each. (we decided to do a test run with this and several other items)

Instead of 1-2, where the profit was $60-$120*, I was selling 15 a week for a profit of $225*
In the end, we decided to revamp the entire pricing structure like that and became a much more profitable store, even surpassing the numbers when it was a "high end" location.

You have to change with the market.

Since Carnival is targeting the lower price vacationer, they need to start pricing more of their things accordingly and they will sell more.
They already do this with the gift shop sales on tote bags, tshirts and towels.

Now is the perfect time to start increasing the volume of photo sales by pricing more enticingly!

People might balk at a $15 digital photo, carefully choosing a few. But if I know personally if I can get them for $5 each or under, I will end up justifying it as "only $5" and end up spending much more than I normally would.
 

*I know my example is gross not net since I didn't deduct wages, insurance, lights, etc and all the other costs of doing business)


 

[ParrotRob]

18 minutes ago, Chervil said:

Having managed for others and owned our own retail stores (both brick & mortar and online) for years, I can tell you that there is a magic point in pricing where even though you are making less profit per item, you can motivate the customers to purchase more of that item than normal, thus raising overall profit.
I used to manage the family owned home decor store in a tourist town in the central coast of California.
For years it had been considered a higher end shop (tiffany style lamps, $500 wall art, statues, etc.)
We would have a lot of tourists coming through, and while you had some people buying, a lot just liked looking at the selection and then walked without purchasing anything (because of the price points). Kind of like walking through a Smarter Image where its still fun to look even if you can't afford anything.
It wasn't a big deal since while our sales volume was low we were still extremely profitable.

When the economy dropped about 6 years ago, people stopped buying the higher end decor, and sales dropped.

We decided to change the direction of the store to make it more profitable. 
We wanted to start filling the hands of the the people walking out empty handed and made the decision to mix in lots of good quality but lower cost items. We also lowered our prices to entice buying. If I could get even $5 out of everyone coming through the door, we could do good.

For example:

One of the items we sold was a wall decor in the shape of a sun with a smiling face.
Our cost was $15.
For years we sold them for about $75 each (they were great looking items and very well made).
We sold maybe one or two a week.
So the price was dropped to $30 each. (we decided to do a test run with this and several other items)

Instead of 1-2, where the profit was $60-$120*, I was selling 15 a week for a profit of $225*
In the end, we decided to revamp the entire pricing structure like that and became a much more profitable store, even surpassing the numbers when it was a "high end" location.

You have to change with the market.

Since Carnival is targeting the lower price vacationer, they need to start pricing more of their things accordingly and they will sell more.
They already do this with the gift shop sales on tote bags, tshirts and towels.

Now is the perfect time to start increasing the volume of photo sales by pricing more enticingly!

People might balk at a $15 digital photo, carefully choosing a few. But if I know personally if I can get them for $5 each or under, I will end up justifying it as "only $5" and end up spending much more than I normally would.
 

*I know my example is gross not net since I didn't deduct wages, insurance, lights, etc and all the other costs of doing business)


 

 

Yes, that's called profit maximization, and its microeconomics 101.  Selling more photos at a lower price point will not increase profit.  I absolutely guarantee you that if Carnival would make more profit by lowering prices they would do just that.  They've already done the math, I assure you.  A corporation with over $18 billion in revenue surely knows its profit maximization price.  I guarantee you they have studied this six ways to Sunday.

Edited September 11, 2019 by ParrotRob

[Chervil]

17 minutes ago, ParrotRob said:

 

Yes, that's called profit maximization, and its microeconomics 101.  Selling more photos at a lower price point will not increase profit.  I absolutely guarantee you that if Carnival would make more profit by lowering prices they would do just that.  They've already done the math, I assure you.  A corporation with over $18 billion in revenue surely knows its profit maximization price.  I guarantee you they have studied this six ways to Sunday.

You want to explain to me how selling more photos at a lower price point won't increase profit, when I just gave you real life examples showing it does?

Why do you think that 20oz sodas priced at $1.89 are always on sale 2/$2.50 or 2/$3.00?
They make less per bottle but know you will buy more because of the perceived value.

Carnival may have studied it six ways to Sunday but I guarantee they don't stop there. They continue to study it as the market and their customer mindset changes, which is why changes are constantly being made.
Under the old printed photo model, it may not have made sense since you could only lower the price so much because of the materials involved.
However now that the production cost has been significantly reduced by getting rid of the paper, ink, printers, etc. I guarantee they are studying it again or will be soon.

To say that just because they haven't made the change yet doesn't mean it isn't viable, shows that you don't understand the behind the scenes workings of a large corporation at all.
Even when you make the decision to make a change or a cut, you have to time it correctly in order to ensure a smooth roll out.
Very few changes are made literally overnight in a big corporation. Usually months or years of planning are involved.
Only in the case of a reactionary response to a problem or emergency are changes made quickly, since they can have negative unforeseen consequences and it is better to thoroughly research and account for as many issues as you can before they arise.

Once the paper photos are completely phased out, and the facial recognition is standard across the entire fleet, then adjusting the cost to account for digital-only could make more sense.
Otherwise you are having to work different pricing structures for different vessels and then try to roll them out individually as they lose paper and go to digital.
Much smoother to make the change all at once.
So it is possible they may have even already made the decision to implement a change, but are waiting for the right time.

 

By your reckoning, Carnival doesn't have any changes to make since they are already running at peak profit.
If they weren't then they wouldn't be set up this way. At least according to what you said.

Edited September 11, 2019 by Chervil

[VentureMan_2000]

3 hours ago, coevan said:

 

 

You love your numbers, math teacher?

 

No... but math does have a way of clearing up all the... well, you know.  I have a minor in math and another minor in stats, along with my undergraduate degree.