Will RCI follow Azamaras lead and reduce benefits

[Ourusualbeach]

Big discussion on the Azamara boards about having their loyalty benefits reduced.

 

While they did add a few perks they took away their free internet, free laundry, free sparkling wine upon boarding and a few other things.

 

Is this a sign of things to come here on Royal?

 

 

http://boards.cruisecritic.com/showthread.php?t=2095279

[leaveitallbehind]

Big discussion on the Azamara boards about having their loyalty benefits reduced.

 

While they did add a few perks they took away their free internet, free laundry, free sparkling wine upon boarding and a few other things.

 

Is this a sign of things to come here on Royal?

 

 

http://boards.cruisecritic.com/showthread.php?t=2095279

 

Interesting and hope not. But there is that gap between D+ and Pinnacle that begs the question of what could go there. There have been speculations about that as we know but how to configure another level is always of interest. Do they create new perks for it? Shift some from level to level? Who knows, but the situation with Azamara - as mentioned - certainly is interesting.

[Clarea]

Big discussion on the Azamara boards about having their loyalty benefits reduced.

 

While they did add a few perks they took away their free internet, free laundry, free sparkling wine upon boarding and a few other things.

 

Is this a sign of things to come here on Royal?

 

 

http://boards.cruisecritic.com/showthread.php?t=2095279

 

It seems most of the recent changes have been to increase cash flow, so I would not be surprised if we start to see things like the balcony discounts "adjusted". They have already reduced the quality of wine in the D+ amenity selections.

[ECCruise]

Hope not. Probably the worst marketing snafu I've ever seen (well, since NEW COKE). Check out the poll:

 

Are you pleased with the LCV (Le Club Voyage) updates:

 

Yes: 0 (0%)

No: 212 (97%)

Unsure: 7 (3%)

[Ourusualbeach]

Hope not. Probably the worst marketing snafu I've ever seen (well, since NEW COKE). Check out the poll:

 

Are you pleased with the LCV (Le Club Voyage) updates:

 

Yes: 0 (0%)

No: 212 (97%)

Unsure: 7 (3%)

 

Well that is a rarity here on CC. Almost everyone agreeing on something.

[leaveitallbehind]

It seems most of the recent changes have been to increase cash flow, so I would not be surprised if we start to see things like the balcony discounts "adjusted". They have already reduced the quality of wine in the D+ amenity selections.

 

So you commit your loyalty to a brand for years and finally reach a point of appreciation only to have that value reduced. Nice thank you! What should occur is just the opposite with an increase in recognition.

 

After all, as more people are reaching higher loyalty levels, so is the loyalty revenue stream to the brand that got them to that level. In most businesses that typically is the strongest and most valued revenue source. IMO, it's pretty simple business growth economics. Taking away from that recognition would not be an incentive to stimulate greater loyalty in my estimation.

Edited September 4, 2014 by leaveitallbehind

[ECCruise]

Well that is a rarity here on CC. Almost everyone agreeing on something.

Love it :)

[Hoopster95]

It seems most of the recent changes have been to increase cash flow, so I would not be surprised if we start to see things like the balcony discounts "adjusted". They have already reduced the quality of wine in the D+ amenity selections.

 

Yup, cash flow is tough when offering up $349 7 day sailings on the Navigator on the "Going, Going, Gone" flyer. For a normal sailing on any Voyager Class interior ship was usually around $500-$600 just a few years ago... or Oasis for $649 when 4 years ago it was no less than $1000. How about $109 on Enchantment? Lot's of profit there :rolleyes:

 

I remember being involved in several threads the last year or so regarding the ever increasing number of D & D+ members in C&A... and many posts regarding members for example taking a b2b2b cruise in a JS and being able to go from platinum to D in a matter of 3 weeks... something has to give imho.... either increase cruise fare or give out fewer freebies. I think the proof has been that cruise fare has been actually getting a little cheaper over time (other than the past year after BOGOHO1 :p) so I suspect fewer freebies is inevitable.

[JasonV1]

To me, the balcony discounts are the most worthwhile perk, followed by the lounge access that you get for Diamond and above. Those are worth money to me, while the other stuff less so (maybe Internet, but my needs are minimal).

 

Given that the other mass market lines don't have either of those two perks, it does make Royal stand out for REGULAR cruisers. Unfortunately, regular cruisers are a small majority compared to those who cruise every few years or even new cruisers.

 

If Royal determines that those perks don't give it a edge over their competition, enough to offset the cost, they could very easily drop them.

 

While I had a good time on the NCL Getaway last month, the lack of a Solarium-like area (sorry Vibe, you have no pool and cost $$) is a negative to me (public pool deck was an absolute zoo). I was in the Haven so it wasn't an issue, but I'm not likely to ever see the pricing/promos I did that made the Haven affordable (in season!) any time soon. That means that perks aside, Royal has some features that would keep Royal my preferred cruise line even if the perks went away.

Edited September 4, 2014 by JasonV1

[pcur]

I was participating on a thread on the Celebrity board that asked this same qusestion. So, I got curious and decided to find out how much a D+ with 360 points would actually "lose" with the newly changed Azamara loyalty program.

 

It came to between $60 and $67 dollars for a 7 night cruise: paying for a bag of laundry and loss of free internet.

 

I am stunned that people make such a big deal over this when they are getting tips, all drinks 24/7, port shuttles, and upgraded food included in their cruise fare.

 

I guess it's my glass half full perspective: I would be getting a lot more on an Azamara cruise, and washing my undies by hand a few times would be worth it. I already look for internet access in ports most of the time, anyway.

 

Just my opinion.........................

[alfaeric]

Interesting and hope not. But there is that gap between D+ and Pinnacle that begs the question of what could go there. There have been speculations about that as we know but how to configure another level is always of interest. Do they create new perks for it? Shift some from level to level? Who knows, but the situation with Azamara - as mentioned - certainly is interesting.

 

There IS an un-named step between D+ and Pinnacle- at half way, there is a little more stuff- one more in cabin gift, and the single supplament goes down.

 

Couple of other things, too.

 

but it is there (340 and 350 points)

 

So you commit your loyalty to a brand for years and finally reach a point of appreciation only to have that value reduced. Nice thank you! What should occur is just the opposite with an increase in recognition.

 

After all, as more people are reaching higher loyalty levels, so is the loyalty revenue stream to the brand that got them to that level. In most businesses that typically is the strongest and most valued revenue source. IMO, it's pretty simple business growth economics. Taking away from that recognition would not be an incentive to stimulate greater loyalty in my estimation.

 

 

The question is why do you sail (not you specifially, but the general question)? For the perks, or that you just fit that line the best and don't want to sail anywhere else?

 

To many, the perks are just that, perks. We would sail on RCI regardless, since the situation fits us the best. The discounts are nice, the wine is really nice, etc. But in the end, it's about Royal Caribbean and the appeal to us is enough that we don't bother looking at other options.

 

That way, it's not about what the perks are, just enjoying what we get.

 

We are also loyal to Delta, but get barely anything from them. Other than great access from our home airport to places around the globe.

 

An an Azamara point, I did find it interesting that their program got more than the C&A did- so even though my status limits to whatever it is, it's more in many ways than D+ is (yes, less in others).

Edited September 4, 2014 by alfaeric

[Attapooch]

Hope not. Probably the worst marketing snafu I've ever seen (well, since NEW COKE).

 

New Coke was only a failure if the real reason behind it was to actually sell New Coke and not completely reinvigorate sales of Coke Classic.

 

If it was the former, I agree that it was a failure. If the goal was the latter, however, then it was a stunning success.

[leaveitallbehind]

There IS an un-named step between D+ and Pinnacle- at half way, there is a little more stuff- one more in cabin gift, and the single supplament goes down.

 

Couple of other things, too.

 

but it is there (340 and 350 points)

 

 

The question is why do you sail (not you specifially, but the general question)? For the perks, or that you just fit that line the best and don't want to sail anywhere else?

 

To many, the perks are just that, perks. We would sail on RCI regardless, since the situation fits us the best. The discounts are nice, the wine is really nice, etc. But in the end, it's about Royal Caribbean and the appeal to us is enough that we don't bother looking at other options.

 

That way, it's not about what the perks are, just enjoying what we get.

 

We are also loyal to Delta, but get barely anything from them. Other than great access from our home airport to places around the globe.

 

An an Azamara point, I did find it interesting that their program got more than the C&A did- so even though my status limits to whatever it is, it's more in many ways than D+ is (yes, less in others).

 

I am aware of interim point level with RCI. But there also has been speculation that there may be an "official" tier added there that just begs the question of will it include more perks, will it alter other tiers, etc.

 

My other point was more of a principle of the thing comment then a reason to cruise RCL statement. The loyalty program is a given as it is part of the offering by RCI to their customers to at least recognize if not stimulate repeat business.

 

In that light, I just think it is wrong to alter the benefit of that to those who have - for what ever their reason - shown their loyalty over a number of years to achieve a given level only to have certain perks reduced once you get there. It seems to me it should be just the opposite as those most loyal customers would likely generate the most desirable and stable revenue for the company.

Edited September 4, 2014 by leaveitallbehind

[Clarea]

New Coke was only a failure if the real reason behind it was to actually sell New Coke and not completely reinvigorate sales of Coke Classic.

 

If it was the former, I agree that it was a failure. If the goal was the latter, however, then it was a stunning success.

Interesting, never thought of it that way.:)

[EmpressofPurple]

So you commit your loyalty to a brand for years and finally reach a point of appreciation only to have that value reduced. Nice thank you! What should occur is just the opposite with an increase in recognition.

 

After all, as more people are reaching higher loyalty levels, so is the loyalty revenue stream to the brand that got them to that level. In most businesses that typically is the strongest and most valued revenue source. IMO, it's pretty simple business growth economics. Taking away from that recognition would not be an incentive to stimulate greater loyalty in my estimation.

 

Well put

 

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[Ourusualbeach]

Interesting, never thought of it that way.:)

 

Just watched a documentary within the past month and the New Coke thing was part of that. One of the reporters asked the CEO of Coke at the time if that was their intention. The CEO replied "I wish we were that smart".

 

Who knows? There's no way they would admit it even if it were true.

[ECCruise]

New Coke was only a failure if the real reason behind it was to actually sell New Coke and not completely reinvigorate sales of Coke Classic.

 

If it was the former, I agree that it was a failure. If the goal was the latter, however, then it was a stunning success.

 

Thats a good take.

 

Azamara, though, didn't need revitalizing. They were sailing full at pretty darn high per diems. How that is going to shake out now, who knows. If you believe the postings, a whole lotta cancellation goin' on.

[AlexanderBeetle]

To many, the perks are just that, perks. We would sail on RCI regardless, since the situation fits us the best. The discounts are nice, the wine is really nice, etc. But in the end, it's about Royal Caribbean and the appeal to us is enough that we don't bother looking at other options.

 

Well that's certainly true. We are new to cruising and even newer to RCCL. Our first Royal cruise is coming up in 6 weeks or so. We decided to make cruising the vacation of choice for our family and while looking at line options one of the things that sold us to try Royal first was their loyalty program. It seems a step above and the ability to later cross with Carnival and Azamara was a plus.

 

If, after years of cruising RCCL, they were to start removing those perks then our draw to them would diminish. Of course, we are quite a ways away from that being a major issue, but it did help get us started here...

[ECCruise]

 

If, after years of cruising RCCL, they were to start removing those perks then our draw to them would diminish. Of course, we are quite a ways away from that being a major issue, but it did help get us started here...

 

And honestly, that is what has so many Azamara cruisers upset. They got started with a certain set of promises, committed to (rather expensive--often $1000 per day) sailings for a number of years and then, after being touted for many, many months as a big improvement to the loyalty program, had the rug pulled out from under them when it was announced.

 

And trust me, people who are adding up the cost of laundry and internet and saying "no big deal" don't even come close to getting it. It has almost nothing to do with that amount of money. Read the hundreds of postings on the Azamara board.

[alfaeric]

I am aware of interim point level with RCI. But there also has been speculation that there may be an "official" tier added there that just begs the question of will it include more perks, will it alter other tiers, etc.

 

My other point was more of a principle of the thing comment then a reason to cruise RCL statement. The loyalty program is a given as it is part of the offering by RCI to their customers to at least recognize if not stimulate repeat business.

 

In that light, I just think it is wrong to alter the benefit of that to those who have - for what ever their reason - shown their loyalty over a number of years to achieve a given level only to have certain perks reduced once you get there. It seems to me it should be just the opposite as those most loyal customers would likely generate the most desirable and stable revenue for the company.

 

 

From an individual standpoint, sure, the loyal customer is the one spending the most money on a specific line.

 

But from a group standpoint, I'm more in line thinking that it's the newer cruisers who spend more net money on a cruise.

 

It's an interesting discussion.

 

 

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[kevinsgirl88]

I will sail RCI no matter what they have the best product IMO. Perks are great but I don't need the internet or laundry done while on the cruise :o

 

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[leaveitallbehind]

From an individual standpoint, sure, the loyal customer is the one spending the most money on a specific line.

 

But from a group standpoint, I'm more in line thinking that it's the newer cruisers who spend more net money on a cruise.

 

It's an interesting discussion.

 

 

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I agree, it is an interesting discussion. But revenue aside, most business strive to earn loyal customers for repeat business as that is always desired from a market position standpoint.

 

In RCI's case, they have a reported 7MM+ members in their C & A loyalty program. And while I realize that includes cruisers with only one cruise to date, it suggests that this is of significant value to RCI as it represents what IMO is a large number of customers that not only plan to return, but in fact do return to the brand with repeat purchases.

Edited September 4, 2014 by leaveitallbehind

[alfaeric]

I agree, it is an interesting discussion. But revenue aside, most business strive to earn loyal customers for repeat business as that is always desired from a market position standpoint.

 

In RCI's case, they have a reported 7MM+ members in their C & A loyalty program. And while I realize that includes cruisers with only one cruise to date, it suggests that this is of significant value to RCI as it represents what IMO is a large number of customers that not only plan to return, but in fact do return to the brand with repeat purchases.

 

 

Speaking with the officers we mange to, they fully look at us as solid customers. To be crass, solid dollar signs (my interpretation). So some of them are more on that side of the issue.

 

 

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[CruzinSuz]

They are coming. Not too happy if they change the point system, getting close to P next year!

[orville99]

Customers, like ships, have a life cycle. There comes a point where the law of diminishing returns kicks in. Paraphrasing Jack Welch, if the 10-20% at the top of your revenue stream (where the majority of your profit comes from) are secured, then you need to cull the bottom 10-20% (the ones that cost you more to keep than the revenue they generate) every so often, so you can nurture the revenue stream from the 60% in the middle (the break even cluster). Classic strategy that, IMO, RCL is executing accross its brands. And not at all surprising that the bottom 20% are the first to complain when they finally figure out that they're effectively being "fired" by the company. Somehow they're dumbfounded that the company no longer wants them ;)

 

 

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