NCL cruise prices up and up for 2015

[Seanote]

That's essentially what I write whenever these threads about "increasing prices!" pops up. And this also goes for pricing into the late-80's and early-90's too. Cruising used to be a much more costly vacation option. Pricing is not only low due to various contemporary factors such as the recession, it's also extremely low in the historical context. Sheehan and the other industry leaders have been talking for years now about trying to raise prices to correspond with the products they are offering. These numbers show that they have a point, at least in a historical sense.

 

True, I have heard Kevin mention his desire for prices to increase, especially in the wake of the Carnival/Costa debacles which drove down prices for the industry as a whole. However Kevin's desires run opposite to cruise industry analysts observations that indicate the industry needs to attract new customers to cruising to fill ships as capacity continues to increase with new, larger ships. One obvious target is the percentage of the population who historically have been priced out of cruising as a vacation option. To attract this population, the industry needs to continue to find efficiencies (such as large ships and short-run itineraries) to keep prices affordable to the less affluent population.

[don't-use-real-name]

You of course could consider other modes of vacation travel - such as train

but more expensive and not as punctual or timely - how about your own

car - hummm fuel/oil maintenance upkeep wear and tear and certainly not

able to leap across water in a single bound - and only if you are real destitute

should you consider a tour by bus over a great deal of distance but it no doubt

would be cheap - and then flying but you don't get those fabulous meals and

entertainment also factor the fees paid for baggage and sudden change fees

for change in plans - and lastly your own private yacht chartered or owned but

then why would you be concerned about a cruise ship ?

 

All these things considered - the cruise ship offers the most bang for the buck

or Canadian loony over all the above transportation modes.

You don't have to clean and make your own bed -

You can have your meals almost 24/7 and in your cabin if you prefer -

You can be entertained or do the entertaining yourself -

You also on some ships can try your luck at the casino to pay for you next trip -

More -

 

So you have a few small things to worry about -

How to get to and from the cruise line port -

Decisions on whether it will be an Inside Oceanview Balcony or Suite -

What if any shore excursions you will take -

More -

 

Thinking and Planning doesn't cost anything -

Dreaming is everything - make your dream come to life (within financial reason) !

[old sole]

For those curious, here's what NCL's pricing was like 40 years ago in 1974.

 

 

Those prices included airfare.

 

See the note at lower left - prices are a little over $50 higher on certain dates because of airfare changes.

 

I'm not complaining about today's prices, they are very affordable. But I don't go with the theory that the cruise lines have slashed real prices compared to several decades ago. They can't. They have to earn a profit, and they weren't insanely profitable back then. What they have done is create new cabin categories, charging double or more for an outside cabin with the same amount of space just by cutting a hole to the outside and welding on a platform that will hold a couple of chairs. Much more revenue per average cabin, and a better cruise experience, but not slashed prices at all.

Edited May 15, 2014 by old sole

[4774Papa]

I think with more and more baby boomers retiring, taking more cruises, there should be more customers.

[barnacle_boy]

True, I have heard Kevin mention his desire for prices to increase, especially in the wake of the Carnival/Costa debacles which drove down prices for the industry as a whole. However Kevin's desires run opposite to cruise industry analysts observations that indicate the industry needs to attract new customers to cruising to fill ships as capacity continues to increase with new, larger ships. One obvious target is the percentage of the population who historically have been priced out of cruising as a vacation option. To attract this population, the industry needs to continue to find efficiencies (such as large ships and short-run itineraries) to keep prices affordable to the less affluent population.

 

I think the days of expanding the cruising market by appealing to the bottom of the barrel have reached their end. Cruise lines are frustrated by the fact that passengers have become accustomed to lower pricing to the point that it’s difficult to make significant increases despite the alleviation of outside contextual constraints. If the goal is upward movement, there’s little reason to reach out to those who can barely grab on now. Sheehan has said several times that his goal is to position NCL within the premium market. He sees no reason why NCL can’t compete with Celebrity or Princess, and I don’t think it’s merely a coincidence that Breakaway and Getaway attempt to emulate a much more premium atmosphere than NCL’s previous ships.

 

I truly believe that the next frontier within the domestic market is the youth. The market for 20-40 year olds is largely untapped. Why reach out to people who can barely afford today’s already rock-bottom pricing when you can try to entice a group that contributes well over a trillion dollars in consumer spending annually?

 

Those prices included airfare.

 

See the note at lower left - prices are a little over $50 higher on certain dates because of airfare changes.

 

I'm not complaining about today's prices, they are very affordable. But I don't go with the theory that the cruise lines have slashed real prices compared to several decades ago. They can't. They have to earn a profit, and they weren't insanely profitable back then. What they have done is create new cabin categories, charging double or more for an outside cabin with the same amount of space just by cutting a hole to the outside and welding on a platform that will hold a couple of chairs. Much more revenue per average cabin, and a better cruise experience, but not slashed prices at all.

 

Of course airfare is included with these prices, this is one of my early NCL Cloud 9 brochures! :) It’s ironic that the very airplanes that took passengers away from the old liners ended up providing the very links between Miami and the rest of the country that allowed pleasure cruising to grow in the 1970’s and 1980’s. NCL’s Cloud 9 air/sea program was amongst the first, and it was so successful that many competitors quickly followed in their footsteps. Even if you subtract the cost of airfare, these prices are still quite high.

 

But, you have a fair point. Here’s Sunward’s pricing sans airfare in 1967. With inflation, it would have cost $2,300 for a double occupancy inside with bathroom facilities down the hall. Other lines charged similar amounts for such spartan accommodations during this period as well.

 

 

I completely disagree about slashing prices. Look up any interview done with any CEO of the big three in the past few years. From Sheehan to Goldstein, all of them lament the fact that they’ve had to severely slash prices in the past decade or so due to various contextual concerns. When lines started expanding to a larger number of ports in the wake of 9/11, they slashed pricing in hopes of luring new passengers from nearby markets. When lines had to deal with the recession, the slashed pricing in order to fill their ships. When Carnival suffered several high profile accidents, mass-market brands slashed pricing in order to match the deep cuts Carnival was forced to make.

 

Balconies help, but cruise lines certainly don’t charge "double or more" for them. The difference between an outside and a balcony on modern megaships rarely exceeds 25% these days. More revenue? Perhaps. But not much more, especially in light of all the slashing that has been done. Cruise lines are also not insanely profitable. NCL had $2.5 billion revenue, but only $100 million net income. Carnival, NCL, and RCI all suffer from low margins, in large part due to how deeply they’ve slashed pricing. Their CEOs are acutely aware of this fact, and, emboldened by the steady recovery of pricing back to 2008 levels, have voiced hope that they will be able to increase pricing in the future to allow for those margins to grow.

Edited May 15, 2014 by barnacle_boy

[debnjoe1438]

I had talked my cousin into taking a seven day NCL cruise out of Tampa next January after her Son graduated from college. It would be six of us on the cruise.

 

Prices quoted earlier this year were

$399 per person for an inside cabin.

 

Prices have gone up significantly.

Price up to $499 pp for inside.

 

That is about a 33% increase. All the cruise lines have increased their prices, but percentage wise, NCL has no longer become the bargain that it was.

 

$399.00 for a 7 day cruise is rare. (At least when I'm looking) Prices go up and down like a see saw.

[newmexicoNita]

Those prices included airfare.

 

See the note at lower left - prices are a little over $50 higher on certain dates because of airfare changes.

 

I'm not complaining about today's prices, they are very affordable. But I don't go with the theory that the cruise lines have slashed real prices compared to several decades ago. They can't. They have to earn a profit, and they weren't insanely profitable back then. What they have done is create new cabin categories, charging double or more for an outside cabin with the same amount of space just by cutting a hole to the outside and welding on a platform that will hold a couple of chairs. Much more revenue per average cabin, and a better cruise experience, but not slashed prices at all.

 

Basic prices are lower if you consider inflation. What you have is more travelers, not based on baby boomers retiring but based on cruising becoming more a family vacation. In the last century before say, 1990 it was rare to see kids on cruise ships. You also didn't have extra charge restaurants, spas, activities that cost money, Vegas type casinos, etc. So you are only partly right. Now, what we have is a la carte cruising, which is fine. The basic rates are still lower. The profits come from charges after you step board a ship Our first cruise, in 1984 on an old ship that is now a thing of the past was: $499 a person (this was a special rate for the travel industry) the regular rate was $999 per person. It was an outside cabin, but with only a port hole. so, based on that alone, plus inflation, how can anyone say the basic cabin prices have not gone down? What we spend after boarding is a personal thing. There are still those who only spend the cost of gratuities.

[Seanote]

I think the days of expanding the cruising market by appealing to the bottom of the barrel have reached their end. Cruise lines are frustrated by the fact that passengers have become accustomed to lower pricing to the point that it’s difficult to make significant increases despite the alleviation of outside contextual constraints. If the goal is upward movement, there’s little reason to reach out to those who can barely grab on now. Sheehan has said several times that his goal is to position NCL within the premium market. He sees no reason why NCL can’t compete with Celebrity or Princess, and I don’t think it’s merely a coincidence that Breakaway and Getaway attempt to emulate a much more premium atmosphere than NCL’s previous ships.

 

 

I too have heard Kevin indicate his desire to have NCL viewed as more of a premium product, especially the Haven segment. However, I think he gets the messages confused as the company continually looks for ways to cut expenses to improve the bottom line.

As a frequent cruiser, I have witnessed frequent small cuts from cruise to cruise, even in the Haven product. If you want to be viewed as a premium cruise line, you need to provide a premium product, not just the appearance of one. Cut too much and you will die a death of a thousand cuts.

[dexddd]

I too have heard Kevin indicate his desire to have NCL viewed as more of a premium product, especially the Haven segment. However, I think he gets the messages confused as the company continually looks for ways to cut expenses to improve the bottom line.

As a frequent cruiser, I have witnessed frequent small cuts from cruise to cruise, even in the Haven product. If you want to be viewed as a premium cruise line, you need to provide a premium product, not just the appearance of one. Cut too much and you will die a death of a thousand cuts.

 

Interesting you mention this as that is pretty much our observations as well. It has us seriously looking at other lines plus those other lines have routes NCL doesn't offer.

[weltek]

$399.00 for a 7 day cruise is rare. (At least when I'm looking) Prices go up and down like a see saw.

 

I ditto that. I browse Dec. and Jan. fares a lot (monthly, for the last four years or so) on NCL and they fluctuate consistently between around $359 and $599 for 7 day Caribbean cruises, depending on the ship and itinerary. I wouldn't consider the OPs situation a "price increase" by the cruise line. It's just normal fare fluctuation. It's likely to dip lower at some point this year.

Edited May 15, 2014 by weltek

[calex]

Price go up and down all the time. I use a price tracking site and this is just one example (Cat IX for anyone curious) from my upcoming Getaway cruise:

 

Price Created Updated

$ 1,049 2013‑08‑02 2013‑08‑06

$ 1,099 2013‑10‑31 2014‑01‑23

$ 1,079 2014‑01‑23 2014‑01‑23

$ 1,099 2014‑01‑24 2014‑02‑14

$ 1,049 2014‑02‑15 2014‑02‑17

$ 999 2014‑02‑18 2014‑02‑23

$ 979 2014‑02‑24 2014‑02‑24

$ 999 2014‑02‑25 2014‑04‑11

$ 1,029 2014‑04‑12 2014‑05‑07

$ 899 2014‑05‑07 2014‑05‑14

 

This is for a new boat; older boats that aren't as popular will have even more price changes. Not to mention with a sail date 80 days away there is still room for many more drops (or increases), and they can happen as late as 3 days from sailing.

 

Are you allowed to give the name of this site?

 

--Michael

 

If you Google fishing for a cruise your question will be answered...

 

Also, if you search for cruise insider's club your research can help you save on your next booking.

[rvsullivan]

We always book about a year or more out. Last two years price for our suite has been flat. Our cruise this year has gone up over $500 since we booked and we still have 7 months to go. However, the same cruise for 2015 is already over $1500 less than this year. So 2015 is a big saving for us right now. I hate to book 19 months out, but can't pass up the 2015 prices!!!

[cliffd64]

Regarding the original post, going from $399 to $499 for inside cabins is not unusual and is part of the normal fluctuation in prices as time goes on. $399 is actually really decent for a 7 day cruise... and $499 is not bad either.

 

One thing to keep in mind in a normal situation... as a certain category gets filled, the prices will tend to climb up until final payment date, where they will tend to drop for a short time as cancellations are applied. All this is subject to suplly and demand too, for if you are booked for a week that is not moving well, there may be price reductions made at any time to fill cabins.

 

I'm still seeing great prices come and go along with the promotions. :)

 

Our cabin (balcony) for our cruise in Nov/Dec this year has been relatively stable with the exception of the "third person goes for free" promo... that dropped it significantly for us... But overall, the prices have been stable despite the fuel costs rising again...

Edited May 15, 2014 by cliffd64

[barnacle_boy]

I too have heard Kevin indicate his desire to have NCL viewed as more of a premium product, especially the Haven segment. However, I think he gets the messages confused as the company continually looks for ways to cut expenses to improve the bottom line.

As a frequent cruiser, I have witnessed frequent small cuts from cruise to cruise, even in the Haven product. If you want to be viewed as a premium cruise line, you need to provide a premium product, not just the appearance of one. Cut too much and you will die a death of a thousand cuts.

 

The “there have been so many cutbacks!” argument is literally older than mainstream cruising itself. I had some free time to kill yesterday and I re-watched my fave QE2 Nat Geo documentary made in the late 1970's. Even back then, crew and passengers lamented the cutting of particular services for economical reasons. It’s by no means a recent trend and many cruises lines other than NCL are both increasing prices and cutting back on services. You’re free to wander from line to line, in fact, I encourage it, but if you sail with one line long enough you’re bound to experience these cutbacks. That’s just an inevitability.

 

Of course, along the way many lines add new services and amenities. Sure, passengers in the 1950’s could expect stewards to layout their evening wear and waiters to pass them the salt and pepper shakers (heaven forbid they have to reach across their own plates!). Of course, there was no A/C, no guarantee of private baths, no shows, few scheduled activities, and not much in the way of public spaces beyond generic lounges. Despite the lack of superlative personalization, we live in an age of incomparable comfort upon the seas.

Edited May 16, 2014 by barnacle_boy

[karen_cpa]

We always book about a year or more out. Last two years price for our suite has been flat. Our cruise this year has gone up over $500 since we booked and we still have 7 months to go. However, the same cruise for 2015 is already over $1500 less than this year. So 2015 is a big saving for us right now. I hate to book 19 months out, but can't pass up the 2015 prices!!!

 

That's very interesting because we are having the opposite experience. We just booked for August 2015 the same exact cruise we booked in August 2013 and are paying $450pp more for the same exact cabin. I am hoping prices will drop at some point and perhaps we can rebook.

[newmexicoNita]

That's very interesting because we are having the opposite experience. We just booked for August 2015 the same exact cruise we booked in August 2013 and are paying $450pp more for the same exact cabin. I am hoping prices will drop at some point and perhaps we can rebook.

are you paying $450 each or just per cabin and do you have a suite? I think seeing you are talking about way over a year out, you can count on a lot of changes in pricing.

[karen_cpa]

are you paying $450 each or just per cabin and do you have a suite? I think seeing you are talking about way over a year out, you can count on a lot of changes in pricing.

 

We are paying $450 more each, and yes, it's a suite.

 

We always book a good 18 months out. Last time when we originally booked (early 2012 for August 2013 sailing), the price we originally booked on was the lowest it ever got.

 

I am hoping for a price decrease, but I feel like there are so few choices out of NY during the summer, I am not counting on it. Mentally I have prepared myself for a much larger final payment this time around.

[newmexicoNita]

We are paying $450 more each, and yes, it's a suite.

 

We always book a good 18 months out. Last time when we originally booked (early 2012 for August 2013 sailing), the price we originally booked on was the lowest it ever got.

 

I am hoping for a price decrease, but I feel like there are so few choices out of NY during the summer, I am not counting on it. Mentally I have prepared myself for a much larger final payment this time around.

 

I too hope they drop for you. Our sailing in April (and they only sail the itinerary 3 times) dropped just this morning by a few $$s. Nothing to get excited about, but at least it did drop. We are on a group rate with an OBC so we will leave it where it is unless there is a large drop in price.