Why have prices gone up?

[Roboat]

Poor economy? Recession?

You can't see it in the cruise prices this year.

I usually track the 7-day Florida to the Caribbean cruise prices. And I have always found numerous choices under $700/pp for an assigned balcony for Florida resident.

 

But the past 2 years, the prices are higher and availability is lower. OK, supply and demand. But I wonder, why is demand so high when the economy is crappy and unemployment is high?

[Keith1010]

It all comes down to supply and demand.

 

Keith

[GORDONCHICK]

I think some prices were raised to account for fuel price increases in order to not do the fuel surcharges. If fuel prices go down, the prices won't.

[luddite]

Better question: Why haven't prices gone up more?

[Hlitner]

We think Keith has it right that its all about supply and demand. However, there are still some amazing bargains out there for those who are flexible with their travel dates, cruise lines, and itineraries. In the past 2 months we were able to get a fantastic price on a 25 day Celebrity cruise in Europe. Just last week we were able to book a 14 day Caribbean Cruise (for December) on Holland America for less then $2500 (total cost for 2)....and this was for a balcony cabin. In the case of both these cruises are cost per day for a balcony is well under $100 per person/day. These are actually cheaper prices then we paid for similar cruises years ago. We do understand that not everyone has the flexibility (we are retired so can go whenever we please) but the deals are certainly out there for those who want to shop around.

 

Hank

[muti]

The Princess prices now include the government fees and taxes.

[Krazy Kruizers]

I do believe that the cruise lines are trying to cover the higher fuel costs instead of tacking on a fuel surcharge like they did a few years ago.

[Nebr.cruiser]

I agree that many prices do seem higher this year, though not all. I feel it is probably the fuel costs that have driven most of this, as they don't want to add a surcharge for fuel.

 

I was just on the Princess site and noticed that all the taxes and port charges are now included, so those cruises 'look' higher, even if they are not.

 

I have seen some very good bargains though usually at times many can't cruise. We almost always do a early December cruise because of the great deals.

 

Unfortunately, due to circumstances, we can't go in December this year!http://boards.cruisecritic.com/images/icons/icon9.gif

[Acklander]

While the economy is sluggish, it's actually better than it was a couple of years ago, so I think the slow creeping up in price is a reflection of that. you're going to have to work harder to find the deals.

[PhotoGal07]

Fuel charges and larger ships. Fuel is more expensive, and more and more consumers are demanding ships with all the bells and whistles, bowling alley, aquatic theater, multiple dining options, etc. I would imagine the costs for building these larger ships are spread slightly throughout the whole cruise line. Even if you are sailing on a smaller ship, I'd imagine at least a couple dollars are going towards the building of the new mega ships for the cruise line.

 

Couple that with the fact that people are starting to feel more comfortable about the state of the economy (not saying it is great, just that people are feeling more comfortable, and therefore willing to pay the extra fare).

 

Voila! More expensive. :D

[sail7seas]

My grocery bill is higher every week.

Our heating oil delivery this week was a whole lot more than the last one we had in the spring.

My car gas tank is swallowing a whole lot of $$.

Our insurance bill is higher.

Electric, telephone, clothes........ everything costs more.

 

If our family bills are higher, so are the cruise lines' bills.

If they have to pay more to run the ship, we have to pay more.

 

[sail7seas]

I agree that many prices do seem higher this year, though not all. I feel it is probably the fuel costs that have driven most of this, as they don't want to add a surcharge for fuel.

 

I was just on the Princess site and noticed that all the taxes and port charges are now included, so those cruises 'look' higher, even if they are not.

 

I have seen some very good bargains though usually at times many can't cruise. We almost always do a early December cruise because of the great deals.

 

Unfortunately, due to circumstances, we can't go in December this year!http://boards.cruisecritic.com/images/icons/icon9.gif

 

 

If I may.......

 

to make this :( emoticon

 

type : (

 

with no space after the :

 

(just trying to be helpful :) )

 

[martinm]

I think sail7seas hit this right on the head... have your houshold expenses gone up?

 

I know I have had to make some BIG changes to keep my regular houshold expenses down.

[Nebr.cruiser]

If I may.......

 

to make this :( emoticon

 

type : (

 

with no space after the :

 

(just trying to be helpful :) )

 

 

Thanks! I have managed to put emoticons on before; no idea why it didn't work this time. I suppose I just didn't do it 'right'.

[Nebr.cruiser]

I think sail7seas hit this right on the head... have your houshold expenses gone up?

 

I know I have had to make some BIG changes to keep my regular houshold expenses down.

 

Very true. Every little thing costs 10-25% more than last year, especially noticeable in the grocery store, but also across the board.

 

We are home builders; try explaining to customers why a house can't be built for the prices of even last year.

[SusanSmithJr]

Poor economy? Recession?

But I wonder, why is demand so high when the economy is crappy and unemployment is high?

 

 

Is it? Around here one can't find a paarking spot at the local malls. All the good restaurants require reservations, on a Tuesday! The stockmarket is setting all time highs, (look at CCL). Unemployment for those with college degrees is very low. Folks have experienced a down economy for nearly four years, it is now time to open up their purses and spend. Get on the boat before it sails without you.

[Putterdude]

It is a combination of a number of things such as a generally improving economy, more people discovering cruising, increased fuel and food costs to the cruise line. While some of it is spin, all cruise lines are reporting a general uptick in bookings....now they are working on pricing.

[klfrodo]

Because they're not hitting their revenue forecast as promised to their shareholders?

[spookwife]

Poor economy? Recession?

 

 

But the past 2 years, the prices are higher and availability is lower. OK, supply and demand. But I wonder, why is demand so high when the economy is crappy and unemployment is high?

 

 

well for us the economy is not only not crappy, we are doing fairly well for ourselves and are now in a position where DH can actually schedule a vacation and NOT have to worry about it being canceled at the last minuet for deployment.

 

 

also a cruise vacation is economically a very good deal for those who have some discretionary income.. there is not a whole lot of out of pocket expenses once on board that are not totally voluntary.

 

if you only have $2500 to spend, do you take a 3 day trip to Disney or spend a week on a cruise ship? much as I love the Mouse.. much more bang for the buck on a cruise.

[cruiseco]

Fuel costs, etc only have an effect on what the cruise lines will TRY to sell their cruises for. Heck, if they could they would sell every cabin on every sailing at full brochure rate. But the consumer doesn't care how the costs break down. If there's aggregate price resistance at, say, $2000 for a particular sailing that the cruise line wants to sell at $2200 the company only has two choices -- reduce the price to $2000 or sail with those cabins empty. It makes absolutely no difference if that extra $200 they were trying to get was fuel related.

[sail7seas]

Fuel related costs do not only apply to what makes the engines run.

 

It is related to food costs, linens, cleaning supplies, uniforms, liquor costs and just about everything else. It all has to get from farm to market, factory to consumer, truck to ship........

 

Everything we touch, just about, is impacted by fuel costs.

 

 

[AKman2495]

Well, I would say that your premise is not entirely correct in that the economy may be crappy for some, but is obviously getting better.

 

People are booking more cruises and lines are adding new ships.

 

My Carnival corp stock is also near its 52 week high and shows no signs of dropping.

 

So, basically, it boils down to the economy getting better after all....