HAL Pricing Approach

[DanL]

Looking at a HAL cruise and their pricing. Example: a cat H is $1899 & a cat HH is $4799. Last year on a similar sailing a month before departure, the cat H was $1799 but the cat HH was $699. It appears that they price a category high (cat HH), then drop it before sailing if not full (example cat HH above).

 

I understand dropping the price to fill the ship but in the above example they don't have to drop categories with real sales but drop cats w/o sales. Who would pay $4799 for an OV cabin when a similar one is $1899.

 

Now what is the strategy to get the cabin for ~$700? Get a HH & depend on price drop?

Wait for price drop on HH? Risks in either case.

[jtl513]

Who would pay $4799 for an OV cabin when a similar one is $1899.

I think that's the point ... they don't want to sell any more HH. I've seen this many times, where a lower category costs much more, but I've never tracked what happens after that. I don't think the price goes back down again after it has been jacked up like that.

...

Edited January 20, 2014 by jtl513

[JJPacer]

This is what I have noticed. It may not be the case every time, as I don't check every cruise. It seems to me, after final payment, they lower the price for a guarantee in specific categories. If a certain category of cabin is sold out, then the guarantee price is high. If there are cabins still available in a category, the guarantee is priced lower than the cabins where you can choose your cabin number. Thus, if you want a specific cabin, you don't really get much of a price break by waiting until after final payment. This did not used to be the case. We were able to get a very low price after final payment and book the cabin of our choice. This, unfortunately, hasn't been the case for a couple of years. I agree with jtl513. If they raise the price in a category it's because they don't want to sell any more cabins in that category.

[DanL]

One piece of info that I didn't include was that the HH category @ $4799 was not available until ~1 month ago. I have seen similar pricing tactics on a TA where H is $799 & HH is $2999.

 

In my view they use HH to fill the ship without dropping the price on other OV categories where they have many guests. I see this pricing strategy in veranda & suites also. Usually one high price outlier that they can drop without having to drop price of other categories to fill ship.

 

Pretty clever.

[DaveOKC]

One piece of info that I didn't include was that the HH category @ $4799 was not available until ~1 month ago. I have seen similar pricing tactics on a TA where H is $799 & HH is $2999.

 

In my view they use HH to fill the ship without dropping the price on other OV categories where they have many guests. I see this pricing strategy in veranda & suites also. Usually one high price outlier that they can drop without having to drop price of other categories to fill ship.

 

I also have found that HAL has certain categories that they have only a few cabins in and they price them high at first (so that folks do not book them) and then later offer them up as "guarantees" at a low price point to attract shoppers. That way they can fill up the ship without totally destroying the pricing, especially to those who want to pick their cabin. Very smart marketing move IMO.

 

DaveOKC

[LAFFNVEGAS]

I also have found that HAL has certain categories that they have only a few cabins in and they price them high at first (so that folks do not book them) and then later offer them up as "guarantees" at a low price point to attract shoppers. That way they can fill up the ship without totally destroying the pricing, especially to those who want to pick their cabin. Very smart marketing move IMO.

 

DaveOKC

That is very true and often early out categories such as HH will not even be available to book, then closer to final they will place them there as available at silly high prices, then when they are ready to do their special sales the price will do a miracle drop. They do not always do this high price on the guarantee categories when they are sold out most are when they are getting close to dropping the price but not ready to release. Occasionally when they have reached the limit for guarantees they do throw those into high pricing if they think they will not close the category and instead assign people to higher categories.

 

So basically the answer is that they are either getting ready to drop the price for that category making it available or they are getting ready to pull it either way most likely it will be a guarantee ONLY. Since there are very few cabins that are HH on any of the ships.

[DanL]

I also have found that HAL has certain categories that they have only a few cabins in and they price them high at first (so that folks do not book them) and then later offer them up as "guarantees" at a low price point to attract shoppers. That way they can fill up the ship without totally destroying the pricing, especially to those who want to pick their cabin. Very smart marketing move IMO.

 

DaveOKC

 

Dave you nailed it.

[frankc98376]

Many years ago I worked for a big airline in yield/capacity management. Took a LONG time to learn all of the formulas and algorithms used to make sure a plane was full. It got to where I could look at a reservation and pretty much know if they were going to no-show. Yes, we were the people that decided how many should be over-booked. Sometimes it bit us but usually worked in our favor.

If there are 200 people on a plane they can easily have 150 different fares paid.

I'm sure the cruise lines go through similar daily "exercises" to determine fares that will fill the ships. I'd guess that at least some of the categories that are frequently used for "sale" prices are the categories that tend to have higher on board spending habits.

It has to be rough- a ship can't be over-booked.

[catl331]

It has to be rough- a ship can't be over-booked.

It happens often ... then HAL starts calling people with offers to switch to another cruise. These offers get better and better as the cruise approaches until they find enough takers.

[TiogaCruiser]

 

So basically the answer is that they are either getting ready to drop the price for that category making it available or they are getting ready to pull it either way most likely it will be a guarantee ONLY. Since there are very few cabins that are HH on any of the ships.

 

It seems a large percentage of the HHs are not in great locations, at least on the R and S classes (under the galley)

[3littlepigs]

Many years ago I worked for a big airline in yield/capacity management. Took a LONG time to learn all of the formulas and algorithms used to make sure a plane was full. It got to where I could look at a reservation and pretty much know if they were going to no-show. Yes, we were the people that decided how many should be over-booked. Sometimes it bit us but usually worked in our favor.

If there are 200 people on a plane they can easily have 150 different fares paid.

I'm sure the cruise lines go through similar daily "exercises" to determine fares that will fill the ships. I'd guess that at least some of the categories that are frequently used for "sale" prices are the categories that tend to have higher on board spending habits.

It has to be rough- a ship can't be over-booked.

 

What a fun job that must have been!

I love tracking the prices of the various categories to try to pick the best buy point and whether to grab a gty.

[frankc98376]

What a fun job that must have been!

I love tracking the prices of the various categories to try to pick the best buy point and whether to grab a gty.

 

I remember one morning a VERY angry airport manager yelling as a DC10 was 160 overbooked. After all said and done the flight left with 50 empty seats. We were good :)

And yes, it was fun- never boring!

Edited January 21, 2014 by frankc98376

[DanL]

It seems a large percentage of the HHs are not in great locations, at least on the R and S classes (under the galley)

 

It is not just HH cabins that exhibit this pricing strategy. For example the 5/23 Baltic cruise has categories in each cabin class that are about twice the price of the other categories: N - inside, HH - OV, VH - veranda & SZ - suite.

 

So as mentioned previously, a clever way to lower price in just one category per cabin class (that has few if any occupancy) without lowering price across the board.

 

What is best way to take advantage to get lower price? Not sure I have the guts to wait until (if) they drop the prices in these "high priced" categories. I have in the past bought as recently as 3 weeks before a cruise but then I just happened to see the price drop. Now I am planning to take the cruise and have booked the air when it dropped last week. What would you do? Buy a a specific cabin or guarantee now or wait? Decisions, decisions?

 

cruise fish dot com shows 78% of categories available.

Edited January 21, 2014 by DanL

[brainyblonde]

There is a website which will track drops in cruise fares. For a small fee, they will notify you if the cruise and cabin category which interest you have gone on sale. i received notification of a one dollar drop last month, then later a $200 drop. Google or use the first name of this site and add the word that rhymes with "dish" and is a term used for an outdoor sport. Of course once you have paid the final payment, you are committed to the price you paid.

[Thebes]

There is a website which will track drops in cruise fares. For a small fee, they will notify you if the cruise and cabin category which interest you have gone on sale. i received notification of a one dollar drop last month, then later a $200 drop. Google or use the first name of this site and add the word that rhymes with "dish" and is a term used for an outdoor sport. Of course once you have paid the final payment, you are committed to the price you paid.

 

You mean this fishy site ? It smells like fish :)

I received a $300 pp email was worth every penny. Fishing is great sport !

Edited January 23, 2014 by Thebes