Carnival Foresees an End to the Era of Cheap Caribbean Cruises

[EZ4]

I've been saying for a while that there is an over capacity of ships in NA. Looks like changes are on the horizon.

 

 

http://www.businessweek.com/articles/2014-06-24/carnival-foresees-an-end-to-the-era-of-cheap-caribbean-cruises#r=most%20popular

[cruising_diva]

I suppose we better enjoy it while it lasts. For now, it's cheaper for us to cruise than rent a house for a week in Florida. If that changes, we may reconsider our vacation plans in the future.

 

Sent from my SAMSUNG-SM-N900A using Tapatalk

[Pine Bluff]

I've been saying for a while that there is an over capacity of ships in NA. Looks like changes are on the horizon.

 

 

http://www.businessweek.com/articles/2014-06-24/carnival-foresees-an-end-to-the-era-of-cheap-caribbean-cruises#r=most%20popular

 

They said that a year ago too, and they just couldn't do it. The only way they can fill the ships is to offer slashed rates, or not sail full. Hell, it got so bad, they are now giving the cabins away!

[wanderingjew]

I've been saying for a while that there is an over capacity of ships in NA. Looks like changes are on the horizon.

 

 

http://www.businessweek.com/articles/2014-06-24/carnival-foresees-an-end-to-the-era-of-cheap-caribbean-cruises#r=most%20popular

How can they do this they have only 7 east coast ships 6 fantasy and the pride that fit in the Panama Canal until Jan 2016 which can be postponed.

 

the other 12 ships have to spend 50 days going around south america to get to the west coast unless they send ships to europe

[dcikon2]

I am hoping Carnival will sail to the Greece and Croatia soon.

[wanderingjew]

They said that a year ago too, and they just couldn't do it. The only way they can fill the ships is to offer slashed rates, or not sail full. Hell, it got so bad, they are now giving the cabins away!

To quote my friend John Heald "BRILLIANT"!!!!

 

Diamond Dave AKA Mr Heckler

Edited June 25, 2014 by wanderingjew

[gregg204]

They said that a year ago too, and they just couldn't do it. The only way they can fill the ships is to offer slashed rates, or not sail full. Hell, it got so bad, they are now giving the cabins away!

 

 

Got so bad huh. Yea that 106 million 2nd qtr profit sucks. I know that's not setting the world on fire for a company as big a CCL, but as much as you eat, sleep and dream about how how bad you think it is, 90k passengers a week (most paying a few not) would disagree. I do however agree to keep being successful in the future the freebies and low price bookings have to change.

[VacationCrazee]

Carnival is in a losing battle. MSC cruiseline just joined the ranks of the cruiselines offering Caribbean cruises (ridiculously reduced prices) and unless one of the major lines significantly reduce their offering (and I mean significantly) for the foreseeable future, there will be a glut of available berths going to the Caribbean.

 

At the point that so called "cheap" Caribbean cruises become no longer cheap, all but the most diehard cruisers will just revert to land vacations. Right now, as a solo cruiser, the only way a cruise makes $$ sense to me over a land vacation is where the cruiseline either eliminates the solo supp or the cruise is discounted at least 50% or more.

 

Maybe if they stop trying to "outbuild" each other with the ridiculously large ships with amenities that are ignored by all but a few, they can return to a degree of profitability that will leave everyone with a smile on their face. :) jmpo.

[winddawn]

How can they do this they have only 7 east coast ships 6 fantasy and the pride that fit in the Panama Canal until Jan 2016 which can be postponed.

 

the other 12 ships have to spend 50 days going around south america to get to the west coast unless they send ships to europe

Exactly my thoughts. How are they going to cut ships from the NA market? They pulled out of Europe because they weren't happy with their profit margin there. Are they going to retire older Fantasy class ships and not replace them? Or will they move ships to China?

 

We keep hearing that Carnival won't discount close to sail date to fill empty cabins. So how will they fill them? With fuel prices rising again, I wouldn't think sailing with empty cabins would be their best option. And we continue to see that Carnival drops prices as sail dates approach.

 

With the middle class disappearing in the U.S. I wonder how they will fill ships if they raise prices.

 

It ought to be interesting. My thoughts are that if they are going to raise prices, they are going to have to improve their product.

[Stallion]

Carnival has been sharply cutting prices all season long especially when they are finally faced with the dreaded competition. They'll just cut more corners and raise drink prices etc

Edited June 25, 2014 by Stallion

[JasonV1]

The way I see it, it's either affordable or not. It it's not, I don't go.

 

This is probably one of the reasons why loyalty programs in general have gotten worse over the year, as they don't solve this problem. The only thing that solves this issue (other than rock bottom prices, which doesn't help if guests spend little on-board) is getting new people to cruise. That first time cruiser who buys tons of photos, drinks, and excursions on-board probably generates far more revenue than a frugal seasoned veteran who racks up little or no on-board charges. I'm probably in the middle of the "valuable guest" equation as I spend a fair amount on drinks and specialty restaurants (and generally higher cat cabins), but very little anywhere else.

 

As far as I know cruising in general is still growing, but I don't know exactly where most of that growth is happening (beyond China). I'd be interested in seeing the breakdown of growth by geographic area/cruise line/cabin cost to see where the problems really are.

[buddylover]

CCL has been sailing below occupancy?? Fooled me, they are giving away these rooms for FREE.....right, not only have they had non stop sales to fill occupancy for 2014 they are handing out FREE CRUISES to some.....really upsetting their loyal paying pax who are NOT getting the same offer!!! It's smoke and mirrors from CCL execs, but they don't fool ALL of us!!

[mrBit]

I read the same thing back in 2007, it was the European wave then... then the ships came back... now it will be an Asian wave and the ships will come back.

 

It has gotten more competitive so yes the bottom line is going to come under pressure but just as with the European, the Asian wave will yield hopefully some growth and we will see newer ships, more additions and such. Comparing when i sailed in 07 to now, ships have more to offer in my opinion. Loyalty programs have changed, that is true, now it is a point system vs the amount of cruises. I remember 10 cruises got you the top tier with Carnival.

 

Royal Caribbean is even competitive now vs its prices in 07 in my opinion. Heck in some cases Carnival is more expensive.

RCL has WAY better kid programs vs what it had in 07.... Carnival has always had great kids programs.

 

Across the industry, the water slides are better, flowrider, ripcord, rope courses, walk the plank, movie screens, ice bars, custom burgers, faster checkin, wifi, virtual balconies, better deck plans with hot tubs, royal promenades, cafes, fitter foods, RCL's new drink policy...(come on Carnival), splashing buckets and water parks, elevator bars, wine clubs, bumper cars, changing scenes... and the list goes on.

 

funny thing is I am paying about the same for my 2014 cruises as i did in 07... i have no complaints.

Edited June 25, 2014 by mrBit

[linbobky]

CCL has been sailing below occupancy?? Fooled me, they are giving away these rooms for FREE.....right, not only have they had non stop sales to fill occupancy for 2014 they are handing out FREE CRUISES to some.....really upsetting their loyal paying pax who are NOT getting the same offer!!! It's smoke and mirrors from CCL execs, but they don't fool ALL of us!!

 

like!!:)

[mrBit]

ha, yep free cruises...

 

RCL was awesome too, for a little inconvenience my wife and i thought nothing of and they gave us discount certs...

 

As for Carnival what better way to get people to "buy now" because prices are going up tomorrow. Yep, good move.

 

 

 

i think the industry is doing just fine.

Edited June 25, 2014 by mrBit

[Cruise, J.D.]

We are sailing the same ship, the same cabin class, the same itinerary, and nearly the same sail date this year for about 25% less in cabin fare than in 2011. I have not seen summer prices this cheap since I've been cruising.

[BigDoug]

More and bigger ships coming to the North American market does not equal higher pricing.

[Pine Bluff]

ha, yep free cruises...

 

RCL was awesome too, for a little inconvenience my wife and i thought nothing of and they gave us discount certs...

 

As for Carnival what better way to get people to "buy now" because prices are going up tomorrow. Yep, good move.

 

 

 

i think the industry is doing just fine.

 

 

 

Yeah, their last ruse to get people to BUY NOW was that grandfathering of platinum guests before that joke loyalty program locked you in at 75 days.

[VacationCrazee]

A few days ago, I booked a Carnival cruise as a solo cruiser. For the first time in 20 cruises, I paid ZERO solo supp. Never had that type of discount b4. It speaks to the desperate measures Carnival is willing to go to in order to fill these ships. A few years ago, Carnival turned their nose up to solo cruisers and started to charge us 200% of the dbl occup rate regardless of the cabin category. That is when I stopped cruising. It got to the point that with what I spent to cruise for 7 night, plus airfare, plus onboard spending, I was able to easily arrange a 8-11 days all inclusive vacation on any number of beautiful Caribbean islands. That is what I have been doing for the last 4 years (give or take).

 

Now because of MSC and Carnival's rock bottom prices (MSC $372 and Carnival $592) for 7 night cruises, I am going to give cruising another go round. I am taking MSC and then Carnival Glory B2B in late Sept.

 

There is not a lot of room to raise prices and not lose customers. Also, there is not a lot of room to cut back further and not lose customers.

 

Carnival is in a tight spot.

 

The Asian market will seem lucrative at first bc of the sheer number of potential cruisers. However, once they get settled in a few Asian ports of embarkation, they may well find that the culture does not lend itself to a profitable cruising region. I can't say for sure but. . . . grass may not really be greener in Asia.

[BigDoug]

 

There is not a lot of room to raise prices and not lose customers. Also, there is not a lot of room to cut back further and not lose customers.

 

Carnival is in a tight spot.

Carnival needs to return to the "Value" cruise line they were in the past and get away from the "Cheap" cruise line they have become.

[HectorAchilleus]

Carnival's product is not competitive with Royal and other lines. I have sailed 25 of my last 26 cruises on Carnival because the value and price is hard to ignore. If they raise prices, I will go elsewhere. Of course, the loyalty program is so poor, it will do little to keep me with them.

[Stallion]

has not risen in 20 years-now 20 years ago they didn't have the specialty suites like Grand Suites, Aft Balconies, or any balconies whatsoever for that matter. The price for your basic inside cabin is the same or less than 20 years ago.

Edited June 25, 2014 by Stallion

[jakeT]

If Carnival raises there prices you will see all those loyal carnival groupies jump to cruise line. ASAP. There low prices keep coming back. And even with that they are not fulling there ships

[TPFKAH]

has not risen in 20 years-now 20 years ago they didn't have the specialty suites like Grand Suites, Aft Balconies, or any balconies whatsoever for that matter. The price for your basic inside cabin is the same or less than 20 years ago.

 

There's just twice as many of them.

[gregg204]

If Carnival raises there prices you will see all those loyal carnival groupies jump to cruise line. ASAP. There low prices keep coming back. And even with that they are not fulling there ships

 

 

I'm loyal to Carnival (nothing against the other lines) and would never jump ship. And as for not filling the ships can you post where you found this fact. As soon as EZ put the article up I knew exactly who was coming out of hiding to put there 2 cents in. I guess luckily for Carnival you guys have been dead wrong for the past few years. It's ok, we loyal guys enjoy the entertainment.