Royal Caribbean's Plan to attract new cruisers

[CRUISEFAN0001]

Loyal customers help fill the ships, but as I also stated in my previous post, a point you skipped over, is that the average customer has never been on a cruise before. The average customer likely doesn't care, because they don't know enough to care.

That simply makes no sense.

 

How can someone be "an average customer" if they've never been a customer? They are NOT a customer at all...they are a potential customer.

 

Those new customers cost more money to acquire in the first place than what it costs to sustain an existing one. New customers are great for any business - but not if they are gained by alienating existing ones. That's the underlying point in all of this fiasco.

Edited April 19, 2014 by CRUISEFAN0001

[novicetraveller]

If Royal Caribbean believed the only people in the world that have money to spend on cruises are from the USA, not only would Royal Caribbean would collapse, but so would the local economy that depends on foreigners coming into America in order to go on a cruise.

 

I for one can't afford to go to the USA this year in order to go on a cruise, that's why I am going on the OASIS when she's on her way to Dry Dock. It's also an opportunity to see parts of Europe that I haven't had the chance of seeing without the extra burden of cost.

 

I would love to go Asia in the next few years, and knowing that Royal Caribbean are investing their services in the Asian Market may make it worth the trip to China and explore the local sector as well as travel with Royal Caribbean.

 

Those people who "Invest their money" because of the new 2 ships who then believe it would be disastrous for Royal Caribbean, get real! Not everything lives and breathes within the 4 boundaries of the USA.

[Paulxyz2004]

I agree with both of these. I think there are a lot of loyal RCI cruisers that are just upset because they're not getting their way. RCI is first and foremost a company. They are in business to make money. If they upset their loyal customers along the way, oh well. Their first responsibility is to their shareholders, whether their loyal customers like it or not.

 

I fullheartly agree with you on this one.

[JKHawaii]

Wake up and smell the green tea!

 

Major U.S. corporations such as Coke, Ford, Yahoo have fared well recently due in large part to increased earnings from China.

 

Try to find a cruise on the Mariner of the Seas in September or October ........... they're sold out except for the October 21 cruise ....... a time when cruise lines have to lower prices on their Florida cruises to entice people to book them. The price for the one available 6-night cruise is $1009 for an interior!

 

It's also ironic that so many people lament the loss of the Quantum when they also admit that they wouldn't sail on her because A) she's too expensive, B) they don't like the dining plan, C) they don't like large ships, D) they're not going to fly to New York (OK, New Jersey) to sail on her.

 

If nothing else, it certainly is cheap entertainment to read these posts.

[BGCruiser85]

I can understand some of the frustration over the ship being moved to China, but the one going to Bayonne? Really? You can't take a short flight there from Florida? The vast majority of the US has to fly into Florida for nearly every cruise we're on. It's not going to kill you to make the same sacrifice we make every year.

[LuvBNatC]

I wonder how many seasoned American cruisers will follow Quantum to Asia to experience what's on the ship and visit Asian ports?

 

Goldstein said in the interview that the entertainment will be in Chinese, and the shopping and dining will be geared toward Asian tastes. It sounds to me like English speakers would find themselves strangers in a strange land for the whole voyage. Personally, that's not my cup of oolong. ;)

 

Goldstein also seemed to downplay Asians' reputed love of gambling, another potentially large income stream that may be having relatively hard times on his ships in the U.S. market. Years ago when a Malaysian conglomerate, Star, bought NCL, they quickly formed a plan to send the SS Norway (their biggest ship at the time) to Asia and convert her entirely into a casino ship. It never came to fruition, but indicates gambling is big business in Asia.

 

So I won't be surprised if they load that mechanical arm thing hanging off the top of Quantum with slot machines so Asian pax can lose money 300+ feet above the ocean. :D

[nolesrule]

That simply makes no sense.

 

How can someone be "an average customer" if they've never been a customer? They are NOT a customer at all...they are a potential customer.

 

Those new customers cost more money to acquire in the first place than what it costs to sustain an existing one. New customers are great for any business - but not if they are gained by alienating existing ones. That's the underlying point in all of this fiasco.

 

Why not? Final payment is paid before taking the cruise. :D

 

Seriously though, have you never been to a captain's reception where they list off statistics about those on board? Generally speaking 2 out of 3 people are on a cruise for the first time. Of all the cruises I've been on, I've never seen the numbers at more than 1/3 repeat cruisers.

 

So if 2/3 are on their first cruise and 1/3 are repeat cruisers, then the average cruiser has never been on a cruise before and is on their first cruise.

 

Also, growth means attracting new customers. New customers aren't going to know about all "negative" issues.

[nolesrule]

I can understand some of the frustration over the ship being moved to China, but the one going to Bayonne? Really? You can't take a short flight there from Florida? The vast majority of the US has to fly into Florida for nearly every cruise we're on. It's not going to kill you to make the same sacrifice we make every year.

 

Floridians hate flying into Newark. :D

 

My wife and I both have to do it several times a year for work.

[Paulxyz2004]

If Royal Caribbean believed the only people in the world that have money to spend on cruises are from the USA, not only would Royal Caribbean would collapse, but so would the local economy that depends on foreigners coming into America in order to go on a cruise.

 

I for one can't afford to go to the USA this year in order to go on a cruise, that's why I am going on the OASIS when she's on her way to Dry Dock. It's also an opportunity to see parts of Europe that I haven't had the chance of seeing without the extra burden of cost.

 

I would love to go Asia in the next few years, and knowing that Royal Caribbean are investing their services in the Asian Market may make it worth the trip to China and explore the local sector as well as travel with Royal Caribbean.

 

Those people who "Invest their money" because of the new 2 ships who then believe it would be disastrous for Royal Caribbean, get real! Not everything lives and breathes within the 4 boundaries of the USA.

 

You are correct. People tend to Forget there´s more than just the Caribbean.

 

I don´t deny that the ships sailling from Florida have a huge local fanbase, but at the same Point many of them will look for the very cheap cruise deals and resident Discounts. Floridians could not Support the amount of ships sailling from Florida on their own.

Now for many of the cruisers travelling to Florida to catch the ship it´s a Long flight to get there. Why shouldn´t they simply take saif flight in another direction like Asia.

 

It´s not only the huge market in Asia to attract, but also the whole world of cruisers who are not interested to go to the same Caribbean Islands they´ve been going to for decades, but to further explore the world.

 

Many years ago you had not many Options besides Florida and the caribbean. Then Europe was added to the mix as they were able to expand their fleet and I do remember very well some years ago when they started to send more and more ships to Europe, how the same complaints broke loose and RCI is still around. Next was Australia and New Zealand and now they are expanding further to Asia.

 

Nothing of this will be the end of RCI. Obviously a few feel alieniated here, but I bet it´s a very small minority.

 

I´m not too thrilled about the new ship class, but even though I´m not highly interested in Asia, I´d consider a cruise there now that RCI offers me some Options.

[dz9yvr]

......So I won't be surprised if they load that mechanical arm thing hanging off the top of Quantum with slot machines so Asian pax can lose money 300+ feet above the ocean. :D

 

 

Maybe the Chinese can figure out what to do with that weird arm. I'm still confused.

[CRUISEFAN0001]

Seriously though, have you never been to a captain's reception where they list off statistics about those on board? Generally speaking 2 out of 3 people are on a cruise for the first time. Of all the cruises I've been on, I've never seen the numbers at more than 1/3 repeat cruisers.

 

So if 2/3 are on their first cruise and 1/3 are repeat cruisers, then the average cruiser has never been on a cruise before and is on their first cruise.

They used to call that "fuzzy math". :eek::D

 

But you are correct that the mix of new and repeat customers is roughly that.

 

So what happens to the overall formula (and revenue stream) with the 1/3 repeat customers shrink in numbers and the cost of acquiring new ones rise?

 

Answer - you have to raise prices and eventually spend more to continue getting new customers. That's not a formula for long-term financial success.

[Ocean Boy]

Why not? Final payment is paid before taking the cruise. :D

 

Seriously though, have you never been to a captain's reception where they list off statistics about those on board? Generally speaking 2 out of 3 people are on a cruise for the first time. Of all the cruises I've been on, I've never seen the numbers at more than 1/3 repeat cruisers.

 

So if 2/3 are on their first cruise and 1/3 are repeat cruisers, then the average cruiser has never been on a cruise before and is on their first cruise.

Also, growth means attracting new customers. New customers aren't going to know about all "negative" issues.

 

It would be interesting to find some statistics on how many of those 2/3 go on to book multiple cruises after their first. I suspect there are a fair number of one hit wonders. The 1/3 may not be the average cruiser but they may in fact be the life blood of a cruise line. And though every decision cannot, and should not, revolve around them they are a very important part of the equation of profitability.

[Ocean Boy]

Maybe the Chinese can figure out what to do with that weird arm. I'm still confused.

 

I hope they don't figure out a way to mass produce it cheaply to retrofit the rest of RCI ships.

[Cruising89143]

I love all of this Henny Penny drama. RCI is not going anywhere. Any business has to attract new customers to survive. I think what we have here is some wishful thinking.

 

I thought RCI did a poor job of handling the whole QN announcement but it is what it is. They are not going anywhere. For those that are not happy, use your feet to vote. :rolleyes:

[Mark_K]

That simply makes no sense.

 

How can someone be "an average customer" if they've never been a customer? They are NOT a customer at all...they are a potential customer.

 

Those new customers cost more money to acquire in the first place than what it costs to sustain an existing one. New customers are great for any business - but not if they are gained by alienating existing ones. That's the underlying point in all of this fiasco.

Change the word customer to passenger, that might help you make sense of it.

 

 

Sent from my iPhone using Forums mobile app

[CRUISEFAN0001]

Change the word customer to passenger, that might help you make sense of it.

Then THAT is how is should have been stated...ergo...my point.

[setsail]

I agree with both of these. I think there are a lot of loyal RCI cruisers that are just upset because they're not getting their way. RCI is first and foremost a company. They are in business to make money. If they upset their loyal customers along the way, oh well. Their first responsibility is to their shareholders, whether their loyal customers like it or not.

 

Yes

 

1.Role of Board and Management

.

Royal Caribbean's business is conducted by its employees, managers and officers, under the direction of the chief executive officer (“CEO”) and the oversight of the Board, to enhance the long-term value of the Company for its shareholders. The Board of Directors is elected by the shareholders to oversee management and to exercise its business judgment in furtherance of the long-term best interests of the Company and the shareholders. Both the Board of Directors and management recognize that the long-term interests of shareholders are advanced by responsibly addressing the concerns of other stakeholders and interested parties including our employees, guests, suppliers, Royal Caribbean communities, government officials and the public at large.

[nolesrule]

passenger, customer, cruiser, consumer, guest.... it's all semantics.

 

In the case of a cruise ship business they are all one in the same. It's the person to whom your business is providing a product or service.

[Barb Nahoumi]

"This interview from Adam, I don't know, it just felt like a knife into the hearts of his loyal Americans. He didn't say he doesn't love us anymore, but he sure insinuated he loves those Chinese and wants to make sure they get their noodles, Chinese comics and whatever it takes to get them to shop.

 

I just felt like we Americans aren't shopping enough on his ships.

 

Just my humble opinion, but that is how I felt watching this"

 

Well the politicians encouraged our factories to go over because they don't have so many crazy laws and taxes etc. over there like we do and now they make everything so now they have lots of money that this country could have had if we still made things. Guess we have to get used not being the biggest kahuna anymore. It's sad because we invented everything - all the electronics etc and we make barely anything in this country anymore. That's why they like to shop more - it's fun to shop when you have money!

\

 

Probably most of the stuff sold in ships gift shops is made in China.

[CRUISEFAN0001]

\

 

Probably most of the stuff sold in ships gift shops is made in China.

OUCH! (but true)

[CRUISEFAN0001]

Their first responsibility is to their shareholders, whether their loyal customers like it or not.

Then you might find this shareholder post in a related thread interesting...

 

http://boards.cruisecritic.com/showpost.php?p=42485931&postcount=256

 

RCI is a publicly traded company, and I am a shareholder, so it is, actually, my business to know the real reason. Now, thinking about it, I am pretty riled about this sudden change with no good explanation, and insulted by their press comment that Asia expects the best...implying we don't. Perhaps I should consider investing elsewhere, hmmm.

[novicetraveller]

You are correct. People tend to Forget there´s more than just the Caribbean.

 

I don´t deny that the ships sailling from Florida have a huge local fanbase, but at the same Point many of them will look for the very cheap cruise deals and resident Discounts. Floridians could not Support the amount of ships sailling from Florida on their own.

Now for many of the cruisers travelling to Florida to catch the ship it´s a Long flight to get there. Why shouldn´t they simply take saif flight in another direction like Asia.

 

It´s not only the huge market in Asia to attract, but also the whole world of cruisers who are not interested to go to the same Caribbean Islands they´ve been going to for decades, but to further explore the world.

 

Many years ago you had not many Options besides Florida and the caribbean. Then Europe was added to the mix as they were able to expand their fleet and I do remember very well some years ago when they started to send more and more ships to Europe, how the same complaints broke loose and RCI is still around. Next was Australia and New Zealand and now they are expanding further to Asia.

 

Nothing of this will be the end of RCI. Obviously a few feel alieniated here, but I bet it´s a very small minority.

 

I´m not too thrilled about the new ship class, but even though I´m not highly interested in Asia, I´d consider a cruise there now that RCI offers me some Options.

 

There are some interesting features on the Quantum Class Ships, but probably not my thing. There's a few features on the Oasis Class Ships that are not for me (the Carousel, The Zip Line, The Premium Fooderies, Johnny Rockets, etc), but the experience being on the class of ship with all the entertainment and facilities available, it's worthwhile.

 

I'm surprised it has taken this long for RCCL to try and establish themselves in the Asian market to be honest.

[nolesrule]

Then you might find this shareholder post in a related thread interesting...

 

http://boards.cruisecritic.com/showpost.php?p=42485931&postcount=256

 

 

Yeah, I do find it interesting. Usually the reasoning for major business decisions are buried in SEC filings which become available for both shareholders and non-shareholders to peruse on a quarterly and/or annual basis... not in press releases, which never have, and never will, tell the whole story.

[CRUISEFAN0001]

Yeah, I do find it interesting. Usually the reasoning for major business decisions are buried in SEC filings which become available for both shareholders and non-shareholders to peruse on a quarterly and/or annual basis... not in press releases, which never have, and never will, tell the whole story.

Agree with you (that's twice in 2 minutes!!)... :D

[ramanda]

"Originally Posted by Barb Nahoumi View Post

\

 

Probably most of the stuff sold in ships gift shops is made in China.

 

OUCH! (but true) "

 

Yup. I went to Target and Kohl's after i first saw this post this morning and as i was browsing EVERY SINGLE THING i looked at was made in China. Another poster made the remark that the US market is stagnant - I'm sure if we could have our manufacturing back it would wake right back up. I know this is kind of a little off topic but i would venture to guess that there would be more Americans looking to cruise and they would have more money to spend on board if we had our industries back and the jobs they provide. With the way our economy has been going, I'm sure a lot of the people who do vacation- both cruising and land vacations- are doing so by the skin of their teeth. Many others just can't go at all. It shouldn't have to be that way.

 

And oh yes, i do think that whole arm thing on the Quantum is really strange. I wouldn't have any desire to go on it even if i did go on the Quantum.