Bad marketing decision?

[mwlillie]

Just received an email from Princess with special drop-and-go fares between now and the end of the year.

 

Every single one of the "specials" were for 5-day and under cruises departing from Fort Lauderdale.

 

Does this indicate that the five-day and under cruises were a poor marketing decision on the part of "Carnival", and what do you think that bodes for the future.

 

Based upon what I'm reading in the trades (non-net included as well), and with so much re-positioning of ships occurring, I wonder if by the Fall of 2016 we will only see the Regal and Royal from Fort Lauderdale.

 

On a side note, I noticed that, on average, 50 people read a topic to every person that responds to one. Check it out.

Edited September 25, 2014 by mwlillie

[HUNKY]

From what I understand, cruise lines do not make money on the base fare, but on all the extras. Especially alcohol and the casino. Many cruise lines have great rates on the short five night voyages. That way they fill the ship, which is paramount. Empty cabins produce zero revenue.

[flamomo]

[quote name='mwlillie;44222244

I wonder if by the Fall of 2016 we will only see the Regal and Royal from Fort Lauderdale.

 

 

 

Perish the thought!!! That's a horrible thing to even consider!

 

I am one of those Princess loyals who wants nothing to do with the 2 latest builds or #3' date=' when it arrives. Just too darn big and too many additional pax.

[/size']

[beg3yrs]

Does this indicate that the five-day and under cruises were a poor marketing decision on the part of "Carnival", and what do you think that bodes for the future.

 

On a side note, I noticed that, on average, 50 people read a topic to every person that responds to one. Check it out.

 

First, marketing decisions for Princess Cruise Lines are made by Princess Cruise Lines, not "Carnival". You won't know if this was a poor decision until after the financial books are closed. As far as foretelling the future based on Princess having a sale on their short cruises, that's a bad idea.

 

Fifty views on a thread for each response. That is interesting. It might mean that most viewers (certainly not all - you know who you are ;)) actually read the postings and only post if they have something that clarifies, or is new or valuable to add.

[Northender]

mwlillie - I have no idea if they make money or not. But I don't like them.

Even booking a b2b to make it 9 days does not help much. I do not like coming back to FLL in the middle of my cruise.:(

[Blue Horizon]

I believe there are enough 5, 7, and 8 or even 9 day Princess sailings out of FLL to give us a selection that may fit a broad spectrum of cruisers. Nice to have the choice.

[bassmaster150]

[quote name='mwlillie;44222244

I wonder if by the Fall of 2016 we will only see the Regal and Royal from Fort Lauderdale.

 

 

 

Perish the thought!!! That's a horrible thing to even consider!

 

I am one of those Princess loyals who wants nothing to do with the 2 latest builds or #3' date=' when it arrives. Just too darn big and too many additional pax.

[/size']

 

Well, we went ahead and tried the Royal Princess, and you really don't have any idea what you are missing...not one time did we ever feel that we were crowded, and the ship is unbelievable.

[pablo222]

Just received an email from Princess with special drop-and-go fares between now and the end of the year.

 

Every single one of the "specials" were for 5-day and under cruises departing from Fort Lauderdale.

 

Does this indicate that the five-day and under cruises were a poor marketing decision on the part of "Carnival", and what do you think that bodes for the future.

 

Of course. You would have thought Princess would have learned from

giving away short cruises last year.

 

I watched an interview with some hotel CEO recently.

He commented that if you dump your unsold $500/night rooms

on priceline for $200/night, you have just told your customers

that the value of one of your rooms is $200.

 

This is exactly what princess has done.

 

Over the summer there were posts here:

"Do you think princess will bring back the same short-cruise deals

as last year? I'm waiting for one this year, too!"

 

Hello Princess? By doing this again, you have now shown your

customers that they would be foolish to actually pay for one of your short cruises.

[shredie]

From what I understand, cruise lines do not make money on the base fare, but on all the extras. Especially alcohol and the casino. Many cruise lines have great rates on the short five night voyages. That way they fill the ship, which is paramount. Empty cabins produce zero revenue.

 

This makes sense to me. With the relentless nickel-and-dimeing going on, pictures, specialty restaurants, liquor, casino, coffee, soda, excursions, etc., there is plenty of cash they can extract from the passengers. Why not provide more opportunities for that?

[lovevacadays]

The same question was asked last year, as you can see the short cruises are here again. I doubt that Princess would have them this year if they had not found a way to make a money on them last year. Doubtful that they would choose to continue something that cost them money.

[SoCal Cruiser78]

The same question was asked last year, as you can see the short cruises are here again. I doubt that Princess would have them this year if they had not found a way to make a money on them last year. Doubtful that they would choose to continue something that cost them money.

 

There do appear to be fewer of them scheduled for 2015 and 2016 than for 2014, at least from LA. Perhaps they have figured out by now the # of coastals they can fill without heavy discounting.

[Host Jazzbeau]

As their loyal customers age toward the graveyard, all cruise lines are scratching their heads trying to figure out how to capture the following generations. Short cruises and rock bottom prices are one idea. They may never make money on those cruises, but if they generate loyal customers who come back for the regular-priced 7+ day cruises it was a worthwhile marketing technique.

[RMM34667]

Again so much negative on the short cruises and the recent pricing.

 

Princess is my line of choice. I still work for a living. Vacations days are precious. The economy is not great and I still sometimes worry about my job securities. Although I would LOVE to do a 29 day cruise it's not in my immediate future. It might be some day and hope by then I can be elite - only 7 cruises away. Putting together two short cruises and amazing prices with unbelievable OBC helps me to take a nice relaxing family vacation and work towards that milestone.

 

I spend PLENTY of money onboard and help Princess' bottom line. (Personally right now I would prefer to spend my money on board than paying for airfare).

 

I get excited and share the amazing deals with anyone who wants to listen (or even don't want to hear). My excitement has resulted in new cruisers to Princess.

 

I have b2b short cruises coming up in 5 weeks. I have family joining us on each leg. First time Princess cruisers on each.

 

Where is the marketing mistake here?

 

I've done 3 10 day cruises when the price is right. But now that they have the Royal doing those 10 days there are no bargains to be found there. I've sailed the Royal and it was fantastic. But can't fit that into my budget this year.

 

So I will put together 2 cheap short cruises. Enjoy my family and OBC. I think it's a win win situation for me and Princess.

[Bruin Steve]

First, let me say I love that Princess is doing 3 night cruises out of Los Angeles...and that the prices are so low...

For me, it allows me to take a cheap short getaway...and NOT have to do it on Carnival!!!

The hope...and it's proven right so far...is that, on Princess, we get a little classier crowd, less nickling and diming, better service, etc.

 

But, Princess probably would lose money on cruisers like me: I pay for the cruise (gosh, I'm getting a balcony cabin for $269 pp with $100 pp onboard credit)...the OBC covers my tips, my shore excursion in Ensenada and about one drink per night each...But I don't drink a lot and I don't gamble...I don't shop for jewelry or alcohol or clothes in the onboard shops...I don't play Bingo...and I won't bother with the specialty restaurants...So, for the most part, that low cruise fare is all they'll get from me (sorry, Princess)...I am guessing that a lot of my shipmates will be about the same...

 

On Carnival, they herd the people on board--a young "party crowd"--people who drink excessively and gamble...They constantly bombard you with announcements and "deals"...and the crowd keeps buying drinks and getting drunk, etc. and, by the time they're done, they've dropped as much money in extras as they did in cruise fare...

 

I can understand that marketing strategy...but I don't like to be on a ship where that is the attitude...

 

I'd actually be willing to pay a little more and have the cruise line leave me to a quiet relaxed cruise...and attract other like-minded cruisers...

 

And, yes, I prefer longer cruises...and I'd take more of them if only I had the time and budget...But short cruises do serve a purpose for a lot of us...Sometimes you only have a short time to squeeze in a cruise...

 

OTOH, for most cruises and cruisers, they don't make a lot of sense...I cannot see spending all the money and time to fly across the country for a short cruise. So, they really only make a lot of sense for people living near the port. If I am flying, say, to Miami, in order for it to be worth my while, I want at least 7 nights if not longer. I could put together two or three short ones--but that is just not a great scenario--What? Go back and forth from Miami to Nassau three times? Have the same entertainment three times? Menus repeating every three or four days? Just not as pleasant an experience as getting on a ship for 7 or 10 or 14 nights and going a fair distance to a varied array of ports with unique entertainment every night...

 

JMHO...

[pablo222]

actually read the postings and only post if they have something that clarifies, or is new or valuable to add.

 

People do THAT?!?!?

[beg3yrs]

As their loyal customers age toward the graveyard, all cruise lines are scratching their heads trying to figure out how to capture the following generations. Short cruises and rock bottom prices are one idea. They may never make money on those cruises, but if they generate loyal customers who come back for the regular-priced 7+ day cruises it was a worthwhile marketing technique.

 

Yes!

[pablo222]

As their loyal customers age toward the graveyard, all cruise lines are scratching their heads trying to figure out how to capture the following generations. Short cruises and rock bottom prices are one idea. They may never make money on those cruises, but if they generate loyal customers who come back for the regular-priced 7+ day cruises it was a worthwhile marketing technique.

 

Sure, and maybe they tried marketing cruises like this...

 

But last year, when they were giving away the entire cruise

fare as a future cruise credit, and this year when they are

giving away the entire cruise fare as onboard credit, I would

say their marketing wasn't working.

 

If they wanted to entice new cruises, they would have initially

offered a super-low fare for people who had never cruised on

princess before, and filled the ship that way.

 

Automobile companies do this with promotions for your first

car, or recent graduates.

[remydiva]

 

Fifty views on a thread for each response. That is interesting. It might mean that most viewers (certainly not all - you know who you are ;)) actually read the postings and only post if they have something that clarifies, or is new or valuable to add.

 

" thanks for posting"

 

HAHAHAHA :D

[taxatty]

OTOH, for most cruises and cruisers, they don't make a lot of sense...I cannot see spending all the money and time to fly across the country for a short cruise. So, they really only make a lot of sense for people living near the port. If I am flying, say, to Miami, in order for it to be worth my while, I want at least 7 nights if not longer. I could put together two or three short ones--but that is just not a great scenario--What? Go back and forth from Miami to Nassau three times? Have the same entertainment three times? Menus repeating every three or four days? Just not as pleasant an experience as getting on a ship for 7 or 10 or 14 nights and going a fair distance to a varied array of ports with unique entertainment every night...

 

JMHO...

Because we live near the port (Miami), we've done RCI's Majesty of the Seas Friday afternoon to Monday morning cruise 10 times. It's an unbeatably cheap weekend escape, where we can be at work on time on Monday morning. Princess only rarely has had a comparable product in this area--when it does, like now, we and other we know who live here jump on it, as for example the Regal is about 1000 times nicer than the Majesty. That's RCI's worst remaining ship, and it sails full every weekend and on most of its 4 day Monday through Friday cruises. There must be some way for Princess to make $ on such short cruises as well. Edited September 28, 2014 by taxatty

[shredie]

But last year, when they were giving away the entire cruise

fare as a future cruise credit, and this year when they are

giving away the entire cruise fare as onboard credit, I would

say their marketing wasn't working.

 

 

Maybe they know something you don't. :rolleyes: :rolleyes: :rolleyes:

[pablo222]

Maybe they know something you don't. :rolleyes: :rolleyes: :rolleyes:

 

Maybe you can enlighten us as to the logic being used...

 

Which is a better business practice?

 

Sell a cruise for $398

 

or

 

Sell a cruise for $398 with a $400 OBC

[Host Jazzbeau]

Maybe you can enlighten us as to the logic being used...

 

Which is a better business practice?

 

Sell a cruise for $398

or

Sell a cruise for $398 with a $400 OBC

 

A business owner who is determined to make a profit on EVERY sale soon goes out of business because customers are turned off by that attitude. Many businesses use loss-leaders to build their customer base.

[BRANDEE]

Along the lines of marketing decisions....does anyone know the reason Princess no longer offers Caribbean cruises out of NYC/Brooklyn during the spring and summer and early fall?

 

One fall cruise to the Caribbean is offered in late October. There are a lot of tri state (NY, NJ, CT and more) cruisers who would love not to fly down to FLL to cruise.

 

I'm being "forced" to cruise NCL next July with 20+ dear friends. Due to two mobility issues, not flying allowed everyone to join. (Friendship trumps ship). We are all Princess "alumni" and would have definitely booked Princess over NCL.

 

While on a Princess cruise this past March, I asked the FCC officer this question and he said he had no idea why.:(

[Lovetocruiseprincess]

Although the CB has been somewhat filled (2,600 on the 9/25 cruise & 2,700 on the 9/29 trip) the place would have been empty without the heavy discounts . The people I'm seeing are spending like crazy in the casino & at the bars. IMO it's doubtful if they'll offer 3, 4 & 5 day trips again like this year since without the discounts the ship would have been a graveyard but if they are making a great profit they just well might. They're local people aboard that have just picked out the cruises with the most OBC 's leave the sip only to return in a week or 2.

[pablo222]

A business owner who is determined to make a profit on EVERY sale soon goes out of business because customers are turned off by that attitude. Many businesses use loss-leaders to build their customer base.

 

Sure. But, I think in this case, Princess is simply desperate to get

people onto poorly selling short cruises.

 

If they had wanted loss leaders, I don't think they would have first

offered the cruises at a high price, and later discounted them

(using massive OBC)

 

Also, see the second paragraph of this review:

 

http://boards.cruisecritic.com/showpost.php?p=44267330&postcount=1