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Frank del Rio comments on Oceania bookings/pricing


the mice
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Supply & demand

 

They may lose some past clients but they may gain some from other lines that are also raising prices

 

If the prices rise too much we will not be cruising on Oceania or maybe even cruising at all

 

So many ports are just a mass of people & sales hawkers they no longer appeal to us

 

JMO

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Supply & demand

 

They may lose some past clients but they may gain some from other lines that are also raising prices

 

If the prices rise too much we will not be cruising on Oceania or maybe even cruising at all

 

So many ports are just a mass of people & sales hawkers they no longer appeal to us

 

JMO

 

True. I don’t see myself paying a lot more than I am paying now. Especially as I don’t think the Oceania product, while still very good, is what it used to be. Neither do I think that those coming from mass market lines are prepared to do so.

Time will tell.

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True. I don’t see myself paying a lot more than I am paying now. Especially as I don’t think the Oceania product, while still very good, is what it used to be. Neither do I think that those coming from mass market lines are prepared to do so.

Time will tell.

 

Why do you think people coming from mass cruise lines wouldn't be willing to pay more?

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Why do you think people coming from mass cruise lines wouldn't be willing to pay more?

 

They ARE willing to pay more (at current prices) as the number of new Oceania cruisers shows. I am not sure that they will be willing to pay even more if prices go up.

But, like I said, time will tell.

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Metrics seen by wall street analysts show robust growth in every single price point segment of the market with an upward bending price trend (almost hockey stick shaped) when you look at it starting in 2007 and projecting out to 2022. This will result in strong growth in alternative travel mediums. ( This helps to explain the recent explosive growth in RV travel usage. ) Rail should also benefit.

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They ARE willing to pay more (at current prices) as the number of new Oceania cruisers shows. I am not sure that they will be willing to pay even more if prices go up.

But, like I said, time will tell.

 

I see your point. When Celebrity started raising prices we decided if we are going to pay more then we want more. That's how Celebrity drove us to Oceania. There may come a time when Oceania drives us even further upscale.

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We’re travelers that cruise to get to new locations. We are not cruisers that just sit on a ship to float around. Therefore, if FDR chose to offer a circumnavigational of Japan hitting numerous new and exciting ports of call, or even a circumnavigation of Sicily with about 5 ports of call there plus a couple more stops, we’d have no issue with paying the market price. Float around the Carribean, another trip to Alaska, repeats of cruises O does over and over; I’ll leave those for the Floaters and Newbies. Not interested in paying the current fares for those no less higher ones.

 

We have two O cruises booked for 2019 with the prices locked in. Nothing for 2020 and I sincerely doubt we’ll book anything for 2020 before his announced price hike. Supply and Demand!

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Yes it is supply and demand, Right now they are living fat. That OK for them. Just makes me want to do more price comparisons with Crystal and SS. Our next Crystal cruise is cheaper by far than the equivalent O cruise leaving the same week on a similar itinerary. I just cancelled our Sirena Cuba cruise as I did not want to pay $750pp for a 7 day cruise for a PH3. I am sure someone will pick up the cabin - since cruise is Wait listed -- but not me.

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Yes it is supply and demand, Right now they are living fat. That OK for them. Just makes me want to do more price comparisons with Crystal and SS. Our next Crystal cruise is cheaper by far than the equivalent O cruise leaving the same week on a similar itinerary. I just cancelled our Sirena Cuba cruise as I did not want to pay $750pp for a 7 day cruise for a PH3. I am sure someone will pick up the cabin - since cruise is Wait listed -- but not me.

 

---------I am sure you mean $750 Per night

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Just as I compare hotels (and my preferred brands), it will come down to product vs. cost. O is my preferred cruise line, but I will look at what other cruise companies are offering for itineraries at the time I want to travel and do a cost/benefit analysis of staying with my preference. It seems every line is raising prices. Land travel is also a consideration.

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Just as I compare hotels (and my preferred brands), it will come down to product vs. cost. O is my preferred cruise line, but I will look at what other cruise companies are offering for itineraries at the time I want to travel and do a cost/benefit analysis of staying with my preference. It seems every line is raising prices. Land travel is also a consideration.

 

Exactly.

 

Further, our cruise $ are up against other consumer spending opportunities such as a much nicer new vehicle, home enhancements.

 

The scenario that always results in no purchase is where the price is rising and the product offering is declining (ie Celebrity).

 

As for the currently demonstrated cruise line arrogance, time will tell.

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Ben;

 

Two factors do jump out in this conversation on price increases.

 

1. The fairly significant increase in oil prices over the past year. As with the airlines, and the fare increases we have seen there, those costs will be passed along.

 

2. With the increased popularity of cruising, international port Authorities have felt comfortable making some very healthy increases in dock fees. For many of these Cities that has become a major source of increasing revenue that doesn’t sting their citizen’s pocket. When you have multiple ships vying for a limited number of berths, enhanced revenue opportunities exist!

 

One could well argue that since both those costs are somewhat fixed, we are better off with them sailing with fuller ships so to have over costs spread over more passengers! One of the down sides of a 680 passenger R ship. Fewer passengers to spread the costs = higher rate of price increases.

 

My TA warned me last Spring to make reservations sooner rather than later because of these factors. These shouldn’t come as a surprise to anyone!

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Pinotlover,

All of that makes sense and may well be true.

That said, the large proportion of Oceania cruisers are over 65 and thus probably retired. As such, they are living on some sort of fixed income - more or less. At least they are not working and earning money actively. That being the case, they are not as well positioned to constantly absorb rising prices of cruises like those that are still working. I realize that this is a generalization and many cruisers are well off.

Hence O may depend more and more on younger clientele who tend not to cruise on “boring” ships of Oceania.

Again, time will tell.

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Paul;

 

Being in that over 65, retired, mostly fixed income group I can sympathize and connect with your points . I’m not sure Cruising doesn’t hold similarities to medicine. A doctor will struggle, or worst, if they attempt to build their practice on Medicare patients. They have to have a good dose of younger patients to pay the bills and look to the future. Again 685 passenger ships make it difficult to spread costs around. The difference in berthing fees between an O ship and a R ship is minimal if at all.

 

If costs are rising, and revenues aren’t keeping pace, that a recipe for an assault on quality and service. Most all those very good $10 wines from 15 years ago are now $20+. An older retiree , only being able to afford $10, has to live with different options! Sad but the way of the world!

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If bookings are so strong, then why do I get at least one email a day with "sales" of upcoming cruises? I go online to book these cruises and find that the ships are not that fully booked and the number of cabins available is quite large. Sure, there are some itineraries that book out very early, and we all know that the most expensive and least expensive cabins go first, but everything in between aren't booking all that well.

 

And don't get me started on all the mailings I get---at least two two three every week. If bookings are all that great, why do they need to advertise all that much? Cut down on the fancy/expensive mailings and keep prices the same.

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Yes it is supply and demand, Right now they are living fat. That OK for them. Just makes me want to do more price comparisons with Crystal and SS. Our next Crystal cruise is cheaper by far than the equivalent O cruise leaving the same week on a similar itinerary. I just cancelled our Sirena Cuba cruise as I did not want to pay $750pp for a 7 day cruise for a PH3. I am sure someone will pick up the cabin - since cruise is Wait listed -- but not me.

 

So sorry you won't be with us on the 27 Dec Cuba cruise. I thought I saw you on the roll call.

We started with Oceania in 2008. We were enthusiastic about the product. With just the 3 "R" ships we enjoyed wonderful port and ship experiences. It was not unusual to see many familiar crew members from cruise to cruise. With the addition of Marina/Riviera, we have witnessed a diminution of the ship atmosphere overall and a sharp decline in the quality of the crews. One night in the MDR we witnessed a very loud argument among some servers at a nearby station well within our hearing range. This would never have happened onboard the old Oceania.

Now with the new pricing going forward, and the decrease in the overall quality of the product that we have observed, perhaps it is time to move on and consider other options.

I find it very sad, but, nothing lasts forever.

 

studebhawk

jsl

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Do you really think the pricing is going up on Oct 1? They say this all the time - Book Now before prices go up - and it never changes! This time is different because FDR commented on it and I've never seen him say this before....so perhaps it's true. What do you all think?

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So sorry you won't be with us on the 27 Dec Cuba cruise. I thought I saw you on the roll call.

We started with Oceania in 2008. We were enthusiastic about the product. With just the 3 "R" ships we enjoyed wonderful port and ship experiences. It was not unusual to see many familiar crew members from cruise to cruise. With the addition of Marina/Riviera, we have witnessed a diminution of the ship atmosphere overall and a sharp decline in the quality of the crews. One night in the MDR we witnessed a very loud argument among some servers at a nearby station well within our hearing range. This would never have happened onboard the old Oceania.

Now with the new pricing going forward, and the decrease in the overall quality of the product that we have observed, perhaps it is time to move on and consider other options.

I find it very sad, but, nothing lasts forever.

 

studebhawk

jsl

 

Yes we were on the roll call. We still will book with O but becoming very selective on price/value and itineraries. We have become Crystallized plus we have enjoyed 3 Silversea cruises. At one time they were certainly a value/premium line. Now??

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Do you really think the pricing is going up on Oct 1? They say this all the time - Book Now before prices go up - and it never changes! This time is different because FDR commented on it and I've never seen him say this before....so perhaps it's true. What do you all think?

Prices fluctuate all the time due to supply and demand. A cruise we booked last year has significantly dropped in price three times and we received a free four category upgrade.

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Do you really think the pricing is going up on Oct 1? They say this all the time - Book Now before prices go up - and it never changes! This time is different because FDR commented on it and I've never seen him say this before....so perhaps it's true. What do you all think?

 

Many cruises are going up in price

Jancruz1

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