Royal Caribbean's Plan to attract new cruisers

[pspercy]

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.

 

Q1 results on Thursday next:

http://www.seatrade-insider.com/news/news-headlines/royal-caribbean-to-release-first-quarter-results-on-april-24.html

 

As for Quantum moving, is Bermuda ready for that size ship?

[Robinola]

Don't forget they are enlarging Port Canaveral.

[Coralc]

I think the inability to sail into Bermuda probably has something to do with it.

 

There is obviously a huge market for Asian ....shoppers? in China. Does he mean the shopping on the ship, unless the shopping opportunities are different in between China ports? I would imagine that a port stop in Hong Kong or Singapore would be a HUGE draw for shopping by mainland residents. I have always heard that the shopping is best in Taiwan.

 

I just think it is surprising that Royal Caribbean has hyped this ship for more than a year as an all weather ship and implied that it was going to be based in Bayonne. (NY area) It probably is disappointing for northeastern residents and north Americans in general.

 

It is a business. Customer preferences don't really seem to figure much in their business decisions. Royal Caribbean has made a lot of unpopular, (average) consumer unfriendly changes, both recently, and over the last few years. JMO. :) We still sail with them, I just don't talk the line up as much as I used to.

 

~Patti :)

[cruisnseas]

Your statement is certainly true.

 

However what is missed - doing this at the expense of alienating your most loyal customer through misleading promotions running for more than a year is BAD business.

 

I guess I missed the part of the year long ad campaign where RCI promised to leave their ships exactly where they initially deployed them and never change it ever.

 

As for the Floridians off their rocker and upset because they have to fly up the coast to sail on Anthem I have four words: GIVE ME A BREAK! What about the rest of the country? I have to fly a MINIMUM of 2,500 miles (and a day early) if I want to sail to warm weather. So quit complaining and be grateful that you have several year round ships within driving distance.

[Trekker954]

I always get a kick when my fellow Americans act all hurt that a company would cater to another market. Here's the deal. Royal Caribbean INTERNATIONAL. Right now, Asia is huge. They are in the upswing of their vacation dollar spending time and America is kind of stagnant. If Royal wants to survive, they have to give a little to Asia.

 

It isn't like we don't still have, what? Eight or Nine ships year round out of America. And great ships, too! You're mad that all of Asia has to share three? Give me a break.

 

Of course I'm not MAD we have to share ships with other countries and hey, I'm in Taiwan right now. What I'm "sad and hurt" about is we waited and waited for the big announcement. Anthem was to make Southampton and Port Everglades its new home.

 

Nothing has changed in the Asia market in the past year to make them switch things up. So why didn't then announce this prior to the initial announcement. Many of us were excited, heck, some made that booking for the TA. Its just odd. I'm not a big shopper but I've certainly bought some things on board, but I love the ships and spend plenty of money on board.

[Trekker954]

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..

 

I am very loyal to Royal and love the idea of cruising and the SHOWS. Wasted on me are most of the extras like wall climbing, zip lines, sports courts, ice skating, and flowrider; however, the Oasis and Freedom class ships are some of my favorites because of the entertainment so I don't mind paying higher prices for those ships.

 

However, Adam definitely emphasized the shows and comics will be in the Chinese language. So for me, although often in Asia, I am NOT sailing out of Shanghai or Hong Kong or wherever they decide to make homes for the Royal ships.

 

Count me in as feeling the effects of bait and switch. Another issue for us, we've cruise so often, we are at the point, we like to sail Royal ships we haven't yet. They are getting down in numbers so we really were looking forward to the new ships with new shows. Which makes me wonder, what does this mean for Mama Mia? Will they be looking for Chinese singers and dancers now to star in Mama Mia. hmmmm Lets see, a single female who in her youth slept with three men who doesn't know who fathered her illegitimate daughter. Not exactly what the Asia culture approves of.

 

Maybe they'll move that show to the Anthem.

 

I have noticed that each cruise I take I see more and more Asians on board. Seriously they do seem to love cruising.

Edited April 20, 2014 by Trekker954

[Big_G]

As far as your choice of companies to compare to RCCL, Eron was just a bunch of thieves but the others are classic examples of not changing as the market evolves. Kodak, Blockbuster and Borders are companies that did not find ways to evolve as the changes.

 

Excellent point.

[CRUISEFAN0001]

As far as your choice of companies to compare to RCCL, Eron was just a bunch of thieves but the others are classic examples of not changing as the market evolves. Kodak, Blockbuster and Borders are companies that did not find ways to evolve as the changes.

Actually...assuming you meant Enron...that company changed too fast...too drastically...all for the sake of change and making $$$ and ultimately at the expense of the shareholders.

 

In the examples of the others...they were all seen as very successful at one time and major market players that in fact DID change...but not with ears and eyes open to their customers...rather...following they followed their own strategy...which was out of touch with reality. These recent announcements bring back those memories.

Edited April 20, 2014 by CRUISEFAN0001

[dz9yvr]

Actually...assuming you meant Enron...that company changed too fast...too drastically...all for the sake of change and making $$$ and ultimately at the expense of the shareholders.

 

In the examples of the others...they were all seen as very successful at one time and major market players that in fact DID change...but not with ears and eyes open to their customers...rather...following they followed their own strategy...which was out of touch with reality. These recent announcements bring back those memories.

 

Kodak, Blockbuster and Borders hardly changed their business models and that's why their extinct.

[CRUISEFAN0001]

Kodak, Blockbuster and Borders hardly changed their business models and that's why their extinct.

All 3 changed their strategy on product delivery, product bundling, and how they were accessible to their customers. Kodak, for example....was repeatedly told by consumer groups they needed to focus on camera products and not film. Later, they were experimenting with digital media and basical saw "no viable mass market use".

 

People might want to study up a bit on their history. These 3 parallel other companies that "lost their way" and are remarkably similar to present day companies who think they know what the public wants more than the public itself.

 

All 3 also virtually charted their course internally without consumer feedback or input. THAT is what led to their demise.

Edited April 20, 2014 by CRUISEFAN0001

[dz9yvr]

All 3 changed their strategy on product delivery, product bundling, and how they were accessible to their customers. Kodak, for example....was repeatedly told by consumer groups they needed to focus on camera products and not film. Later, they were experimenting with digital media and basical saw "no viable mass market use".

 

People might want to study up a bit on their history. These 3 parallel other companies that "lost their way" and are remarkably similar to present day companies who think they know what the public wants more than the public itself.

 

All 3 also virtually charted their course internally without consumer feedback or input. THAT is what led to their demise.

 

 

None of the 3 companies changed their course and that was their problem. Kodak had film, Blockbuster had all of their stores as the primary outlet and Borders stores remained the same without changing merchandise. It doesn't matter if these companies got internal or external advice, it was bad advice. RCL understands that they need to enter the huge Asian market and they need to enter it with their best product. RCL understands that you only have one chance to make a first impression and they want to have the WOW factor of their newest ship. It's a great strategy. The old plan of competing against the Oasis/Allure in Florida and the east coast was a terrible plan for their new investment. The Quantum would have taken a lot of it's passengers from people that would have sailed on Oasis/Allure and that would lower prices for all 3 ships. The only thing that surprises me is that they ever planned on having Quantum on the East coast..

[BekkaW]

I can undertand why you would be disappointed, especially if you want to try the big new ships.

 

BUT just to give some perspective. Over here in Australia we have only 3 Royal ships, and they are here from November through April. Last week of April they all pack up and go.

 

The biggest ship we have ever had is Voyager, alongside that they have been running Rhapsody and radiance. Next year they are going to swap out one of the smaller ships and add Explorer, but they are still the older ships and nothing year-round. It is also much higher cost per night to sail here. I would LOVE to have access year round to ships and to the amazing deals available there. Australian sailings are never in the Tuesday sale and our short cruises (2 or 3 night) cost upwards of $700 a person.

 

We flew to Singapore and cruised back to Sydney last year. I would certainly consider flying to China to try Qantum. I'm sure lots of people from Australia, New Zealand and Singapore would also - these are all markets in which people have $ to spend and Royal is trying to capture it.

Edited April 21, 2014 by BekkaW

[caribbean sailor]

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.

 

Sounds like a shareholder.:D

[Ourusualbeach]

 

RCI promoted an entirely different plan to U.S. cruisers and spent plenty of money hyping it for more than a year. Now they are completely altering what they told a mass public audience. Call it what you will...and plenty have already assigned labels like betrayal, deceptive, and even lying.

 

 

It's not about "people getting their way"...it's about "people being grossly misled". I suspect there are plenty of shareholders among those who have experienced the effects of this highly-questionable turn of events.

.

 

 

 

Let me start out by saying I totally agree that people are upset about this whole drastic change and that it has caused many peoples plans to be altered.

 

I too was looking at booking the Anthem out of FLL in 2015. A few weeks ago when the itineraries for Allure were released I booked one as a back up fully expecting to cancel it and book on the Anthem instead. Am I ever glad that I booked that as the prices have gone up by over $1000 for the 4 of us.

 

Do I think that RCI has deliberately and grossly misled the consumer. No.

 

Business plans change. Sometimes they change even though you have spent a boatload ( couldn't resist) of money promoting your original plan.

 

I think that RCI's original intentions to have the Quantum based in Bayonne were real and that the Bermuda dredging changed that. Bermuda is an important market to cruise to in the summer and they would have had to bring another ship in to do that. Quantum had to go somewhere.

 

Long term RCI had plans to put a major ship into China. Whether it was Quantum 3 or Oasis 3 we don't know but one of those was going there.

 

Instead of moving Quantum somewhere for the season or keeping her in Bayonne without being able to do Bermuda and under performing they decided to accelerate the schedule for entry into China.

 

Really all we know for 100% surety at this point is that Bayonne will not have a Quantum class ship for the summer and fall season of 2015.

 

Anthem comes to Bayonne in fall 2015 and my thinking is that she STAYS in Bayonne year round and that Quantum 3 takes over in Southhampton and FLL in the winter.

[davy jones]

Cruise lines (along with cars, stores, etc.) are businesses first, which is why I am amused by some people's excessive loyalty to most large corporations. Royal (or any other cruise line) would dump all of their Platinum and D+ in a New York minute if they could make higher sustained profits in other markets. Yes, it sounds harsh, but it is reality.

 

I understand that cruise lines want to enter emerging markets with higher profit margins. It just seems odd that they would move the ship to Asia so quickly after the elaborate rollout of the Quantum as a "NYC" ship, with Kristin Chynoweth, and the subsequent elaborate announcements of the dining options. Perhaps the bookings were not up to expectations. Either that, or someone at RCI missed the boat completely on the Bermuda access.

[The Big Booper]

Bermuda kept postponing the dredging operation and was dragging it's feet on that issue. When a cutoff point was reached RCI had to do something so they put plan B into operation.

 

I was at the Dynamic Dining reveal in March and nobody among the high command talked about China at all.

 

You can't be profitable sailing year round out of NY unless Bermuda is available and it now can't hold a Q ship. So Q1 goes to China after the winter, Liberty, which can get into Bermuda with the current setup, comes in to do the summer and then Q2 comes into NY in the fall to do the winter while Liberty heads back to Florida. This buys time for Bermuda to get it's act together.

 

We relocated from NY to Florida in July 2013 and for years we were all speculating that Liberty would come to NY to sail out of Cape Liberty and replace Explorer.

 

My only objection to the present situation is the sky high pricing on Liberty but the market will cure that.

 

We had planned to book Anthem out of FLL at the beginning of 2016 but there are many other options available including the big new Disney ship or a trip on a Celebrity S ship.

Edited April 21, 2014 by The Big Booper

[davy jones]

Booper - If Bermuda didn't come through on dredging, then Royal had to do something and they would present it in a way to maintain good relations with the Bermuda government.

[Teeara]

Hmmm...I wonder if the naughty room will be needed in Asia...

[The Big Booper]

Booper - If Bermuda didn't come through on dredging, then Royal had to do something and they would present it in a way to maintain good relations with the Bermuda government.

 

RCI was very diplomatic about it, talking about the great opportunity to move a flashy new ship to China. This puts a positive spin on it, since they were planning on moving a big ship to China anyway but a year or two later when there would be 3 Oasis class and 3 Q ships in the fleet. At the DD reveal Adam talked about the new ship plans.

 

Still, this created a problem for RCI; the casual cruiser isn't aware of the last minute switching of ships but we, the cruise fanatics, are.

 

This affects us, since we are now Floridians, and were planning Anthem in 2016 before tax season 2016. I can always find a ship to sail from in Fl in Jan before tax season takes off. :D:):D.

[Lilyrosemum]

Cruise lines (along with cars, stores, etc.) are businesses first, which is why I am amused by some people's excessive loyalty to most large corporations. Royal (or any other cruise line) would dump all of their Platinum and D+ in a New York minute if they could make higher sustained profits in other markets. Yes, it sounds harsh, but it is reality.

 

I understand that cruise lines want to enter emerging markets with higher profit margins. It just seems odd that they would move the ship to Asia so quickly after the elaborate rollout of the Quantum as a "NYC" ship, with Kristin Chynoweth, and the subsequent elaborate announcements of the dining options. Perhaps the bookings were not up to expectations. Either that, or someone at RCI missed the boat completely on the Bermuda access.

Totally agree with this post. You have to remember this is a CORPORATION!!!! They do not have a soul regardless if some politician says they are "people too".

[novicetraveller]

Sounds like a shareholder.:D

 

Nope. Don't own any shares in RCCL. They owe me nowt. And I don't owe them nowt either. The moment I become bored of RCCL, I will go elsewhere.

[mr walker]

Hmmm...I wonder if the naughty room will be needed in Asia...

 

:D I doubt it.

 

Based on my experiences in Asia there will be no rum runners and no slabs of water or soda brought on board & they will shop and gamble.

 

And us folks downunder (like BekkaW) will get the chance to cruise on some more ships either in Asia or when they head down here for the southern summer.

[NEMMRRC]

I'm surprised all these very loyal Royal customers have not voiced the following concerns:

- who will teach the new Asian customers the art of pool chair hogging.

- will there be anyone around to teach the new Asian customers the ins and outs of storing marine wildlife in the showers.

[Ocean Boy]

I'm surprised all these very loyal Royal customers have not voiced the following concerns:

- who will teach the new Asian customers the art of pool chair hogging.

- will there be anyone around to teach the new Asian customers the ins and outs of storing marine wildlife in the showers.

 

It appears that all they do is shop and gamble. The pool deck might be empty.

[LuvBNatC]

It appears that all they do is shop and gamble. The pool deck might be empty.

 

Shopping and gambling must have the top brass at RCI drooling in anticipation at the impending onboard revenue.

 

I don't know the answer to this, but is Chinese culture in any way similar to Japanese, where over-worked office drone types relax by doing some hard drinking in the evenings and engaging in random acts of karaoke?

 

If so, imagine what they'd be like on vacation.

 

I'm hearing Ka-ching! again. :D

 

Karen