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Royal Princess 'sneak peak' video series


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On the subject of costs, I am reminded of one year when I lived in San Diego and it was the site for the Super Bowl. San Diego is an extremely popular vacation destination. Because of that fact, inflated prices were monitored. They did not want San Diego to be seen as taking advantage of people who would very likely be repeat visitors to San Diego long after the Super Bowl was over.

 

I would think that Princess will realize that many of us are repeat cruisers with Princess.

 

Sorry to burst your balloon. However, I believe in Santa Claus, the Easter Bunny and the Tooth Ferry, but I won't kid myself re the fact that Princess will command as high a price as the market will bear for as long as they can....regardless of the loyalty of their clientèle. The only obligation they have is to maximize profits for the benefit of their shareholders....much as we shop for the lowest fares regardless of our loyalty to Princess.

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I guess you need to look at historical data of rates when they launch new ships.

 

Just look at the two recent RCCL ships, Displacement of The Seas I and II.

 

They still command higher rates than similar itineraries on older RCCL ships.

 

Example: December 30, 2012 Caribbean holiday sailing out of Fort Lauderdale

 

8 nights Independence of the Seas starts at $1349 ($169/night)

 

7 nights Allure of the Seas (newest RCCL ship) starts at $1449 ($207/night)

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Just look at the two recent RCCL ships, Displacement of The Seas I and II.

 

They still command higher rates than similar itineraries on older RCCL ships.

 

Example: December 30, 2012 Caribbean holiday sailing out of Fort Lauderdale

 

8 nights Independence of the Seas starts at $1349 ($169/night)

 

7 nights Allure of the Seas (newest RCCL ship) starts at $1449 ($207/night)

 

But can we really compare Royal to Oasis? Royal will be a great ship, but she's not that different to Celebrity's Solstice class. Other than her sister, there's nothing that comes close to Oasis.

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But can we really compare Royal to Oasis? Royal will be a great ship, but she's not that different to Celebrity's Solstice class. Other than her sister, there's nothing that comes close to Oasis.

 

 

If I remember my Economics class correctly, prices are also determined by the availability of another reasonable alternative. There are lots of cruise options these days. Though I really do like cruising on Princess.

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For future comparison, these were the Launch Fares for the 2012 Ruby Princess 19 Day Venetian Passage cruise. There was also a $100 Captain's Circle Launch Savings. The 2013 Royal TA will only be 18 days.

IS: $1,400

OV: $1,690

BALC: $2,090

M/S: $2,590

 

Nice sleuthing. Will be very interesting to compare.

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Nice sleuthing. Will be very interesting to compare.

 

It should actually be interesting to see the price differential between insides and balconies since there are no oceanview cabins...

 

And here's hoping that they include some single cabins...

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Just a quick look at RCI pricing shows that a 7-day trip on the Oasis or Allure in July 2012 is going to run at least $1,300pp for an interior, and the single supplement puts that same cruise over $3,000(!) for a solo passenger. I'd like to try one of those ships (once anyway,) but not at those prices. On the other hand, you can sail an interior on the Oasis in November 2012 for $849pp, which is still a distinct premium over other ships, but not quite as expensive as something like a Disney cruise. You could also do an unobstructed OV for that price on the Ruby Princess, and possibly even a balcony if you could catch the right price break.

 

I suspect that when it comes to the Royal, the biggest "price increase" will be the lack of the Oceanview categories. I frequently book the OVs, so I'd probably have to spring for a balcony (generally at least an extra $150-200pp over an OV) if I was sailing the Royal. I don't know if anyone could find it, but perhaps in this case it would be a more interesting example to see what pricing on the Grand Princess looked like when it was first launched compared to other Princess ships.

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I suspect that when it comes to the Royal, the biggest "price increase" will be the lack of the Oceanview categories. I frequently book the OVs, so I'd probably have to spring for a balcony (generally at least an extra $150-200pp over an OV) if I was sailing the Royal.

Having no OV cabins will probably result in many paying more because it will not be possible to book lower priced obstructed & unobstructed OV cabins hoping for a complementary upgrade to a higher category of cabin.

 

With having only balcony and inside cabins it will be interesting to see the price difference.

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As I reread some of these posts, I got to thinking about some aspects of pricing. I imagine that Princess has been busily working on price structures for awhile, What is considered as pricing criteria would be telling. These may include capital recapture, stockholder interests, client retention, and market conditions. I can imagine that pricing is fairly complicated. Remember the Royal Princess is evolutionary, not revolutionary - no major risk factors by following this approach.

 

Launch fares will possibly begin higher than normal for comparable cruises. But, these are only a starting point for fare pricing.

 

Pricing is so sensible as a purchasing consideration, but emotionally I want to be on this ship in its Inaugural year.

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Pricing IS very complicated. Princess, like every other travel provider, uses very sophisticated yield management software to determine pricing on a minute by minute basis. The actual algorithms used are a closely guarded secret but every single thing you listed is considered.

 

As I reread some of these posts, I got to thinking about some aspects of pricing. I imagine that Princess has been busily working on price structures for awhile, What is considered as pricing criteria would be telling. These may include capital recapture, stockholder interests, client retention, and market conditions. I can imagine that pricing is fairly complicated. Remember the Royal Princess is evolutionary, not revolutionary - no major risk factors by following this approach.

 

Launch fares will possibly begin higher than normal for comparable cruises. But, these are only a starting point for fare pricing.

 

Pricing is so sensible as a purchasing consideration, but emotionally I want to be on this ship in its Inaugural year.

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Pricing IS very complicated. Princess, like every other travel provider, uses very sophisticated yield management software to determine pricing on a minute by minute basis. The actual algorithms used are a closely guarded secret but every single thing you listed is considered.

 

 

Thanks Loonbeam. I really like your moniker. :cool:

 

Yield Management Software. Interesting. I suppose that is like airline pricing. That sure makes a lot of sense.

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I like the more intimate Princess atria better too...

 

I dunno... it seems to me that while a very tall atrium is certainly spectacular, it would also be a spectacular waste of space that could be put to better use.
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Pricing IS very complicated. Princess, like every other travel provider, uses very sophisticated yield management software to determine pricing on a minute by minute basis. The actual algorithms used are a closely guarded secret but every single thing you listed is considered.

Thanks for those insights which is what I figured but had no way to know for sure.

 

My TA told me that it was yield management that created an issue last March on the 1st day of booking. It was for a cruise at the end of this year that could be booked as a 32 day or b2b cruises. We wanted to book as a 32 day cruise however learned that not one cabin in the area we wanted to book was available even though by booking it as a b2b they were readily available. My TA contacted Princess & was able to free up a cabin of our choice but it was such a shock to be told there was nothing available for any cabin we wanted to book on the very 1st day...thanks to yield management! :rolleyes:

 

I understand the need for yield management to maximize income which for us if we had booked it as a b2b it would cost about 10% more. I'm thankful that our TA was able to get us a cabin of our choice. :)

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I don't know if anyone could find it, but perhaps in this case it would be a more interesting example to see what pricing on the Grand Princess looked like when it was first launched compared to other Princess ships.

 

My parents did a cruise on the Sun Princess during it's brief tenure as the largest ship for about $1200 for the both of them in an inside. We had an inside on the Grand in late 1999 (the week after the Thanksgiving cruise), and it was $800pp. Not quite the comparison you are after, and I wasn't as much into price shopping online then as I am now.

 

Personally, I'm hoping they come up with balcony cabins that are a little more suitable for 4 people than the ones they have now. As long as we are taking our kids now, Princess just isn't on the shopping list for us. Sure, having the closet set up the way it is provides a nice separation from sleeping area to bathroom area, but it takes up space a sofabed and upper bunk could go.

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