Price drops because of financial fears?

[Too blessed to be stressed]

Do you think we can start expecting huge price drops due to people afraid to book, because of the American economy? It seems like first thing people drop is their vacation plans when they are afraid. I remember after 9-11 the price of cruises dropped significantly.

[Herbaltees]

I think the price drops after 9-11 had more to do with ppl being afraid to fly, travel, etc.

 

This trouble with the economy won't really affect the prices, because even though the economy is pretty bad, people are still booking b2b cruises.

 

Those with the means are still going to "do them" and those without will still standby and watch.

[*Mach*]

Nope... prices have actually increased this year. Should the economy 'double dip' you may see some price moves but prior to that no and NOTHING huge..

:)

[okgirl]

I don't really think so........Of the 3 future cruises that I have booked only one of them is not fully paid for and outside the penalty period but I'm not planning on canceling.

 

I'm getting ready to retire in a couple of months but will just have to tighten the belt a little to streach my reduced retirement funds to cover everything.

 

I notice Carnival stock is down to 30.03 just now. I might actually buy 100 shares.

[Too blessed to be stressed]

I see what your saying about 9-11.

 

I was just hoping the cruise lines would be motivated by a little financial fear and reduce pricing accordingly. I probably won't happen unless they begin to see a drop in bookings.

[Too blessed to be stressed]

Do you get rewards for being a carnival stock holder?

[*Mach*]

Do you get rewards for being a carnival stock holder?

 

 

You get on board credit on each cruise for owning 100 shares of Carnival stock...

:)

[Gail & Marty sailing away]

No I do not think it will happen

[Herbaltees]

You get on board credit on each cruise for owning 100 shares of Carnival stock...

 

:)

 

FYI: At $30 a share, and $200 OBC per sail, you would have to book 15 cruises to break even.

 

and the price of carnival stock is dropping fast, it was at $32 last Thursday.

[readytotravel44]

Do you get rewards for being a carnival stock holder?

 

Here is a pretty active thread about the subject of stock.

 

http://boards.cruisecritic.com/showthread.php?t=1460023&page=5

 

Carnival stock has been fluctuating just like the market. Up to almost $32 yesterday and down to around $30 last time I checked.

 

It motivated us to put in a "buy" order. It will be a fun stock for us to watch and will benefit us when we cruise on carnival.

[Too blessed to be stressed]

FYI: At $30 a share, and $200 OBC per sail, you would have to book 15 cruises to break even.

 

and the price of carnival stock is dropping fast, it was at $32 last Thursday.

 

I'm thinking 200 OBC is pretty good. Especially if you can buy low, maybe the shares will keep dropping?

[readytotravel44]

FYI: At $30 a share, and $200 OBC per sail, you would have to book 15 cruises to break even.

 

and the price of carnival stock is dropping fast, it was at $32 last Thursday.

 

Actually to the OBC are:

 

 

$250 - 14 days or more

$100 - 7 - 13 days

$50 - 6 or fewer days

 

 

"Break even" is hard to tell. You still own the stock. If the stock goes up, you've made money. If it remains the same, at least you "earned" OBC if you cruise a lot. You only lose if the stock goes down - and you sell it when it is down. The lowest CC stock has been in 10 years is around $15 in 2009.

[Herbaltees]

Here is a pretty active thread about the subject of stock.

 

http://boards.cruisecritic.com/showthread.php?t=1460023&page=5

 

Carnival stock has been fluctuating just like the market. Up to almost $32 yesterday and down to around $30 last time I checked.

 

It motivated us to put in a "buy" order. It will be a fun stock for us to watch and will benefit us when we cruise on carnival.

 

Yes, I suppose you're right. I just didn't want someone out in the world using this information as a reason to buy CC stock. You should invest for more reasons than the OBC, that was my point.

[Timmys_mom]

Cruise fares are tied to an algorithm that measures supply and demand. If people are buying passage on a particular ship, the computer will raise the prices. If they are not, the computer will lower them.

 

In theory, you can say that economic fear may cause people to buy fewer cruises, which will cause lower fares, but as soon as people start booking because the fares are lower, they will go back up.

 

My guess is that you will see better fares if you book early, and then they will creep up. Higher prices will be seen the day the sailing opens for booking, until they can establish a buying pattern and then adjust the rates accordingly.

[Too blessed to be stressed]

This is some great info, thanks.

[old sole]

FYI: At $30 a share, and $200 OBC per sail, you would have to book 15 cruises to break even.

 

Whoa - You're not factoring in the fact that you own those shares, so actually after 15 cruises using your numbers above you would have the shares for free and they would be worth something - hardly just breaking even.

[crusinpsychRN]

Market already went back up over 600 pts. Don't think price drops will come b/c of that.

[travler27]

At the rate the US government ( and others) is printing money I would think you are more likely to see price increases than drops.

 

Printing money to cover debt = inflation = price increases

[gusandgidgetsmom]

Market already went back up over 600 pts. Don't think price drops will come b/c of that.

What market are you looking at? DOW has been plummeting all day. down 450 pts now. Got excited when I read your post thought I had missed something. Darn I hadn't!!!

[Islandbear]

At the rate the US government ( and others) is printing money I would think you are more likely to see price increases than drops.

 

Printing money to cover debt = inflation = price increases

 

What Inflation? :confused: The inflation rate hasn't been over 4% in the last ten years. We had deflation (-0.34%) in 2009 and only 1.6% growth in 2010. Interest rates are at an all time low with the FED's overnight rate at 0%. Inflation would be a good thing.

[firefly333]

Nope... prices have actually increased this year. Should the economy 'double dip' you may see some price moves but prior to that no and NOTHING huge..

 

:)

 

 

In fact I think people are cruising MORE because its a cheaper alternative than some other vacations.

 

If anything I would think people would be more interested in cheaper cruises like Carnival, saving bucks over more expensive cruises.

[firefly333]

What Inflation? :confused: The inflation rate hasn't been over 4% in the last ten years. We had deflation (-0.34%) in 2009 and only 1.6% growth in 2010. Interest rates are at an all time low with the FED's overnight rate at 0%. Inflation would be a good thing.

 

Printing money does cause inflation. oil is up over last year and food prices are soaring. If the feds continue to print money, more inflation of prices.

 

Maybe you are thinking growth, not inflation?

[crewsweeper]

Just think of the drop in oil prices as saving you from having to pony up fuel surcharges. And for Carnival stock holders, maybe an increase in quarterly dividends:).

 

The economy isn't tanking. It's just not growing, or growing very very slowly insome sectors.

[Blind Squirrel]

Yes, I think there will be some great deals on curises in the months to come. If the stock market tanks ( which it hasn't yet ) but I thinik it will. There will be lots of good deals on cruises.

[Islandbear]

Printing money does cause inflation. oil is up over last year and food prices are soaring. If the feds continue to print money, more inflation of prices.

 

Maybe you are thinking growth, not inflation?

 

No I think I got it right. Inflation Rates Annually in the US.

 

You can check them here: http://www.fintrend.com/inflation/Inflation_Rate/CurrentInflation.asp