Interesting discussion with Travel Agent

[sail7seas]

I understand marketing to new cruisers since I once worked in an industry that relied heavily on "new blood". However, if cruise line do not necessarily want or need repeat customers, why do they offer increasingly "better" perks depending on the number of cruises one has taken? All cruise lines have a loyalty program.

 

Our next cruise was not cheap to begin with and although we did get a small price drop, now that it's after final payment, the prices are up, at least for our category.

 

 

Go take a look at the Holland America Forum. There is a very active thread right now (again) indicating HAL is giving far better discounts and offers to new cruisers than to their most loyal, many time repeaters. Those of us with 70/80 and more cruises never hear from them with any advertising or special offers. Some who are new get some deals.

 

[iheartbda]

Go take a look at the Holland America Forum. There is a very active thread right now (again) indicating HAL is giving far better discounts and offers to new cruisers than to their most loyal, many time repeaters. Those of us with 70/80 and more cruises never hear from them with any advertising or special offers. Some who are new get some deals.

 

That was the complaint in the industry in which I worked. Just wondering why then the cruise lines have the loyalty programs. Are the perks just enough little "scraps" to keep them coming back in case they don't get enough new cruisers to fill the cabins? I guess even if repeaters don't spend much onboard, it's still better than having empty cabins with no chance of any revenue, no matter how little.

[sail7seas]

As someone who has sailed HAL more than 80 cruises, it is not anything to do with "little scraps" from their repeater program that brings us back repeatedly.

 

It is their ships, their crews, their itineraries, the fellow cruisers, their crews, the style and design of ships, their crews, the size of their ships, their crews.......

 

Did I mention the crews on HAL ships are a major reason for our loyalty.... it is not a free drink or OBC or free dinner in specialty restaurant. While those extras are nice and we enjoy them, they do not influence which cruise line we choose to sail.

 

[iheartbda]

As someone who has sailed HAL more than 80 cruises, it is not anything to do with "little scraps" from their repeater program that brings us back repeatedly.

 

It is their ships, their crews, their itineraries, the fellow cruisers, their crews, the style and design of ships, their crews, the size of their ships, their crews.......

 

Did I mention the crews on HAL ships are a major reason for our loyalty.... it is not a free drink or OBC or free dinner in specialty restaurant. While those extras are nice and we enjoy them, they do not influence which cruise line we choose to sail.

 

The little scraps are not what bring us back to a particular line either and we have more than entry level status on 3 different lines. Any perks are secondary to us. However, there seem to be some people who will not sail on any line other than their favorite in order to achieve a higher level.

 

 

We're getting a bit off topic here but my question still remains. If cruise lines are after first time cruisers, why have the loyalty program for repeaters? According to a number of people, repeaters historically spend less than first timers and onboard spending is where and how the lines make money.

[sail7seas]

Perhaps poster Bruce Muzz will return to this thread and provide an answer.

I don't have a response.

[OpalGem]

I guess the cheaper fares are good news for those of us who like to cruise.

 

Burt

 

Cruising offers my family the best deal for families with children, retirees and those hit by the economy. Although you can see some of the services being cutback on Carnival, the opportunity to be togather as a family far outweighs us having smaller portions and not so many choices. Eventually the industry will rebound and the service levels should also.

[dorisis]

Go take a look at the Holland America Forum. There is a very active thread right now (again) indicating HAL is giving far better discounts and offers to new cruisers than to their most loyal, many time repeaters. Those of us with 70/80 and more cruises never hear from them with any advertising or special offers. Some who are new get some deals.

 

[/quote

 

I get mail from HAL frequently and I have done many cruises with them.

[sail7seas]

Go take a look at the Holland America Forum. There is a very active thread right now (again) indicating HAL is giving far better discounts and offers to new cruisers than to their most loyal, many time repeaters. Those of us with 70/80 and more cruises never hear from them with any advertising or special offers. Some who are new get some deals.

 

[/quote

 

I get mail from HAL frequently and I have done many cruises with them.

 

 

What is your secret? :D

How are you so lucky?

 

[Gloria Mundi]

For the past 21 consecutive years Carnival Cruise Line (not Carnival Corp) has been the most financially successful line in the world. Why?

Because they are the ONLY cruise line that relies primarily on first time cruisers.

First timers are the only ones spending money onboard ships these days.

Their marketing model does not want you to come back for a second cruise. They would rather have a newbie take your place.

 

 

This doesn't make sense. Aren't they going to run out of newbies? Sure some enter the market every year as they get to an age where they can cruise without their parents, but only a certain % of people just starting out will be potential customers. And, as someone said, every line has loyalty programs so they must have decided that past customers are a good source of business. It's also far more expensive in any business to get a new customer than to attract repeat business, which is why so many are focused on retaining customers.

 

My amateur opinion is that Carnival is the bargain basement. In good times they'll get business from people who couldn't afford cruising before but can now (even if it's financed by a Home Equity Loan) and are just moving into the market. In bad times people who used to take a more expensive line but are now living paycheck to paycheck may choose to go with Carnival rather than stay at home.

[Hlitner]

This doesn't make sense. Aren't they going to run out of newbies? Sure some enter the market every year as they get to an age where they can cruise without their parents, but only a certain % of people just starting out will be potential customers. And, as someone said, every line has loyalty programs so they must have decided that past customers are a good source of business. It's also far more expensive in any business to get a new customer than to attract repeat business, which is why so many are focused on retaining customers.

 

My amateur opinion is that Carnival is the bargain basement. In good times they'll get business from people who couldn't afford cruising before but can now (even if it's financed by a Home Equity Loan) and are just moving into the market. In bad times people who used to take a more expensive line but are now living paycheck to paycheck may choose to go with Carnival rather than stay at home.

 

Bruce is correct (as usual). Actually, both Carnival and RCI really go after those younger first-time (and low time cruisers) which help them to "maximize onboard revenue." Younger less experienced cruisers will quickly spend money buying photos, shopping at the on board shops (and "recommended stores in the ports"), buy lots of drinks, and shell out money for certain onboard amenities and activities that have a price. On lines like HA where there are often many older experienced cruisers, few will pay for the overpriced photos and many either do not drink or limit their purchases.

 

When we took a long cruise on the Prinsendam, I used to "Hang out" in the Crows Nest (bar) after 11 pm (until around 12:30). On this ship there were normally fewer then 6 passengers in the bar who were joined by several off-duty officers and some of the entertainers. But if you went to most bars on a Carnival ship late at night, there would be plenty of passengers buying drinks.

 

Hank

[Gloria Mundi]

Bruce is correct (as usual). Actually, both Carnival and RCI really go after those younger first-time (and low time cruisers) which help them to "maximize onboard revenue." Younger less experienced cruisers will quickly spend money buying photos, shopping at the on board shops (and "recommended stores in the ports"), buy lots of drinks, and shell out money for certain onboard amenities and activities that have a price.

 

Yeah, I can see that. It takes only one gigantic "Sign and Sail" bill at the end of the cruise for most people to resolve to watch their money more carefully the next trip!