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Celebrity Price Gouging! - Drink package upgrade


DVDmedic
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It isn't price gouging since no one is forcing anyone to buy anything. Price gouging is when there is huge spike in demand for necessities  generally during an emergency, and retailers charge obscene prices. What is happening here is RCL is testing "Price Elasticity". How high can they go before there is a drop in overall income from whatever was raised. If they think the same amount of drink packages are going to be sold under the new pricing scheme they most likely are wrong. I bet you overall drink income decreases under the new pricing. 

Edited by Los_Pepes
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1 hour ago, DVDmedic said:

Inflation hasn’t gone up 40% in 5 weeks!

 

I never said it has......but it has been close to 10% every month for the the last year.

 

I'm certainly not justifying X hiking prices as much as they have.....but I was responding to the comment that inflation is  myth.

Edited by CaroleSS
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31 minutes ago, JFontaine said:

Maybe you will be OK sticking with the Classic package?  

 

I'm sure someone here will know this: whats the last day someone can upgrade on board (assuming it is prorated)? 3 days before the end of the cruise.... Can a cruiser pay the difference if they want a more expensive drink? Yes, you pay the difference in price + grats  And a third alternative, if you can't upgrade per drink: just buy yourself a more expensive drink a couple of days. You might end up saving a few hundred dollars. Have a great cruise.  

All great ideas!

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9 minutes ago, Los_Pepes said:

It isn't price gouging since no one is forcing anyone to buy anything. Price gouging is when there is huge spike in demand for necessities  generally during an emergency, and retailers charge obscene prices. What is happening here is RCL is testing "Price Elasticity". How high can they go before there is a drop in overall income from whatever was raised. If they think the same amount of drink packages are going to be sold under the new pricing scheme they most likely are wrong. I bet you overall drink income decreases under the new pricing. 

You are correct.....this is no more price gouging then a hotel jacking up prices before a big football game. Disney has raised their prices significantly over the past few years and people still go to their parks. Supply & demand.......prices will rise until people have had enough and quit doing <whatever>?

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1 hour ago, DVDmedic said:

I understand there are price increases for various reasons.  But 40% isn’t acceptable.  It’s just gouging.  My disability income doesn’t have the leeway for such drastic changes.  It’s been the same for 3 years.

It might not be acceptable to you, but at the end of the day Celebrity is a corporation. The goal of any corporation (or other form of business) is to maximize profits. Everybody wants to sail on the newest cruise ship with all of the bells and whistles, and pay below rock bottom rates in the process.

 

Those billion dollar ships do not pay for themselves - the passengers have to pay through either higher ticket prices - or higher onboard spending. If the prices of either option are truly unacceptable to you, why don’t you select a different cruise line to which you do find the price to be acceptable.

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25 minutes ago, Los_Pepes said:

It isn't price gouging since no one is forcing anyone to buy anything. Price gouging is when there is huge spike in demand for necessities  generally during an emergency, and retailers charge obscene prices. What is happening here is RCL is testing "Price Elasticity". How high can they go before there is a drop in overall income from whatever was raised. If they think the same amount of drink packages are going to be sold under the new pricing scheme they most likely are wrong. I bet you overall drink income decreases under the new pricing. 

Ah @Los_Pepes - well said. Price elasticity of demand - another basic concept from Economics 101. I do not think Celebrity (or any other cruise / airline) goes into this blindly. The bean counters are working on their Calculus to determine profit maximization.

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As much as the costs for the drink package have risen, I look at it a different way.  I don't want to think when Im on vacation on will this drink put me over etc, so maybe Im one of the ones that is caught in not worrying about costs.  I do a cost analysis before I cruise, I have a range I want to be in per day, this also includes flights and hotels etc.  For my next cruises Im still in my comfort range and not going to worry about being on board and saying that drink is in the premium or above area.  Am I happy not completely, but its just not cruises seeing this, which keeps it in perspective for me

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6 hours ago, jelayne said:

Price gouging or Inflation, either way prices of everything has increased.  
Our Home insurance is up 32%.  

Our flight to Barcelona in October, booked in February was $1400 pp in Business Class.  Booked flights yesterday to Rome Business Class was $4500-8000 per person.  We booked Premium Economy for $1800 pp.  

Hotel we stayed in last year same time was $189 this year $247. 
The steak that was 8.99 a lb last year is $12.99 on sale.
The list goes on.


I’m not pleased that the drink package and upgraded prices have increased but then again I’m not happy with the price of most everything, essentials and luxuries increasing.  

Was that out of DFW?

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5 hours ago, Jim_Iain said:

I have been sitting around scratching my head and not getting in the fray of all the complaints about price increases. 

 

Welcome to the fray, Jim.

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1 hour ago, mpdog42 said:

Was that out of DFW?

Yes.  Also checked to see if going from Austin, OKC, Houston would be better but No.  Fare we got was $500 less pp than Flights by Celebrity coukd offer for 1 stop. 

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8 hours ago, Los_Pepes said:

It isn't price gouging since no one is forcing anyone to buy anything. Price gouging is when there is huge spike in demand for necessities  generally during an emergency, and retailers charge obscene prices. What is happening here is RCL is testing "Price Elasticity". How high can they go before there is a drop in overall income from whatever was raised. If they think the same amount of drink packages are going to be sold under the new pricing scheme they most likely are wrong. I bet you overall drink income decreases under the new pricing. 

Them there sounds like wagering odds, los_pepes. You wagering?

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I am looking at the 90 day ticker for cruises.  While inflation may be king, there are some ships that are not being filled and I am seeing some crazy low prices.  One case is a 21 day cruise to Antartica for $200 (not Celebrity).  I would book it now if schedule allowed.

Edited by NMTraveller
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14 hours ago, JFontaine said:

Maybe you will be OK sticking with the Classic package?  

 

I'm sure someone here will know this: whats the last day someone can upgrade on board (assuming it is prorated)?  Can a cruiser pay the difference if they want a more expensive drink? And a third alternative, if you can't upgrade per drink: just buy yourself a more expensive drink a couple of days. You might end up saving a few hundred dollars. Have a great cruise.  

 

Helpful answer, JFontaine! 

 

My husband and I never found that upgrading to Premium was worth it for us.  We simply paid the difference when ordering Hendrick's for our martinis or a nicer wine for dinner, etc.  Even then, we will stick to everything "Classic" if need be.  Work within your means, and you will have a great cruise!

 

 

 

 

 

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14 hours ago, JFontaine said:

 

I'm sure someone here will know this: whats the last day someone can upgrade on board (assuming it is prorated)?  Can a cruiser pay the difference if they want a more expensive drink? And a third alternative, if you can't upgrade per drink: just buy yourself a more expensive drink a couple of days. You might end up saving a few hundred dollars. Have a great cruise.  

 

 I am not 100% sure but I think upgrades must be done two to three days before the end of the cruise. 

 

 Yes, if you order a drink that cost more than what is covered by your package you pay the difference in the cost of the drink, minus what your package covers + 18% gratuity.  I think the only exception I can remember is the Martini Flight.  I believe someone said you had to pay full price if you order than no matter which drink package you have. 

 

 

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23 hours ago, DVDmedic said:

When I first inquired, with my travel agent, about upgrading my alcohol package from Classic (which was part of the ‘all inclusive’ booking) to Premium was $206 CAD funds.  That was about 5 weeks ago.  Now, less than 30 days before the cruise, it’s jumped 40% to $287 CAD.  The response that I received from Celebrity was “Celebrity Cruises is constantly reviewing our competitive environment and this adjustment positions us in line with our competitors.”  Sounds like lots of words to say we’re gouging you.  It’s left me very disappointed in what was my favourite cruise line, as I’m about to level up to a Select member of the Captains Club.

Unfortunately, prices on everything have gone up but on a bright note... You should be able to get a 5-10% discount with your Captains Club benefits on the Bev pkg upgrade. I got 20% off when I asked with both CC member and Celebrity Credit card holder discounts. 

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23 hours ago, DVDmedic said:

When I first inquired, with my travel agent, about upgrading my alcohol package from Classic (which was part of the ‘all inclusive’ booking) to Premium was $206 CAD funds.  That was about 5 weeks ago.  Now, less than 30 days before the cruise, it’s jumped 40% to $287 CAD.  The response that I received from Celebrity was “Celebrity Cruises is constantly reviewing our competitive environment and this adjustment positions us in line with our competitors.”  Sounds like lots of words to say we’re gouging you.  It’s left me very disappointed in what was my favourite cruise line, as I’m about to level up to a Select member of the Captains Club.

I'm shocked...nothing has gone up lately... 🙂

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2 hours ago, amevola said:

 

Helpful answer, JFontaine! 

 

My husband and I never found that upgrading to Premium was worth it for us.  We simply paid the difference when ordering Hendrick's for our martinis or a nicer wine for dinner, etc.  Even then, we will stick to everything "Classic" if need be.  Work within your means, and you will have a great cruise!

 

 

 

 

 

so you mean if one applies rational LOGIC (like you did) to their situation it can work!  

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4 hours ago, NMTraveller said:

I am looking at the 90 day ticker for cruises.  While inflation may be king, there are some ships that are not being filled and I am seeing some crazy low prices.  One case is a 21 day cruise to Antartica for $200 (not Celebrity).  I would book it now if schedule allowed.

Can you send me the link!?

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23 hours ago, DVDmedic said:

When I first inquired, with my travel agent, about upgrading my alcohol package from Classic (which was part of the ‘all inclusive’ booking) to Premium was $206 CAD funds.  That was about 5 weeks ago.  Now, less than 30 days before the cruise, it’s jumped 40% to $287 CAD.  The response that I received from Celebrity was “Celebrity Cruises is constantly reviewing our competitive environment and this adjustment positions us in line with our competitors.”  Sounds like lots of words to say we’re gouging you.  It’s left me very disappointed in what was my favourite cruise line, as I’m about to level up to a Select member of the Captains Club.

Well, Celebrity has taken care of the issue me!  And I couldn’t be happier with the way they handled it.  I was lonely on the phone for a few minutes to get it resolved.

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23 hours ago, DVDmedic said:

Well, Celebrity has taken care of the issue me!  And I couldn’t be happier with the way they handled it.  I was lonely on the phone for a few minutes to get it resolved.

Can you elaborate on how Celebrity made you happy? Did you get the upgrade at the old price? 

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