NCL Pricing Strategy vs Competitors

[deliver42]

We wwere on the Ovation this past September and after FP the cruise went down 1300.00 Called Royal and got $1300.00 OBC. Bought a lot of drinks. I am now Diamond.

[BennyBrun]

1 hour ago, swmichigan cruiser said:

My wife said when I first told her we would be doing Royal for two Alaskan cruises but we won't have the drink package. But we have been lucky to cruise with them a lot also in the past so we are Diamond Plus with them so we each get 5 drinks a day so that calmed her down. And you are right you have to look at the total price of a cruise.

I think that for Diamond and up the drink vouchers was a great move on Royal’s part.  It definitely provides value to those that drink but don’t drink as much.  

However with the recent changes to FAS like Wi-Fi under FAS can’t be used to upgrade to unlimited, the value of NCL’s all inclusive is on the decline while the cruise fare is on the rise NCL is definitely taking into consideration the overall FCC that’s out there/the expiration date to see how they can maximize the situation.  They are a for profit business and there is nothing wrong with that.  For consumers that don’t have FCC tied up with NCL we have a choice and only time will tell if we are making our decisions with our wallet or with the loyalty tied to NCL.

[BirdTravels]

On 1/25/2022 at 2:49 PM, dolfan1980 said:

Anyone else noticing that NCL seems to be taking a different approach to pricing at the moment?  RCCL/Carnival seem to be discounting sailings in the coming months far more than NCL.  I don't know if this is because NCL isn't sure what's happening for the next few weeks and waiting to see if they get ships back on track or not, but I can't seem to find any deals for February/March like I was able to for this past December when I scored a solo balcony for around $500.  

 

Perhaps NCL have far fewer ships to fill and maybe bookings are ok, but wondering if anyone else is noticing the same.

It's called good business. No need to discount if people are still buying cruises at the fares NCL is asking. Yes???

[mlgb]

NCL is definitely gouging single passengers out of Los Angeles now, compared to Princess. Look at the 7-day Mexican Riviera crusies. 

 

NCL Bliss is sailing at 25% capacity.  They are just scraping by trying to stay afloat. It's all about revenue.

[HEATH3913]

Looks like they don't want to add the cheap last minute cruisers that don't spend much money onboard.

[ECCruise]

19 minutes ago, HEATH3913 said:

Looks like they don't want to add the cheap last minute cruisers that don't spend much money onboard.

You do realize that one can be a both a last minute cruiser (also known as someone who knows how to manage money) and still spend as much money onboard as the spendthrifts. 

[SeaShark]

9 minutes ago, ECCruise said:

You do realize that one can be a both a last minute cruiser (also known as someone who knows how to manage money) and still spend as much money onboard as the spendthrifts. 

 

Well, he didn't claim that ALL cheap last minute cruisers only spent very little money onboard, he just said that (in his opinion) that it appeared that NCL did not want the cheap last minute cruisers who also spent very little money. He said nothing about the cheap last minute cruisers who also spent a lot of money.

[ECCruise]

8 minutes ago, SeaShark said:

 

Well, he didn't claim that ALL cheap last minute cruisers only spent very little money onboard, he just said that (in his opinion) that it appeared that NCL did not want the cheap last minute cruisers who also spent very little money. He said nothing about the cheap last minute cruisers who also spent a lot of money.

Tell me how you distinguish, then.

 

[SeaShark]

37 minutes ago, ECCruise said:

Tell me how you distinguish, then.

 

 

Why would you have to?

 

The person simply stated that, in his opinion, that it appeared that NCL did not want cheap last minute cruisers who spent very little on board. Just that...nothing more.

 

Why does the fact that there are cheap last minute cruisers who spend a lot of money on board somehow alter that opinion? Can't NCL want one and not the other? Heck, NCL could want both...or neither. In short, the existence of one group has no bearing on the poster's opinion that they think that NCL doesn't want the business of the other group.

 

Can't the poster have the opinion of one group without having to state an opinion on the other?

[Beezo]

I believe I remember during one of the recent earnings call, Del Rio mentioned the importance of maintaining pricing, but not in relation to FCC loads.  Historically, NCL would drop price to fill the ships (my guess in anticipation of beds in heads that would increase onboard spending).  The challenge was the it took the company years to get out of the discount travel model/view in the market. My guess is he, as he should, is taking the long view that once they are out of this they can maintain/exceed where they were at 2019 pricing with increased load factors and not have to fight the market to get out of a pigeon-hole segment.

[julig22]

20 hours ago, mlgb said:

NCL is definitely gouging single passengers out of Los Angeles now, compared to Princess. Look at the 7-day Mexican Riviera crusies. 

 

NCL Bliss is sailing at 25% capacity.  They are just scraping by trying to stay afloat. It's all about revenue.

150% solo supplement for 2/20, 2/27, 3/6.

[mlgb]

Majestic Princess 9% solo supplement February 5 to 28. Also on 10-day Grand Princess 2/28. Sail away balconies on Bliss are about twice what Princess charges (balcony where I pick my own cabin and get $100 OBC).

 

I like Bliss well enough but not at these rates.

 

 NCL must have wanted cheap last-minute cruisers on some dates, because the fares for the January 16 5-day cruise I was recently on sure plummeted after final payment.

 

A friend who is Platinum and also travels solo agrees with me that given NCL's current playbook on cancellations and pricing, we are ONLY booking very last minute.

Edited January 27, 2022 by mlgb

[jlseymour3]

21 hours ago, mlgb said:

NCL is definitely gouging single passengers out of Los Angeles now, compared to Princess. Look at the 7-day Mexican Riviera crusies. 

 

NCL Bliss is sailing at 25% capacity.  They are just scraping by trying to stay afloat. It's all about revenue.

Why is that gouging?  They are charging more?  So what?  If it's more than you want to pay for what they're offering, book with Princess.

[mlgb]

I already have. I will see how the value holds up. It's too bad that NCL seems to be on the verge of collapse so can't compete with the pricing of the bigger operators like Carnival and Princess.

 

Have a look at this live Majestic Report by a loyal NCL solo cruiser:

 

 

 

Edited January 27, 2022 by mlgb

[pghflyer]

Yeah I don't fault any for-profit company for trying to get as much as they can, vacation isn't a humanitarian endeavor after all.....and as manager of my household finances, I will do the same and take my money to the best overall package/itinerary/ experience for my dollar. Right now, that is rarely NCL unfortunately.

[BennyBrun]

2 minutes ago, pghflyer said:

Yeah I don't fault any for-profit company for trying to get as much as they can, vacation isn't a humanitarian endeavor after all.....and as manager of my household finances, I will do the same and take my money to the best overall package/itinerary/ experience for my dollar. Right now, that is rarely NCL unfortunately.

That is exactly how I feel and allocate our vacation funds.  We acknowledged the fact that NCL pricing is high but it’s a for profit organization they can do whatever it is they want and we too can do whatever we want when it comes to selecting a cruise company.  I just keep telling myself that loyalty program is there to make money for the company no matter what level you are at. 

[mlgb]

Fortunately I am now free of all of the FCC and Cruise Next certificates. I agree that part of  NCL pricing strategy is related to all of the passengers stuck with "use it or lose it"  FCC and to a lesser extent Cruise Next, since those can be sold or transferred. Are they just trying to get all the FCC off the books, regardless of the impact of their pricing policy on new cash bookings?

 

Edited January 27, 2022 by mlgb

[BennyBrun]

1 minute ago, mlgb said:

Fortunately I am now free of all of the FCC and Cruise Next certificates. I agree that part of  NCL pricing strategy is related to all of the passengers stuck with "use it or lose it"  FCC and to a lesser extent Cruise Next, since those can be sold or transferred.

 

I have one left and after that no more cruise next purchase for me.  Yeah it sounds great, 1/2 off, double your money but when the cruise fare is high and FAS offers being devalued slightly it’s better to hold onto your actual money than playing the marketing game.

[brilliantseas]

I don't really expect NCL prices to come back down to the level of Carnival or Royal. They are transforming their business model and promoting the "free at sea" extras as opposed to discounting. It seems to be working for them for the ships they have in service. They aren't full, but they definitely aren't empty either. 

 

I am seeing some discounts within the 14 day window prior to sailing, but nothing comparable to the prices of Carnival, MSC, and Royal. 

[BennyBrun]

I now just add in the drinks package and the internet price when I am shopping fares and then compare the itinerary and go from there.  Nothing is free when it comes to cruising.

[mlgb]

1 hour ago, brilliantseas said:

I don't really expect NCL prices to come back down to the level of Carnival or Royal. They are transforming their business model and promoting the "free at sea" extras as opposed to discounting. It seems to be working for them for the ships they have in service. They aren't full, but they definitely aren't empty either. 

 

I am seeing some discounts within the 14 day window prior to sailing, but nothing comparable to the prices of Carnival, MSC, and Royal. 

If 1100 people on Bliss (capacity 4000) isn't considered "empty" I don't know what is. Captain said the in his Q&A that making money isn't happening on that ship now. Asked people to drink a lot. Assume he means the people who don't have the Free at Sea beverage package. I know they also promote an add-on to Free at Sea beverage package,  at another 29+daily.

 

If NCL wants to make Norwegian a premium line, they need to give up nickle and diming on room service (free on Princess) and the poor quality of the MDRs. Just charging more doesn't make you premium.

 

Edited January 28, 2022 by mlgb