Past-Guest Loyalty: Thoughts/Opinions?

[DJan07]

Hey Everybody,

 

I know there have been a lot threads about the Crown & Anchor Loyalty Program changes and Royal Caribbean's new mindset on past guests. As a business student in college, I just wanted to share some of my thoughts and opinions, as well as get some of yours.

 

As a loyal Royal Caribbean cruiser, I think while cutbacks are necessary, the cuts seem drastic and very noticable for guests. I understand the economic crisis and the travel industry's inability to turn a profit and provide guests with every little luxury. One thing, however, I've learned in every Management class I've taken has one main theme: Making people feel as though they matter. Now, I'm no expert on the inner business decisions of RCI, nor could I begin to comprehend their complex decision-making processes. I do know, though, that in nearly EVERY single business there is "fat" to be cut where the passengers/guests/consumers don't quite feel the effects. Whether or not RCI has made cuts within the organization, there must be more to cut. With the elimination of past-guest gifts, chocolates on pillows and the downgraded coupon booklets, Royal Caribbean is not making the guest feel as though they matter.

 

Now, I'm sure some of you are thinking, "A chocolate on my pillow or a Royal Caribbean tote bag is not going to deter my business with them." You're right, but the psychological effects of cutting reward programs and taking away those luxuries can be a huge deterrant. In my opinion, the funds need to be freed elsewhere so that guests can feel they matter, despite the economic crisis. A revamping of past-guest business is necessary inorder to remain competitive. From a guest perspective, a smaller coupon booklet with more usable benefits is better than a book with 20 coupons that won't hardly be used. Instead of baseball caps and keychains, what about a points system or small "gift card" that can be accumulated and used on the ship for a purchase?

 

I apologize for my rant, but I feel that for Royal Caribbean to be a viable business, they must treat past-guests well. There is always "fat" to be cut elsewhere in a business, and the psychological negativity associated with visible cuts can be damaging. The price of the cruise is the ultimate factor when my family makes a decision whether to sail or not. As long as RCI can continue their excellent product, things will get better. If the company can hold out and once again, make people feel as though they matter, they will keep my business and will be a truly successful company.

 

Of course, I don't believe for a second that mine is the only solution, and again, I don't understand all the business workings of the company. I'm only twenty, but I felt that my education and personal opinion were enough to make a comment. What does everyone else think? I would love to hear from other guests; we're the ones that matter!

 

Derek

[RoyalCruiser2007]

I'm also in my early 20's and a recent university graduate. I have cruised with Royal Caribbean 11 times in less than 2 years and am going on another Royal Caribbean cruise this coming week. I've done the usual Bahamas and Caribbean itineraries as well as Alaska and the Mediterranean. In the same period of time I have also taken a Carnival cruise and a Celebrity cruise. I'm a very loyal Royal Caribbean cruiser and have convinced nearly a dozen friends/family to try Royal Caribbean in the last few months.

 

As loyal as I am and as a businessman, I too feel that Royal Caribbean is making a BIG mistake by making such drastic changes in such a short amount of time. It seems like each month something else is cut. I understand that economic circumstances make cuts necessary but making so many and upsetting so many loyal cruisers is not a smart move. How can Royal Caribbean expect people to trust them in the long run if they have shown in such a short amount of time that they are willing to upset so many. The majority of people have spent years cruising to reach their Crown & Anchor status. To cut their benefits so suddenly is hard to comprehend.

 

Moreover, the way Royal Caribbean communicates these cuts is unacceptable. For example, if it wasn't for CruiseCritic I would have never known until my next cruise that the coupon books have changed for the worse. The company should have sent a courtesy email to all Crown & Anchor members explaining the new coupon books.

 

I really hope Royal Caribbean gets their act together before their loyal cruisers end their loyalty.

[Joyce From Yardley]

Hi,

 

My 2 cents. We have been sailing Royal for the past 3 years made it up the ladder to platinum 1 away from Diamond with 9 completed cruises sailing every Oct. & April since 2006. We are also share holders & bought our stock in the hey day when the stock was MUCH higher. With all the cut backs we are no longer finding the need to be loyal to Royal.

 

We have sailed on Carnival 3 other times & went back to Royal for all the benefits that were given to repeat cruisers. Since that is no longer the case. We are booking our next cruise with Carnival. The price is a lot cheaper & we can drive the 2 1/2 hrs to Baltimore. I know that Royal has sailings out of Baltimore & we LOVE the Grandeur of the Seas but it's time to cut the cord & see all of the options that are out there.

 

If Royal has the right price & ports of call we will come back but until then we will continue to check out the other cruise lines.

 

Happy Sailings.

 

Joyce & Of Course Harvey

[Bases5]

I made a post about the same thing's a couple of weeks ago.

I made a huge mistake using (no Ice upon Embarkation) as another example of cutbacks.

The whole thread turned into about ice and how that's not a big deal/

No it's not a big deal on it's own but it become's the sum of all part's. It all add's up.

There are the (homer's) where RCI can't due any thing wrong, I love RCI myself, BUT.

 

Many say cruising is the best bang for your buck and thought I agree,It is not head and tails above other choice's anymore.

My first cruise in 1981 every meal was like eating at chop's and there was no extra fee's. happy hour's and free drink's.

I do understand making money and having to cutback but they are starting to push my envelope.

 

Just my 2 cent's

[houlacruiser]

Of course, I don't believe for a second that mine is the only solution, and again, I don't understand all the business workings of the company. I'm only twenty, but I felt that my education and personal opinion were enough to make a comment. What does everyone else think? I would love to hear from other guests; we're the ones that matter!

 

Derek

 

Curious - where to do you propose they make these cutbacks then? You make an insighful and thoughful post, but I see no solution in it. With everyone having opinions on what RCI should NOT be doing, I've yet to see many give the company other options instead of what they've done.

 

Believe me, I am not "loyal" to Royal, and will search elsewhere for a cruise if it suits me or my family. I just feel that some of these issues are minute. I understand the totality of them for some, but still feel that cuts elsewhere would hurt my cruise experience more, ie: cutting staff, less maintenance etc... JMHO.

[DJan07]

Curious - where to do you propose they make these cutbacks then? You make an insighful and thoughful post, but I see no solution in it. With everyone having opinions on what RCI should NOT be doing, I've yet to see many give the company other options instead of what they've done.

 

Believe me, I am not "loyal" to Royal, and will search elsewhere for a cruise if it suits me or my family. I just feel that some of these issues are minute. I understand the totality of them for some, but still feel that cuts elsewhere would hurt my cruise experience more, ie: cutting staff, less maintenance etc... JMHO.

 

Like I said, I couldn't begin to understand the complex set-up of the business itself. However, in every class I've taken, during the recession there are always nonsense positions, wasteful spending and things of the sort. I wouldn't want to cut staff and other meaningful positions, but there can always be better efficiency in the way RCI handles their business.

 

I essentially mean that Royal Caribeean should have done a better job making EVERY POSSIBLE cutback before they took away past-guest royalties and the little luxuries that were very noticable. If RCI did examine every avenue, then I guess they did what they needed to do. However, if they did make every cutback they could think of and then had to take away the good coupon books, chocolates on the pillows and things of the sort, a letter to past-guests explaining the sitution and letting passengers know they are still the heart of why RCI exists, I thought that would have been more accceptable. Once again, if a letter or e-mail was sent, guests would feel as though they matter, despite having some perks disappear.

 

RCI might have thought that if they didn't make an official announcement that guests either wouldn't notice on their next cruise or wouldn't care since they were on vacation. While that kind of makes sense, I personally have always been on the side of wanting to communicate and explaining the tough decisions.

 

Derek

[Happy ks]

I really think that the majority of cruisers, even repeat ones, don't pay all that much attention. With the exception of people on cruise chat boards, many repeat cruisers probably don't remember from one cruise to the next what coupons are in the books. Or what benefits each cruise line may offer to past customers.

 

I do agree that the sudden drop in benefits is what shocks many, but they had to cut somewhere, just like all industry.

 

I'm still a happy cruiser, thank goodness the cutbacks at my first job have not and probably will not affect me (seniority :)). The cuts made to schools and other industries has been tremendous, much more than you can ever imagine. The horrible part is, they cut the tree from the bottom, instead of trimming the top.

 

My second job, I think the business thought it through more carefully. First went the top useless management, then the middle management was trimmed and consolidated. Fortunately attrition amongst the middles helped tremendously. They adjusted hours, did not replace staff when people quit, cut back inventory....all this before cutting service to customers. We're down to the bone now and just hope to still be in business for a while, thank goodness it is my extra job and I don't depend on it for a living.

 

I kind of remember RCI laying off a lot of people before service was being cut...it's been a while though.

[wblynch]

 

... I do know, though, that in nearly EVERY single business there is "fat" to be cut where the passengers/guests/consumers don't quite feel the effects.

 

...There is always "fat" to be cut elsewhere in a business, and the psychological negativity associated with visible cuts can be damaging.

 

 

This is a fallacy taught in business school that too many people buy into.

 

There is not always 'fat'. And what we've seen throughout America in the past 30 years is the continual 'cutting of the fat' that has led us to this huge economic downturn.

 

When workers in your own nation are considered 'fat' and the jobs they perform are sent off to communist countries by the millions, you leave your customers broke and unable to buy your products.

 

Then your products become the 'fat' that customers have to cut.

 

But, back to RCCL...

 

Royal Caribbean has been 'cutting fat' for years now and you can witness it in the postings and reviews of their customers right on these boards.

 

The declines in food, cabin services, on board entertainment, special events... have been well documented.

 

5 or 6 years ago they drastically cut their food quality. Ask about the infamous "Ranch Steak".

 

A couple of years ago they cut cabin attendant staff, last year it was pillow chocolates, this year it's loyalty programs.

 

They have cut so much 'fat' they have cut into the muscle and soon into the skeletal bones that support their company.

 

RCCL used to be regarded as the higher class mass market line. They have rapidly battled down to the point now that Carnival is beating them in many reviews.

 

Fortunately they are still above NCL.

[Stormlover]

Curious - where to do you propose they make these cutbacks then? You make an insighful and thoughful post, but I see no solution in it. With everyone having opinions on what RCI should NOT be doing, I've yet to see many give the company other options instead of what they've done.

 

Believe me, I am not "loyal" to Royal, and will search elsewhere for a cruise if it suits me or my family. I just feel that some of these issues are minute. I understand the totality of them for some, but still feel that cuts elsewhere would hurt my cruise experience more, ie: cutting staff, less maintenance etc... JMHO.

 

I would suggest they do away with the shampoo in the showers, most people I have talked to bring their own. (But dont do it with out telling folks so they can bring their own)

How about doing away with the garnishes on your dinner plates, they are usually wasted anyway.

Do away with the little fancy unbrellas on drinks, they are also thrown away. most cruisers wont even notice. Its about the little things.

Here is one for thought do away with the paper towels in the bathrooms and install hand dryers. BOY WHAT A SAVINGS THAT WOULD BE.

[DJan07]

This is a fallacy taught in business school that too many people buy into.

 

There is not always 'fat'. And what we've seen throughout America in the past 30 years is the continual 'cutting of the fat' that has led us to this huge economic downturn.

 

When workers in your own nation are considered 'fat' and the jobs they perform are sent off to communist countries by the millions, you leave your customers broke and unable to buy your products.

 

Then your products become the 'fat' that customers have to cut.

 

But, back to RCCL...

 

Royal Caribbean has been 'cutting fat' for years now and you can witness it in the postings and reviews of their customers right on these boards.

 

The declines in food, cabin services, on board entertainment, special events... have been well documented.

 

5 or 6 years ago they drastically cut their food quality. Ask about the infamous "Ranch Steak".

 

A couple of years ago they cut cabin attendant staff, last year it was pillow chocolates, this year it's loyalty programs.

 

They have cut so much 'fat' they have cut into the muscle and soon into the skeletal bones that support their company.

 

RCCL used to be regarded as the higher class mass market line. They have rapidly battled down to the point now that Carnival is beating them in many reviews.

 

Fortunately they are still above NCL.

 

I definitely agree with you about the useless cuts. When I say "cutting fat" I don't mean taking things away. To me, cutting "fat" does in NO way affect customer's experience. The lack of food quality, cuts in employee hirings and the demise of a good loyalty program would never be considered fat to me. When I do say fat, I mean anything from useless middle management to a more efficient operation. In my business school, cutting the "fat" doesn't necessarily mean getting rid of things. Why not have Personal Cruise Consultants go through more and better training so the staff can be cut? Why not the same with the Purser's Desk on board? To me cutting the fat means more efficiency and better bang for the company's buck. Royal Caribbean isn't doing themselves any favors by cutting things that affect a guest's experience. In my opinion, those cuts and changes need to be made from the top, instead of the bottom.

 

Like the rest of you, I love sailing with Royal Caribbean and will continue to do so. If the price is right and the money spent for the trip is worth it in the end, they'll keep my business. However, with programs being cut and the experience losing some of its original luster, I won't be afraid from trying another cruiseline. I trust RCI is doing what's best for itself, but as a regular cruiser and a student who is learning about these types of things, I'm not seeing the benefits of the cuts.

 

Derek

[DJan07]

I would suggest they do away with the shampoo in the showers, most people I have talked to bring their own. (But dont do it with out telling folks so they can bring their own)

How about doing away with the garnishes on your dinner plates, they are usually wasted anyway.

Do away with the little fancy unbrellas on drinks, they are also thrown away. most cruisers wont even notice. Its about the little things.

Here is one for thought do away with the paper towels in the bathrooms and install hand dryers. BOY WHAT A SAVINGS THAT WOULD BE.

 

The suggestion you made about the paper towels is great! It's those kinds of things that could save RCI so much money, but they're overlooked. At my university, for a Student Government inititive, I got rid of plastic to-go containers and had them replaced with washable ones. The school saved a TON of money and the federal government gave us a grant. The mindset of saving money and not necessarily changing a guest's experience is exactly where companies should be looking!

 

Derek

[Got2Cruise]

I recently had an adverse reaction to the way Royal treats past guests. I feel that it borders on consumer fraud, and it leaves a bad taste in my mouth. I booked a cruise during a sale and they gave us $100 obc. Then in my inbox a coupon for this cruise came from C&A. I mailed them in and they were applied. When I called to check to see if my Royal Points were applied, I learned that my booking OBC was taken away. Seems that there is some small print about not combining benefits. In my mind these two bonuses have nothing to do with each other. One was a bonus for a sale and one was a bonus for being a repeat customer. I don't understand all the NCL hate. NCL is a wonderful value, and they treat their repeat customers very well. On NCL if you book on board they give you OBC immediately to apply to the cruise you are on. They don't charge your credit card in advance for booking excursions. If you have a problem on board, speak to the hotel director or restaurant director and your problem is solved, pronto. I have not heard about that type of customer service from royal. On the contrary, many loyal royals are turned off. jmo

[wblynch]

... I don't understand all the NCL hate. NCL is a wonderful value, and they treat their repeat customers very well. On NCL if you book on board they give you OBC immediately to apply to the cruise you are on. They don't charge your credit card in advance for booking excursions. If you have a problem on board, speak to the hotel director or restaurant director and your problem is solved, pronto. I have not heard about that type of customer service from royal. On the contrary, many loyal royals are turned off. jmo

 

I'm not hating on NCL, only that it has a market image of being the bargain basement cruise line.

 

Whereas RCCL used to be considered at the top of the mainstream heap, they are approaching the outlet store level.

 

Sure, everyone thinks about pricing, but in reality people will spend a bit more for a better product. We've been spending more for our RCCL cruises because we felt we were getting a superior experience and the loyalty programs were great. Occasional coupons, C&A balcony discounts, little things can mean a lot.

 

With all the cutbacks in Royal Caribbean's service, along with their obsession over huge 5,000 and 6,000 passenger ships, they have diminished their superior image.

 

Now, to fill those ships they feel they have to cut their prices. Along with the lower prices come more cuts and therefore reduced customer satisfaction.

 

With the tarnished image, can RCCL regain its position post-recession?

 

Just like the American Auto industry learned, once you lose that magical connection it is nearly impossible to get it back.

[houlacruiser]

I would suggest they do away with the shampoo in the showers, most people I have talked to bring their own. (But dont do it with out telling folks so they can bring their own)

How about doing away with the garnishes on your dinner plates, they are usually wasted anyway.

Do away with the little fancy unbrellas on drinks, they are also thrown away. most cruisers wont even notice. Its about the little things.

Here is one for thought do away with the paper towels in the bathrooms and install hand dryers. BOY WHAT A SAVINGS THAT WOULD BE.

 

Thank you for offering some realistic options. :)

[Tucker in Texas]

Loved Stormlover's suggestions. Look how much money the airlines saved by taking one olive out of a salad.

 

What they needed to do was give it the old "Shad Treatment." This is a political expression used back in Virginia. A shad doesn't have a lot of meat on it but plenty of bones. When a rep would want a bill passed, to get another rep to vote for it, he would take something out. Then to please another rep, something else. Before you knew it, it was a bill "full of bones." My kids did this with squirt cheese with each one of them "sneaking" a squirt at a time because they weren't allowed to sit down with the can and a box of crackers by themselves--I would prepare a plate of them and they would have to "share." Before you knew it, there was a can full of empty.

 

Instead of doing everything at once, Royal should have considered doing a little at a time. With the coupon book, just take out or substitute a lower quality coupon a few at a time instead of revamping the whole booklet taking out most of the good ones at once. Whenever they had to reprint the booklets, take or substitute a couple more. They removed the free photo from the Diamond book awhile back and there was minor griping but people got over it.

 

Instead of saying no combination of benefits, say you can have the balcony discount and one other one or a booking on board OBC and stockholder's or a certificate they send out. Limit it to two. Then when people get used to that, go to one only.

 

Instead of not giving chocolates at night, ask passengers if they want them or not like they do with towels if you are willing to reuse them. If they don't want them, then the steward doesn't leave them. If that doesn't help appreciably, cut them back to C&A members or Diamonds and up. People tend to forget over time the sum total of what has been changed when it is done gradually.

 

Start limiting the gifts to Platinum and higher and cut back level by level if need be.

 

A lot of us are suspicious that this was the thinking taking away the Diamond concierge privileges saying it was space issues. It certainly was a space issue problem in the dedicated lounges they had on the ships but the space problem was only during happy hour for the most part. So, they opened up overflow lounges to handle that successfully. They take away all of the privileges and then come back a few weeks later saying "o.k., we'll maintain the evening lounge but you have to pay for your mixed drinks, beer and cokes" Looks like they have compromised when in effect, they are enhancing revenues, perhaps what they planned to do all along. In fact, they have decided this was such a good idea they are opening up a lounge in the evenings on ships for Diamonds and suites that do not have concierge lounges. So much for "space" issues. They seemed to have found "space" on those ships that didn't have them all of the sudden when it came to selling drinks. I suspect the appetizers in the lounges will go from teeny weenies, meatballs, and chicken wings to cheese and crackers.

 

As many have pointed out, it is easier/cheaper to keep a customer than find a new one and they are going to have to find lots of new ones to fill the mega ships.

 

Tucker in Texas

[dfishner]

I went along with some of the cuts and cuts that never seem to end and understood the reasoning behind them. When they took away the combinability of benefit that was the straw that broke the camel back for us. RCL could of done this a whole lot better by restricting the amount of benefits that could be combine but they choose to shut down everything. So no next cruise, no using the C&A coupon, no stockholder OBC and the biggest joke is the coupons they send you in the mail. Nothing can be combined. A much better solution is to at least let you use two instead of just one.

 

If you asked me a year ago if I would even consider booking another cruise line I would of said no funny what a year can do. My anger with RCL has turned into just plain disappointment and let down by a company that had the best loyalty program out there. It sure taught me about how companies view their past passengers and as far as loyalty programs it is a thing of the past and will not let myself be loyal to any cruise line going forward. Itinerary, price and then ship it no longer matters to us which cruise line. It is now a level playing field.

[wjt1359]

We were on the AOS 6/7 cruise, 4 cabins, spent over 10k total, the Mrs. & I are both C&A with over 10 cruises. I called and asked for some future compensation after circling Barbados for 2 hours waiting for clearance then being denied clearance to St Lucia & Antigua and was repeatedly read the script from the CSR who kept saying we are not offering any compensation for the changes in the cruise.

 

How I handled being treated like dirt by Royal Caribbean.... I just booked our next cruise on Carnival.

[Ladylouwho]

I'm not hating on NCL, only that it has a market image of being the bargain basement cruise line.

Whereas RCCL used to be considered at the top of the mainstream heap, they are approaching the outlet store level

 

Funny that NCL is being mentioned here. Because of the recent dismantling of the C&A Loyalty Program (especially for Diamonds) we canceled a recent RCI cruise on the Mariner and booked a last minute NCL cruise on the Jade (a newer ship) in Europe. We had never cruised on NCL before and had been pretty exclusive to RCI. We enjoyed our cruise on the Jade very much.

 

But the most interesting thing we noticed was that the "New" RCI seems to be looking more and more like the NCL, freestyle, pay as you go concept. Both my husband and I noticed a lot of things about the NCL product that RCI seems to be trying to copy. So anyone who loves RCI but doesn't like NCL may be in for some disappointment in the future.

 

Even the "Why Not" thing seems to be copying NCL's "whatever" and "whenever" catch phrases.

 

My opinion is that RCI had a superior product and a vastly superior Loyalty Program that worked like a charm. What is going on now is not cost cutting so much as it is incompetent management.

 

JMO,

Colleen