"Always working to raise prices"

[eroller]

I know this is true of all cruise lines, but NCL and its leader FDR seem much more arrogant and blatant about it.  It's very off-putting to me.  Personally I feel NCL is already overpriced, but obviously people are willing to pay more since according to FDR they have the highest per diems in the industry.  Unfortunately no mention of trying to improve the customer experience to justify the higher per diems, just that they are willing to spend on marketing and deploy ships strategically to earn the highest yields.  

 

This quote in particular speaks volumes:  "It happens because we work every hour of every day, always looking for opportunities to raise prices across our three brands.”

 

Perhaps that line should become the new NCL brand slogan?  

 

 

https://www.cruiseindustrynews.com/cruise-news/21890-always-working-to-raise-prices.html

Edited November 11, 2019 by eroller

[HuliHuli]

1 minute ago, eroller said:

I know this is true of all cruise lines, but NCL and its leader FDR seem much more arrogant and blatant about it.  It's very off-putting to me.  Personally I feel NCL is already overpriced, but obviously people are willing to pay more since according to FDR they have the highest per diems in the industry.  Unfortunately no mention of trying to improve the customer experience to justify the higher per diems, just that they are willing to spend on marketing and deploy ships strategically to earn the highest yields.  

 

This quote in particular speaks volumes:  [q]It happens because we work every hour of every day, always looking for opportunities to raise prices across our three brands.”[/q] 

 

 

https://www.cruiseindustrynews.com/cruise-news/21890-always-working-to-raise-prices.html

As an NCL shareholder, I look to NCLH leadership to look for ways to improve their financial performance every day.  Whether that is through greater revenue generation or reduced costs of operation, I expect them to take actions that benefit us as shareholders of the company.  I'll leave it to the cruising public to determine if NCLH brands offer the best value for their cruise dollars.  Isn't capitalism great?

[cliffd64]

As for your own participation, you can vote with your wallet... Why does a publicly traded company seeking more profits for shareholders surprise you?   Isn't that the job of a good CEO? Only you can judge if the experience is not worth the money for you.  Lots of competition out there.

[ColeThornton]

Thanks for posting, that's a good article.  When you look at it as a whole it's the path for success for the company and the many stockholders just like CEO's do for every company.  Keep up the good work.

 

I would disagree with your opinion that NCL is overpriced.  If they were my cheap wallet would be looking elsewhere.

[SeaShark]

This Fox has a longing for grapes:
He jumps, but the bunch still escapes.
So he goes away sour;
And, 'tis said, to this hour
Declares that he's no taste for grapes.

[eroller]

11 minutes ago, cliffd64 said:

As for your own participation, you can vote with your wallet... Why does a publicly traded company seeking more profits for shareholders surprise you?   Isn't that the job of a good CEO? Only you can judge if the experience is not worth the money for you.  Lots of competition out there.

 

 

Absolutely, and as I stated all companies do this, NCL is just much more arrogant and blatant about it.  And yes I love the competition and cruise on it often.  

[eroller]

14 minutes ago, HuliHuli said:

As an NCL shareholder, I look to NCLH leadership to look for ways to improve their financial performance every day.  Whether that is through greater revenue generation or reduced costs of operation, I expect them to take actions that benefit us as shareholders of the company.  I'll leave it to the cruising public to determine if NCLH brands offer the best value for their cruise dollars.  Isn't capitalism great?

 

 

Good for you being and NCL shareholder.  I'm not and never would be.  I do invest in other industries, generally with higher returns.  As a consumer that has sailed NCL often, I like to see a CEO that can tout a balance of a healthy returns along with initiatives to improve the customer experience.  This was all about raising prices.  Not balanced IMO.   

[eroller]

13 minutes ago, ColeThornton said:

 

 

I would disagree with your opinion that NCL is overpriced.  If they were my cheap wallet would be looking elsewhere.

 

 

To each their own.  My opinion is that NCL currently is a not a good value compared to other lines.  To much inching up of pricing and nickel and diming the customer.  As I mentioned in my original post, obviously others feel differently as NCL is doing well. 

Edited November 11, 2019 by eroller

[shof515]

I am also a NCL shareholder. i recently got off the Norwegian Dawn. Maybe it is due to the smaller ship, maybe it is because i am used to the mega ships but my experience  on the Dawn did not live up with my past experience of being on a Norwegian cruise. Customer service and experience is being slightly reduced over time. Entertainment seems to be a bit of a downgrade on these smaller mid ships

[ColeThornton]

2 minutes ago, eroller said:

 

 

To each their own.  My opinion is that NCL currently is a not a good value compared to other lines.  To much inching up of pricing and nickel and diming the customer.  As I mentioned in my original post, obviously others feel differently as NCL is doing well. 

 

I definitely respect your position.  What is valuable to me on a cruise line may not be important to you and vice versa.  Nothing wrong with that.

 

The "nickel and diming" phrase though kind of sticks in my craw.  To me it's a term used by a lot of people who don't do their due diligence when spending a lot of money and then find themselves with charges they didn't know about.  At least, that's the way I look at it.

[Fitzget]

Are they really that much more expensive though? In searching for our upcoming Alaskan cruise, NCL was the cheapest, except for Carnival. Royal Caribbean was almost double, as were the rest of them. And the rest of them don't come with open bar. 

[MotownVoice]

16 minutes ago, eroller said:

This was all about raising prices.  Not balanced IMO.   

 

So you copied and pasted a quote from a financial meeting by a CEO talking to his/her fellow shareholders ... and then you complain that it was "all about raising prices."

Why don't you just quote a meterologist and complain that it was "just all about weather."

OF COURSE it's about raising prices.  It's what a company does in a capitalistic society.

I'm a tree hugging, anti 1%  partisan and even I know the difference between stockholder vocabulary and actual attitudes toward a company's customer base.

Your quote proves nothing except that the person who said it is doing what they're being paid to do.

Edited November 11, 2019 by MotownVoice

[eroller]

6 minutes ago, ColeThornton said:

 

I definitely respect your position.  What is valuable to me on a cruise line may not be important to you and vice versa.  Nothing wrong with that.

 

The "nickel and diming" phrase though kind of sticks in my craw.  To me it's a term used by a lot of people who don't do their due diligence when spending a lot of money and then find themselves with charges they didn't know about.  At least, that's the way I look at it.

 

 

All mass-market/budget lines nickel and dime.  No about about that.  Yes I agree the consumer has some accountability in knowing what they are getting into beforehand.  There is a difference though.  I sail on all the major line and I'm not loyal to any of them.  I like variety.  I do see differences in how they generate onboard revenue.  Some are much more aggressive and in your face, and I would put NCL in that category.  NCL is also notorious for sudden price hikes in things like drink prices and beverage package prices (to support higher gratuities on "free" packages), promoting free amenities that are not really free, room service fees, specialty restaurant pricing changes, etc etc.  It's my opinion that NCL is on the very high end of the spectrum when it comes to nickel and diming.  

[macandlucy]

If anyone is interested, you can read the entire transcript of that conference call:

 

https://www.fool.com/earnings/call-transcripts/2019/11/07/norwegian-cruise-line-holdings-nclh-q3-2019-earnin.aspx

[eroller]

2 minutes ago, MotownVoice said:

 

So you copied and pasted a quote from a financial meeting by a CEO talking to his/her fellow shareholders ... and then you complain that it was "all about raising prices."

Why don't you just quote a meterologist and complain that it was "just all about weather."

OF COURSE it's about raising prices.  It's what a company does in a capitalistic society.

I'm a tree hugging, anti 1%  partisan and even I know the difference between stockholder vocabulary and actual attitudes toward a company's customer base.

Your quote proves nothing except that the person who said it is doing what they're being paid to do.

 

 

I listen to earnings calls from most cruise lines.  The tone is different with NCL.  No balance.  It's all about raising prices and no talk about the product and customer experience.   Other cruise lines touch on this as yes, even investors want to know what companies are doing to warrant those higher yields and ensure they are sustainable.  

 

As I mentioned in my original post (if you actually read it), I already know that all cruise lines obviously are looking to raise pricing.  It's in the delivery method and the lack of balance that sets NCL apart.  Again my opinion.  If you don't agree with it I don't really care.  You're entitled to your own.  

[miataman19]

As a solo cruiser NCL beats everyone. Only line that comes close is MSC. As to the point of overall pricing has anyone looked at Disney. Solo cruiser, similar itineraries, inside cabin...NCL $1659 (drink package included) Disney $4159 (no drink package). That's just crazy. Sorry Disney you're not that good. 

[eroller]

2 minutes ago, macandlucy said:

If anyone is interested, you can read the entire transcript of that conference call:

 

https://www.fool.com/earnings/call-transcripts/2019/11/07/norwegian-cruise-line-holdings-nclh-q3-2019-earnin.aspx

 

 

Yup there is more ... but even Cruise Industry News picked up on the "always working to raise prices" and decided to run a piece just on that quote alone.  

[graphicguy]

Maybe I'm familiar with NCL's pricing.  I don't find they hide anything (nor do RCL or Carnival, for that matter).  Yes, there are charges outside of the fare you must include to get a final price.  But, I can say the same when I go out to dinner at a nice restaurant.  I don't know what wine I'll order before hand (or its price).  I don't know what entre I'll order (or its price).  Same at most hotels.  Until I check in, I don't know how much overnight parking will be, or what fees they charge in addition to the nightly rate.

 

What I do know, particularly with cruises, on any cruise line, I compare fares, the service charges/tips, any sort of add-ons to each other.  I can get mighty close to what any cruise will cost me.  Seems NCL is the value leader right now, especially compared to Royal.  I have been able to find some decent deals on Carnival.  But, when I add in the perks I get with NCL, the deals aren't there.

 

To each their own.  I looked at a cruise last week on NCL's Bliss, one of their newest ships.  It's a heckuva deal right now. 

[eroller]

1 minute ago, miataman19 said:

As a solo cruiser NCL beats everyone. Only line that comes close is MSC. As to the point of overall pricing has anyone looked at Disney. Solo cruiser, similar itineraries, inside cabin...NCL $1659 (drink package included) Disney $4159 (no drink package). That's just crazy. Sorry Disney you're not that good. 

 

 

I've found just the opposite.  Often times NCL's solo pricing for a Studio Cabin is not a solo price at all.  Often times it's more expensive than paying double in a standard double occupancy inside cabin.  I don't consider that being solo-friendly although I do applaud NCL for having the best solo facilities afloat.   MSC often charges no single supplement even for double cabins.  It's one reason I'm considering them for a cruise in December.  

[cliffd64]

Do you think you will influence a change sonehow?  Unless this suddenly becomes a universally held opinion and no one wants to sail on NCL...it seems this is the way it is going to be.  The reality is, ships are sailing at capacity....

[miataman19]

1 minute ago, eroller said:

 

 

I've found just the opposite.  Often times NCL's solo pricing for a Studio Cabin is not a solo price at all.  Often times it's more expensive than paying double in a standard double occupancy inside cabin.  I don't consider that being solo-friendly although I do applaud NCL for having the best solo facilities afloat.   MSC often charges no single supplement even for double cabins.  It's one reason I'm considering them for a cruise in December.  

 

Give them a try. I've sailed on Seaside and Divina. Both ships had great food and service.

[macandlucy]

6 minutes ago, eroller said:

 

 

I listen to earnings calls from most cruise lines.  The tone is different with NCL.  No balance.  It's all about raising prices and no talk about the product and customer experience.   Other cruise lines touch on this as yes, even investors want to know what companies are doing to warrant those higher yields and ensure they are sustainable.  

 

As I mentioned in my original post (if you actually read it), I already know that all cruise lines obviously are looking to raise pricing.  It's in the delivery method and the lack of balance that sets NCL apart.  Again my opinion.  If you don't agree with it I don't really care.  You're entitled to your own.  

 

I came away with the same impression -- not even a bs "courtesy" nod to the customer.  It seemed different, unusual and noteworthy.

 

 

[eroller]

3 minutes ago, graphicguy said:

 

 

What I do know, particularly with cruises, on any cruise line, I compare fares, the service charges/tips, any sort of add-ons to each other.  I can get mighty close to what any cruise will cost me.  Seems NCL is the value leader right now, especially compared to Royal.  I have been able to find some decent deals on Carnival.  But, when I add in the perks I get with NCL, the deals aren't there.

 

 

 

 

I do the same of course, as I think most consumers do.  Generally I don't find NCL a great value right now, at least when compared to lines like MSC and Carnival.  I do enjoy MSC and I'm enjoying what a great value they are right now, as they are generally still unknown in North America.  I know that will change as they get more popular.  Carnival is generally the lowest when I compare pricing (along with MSC), and yes Royal on the high end ... the but value proposition is there right now for me with Royal because I love their ships so much.  So I'm willing to pay more which is of course why they build those innovative ships to begin with.  

[eroller]

1 minute ago, miataman19 said:

 

Give them a try. I've sailed on Seaside and Divina. Both ships had great food and service.

 

 

Absolutely!  I've already sailed on them 4 times.  They are not perfect, but really offer an exceptional product for the $$.  I also like that they are owned by a single family.  No shareholders to answer to.  Just the customer and the owner.  

[eroller]

1 minute ago, macandlucy said:

 

I came away with the same impression -- not even a bs "courtesy" nod to the customer.  It seemed different, unusual and noteworthy.

 

 

 

 

 

I'm glad I'm not the only one.  I never said other companies don't do the exact same as NCL when it comes to raising prices.  Of course they do.  But even on earnings calls they seem to have a little more respect in how they speak about their customers.  On NCL the customer is spoken about as a "wallet", trying to get as much out of that wallet as possible.