Beware of Inflated on Board Prices and Misrepresentations on Celebrity

[Andy]

Hi Everyone,

 

As Sy Syms used to say... "An educted consumer is our best customer". I do not blame the vendor. Nobody forced you to buy the binoculars. It's up to the consumer to do their homework, and have a sense of pricing & product information before making the purchase.

 

With all due respect to the OP, if you would not sail the cruise line solely on the basis of being overcharged $50.00, that statment makes zero sense to me. Does the overall cruise experience not matter ? Besides, you received a credit from Amex. I hope you reconsider, or find a cruise line that will make you happy. FWIW, they will all do the same type of things on these types of purchases... so if spending somewhat more than what very competitive websites offer is a big deal to you, I suggest chalking this up as lesson learned. Happy Holidays !

[alynn]

Congratulations to the OP on the $50 refund from American Express.

 

jls

 

Cant understand how the OP could get a $50 refund from American Express as this purchase would just be added to the on board account and its nothing to do with price matching, faulty goods ets, but Kudos to the poster who used their CC to buy the 14K tanzanite earing which turned out to be fake. This is where purchasing on credit card pays off.

[Cindy]

Was on Celebrity Constellation Sept 15. One night photo department had some binoculars for sale. I saw a pair for $124.95 I liked and asked how that compared to what I could expect to pay off the ship.

 

Was told their price was 30% to 40% less.

 

Checked price on Amazon, Best Buy, Nexttag when I got home. They sell for $79.99. List price is $119.00.

 

Complaint to Celebrity just answered. They are sorry but they use a third party vendor and have nothing to do with price.

 

The third party does not price match and Celebrity refuses to make this right in any way.

 

Anyone think I am being unreasonable in saying this is wrong and fraudulent?

 

Yes, I think you're being unreasonable. I view merchandise on a cruise ship the same as anyplace else...I need to do my research ahead of time and know the value/cost of an item before I make a purchase. I think you made an impulse buy and now you regret the purchase because you discovered you could have gotten the item for less once you were home.

[TravelerThom]

...Was told their price was 30% to 40% less...

Less is a comparative. Unless you know what it is being compared to it is meaningless. Only if you can PROVE that the items has never been offered or sold anywhere at anytime for 30% to 40% more than you paid, would it be fraud. Barring that I'd say that you are being unreasonable [not to mention gullible]. Edited December 23, 2013 by TravelerThom

[HazyDavy]

OP, you're not being reasonable. Yes you paid a premium for buying them on the ship, but you also got added value by being able to use them on the ship. You could have got them for less at Amazon had you waited until you got home but you wouldn't have them during your trip. Is that not worth anything to you?

 

Also, the Amazon and other website prices you quoted were exclusive of shipping fees and sales tax where applicable.

 

By Amex refunding you $50, you actually paid less than Amazon's price. Not sure why Amex did that.

[Rick-cruiser]

wow... tough crowd

.

[wwcruisers]

Their used to be for liquor prices if one brought back a printed price list.

 

The shops do state that that have a "price match guarantee". Took advange of it last year on Connie. DW purchased an Effy bracelet. Found it for less in Grand Cayman and had the manager of the Effy store write his price on a business card. Received the price difference from the on board shop without difficulty. They do not however match on line prices. Only the price in a retail outlet is matched. I only buy if I have excess non refundable OBC and see that as getting a good deal. As others have warned: "Buyer Beware".

 

Thanks for the info, guys. I never noticed that -- but then, we don't spend much $$ in the on-board shops, these days. Looking forward to finally getting to meet both of you, on our upcoming Century cruise(s)! :cool:

 

Oh, and Arno -- LOVE your new avatar! :D

Edited December 23, 2013 by wwcruisers

[Bosjoe]

This is why I never buy anything on the ship. Revenue dislikes people like me. :)

[shell15]

I am totally confused as to why the CC would reimburse $50. What stops any of us them from calling our CC companies anytime we find something cheaper somewhere else and demanding a partial refund? I don't get it?? :confused:

[Christine Frances]

This is why I never buy anything on the ship. Revenue dislikes people like me. :)

 

I always use my non refundable OBC on cosmetics and BAGS!!!! Actually a couple of my bags have been a better price than at home. I do know that cosmetics on board are much cheaper for Aussies and people from the UK (as well as electronics from the iLounge)

Edited December 23, 2013 by Christine Frances

[Bosjoe]

I am totally confused as to why the CC would reimburse $50. What stops any of us them from calling our CC companies anytime we find something cheaper somewhere else and demanding a partial refund? I don't get it?? :confused:

 

Some Credit card companies have Programs such as Citibank Price rewind. Find a lower price on items you purchased within 30 days they will refund the difference.

[Kellie Poodle]

Cant understand how the OP could get a $50 refund from American Express as this purchase would just be added to the on board account and its nothing to do with price matching, faulty goods ets, but Kudos to the poster who used their CC to buy the 14K tanzanite earing which turned out to be fake. This is where purchasing on credit card pays off.

 

I bought a bracelet in Cozumel. Took it to my jeweler back home to have a couple of links removed. Turned out I had "street" jewelry, worth maybe $20 and not the topaz and silver the store had promised. I'd paid for it on my credit card and, after getting an appraisal from a local jeweler, the credit card company made the merchant give me a refund of $175.

[Kellie Poodle]

The only thing I like to buy on ships are the $10 evening bags. Those are really bargains.

[Pecs ado rojo]

We got off the Connie this morning and they were selling an old model Nikon Dslr for $200-250 more than going internet price which made it ~1/3 more.

 

On the other hand some of the purses were $5-10 less than the same ones in port.

 

As always be well informed of pricing of items before making a purchase.

Edited December 24, 2013 by Pecs ado rojo

[The_Big_M]

On our last cruise, we paid $7 for deodorant. Since it's in their best interested, you'd think it would have been cheaper.

 

Haha :D

 

More seriously, the vendor doesn't care about the smell. And the line palms it off to the 3rd party so their only interest is financial.

[OuiOnboard]

Buyer Beware!! Crooks sail too.

[waterbug123]

I bought a bracelet in Cozumel. Took it to my jeweler back home to have a couple of links removed. Turned out I had "street" jewelry, worth maybe $20 and not the topaz and silver the store had promised. I'd paid for it on my credit card and, after getting an appraisal from a local jeweler, the credit card company made the merchant give me a refund of $175.

 

How much of that was eaten up by the cost of the appraisal?

[Kellie Poodle]

how much of that was eaten up by the cost of the appraisal?

 

$15

[CanWeGoYet?]

If I buy from the gift shop on board, usually it's because it is something I forgot to pack (or it broke) & decide it's worth it to me to pay a premium. Rather than waste port time shopping to replace it. If it takes up space in the gift shop on a cruise ship I would expect it to be higher than on land. Not always, but if buying something that is supposed to be a quality item & less expensive on board, I don't think I would believe it unless I knew what the item should go for generally.

 

I think the cruise lines barely break even, if that, on the cruise fare / food etc. Anything optional for purchase likely needs to be at a premium.

[TravelerThom]

...I think the cruise lines barely break even, if that, on the cruise fare / food etc. Anything optional for purchase likely needs to be at a premium.

I can't lay my hands on RCCL 2012 figures, but looking at Carnival Corporation 2012 Annual Report their net income for the year US$1298 Million (ie Approx $1.3 Billion). Looking further into the figures and you see Onboard Revenue of $3513 Million versus Onboard Expense of $558 Million (that's revenue 6.3 times expenses!). Tour revenue and expenses are listed separately; add these in and you find revenue over expenses (ie profit) for Onboard plus Tours of $3012 Million. Subtracting that profit from the total Corporate net income of $1298 Million, I see a LOSS of $1714 Million in other areas. I am NOT an accountant, but looks to me like CCL took a loss of $1.7 BILLION:eek: to get you onboard and sell you stuff (casino, spa, photos, tours, shops, etc).

 

Thom

[Oz_Steve]

As someone pointed out some things are quite a bit cheaper for Aussies. Generally cosmetics, designer bags and jewellery are cheaper. My wife liked a bag on board and it was $89, I forgot to buy it and she pointed it out at a store today and it was $149. I think the Mikimoto Pearls are cheaper on board as well.It's a case of knowing your prices.

[Cruise a holic]

I can't lay my hands on RCCL 2012 figures, but looking at Carnival Corporation 2012 Annual Report their net income for the year US$1298 Million (ie Approx $1.3 Billion). Looking further into the figures and you see Onboard Revenue of $3513 Million versus Onboard Expense of $558 Million (that's revenue 6.3 times expenses!). Tour revenue and expenses are listed separately; add these in and you find revenue over expenses (ie profit) for Onboard plus Tours of $3012 Million. Subtracting that profit from the total Corporate net income of $1298 Million, I see a LOSS of $1714 Million in other areas. I am NOT an accountant, but looks to me like CCL took a loss of $1.7 BILLION:eek: to get you onboard and sell you stuff (casino, spa, photos, tours, shops, etc).

 

 

Thom

 

I think the "problems" that Carnival and it's affiliates have had over the past couple of years is the reason for the loss. Possibly RC , Celebrity and some of the other major cruise lines have different figures and profits are positive. In addition, the cost of building new ships contributes to the numbers above.

[TravelerThom]

I think the "problems" that Carnival and it's affiliates have had over the past couple of years is the reason for the loss. Possibly RC , Celebrity and some of the other major cruise lines have different figures and profits are positive. In addition, the cost of building new ships contributes to the numbers above.

While CCL's "problems" have certainly had an impact on their bottom line, I don't think that is the explanation. I have looked at RCCL numbers for 2010 and 2011, and while I don't have the specific numbers in front of me I can say that RCCL had onboard revenue profit per annum of roughly $1.2 Billion, and their total net profit was about $450 Million, so excluding onboard RCCL had a loss of about $750 Million. Considering that RCCL is roughly half the size of CCL those numbers track pretty closely. The biggest difference I noticed was that RCCL onboard revenue to expense ratio was in the 4.5 to 5 range versus CCL's 6.3.

 

I wish that I could invest in just the "onboard" without having to eat the loss these companies sustain to get you to sail:D. Looking at it another way, if you spend little onboard you are getting a subsidized vacation. So I want everyone (else) to spend lots on board, so that I get a cheap vacation:).

 

Thom

[Lsimon]

I can't lay my hands on RCCL 2012 figures, but looking at Carnival Corporation 2012 Annual Report their net income for the year US$1298 Million (ie Approx $1.3 Billion). Looking further into the figures and you see Onboard Revenue of $3513 Million versus Onboard Expense of $558 Million (that's revenue 6.3 times expenses!). Tour revenue and expenses are listed separately; add these in and you find revenue over expenses (ie profit) for Onboard plus Tours of $3012 Million. Subtracting that profit from the total Corporate net income of $1298 Million, I see a LOSS of $1714 Million in other areas. I am NOT an accountant, but looks to me like CCL took a loss of $1.7 BILLION:eek: to get you onboard and sell you stuff (casino, spa, photos, tours, shops, etc).

 

Thom

 

Do the "onboard" expenses include the fixed costs and overhead of the ships? Or is that just the operating expenses like fuel, food costs, product cost, and compensation? Cruise lines operate on pretty high fixed costs considering the cost of the ships themselves.

 

Of course it goes without saying that their gross profits from onboard spending must be very high since they push so hard for it. I've never seen anything cheap on a ship unless the price matched the cheap quality such as the "closeout/sale" merchandise they come up with like $10 watches and $10 T-shirts.

Edited December 24, 2013 by Lsimon

[Cruise a holic]

Do the "onboard" expenses include the fixed costs and overhead of the ships? Or is that just the operating expenses like fuel, food costs, product cost, and compensation? Cruise lines operate on pretty high fixed costs considering the cost of the ships themselves.

 

Of course it goes without saying that their gross profits from onboard spending must be very high since they push so hard for it. I've never seen anything cheap on a ship unless the price matched the cheap quality such as the "closeout/sale" merchandise they come up with like $10 watches and $10 T-shirts.

 

I must say that we do our part as we purchase and or upgrade the drink packages, photo packages and speciality restaurant packages. In addition to other onboard and sometimes shore excursion purchases from the cruise line. Part of our vacation experience.