Price increase

[Young and Restless]

Why does the price increase 50% ? everything the same except date. 

You book a cruise, cruise line cancels, then wants 50% increase to book the same cruise.

 

[Zach1213]

If it's a different date, it's not the same cruise. Different dates have different economic demands (kind of like flights - NYC to Paris on June 7 has different demographics than NYC to Paris on December 7), not to mention that fact that demand is increasing quick so prices may be increasing quick too. 

[DirtyDawg]

Supply and demand. 

 

Ontario is still in a lockdown so more people are looking to buy cottages this year. Prices are up 40%-60% year-over-year!

[Flatbush Flyer]

27 minutes ago, Zach1213 said:

If it's a different date, it's not the same cruise. Different dates have different economic demands (kind of like flights - NYC to Paris on June 7 has different demographics than NYC to Paris on December 7), not to mention that fact that demand is increasing quick so prices may be increasing quick too. 

And that’s only the beginning...

One of the most obvious price drivers is recovery of lost revenue. Add to that the cost of Covid related ship modifications (e.g., HVAC, expanded medical facilities, etc).

 

Similar facility changes at the ports themselves (including the cost of testing) result in higher port taxes.

 

There’s many other factors to consider as well:

For example, if your cruise line is one that includes “free” airfare, remember that nothing’s “free.” That airfare is built into that cruise fare. Check out current intercontinental airfares- ouch!

[George C]

We are on allure in grand suite at the end of November 2021 , same cruise same date very similar price for 2022.

[Joebucks]

Pricing always has and always will be determined by supply and demand. Just wait until the all clear is given for cruising to begin, and quarantines not happening. You'll wish you booked at these prices.

[bigrednole]

Price increases occur with all cancelations. I watched RCL cancel all of our cruises and as they did, all of the cruises were above the Original Fare + 25%. I stopped playing that game and just started canceling myself to the point I couldn't afford RCL any more compared to others out there.

[SelectSys]

1 hour ago, Joebucks said:

Pricing always has and always will be determined by supply and demand. Just wait until the all clear is given for cruising to begin, and quarantines not happening. You'll wish you booked at these prices.

The one thing you didn't mention is all the cash currently awash in the economy.  Prices generally are going way up.  Cruises are not likely to be exempt and the fact that supply is down will make these prices even more vulnerable to going higher.

 

Welcome to the 70's!

 

 

[sfaaa]

Have you checked airfare and hotel rates? The ones I am watching are all going up from a few months  ago.

[cruisingguy007]

It's true. Just happened to me too. I booked a few months ago for 2023 and the price was significantly lower than the cruise I just booked for 2024 ($3400 vs $5100). I don't think I'll be booking any more future cruises for a while. I'll take the three I have lined up and see how prices are after that. I suspect prices will be elevated for a few years in order to recoup all that OBC and mounting losses. 

[cruisingguy007]

29 minutes ago, sfaaa said:

Have you checked airfare and hotel rates? The ones I am watching are all going up from a few months  ago.

 

That is less surprising. A lot of folks have been vaccinated and want to vacation and/or simply get away. Vegas has went from a ghost town to being in full rebound mode in just a two month period. It's nuts right now. The time to lock something in was about 3 months ago. 

[sfaaa]

All it takes for oil price to go nut is another shooting war or major terrorist incident in mid east. It's pretty much a given it will happen.That region is a constant smouldering powder keg.

[Young and Restless]

OK, how about this comparison.

I went on line to Walmart and ordered and paid for a pair of diamond earrings . Cost was $5,000.00

I was to pick up the earrings in 30 days . After 20 days Walmart emails me and said the earrings will not be ready for 90 more days and by the way the cost has increased to $7500.00 .

What would you do?

 

[sanger727]

1 hour ago, Young and Restless said:

OK, how about this comparison.

I went on line to Walmart and ordered and paid for a pair of diamond earrings . Cost was $5,000.00

I was to pick up the earrings in 30 days . After 20 days Walmart emails me and said the earrings will not be ready for 90 more days and by the way the cost has increased to $7500.00 .

What would you do?

 

thats not what happened to cruises. 
 

a better comparison would be that you went online and ordered diamond earrings for $5,000. After 20 days they contacted you and had to cancel your order because there’s now a diamond shortage and they can’t supply any diamond products. Several months later they send you an add for a similar pair of earrings (not the same, your dates have changed which would affect prior fluctuations normally anyway). This new pair is $7,500 because diamonds are still in short supply and they only have access to a handful of pairs.

 

I understand why you are frustrated and while I’m not saying it’s right, many industries have had enormous price fluctuations due to Covid related shortages. Two that come to mind are lumber and housing. My DH does projects and said a 2x4 that used to cost him $4 is now $16. Based on what’s been selling around my home, the value has gone up around 30% in the last year. Everything, including travel, is affected by supply and demand.

Edited May 15, 2021 by sanger727

[Hlitner]

On 5/11/2021 at 12:54 PM, Joebucks said:

Pricing always has and always will be determined by supply and demand. Just wait until the all clear is given for cruising to begin, and quarantines not happening. You'll wish you booked at these prices.

We have long teased that we are "equal opportunity cruisers" which simply means we cruise on many different lines (16 to date).  What is happening with pricing is quite interesting (to me).  The so-called mass market lines have been generally increasing prices and at times those increases are substantial.  Take a look at the pricing on Celebrity's Apex to see what I mean.  But last month we noticed that the pricing on some of the ultra luxury lines had barely increased and in some cases were still a bargain (in terms of what one expects from that category of line).  So within a few days we booked two cruises (July and Oct) on Seabourn.  That line is never cheap, but when you try to compare apples to apples (using similar cabin types and what is included) we actually thought that Seabourn gave us a lot more value then we would get from Celebrity.  

 

What will happen in the future?  I do agree with you that we will likely see some big price increases.  This will happen because the cruise lines want to devalue the FCCs they have given out like candy, and the increased cost of fuel with general inflation felt in the food industry will also drive up costs/prices.

 

Hank

[Joebucks]

1 minute ago, Hlitner said:

What will happen in the future?  I do agree with you that we will likely see some big price increases.  This will happen because the cruise lines want to devalue the FCCs they have given out like candy, and the increased cost of fuel with general inflation felt in the food industry will also drive up costs/prices.

 

Hank

 

The only part I don't agree with is all of the stuff I've seen about FCCs, almost implying it is some kind of conspiracy (not necessarily your post). Obviously, there is a financial implication for offering these. However, I sincerely doubt the FCCs have that sort relationship on the cruise line's pricing. If anything it has assisted the climb of overall pricing by enticing people to keep their revenue with the cruise lines, increasing demand, which was the most important thing. Make no mistake, a cruise company is going to charge as much as they can if the demand is there. Period. My point is the FCC helped boost those prices vs making "FCC worthless". I've read that so much, for a long time. When cruising resumes, those who have a FCC will be ahead of those without out. This gives the FCC concrete value in most scenarios.

[Hlitner]

12 minutes ago, Joebucks said:

 

The only part I don't agree with is all of the stuff I've seen about FCCs, almost implying it is some kind of conspiracy (not necessarily your post). Obviously, there is a financial implication for offering these. However, I sincerely doubt the FCCs have that sort relationship on the cruise line's pricing. If anything it has assisted the climb of overall pricing by enticing people to keep their revenue with the cruise lines, increasing demand, which was the most important thing. Make no mistake, a cruise company is going to charge as much as they can if the demand is there. Period. My point is the FCC helped boost those prices vs making "FCC worthless". I've read that so much, for a long time. When cruising resumes, those who have a FCC will be ahead of those without out. This gives the FCC concrete value in most scenarios.

Ok, I will agree with your analysis....to a point.  The cruise lines did nothing wrong when they issued $Billions of FCCs as their goal was to preserve cash and customers.  From the cruise line's perspective it was a very smart financial and strategic move.  And as you say, supply/demand does drive pricing.  But folks thought they were going to make a profit by taking generous FCCs.  In most cases the FCCs have date restrictions, so now folks must use them within the allotted time which is increasing demand.  The cruise lines are generally reacting by increasing prices.  So that 125% FCC folks got is probably going to buy them about the same thing they would have had for 100% a year ago.  So, at best, the buying power of FCCs makes folks whole but in some cases they are now finding it gets them less then they had with their previous booking.

 

Hank

[Flatbush Flyer]

25 minutes ago, Joebucks said:

 

The only part I don't agree with is all of the stuff I've seen about FCCs, almost implying it is some kind of conspiracy (not necessarily your post). Obviously, there is a financial implication for offering these. However, I sincerely doubt the FCCs have that sort relationship on the cruise line's pricing. If anything it has assisted the climb of overall pricing by enticing people to keep their revenue with the cruise lines, increasing demand, which was the most important thing. Make no mistake, a cruise company is going to charge as much as they can if the demand is there. Period. My point is the FCC helped boost those prices vs making "FCC worthless". I've read that so much, for a long time. When cruising resumes, those who have a FCC will be ahead of those without out. This gives the FCC concrete value in most scenarios.

Among our future 2022 bookings is a 3 week Oceania cruise. Thanks to FCCs, segment 1 is only $250 per person new cash. 
I’m okay with FCCs!

Edited May 15, 2021 by Flatbush Flyer

[SelectSys]

6 hours ago, Young and Restless said:

OK, how about this comparison.

I went on line to Walmart and ordered and paid for a pair of diamond earrings . Cost was $5,000.00

I was to pick up the earrings in 30 days . After 20 days Walmart emails me and said the earrings will not be ready for 90 more days and by the way the cost has increased to $7500.00 .

What would you do?

 

 Did you buy from Walmart or a third party seller?  It probably makes a difference.  I am betting you didn't buy from Walmart and instead purchased from a 3rd party.  If Walmart won't help you get the earrings at the original price, I would cancel the order and give the seller a one star review for "bait and switch" tactics.

Edited May 15, 2021 by SelectSys

[Young and Restless]

5 hours ago, SelectSys said:

 Did you buy from Walmart or a third party seller?  It probably makes a difference.  I am betting you didn't buy from Walmart and instead purchased from a 3rd party.  If Walmart won't help you get the earrings at the original price, I would cancel the order and give the seller a one star review for "bait and switch" tactics.

My example of buying diamonds at Walmart was just to make a point . Just trying to make a point how cruise lines were increasing prices for the same products .

 So far there are many interesting replies.

[getting older slowly]

Even before Covid prices went up and down depended on the date  ,even by moving dates as little as three weeks , saved 15% off the fare   same cruise same cabin....

 

Simply it is what the market will bear... supply / demand...

 

But now the cruise line are in need of money and people will be willing to pay,

so I would expect prices to increase in the current climate.....

 

It is even happening with local accommodation,  rises of 30% plus,   

example like charging full rate off season... everybody is trying to recoup their losses....

 

Don     

[Ashland]

12 hours ago, Young and Restless said:

OK, how about this comparison.

I went on line to Walmart and ordered and paid for a pair of diamond earrings . Cost was $5,000.00

I was to pick up the earrings in 30 days . After 20 days Walmart emails me and said the earrings will not be ready for 90 more days and by the way the cost has increased to $7500.00 .

What would you do?

 

I wouldn't be/consider buying diamond earrings from Walmart regardless. Best of luck to you.

[Flatbush Flyer]

52 minutes ago, Ashland said:

I wouldn't be/consider buying diamond earrings from Walmart regardless. Best of luck to you.

I know! When I read that, I was ROFL.

[sanger727]

11 hours ago, Joebucks said:

 

 When cruising resumes, those who have a FCC will be ahead of those without out. This gives the FCC concrete value in most scenarios.

 

Only if the person plans to book a cruise with the cruise line they have FCC for regardless of price. The person who does not have FCC, doesn't have the bonus. But they also have options that the FCC purchaser does not. They can book with a different cruise line. They can wait until the FCC's expire to book. They can choose an alternate vacation altogether until cruise pricing gets back to normal. This is one instance where I think cash is king over an artificial bonus.

[navybankerteacher]

1 hour ago, Flatbush Flyer said:

I know! When I read that, I was ROFL.

I wondered if I was the only one.