UBP Price Increase

[AweighToSea]

Sorry I can't find on their website what they are selling for in cabin liquor. Was sure I'd seen a selection and prices before but can't now.

 

Can someone tell me where to find that?

[SeaShark]

So if you pre-pay you need to order $63.53 worth of drinks a day to break even.

 

Pay on board and you need to order $69.41 worth of drinks a day.

 

Quick someone post a link to Gambee's photos of the drink menu so I can figure out what and how much I would need to drink to make it "worth" it!

 

Your mathematical take is rather interesting. Let's examine it from a different angle.

 

 

When offering packages like this, the cruise lines count on consumers being "math impaired" (to borrow your term). Most people will try to calculate value based on their perceived cost...while ignoring their real cost. Which is what they want you to do. Remember, it isn't the bargain you get, it's the bargain you THINK you get.

 

 

(The following numbers are for the purposes of example). I, the cruiser, have been on 15+ cruises. For the sake of example, lets assume that ALL of my cruises are 7 day cruises. My average bar tab for these cruises is $250.

 

 

Looking for a deal, I decide to prepay for the UBP to save the $5 per day. According to your math, I need to consume $63.53 worth of drink per day to break even....and when I get to the ship, I do just that.

 

My bar bill for this cruise is $444.71 (7 days x $63.53 per day).

 

My average bar bill for ALL of my cruises is $250.

 

 

So....did I break even by drinking $63.53 per day, or has the cruise line figured out a way to get me to spend $194.71 that I wouldn't have normally spent??

[hbooden]

While I am never happy to pay more...it's $5 which is what the cost of a half of drink? (I drink vodka so.. ) I am more excited that this appears to be opening up the drinks like a chocolate martini or a blue moon for my husband!

 

:)

 

 

Sent using the Cruise Critic forums app

[triptolemus]

So....did I break even by drinking $63.53 per day, or has the cruise line figured out a way to get me to spend $194.71 that I wouldn't have normally spent??

But don't you think you're beginning with a pretty low "average" bar bill for someone who would jump to the UBP? And are you not also ignoring intangible value (convenience, trying new things, budgeting)? What about customers with a DIV/0 error, i.e.; $0 average bill for having never cruised before?

Edited May 15, 2014 by triptolemus

[rehab2012]

i must say id have to agree with SeaShark, Yes i could drink 64 dollars of alcohol a day every day for 7 days but I would be spending my cruise comatose or with a hangover just because I was "trying" to break even. Maybe I am just a light drinker but I would tend to have 2-3 drinks per evening on average on a cruise

[SeaShark]

But don't you think you're beginning with a pretty low "average" bar bill for someone who would jump to the UBP? And are you not also ignoring intangible value (convenience, trying new things, budgeting)? What about customers with a DIV/0 error, i.e.; $0 average bill for having never cruised before?

 

Actually, I don't. I think people would be truely surprised to know just how much the average cruiser spends and on what.

 

The cruise lines aren't putting out these plans so that guest can get over on them...they're business people. This is done strictly to get people to spend more so the bottom line increases.

 

Sure, a handful of people are going to benefit, but many many more are going to be driven to spend more than they normally would...just so they can break even. The cruise lines aren't losing money with these packages...they are making MORE money. And where do you think that extra profit is coming from?

[wichitastatecruiser]

Your mathematical take is rather interesting. Let's examine it from a different angle.

 

 

When offering packages like this, the cruise lines count on consumers being "math impaired" (to borrow your term). Most people will try to calculate value based on their perceived cost...while ignoring their real cost. Which is what they want you to do. Remember, it isn't the bargain you get, it's the bargain you THINK you get.

 

 

(The following numbers are for the purposes of example). I, the cruiser, have been on 15+ cruises. For the sake of example, lets assume that ALL of my cruises are 7 day cruises. My average bar tab for these cruises is $250.

 

 

Looking for a deal, I decide to prepay for the UBP to save the $5 per day. According to your math, I need to consume $63.53 worth of drink per day to break even....and when I get to the ship, I do just that.

 

My bar bill for this cruise is $444.71 (7 days x $63.53 per day).

 

My average bar bill for ALL of my cruises is $250.

 

 

So....did I break even by drinking $63.53 per day, or has the cruise line figured out a way to get me to spend $194.71 that I wouldn't have normally spent??

 

I found some older spreadsheets from the Celebrity board that helps people decide whether to go with a package or not. I will use the prices from Gambee's blogs to build one for NCL. I think I might be able to get one ready and uploaded by the end of the weekend!

 

To answer your question people who buy the package are going to be people who think they will go OVER the $63.53 per day. That's why I'm going to build the spreadsheet. Want to know if my cruise drinking habits will justify getting the package.

[Single Cruiser]

There are two ways to view UBP. Yes you can say you do pay more. But similarly there is the advantage you can pre-pay it spreading the cost over several pay days but also you don't have to worry about what your bar bill is.

 

You can sample new drinks. One wet day on Epic TA a group of us went up to H2O and decided to go through the frozen drink menu.. One great afternoon :D , wouldn't have done it without the UBP..

[AweighToSea]

Those 'intangibles' are main reason I buy such packages, not just if I can squeeze every cent out of it vs. buy w/o a package. However the extra $80 has eaten directly into that value much the same as it will fall to NCL's bottom line. Its a balance now tipping the other way for me.

 

I'm sure they are hoping most new bookings won't notice and those like me who booked while back but not yet bought the package will rationalize the increase and make the purchase anyway.

 

That said for every one like me who no longer buys, and so no one in our cabin buys and they lose two sales, it takes 24 new buyers to make up for that revenue (62 per day*7 days *2 =870 870/5 revenue increase = 174 package days / 2=87 days / 7 days=12 bookings (2 per cabin). I must be in a minority or this increase will lower revenue by lowering package purchases.

 

I agree with the previous post about perceived value. It is all bout revenue and not cost for NCL and all about value, based on numbers they give you, for the buyer.

 

I am pleased now seeing the new package that they have improved it with a far simpler single price limit then the so much for wine and so much for this and so much for that. In fact that was one of the reason we initially decided against buying it was all that messing about.

 

I know see that by increasing the $ limit that have increased that value perception for the higher cost. S one poster wrote it is less than the cost (price) of one drink

 

Now I am looking at 6 bottles of wine from home * 15 corkage plus $100 bottle in the cabin = $190 vs $870. Even after the cost of my wine it leaves a lot of room for a drink or two after dinner.

Edited May 15, 2014 by AweighToSea

[LrgPizza]

When we purchased it today, our PCC tried to talk my husband out of it. LOL! We explained that we know it isn't a bargain for us, but we want it anyway.

[SteveH2508]

SeaShark has basically nailed it.

 

Anyone who thinks NCL introduced the UBP to lose money is - at best - naive.

 

They have run the numbers from data based on millions of passengers and they know they will come out ahead.

 

We have a whopping bill after each cruise (a fair proportion being booze) - so - at first glance this is a deal. On closer analysis, our preferred drinks are often not included (think cognac after dinner - decent malt whisky - top shelf Martinis (albeit more of those are now included).

 

We have spreadsheets detailing our spend on each cruise and the numbers for us do not add up. We take the AVERAGE spend per day and extend it over the days of the cruise. Does not work for us - and - we do not want to feel pressured to drink to get value from the UBP.

 

It is a personal decision - but - bear in mind - NCL's bean counters have done it for their benefit - not yours.

[LrgPizza]

SeaShark has basically nailed it.

 

Anyone who thinks NCL introduced the UBP to lose money is - at best - naive.

 

They have run the numbers from data based on millions of passengers and they know they will come out ahead.

 

We have a whopping bill after each cruise (a fair proportion being booze) - so - at first glance this is a deal. On closer analysis, our preferred drinks are often not included (think cognac after dinner - decent malt whisky - top shelf Martinis (albeit more of those are now included).

 

We have spreadsheets detailing our spend on each cruise and the numbers for us do not add up. We take the AVERAGE spend per day and extend it over the days of the cruise. Does not work for us - and - we do not want to feel pressured to drink to get value from the UBP.

 

It is a personal decision - but - bear in mind - NCL's bean counters have done it for their benefit - not yours.

 

 

Exactly. The same thing can be said for UDP, yet plenty of people still think it's a deal. For a handful, maybe it is. For most, it's better to pay as you go.

 

By the way, I've never heard anyone say they think it was introduced to lose money. Not sure where you guys are coming up with that, but I'll play along with Mr. Obvious.

Edited May 15, 2014 by LrgPizza

[triptolemus]

Anyone who thinks NCL introduced the UBP to lose money is - at best - naive.

 

I don't think anyone here actually believes NCL hopes to lose money with UBP. I agree with the Pizza above... who ever said that?

 

It's disingenuous to compare the cruse line's profit/loss alongside an individual customer's value -- real or perceived. The average bar bill of NCL's "millions" of passengers has absolutely nothing to do with my bar bill. It's silly for me to base my calculations on that number.

 

NCL can run the numbers against NCL's thousands of bookings -- even over the course of a single voyage -- and NCL has a valid dataset with which to extrapolate information. It doesn't quite have any meaning to many customers. For example, there are an awful lot of examples in what you say SeaShark "nailed" which have absolutely no basis in my reality.

Edited May 15, 2014 by triptolemus

[Weazy86]

Sooo why does this mean for those who already purchased the package??:confused:

[triptolemus]

Sooo why does this mean for those who already purchased the package??:confused:

 

You're locked in at what you already paid.

[calex]

Your mathematical take is rather interesting. Let's examine it from a different angle.

 

 

When offering packages like this, the cruise lines count on consumers being "math impaired" (to borrow your term). Most people will try to calculate value based on their perceived cost...while ignoring their real cost. Which is what they want you to do. Remember, it isn't the bargain you get, it's the bargain you THINK you get.

 

 

(The following numbers are for the purposes of example). I, the cruiser, have been on 15+ cruises. For the sake of example, lets assume that ALL of my cruises are 7 day cruises. My average bar tab for these cruises is $250.

 

 

Looking for a deal, I decide to prepay for the UBP to save the $5 per day. According to your math, I need to consume $63.53 worth of drink per day to break even....and when I get to the ship, I do just that.

 

My bar bill for this cruise is $444.71 (7 days x $63.53 per day).

 

My average bar bill for ALL of my cruises is $250.

 

 

So....did I break even by drinking $63.53 per day, or has the cruise line figured out a way to get me to spend $194.71 that I wouldn't have normally spent??

 

It sure looks like this could be a questions tied to the new COMMON CORE standard being pushed out nationwide.

[Weazy86]

Thanks trip got a little nervous there, sailing in 9 days !!

[SeaShark]

Exactly. The same thing can be said for UDP, yet plenty of people still think it's a deal. For a handful, maybe it is. For most, it's better to pay as you go.

 

By the way, I've never heard anyone say they think it was introduced to lose money. Not sure where you guys are coming up with that, but I'll play along with Mr. Obvious.

 

Yeah, and obviously NOBODY ever said that someone said it was introduced to lose money. The point is that NCL introduced it so they could make more money.

 

Now follow along...If NCL is making MORE money, then somebody else has to have LESS money. Who would that be?

 

A: Those who purchase the UBP, of course.

 

 

Now, Common Core time: If the people who buy the UBP end up with LESS money, then how can it be a good deal for anyone but NCL?

[LrgPizza]

Yeah, and obviously NOBODY ever said that someone said it was introduced to lose money. The point is that NCL introduced it so they could make more money.

 

Now follow along...If NCL is making MORE money, then somebody else has to have LESS money. Who would that be?

 

A: Those who purchase the UBP, of course.

 

 

Now, Common Core time: If the people who buy the UBP end up with LESS money, then how can it be a good deal for anyone but NCL?

 

Come on, Mr. Obvious - Anybody who purchases anything from NCL has less money and NCL has more money. Duh. Of course they introduced it to make more money. Who said otherwise? I think you are trying to argue with yourself here, or start some kind of debate where there isn't one.

[SeaShark]

Come on, Mr. Obvious - Anybody who purchases anything from NCL has less money and NCL has more money. Duh. Of course they introduced it to make more money. Who said otherwise? I think you are trying to argue with yourself here, or start some kind of debate where there isn't one.

 

Your question, fwiw, was addressed within the post you quoted, so there is no need to repeat it.

 

Other than that, based on your stated premise, you obviously agree that it can't be a good deal for the guest so I'm failing to see the point of your continuing on. :confused:

[LrgPizza]

Your question, fwiw, was addressed within the post you quoted, so there is no need to repeat it.

 

Other than that, based on your stated premise, you obviously agree that it can't be a good deal for the guest so I'm failing to see the point of your continuing on. :confused:

There you go

[Cruiser Who Knows Nothing]

I think people buy the UBP not with the intention of breaking even, but with the intention of having everything paid for (with the exception of a few incidentals) prior to sailing. I know when we go to Didney, we buy the deluxe dining package, more food than we could ever eat, but it's paid for. All the "cash" I bring in our trips is for non essentials items.

 

We are passing on the UBP, this time, but as LrgPizza knows....I'm down with OBC. I'm making it rain with my OBC.

 

 

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[swedish weave]

The cruise line still hasn't convinced me that a single drink is worth ten bucks. They certainly can't sell me this package.

[wichitastatecruiser]

Actually, I don't. I think people would be truely surprised to know just how much the average cruiser spends and on what.

 

The cruise lines aren't putting out these plans so that guest can get over on them...they're business people. This is done strictly to get people to spend more so the bottom line increases.

 

Sure, a handful of people are going to benefit, but many many more are going to be driven to spend more than they normally would...just so they can break even. The cruise lines aren't losing money with these packages...they are making MORE money. And where do you think that extra profit is coming from?

 

I posted a spreadsheet that breaks down the UBP if you want to play with it! Gave it its own thread.

[Casino Comp Chick]

Wow with this increase the true value price of my Haven 2BR dropped to $450.00. I am sorry I didn't book 2 cruises on the Freesome promo.