CNN Article on Cruise Fares

[sgriff17]

Sorry if this has already been posted. (actually, i'm not really sorry :D )

 

This sucks! http://www.cnn.com/2005/TRAVEL/02/24/bi.cruise.outlook.ap/index.html

[tef43]

People need to *get over it*.

 

What is so difficult to understand about cruises being vastly underpriced? :confused: Had the cost of cruising kept pace with the CPI over the years, a 1A guarantee on Carnival would cost close to $2000/pp today.

[BigDoug]

Perhaps cruises were "overpriced" ten to twenty years ago. Now the price is where the market has determined it should be. Have you forgotten about economies of scale. Most cruise ships now carry 3X the passengers that they did 20 years ago. The passenger to crew ratio has grown in that time from about 2:1 to about 3:1 on most ships. The fleets have also greatly expanded in that time. You also have to take into account the reduction in services that have occurred in the last twenty years. Many things that were once included in the cruise fare are now extra. People want to cruise because they perceive cruising as a good value for their money. Big price increases will cut into this value perception.

[gtalum]

You can be sure that the cruise lines have analyzed just that possibility and feel that they can raise the price and keep the ships full. So far it's working. There's a reason they've slowed down orders of new ships.

[sgriff17]

Get over it, are you kidding me Tef? Bringing up the all important consumer price index is a "bit" of a stretch...

 

I admit, upping their prices a little couldnt hurt - they were VERY cheap before...almost too cheap, i agree. I hope they take this money and improve in some areas that are lacking. They can do that and still add to their bottom line.

 

My point was merely - it sucks - which it does.

[TNPirate]

Another thing to think about is the price the cruise lines are having to pay for their supplies -- look at the price of oil in the past 3-4 years -- it's risen dramatically -- probably almost doubled! (Also, keep in mind that the price of oil does not just affect the cost of fuel for the cruise lines -- many trucking companies that transport the food and other supplies the ships will use have raised their rates and/or added "fuel surcharges" to their bills.) Many other things cost considerably more now than they did 2 to 4 years ago (meat, poultry, fuits and veggies - especially in hurricane and other weather-affected areas). If the cruise lines keep the price the same to us, but have to pay more to their vendors and suppliers, the laws of economics say that they will make less money, of not start losing money, at which point they "go under" (pun intended). Think about how many groceries you used to be able to buy for $50 - $60 2 years ago -- it doesn't go quite as far anymore. It now takes you $20 to fill your gas tank, where it took you $12 4 years ago. Now expand that to a ship carrying 1500 to 2000 passengers, and think about the impact on them. True, they get discounts for buying in bulk, but their prices have risen as well.

 

This is just my opinion, and something I hope you think about, not just when pricing a cruise, but whenever you're shopping for anything.

[BigDoug]

Yes, price increases in line with inflation should be expected. However, Mr. Dickinson was talking about increases of 20 to 35% in a recent cruise magazine interview http://boards.cruisecritic.com/showthread.php?t=137367&highlight=dickinson . He also used the price from 10 - 20 years ago as a baseline. He also was comparing the service on a cruise to the level of service at the Four Seasons or the Ritz. Maybe on Cunard but definitely not available on Carnival.

[TNtraveler]

Bottom line: if the cost is more than you're willing to pay, don't buy. If nobody pays the new prices, they'll come back down. If you're willing to buy anyway, then they're right -- a price increase IS in line with what the market will bear.

Even Wal-Mart raises its prices now and again -- and we're all free to shop elsewhere.

[S.S.Oceanlover]

Another thing to think about is the price the cruise lines are having to pay for their supplies -- look at the price of oil in the past 3-4 years -- it's risen dramatically -- probably almost doubled! (Also, keep in mind that the price of oil does not just affect the cost of fuel for the cruise lines -- many trucking companies that transport the food and other supplies the ships will use have raised their rates and/or added "fuel surcharges" to their bills.) Many other things cost considerably more now than they did 2 to 4 years ago (meat, poultry, fuits and veggies - especially in hurricane and other weather-affected areas). If the cruise lines keep the price the same to us, but have to pay more to their vendors and suppliers, the laws of economics say that they will make less money, of not start losing money, at which point they "go under" (pun intended). Think about how many groceries you used to be able to buy for $50 - $60 2 years ago -- it doesn't go quite as far anymore. It now takes you $20 to fill your gas tank, where it took you $12 4 years ago. Now expand that to a ship carrying 1500 to 2000 passengers, and think about the impact on them. True, they get discounts for buying in bulk, but their prices have risen as well.

 

This is just my opinion, and something I hope you think about, not just when pricing a cruise, but whenever you're shopping for anything.

 

 

And if prices of oil go back to $30 a barrel the cruiselines will cut the prices back right? I don't think so.

 

Have you looked at CCL's bootom line lately? They are reporting record earnings the last few quarters and their stock price is way up there. They seem to be doing fine with the rates they are charging now. They aren't anywhere near going out of business with current rates. Of course the CCL stockholders probably love the thoughts of higher prices. More profits for them. ;)

 

Bill

[mattmdv]

We feel, that for what your are getting, the price is still very reasonable. And like TNtraveler said, if you don't like it (or the price) don't buy it. Take a land vacation instead, pay about $100.00 per night for a hotel, plus meals/snacks, entertainment, gas for car, wear and tear on car, etc, etc, etc.

Cruising for us is still a great bargain.

 

Matt

[Laurab23]

Other than my paycheck,what hasn't gone up in price? Look at gas,groceries and medical expenses. Why wouldn't cruise prices increase?

Laura

[jcanino]

Sorry if this has already been posted. (actually, i'm not really sorry

http://www.cnn.com/2005/TRAVEL/02/24/bi.cruise.outlook.ap/index.html

 

Don't apologize for posting it. I think people should read it. I am also glad to see the article was posted on CNN.com as well. The article made the business section of our Hartford newspaper yesterday.

[halos]

Basically...they have a product, you want that product, they will sell it for as high a price as they can get away with. They are no different than any other buisness....and why should they be??? The ships are booked at full capacity nearly a year in advance....people are cruising like never before.

(most likely, when the costs were low, people who had never cruised beofre gave it a try and now are hooked...can't blame them...so now, the demand is high).

Of course I'd have loved to see the prices stay where they were, but I love cruising enough to keep cruising....so until folks who are addicted like me stop cruising, the prices will remain high...AND they most likely will get higher, just like EVERYTHING else. For me, I resent paying more for things every time I shop for anything...but at least with a cruise, I always seem to get what I pay for. That's all that matters to me. :D

 

oh...and sgriff...thanks for posting that. I enjoyed reading it even though it wasn't 'good' news. ;)