Big drop in stock price this morning

[wattmhite]

My first cruise with Royal was on Freedom in 2008 and it was the most amazing experience of my life.

The fare wasn't too bad, policies were more lax, the excitement of the 70's dance party and amazing theater shows, great food everywhere, friendly not overworked staff, and the cherry on top was the poolside buffet/dance party under the stars.

 

I've loved Royal ever since but have definitely noticed some depressing changes since 2008. No poolside buffet, same exact dance party and songs as back in 2008 (would it be that hard to switch it up every year or so?) Same shows year after year, new pizza recipe for Sorrentos that (saves money on ingredients) = HORRIBLE PIZZA. Staff pushing to book onboard restaurants, less staff and automatic gratuities means worse service.

 

I think people want an unparalleled experience thats mostly all inclusive, simple dinner choices that have excellent food, beautiful and well maintained ships, friendly, relaxed and professional staff, variety in shows and cruise compass events (there are a hundred other things we can do than a belly flop contest and a 70's dance party) When we went to Haiti in 2008 it was mostly undeveloped and tenders to the shore, I appreciate all the recent development there but Falmouth is 1 big mistake. The port sucks, especially if you just want to get off and hang out for free, you almost have to do an excursion or stay on the boat.

Edited February 4, 2015 by wattmhite

[connes1]

My first cruise with Royal was on Freedom in 2008 and it was the most amazing experience of my life.

The fare wasn't too bad, policies were more lax, the excitement of the 70's dance party and amazing theater shows, great food everywhere, friendly not overworked staff, and the cherry on top was the poolside buffet/dance party under the stars.

 

I've loved Royal ever since but have definitely noticed some depressing changes since 2008. No poolside buffet, same exact dance party and songs as back in 2008 (would it be that hard to switch it up every year or so?) Same shows year after year, new pizza recipe for Sorrentos that (saves money on ingredients) = HORRIBLE PIZZA. Staff pushing to book onboard restaurants, less staff and automatic gratuities means worse service.

 

I think people want an unparalleled experience thats mostly all inclusive, simple dinner choices that have excellent food, beautiful and well maintained ships, friendly, relaxed and professional staff, variety in shows and cruise compass events (there are a hundred other things we can do than a belly flop contest and a 70's dance party) When we went to Haiti in 2008 it was mostly undeveloped and tenders to the shore, I appreciate all the recent development there but Falmouth is 1 big mistake. The port sucks, especially if you just want to get off and hang out for free, you almost have to do an excursion or stay on the boat.

I wish there was a like button for your post. "Like"

[RDC1]

There were several discussions of this on CNBC, including an interview with the Chairman and Chief Executive Officer of RCI, Richard Fain.

 

They were all consistent in giving the reason, under performance in the Caribbean. Basically they had to substantially discount fares in the Caribbean in order to fill ships. It impacted RCI (RCI meaning all cruiselines owned by RCI) more then the competing cruise lines because they have a higher percentage of their ships/capacity in that market.

 

They will be shifting more capacity out of that market in the future.

[queenschick9b]

My opinion only, but maybe they would fill more ships in Caribbean if they changed up the ports. How many times can someone go to St. thomas and St. Martin or GC and Falmouth.

[CptSticky]

thanks everyone for your comments. I agree with most of you.

 

 

 

I agree. We certainly would spend more onboard if things cost less. I have no problem in paying for what I get AND in the seller making a profit! However, to pay $23 for a photo that costs them $5 to create is ridiculous...especially when with today's technology a fellow cruiser can take the same pix and email it to me...and I can get it printed at home for $1. The cost of internet onboard is ridiculous for the "speed". It takes too long to do anything on the internet onboard so I only use it if a "must". Not really a problem for me though...as I go on a cruise to get away from things like the internet. LOL But I know others want to stay connected!

 

 

 

I agree the pricing is out of control. That was why I wanted to see what others think. I keep reading that the BoGoHo must be working for them to keep extending it. However, I am not reading about a whole of new bookings. As best as my old memory will recall, we have only booked one new booking since the prices "increased" (after the initial true deal Bogoho). That one new booking will get cancelled if the prices don't come down on it before final payment. It was just a "hold" on a cabin for that sailing. It isn't a "must do" trip but wanted to hold a cabin as we would like to do it if prices come down within reason.

Interesting topic. Wish that I had not sold my RCL and bought CCL but oh well what can I do now?

As for not booking BOGOHO's, hmmm. Just had to stop and think and it looks like you are right. We are coming off of a high of 23 booked cruises but I don't think I have booked one since the "sales" have started. Now down to 7 and 3 of them may not happen. I actually told my TA that it was OK for him to look at Princess on the west coast. I also had thought that it was just me and others must be booking or they wouldn't be keeping the "sales" going. Something has to give and it will probably be me but not right now.

[S.S.Oceanlover]

My opinion only, but maybe they would fill more ships in Caribbean if they changed up the ports. How many times can someone go to St. thomas and St. Martin or GC and Falmouth.

 

What other islands do you have in mind besides those mentioned?

 

Most other islands probably dont have the docking facilities for these monster ships or the infrastructure to support 3000-4000 guest if just one ship a day stops there.

 

Bill

[baldercash]

I have found it strange that no one has mentioned what the impact of oil at -$50.00 a barrel will do for profits.

 

I think ticket contracts still may state that if oil exceeds something like $75.00 a barrel a surcharge could be charged per passenger. This was the operating price the cruise lines much like the airlines were functioning at.

Both industries have been making cuts and finding efficiencies to try and hold prices but still make a profit while oil was at $110.00 a barrel.

 

They have built larger ships with higher pax capacity and higher ticket prices while reducing staffing and cutting amenities and activities. Food quality has been lowered to combat rising cost while charging more for specialty eating options and drinks.

Now fuel costs are cut by 60% but were are the increased operating expenses?

I fail to see how they can avoid being more profitable even in spite of managements best efforts if oil remains depressed.

Edited February 6, 2015 by baldercash

[RDC1]

I have found it strange that no one has mentioned what the impact of oil at -$50.00 a barrel will do for profits.

 

I think ticket contracts still may state that if oil exceeds something like $75.00 a barrel a surcharge could be charged per passenger. This was the operating price the cruise lines much like the airlines were functioning at.

Both industries have been making cuts and finding efficiencies to try and hold prices but still make a profit while oil was at $110.00 a barrel.

 

They have built larger ships with higher pax capacity and higher ticket prices while reducing staffing and cutting amenities and activities. Food quality has been lowered to combat rising cost while charging more for specialty eating options and drinks.

Now fuel costs are cut by 60% but were are the increased operating expenses?

I fail to see how they can avoid being more profitable even in spite of managements best efforts if oil remains depressed.

 

The cruise lines hedge the price of fuel. So while it is lower their cost is not as low as current market price. They will catch up at some point and then be paying less as prices rise. Fain went into this on an interview on CNBC.

 

Their problem is more related to reduced fares, not increased operating costs. Bottom line too much competition in the Caribbean and RCI has too high of a percentage of their ships there.

[CptSticky]

I have found it strange that no one has mentioned what the impact of oil at -$50.00 a barrel will do for profits.

 

I think ticket contracts still may state that if oil exceeds something like $75.00 a barrel a surcharge could be charged per passenger. This was the operating price the cruise lines much like the airlines were functioning at.

Both industries have been making cuts and finding efficiencies to try and hold prices but still make a profit while oil was at $110.00 a barrel.

 

They have built larger ships with higher pax capacity and higher ticket prices while reducing staffing and cutting amenities and activities. Food quality has been lowered to combat rising cost while charging more for specialty eating options and drinks.

Now fuel costs are cut by 60% but were are the increased operating expenses?

I fail to see how they can avoid being more profitable even in spite of managements best efforts if oil remains depressed.

They are probably hedged and the lower fuel cost will lag by several months.

[baldercash]

Their problem is more related to reduced fares, not increased operating costs. Bottom line too much competition in the Caribbean and RCI has too high of a percentage of their ships there.

 

They have a real problem then as there are few areas that are desirable to cruise in the winter months people are not willing to fly too far for a five to seven day cruise. The cost of airfare and length of flight allows few options.

The whole industry has over built their fleets in the quest for market share and as they sell off older ships they become new competition.

[CptSticky]

They have a real problem then as there are few areas that are desirable to cruise in the winter months people are not willing to fly too far for a five to seven day cruise. The cost of airfare and length of flight allows few options.

The whole industry has over built their fleets in the quest for market share and as they sell off older ships they become new competition.

Then there are those of us on the West Coast who have been abandoned and have to fly everywhere.

Have to laugh about them whining about too many ships in the Caribbean. Wasn't it just a year or so ago that they did the same thing in the Med? What's next? The Orient?

[RDC1]

They have a real problem then as there are few areas that are desirable to cruise in the winter months people are not willing to fly too far for a five to seven day cruise. The cost of airfare and length of flight allows few options.

The whole industry has over built their fleets in the quest for market share and as they sell off older ships they become new competition.

 

Other cruise lines have distributed more of there ships in Asia, Australia and South America. Locations where they can command a higher price and book a fair number of locals. The Caribbean has far too much capacity, while other markets are dramatically under served. Celebrity does have some in Australia (I did one of there ships there last year), but not nearly as many as other lines.

 

Also RCI lines tend to stay with fairly short cruises. You see very few from RCL and Celebrity over 12 days and most are 7-10. Some of the competing lines run much longer routes. For example I have a 31 day cruise booked from Argentina back to LA during this time frame next year.

 

Going with very large ships might be cost effective, but limited flexibility since a lot of ports cannot handle those ships.

Edited February 6, 2015 by RDC1

[American Bear]

What other islands do you have in mind besides those mentioned?

 

Most other islands probably dont have the docking facilities for these monster ships or the infrastructure to support 3000-4000 guest if just one ship a day stops there.

 

Bill

 

Carnival has built their own ports in Grand Turk, a new one opening this year in the Dominican Republic, a fairly new one in Roatan away from the dumpy downtown, stopping on some cruises at Costa Maya instead of dumpy Belize, stopping at Progresso out of Galveston/NO are just some examples!

Falmouth, RCL's built port in Jamaica is the worst stop in Jamaica of all the cruise lines!

 

PS To those complaining about drink prices, yes we agree, the prices for drinks, and drink pkges. are ridiculously high, and there are much better prices right now on other cruise lines!!

 

Suggestions only, not that they are better, just different from now,,

Freeport, Montego Bay, Ocho Rios, Grand Turk, Dominican Republic, Progresso, Costa Maya, more ships to St Thomas, St Kitts, Barbados, San Juan, Saint Croix, Basseterre, Roseau, Grenada, Frederiksted, etc..

 

The itineraries on RCL are old, and some of the worst when compared to other cruise lines! To be fair, some of these stops are on Celebrity!

 

It seems RCL business model has it becoming a cruise line for those who like to stay on the ship in a floating shopping mall with 5-6000 fellow passengers! And with additional new mega ships coming out in the next few years, its not going to change!

Celebrity will be the RCL line for better port choices with smaller ships!

Edited February 6, 2015 by American Bear

[Paulette3028]

Carnival has built their own ports in Grand Turk, a new one opening this year in the Dominican Republic, a fairly new one in Roatan away from the dumpy downtown, stopping on some cruises at Costa Maya instead of dumpy Belize, stopping at Progresso out of Galveston/NO are just some examples!

Falmouth, RCL's built port in Jamaica is the worst stop in Jamaica of all the cruise lines!

 

Suggestions only, not that they are better, just different from now,,

Freeport, Montego Bay, Ocho Rios, Grand Turk, Dominican Republic, Progresso, Costa Maya, more ships to St Thomas, St Kitts, Barbados, San Juan, Saint Croix, Basseterre, Roseau, Grenada, Frederiksted, etc..

 

The itineraries on RCL are old, and some of the worst when compared to other cruise lines! To be fair, some of these stops are on Celebrity!

 

It seems RCL business model has it becoming a cruise line for those who like to stay on the ship in a floating shopping mall with 5-6000 fellow passengers! And with additional new mega ships coming out in the next few years, its not going to change!

Celebrity will be the RCL line for better port choices with smaller ships!

 

I did not buy my stock when it was $10 per share but we are at a nice profitable level IF we sold it today, but we have no intention of doing that.

 

Would I personally like to see more/different ports yes -- from a business standpoint it gives those people who like Royal more reasons to return without a feeling of 'oh I have been to that port before'.

 

Do I believe Royal is building ships for passengers to remain on board rather than go ashore....not really. I can see the attraction however to have lots of things to do to attract families with children, who might be bored if there isn't a lot to do for kids. Yet, I don't want the ships to become too 'Disney like'.

 

Someone else posted about longer cruises....if the line had longer cruises, a lot of people who could not go on them (for many different reasons -- one work, another family obligations etc) would not become a market share for Royal. The cruise line perhaps could have one or two longer cruises, but that will not become a large part of their marketing plan -- and as a stockholder, not something I would expect.

 

The furtile marketplace I would expect is between the 7-14 day itineraries. I can only look forward to the time when we can take 14 day cruises, not now for sure.

[ksuds]

Cheapskates sharing the drink package. :D:D:D

 

PS: Given the volatility prediction for this month, no one should be surprised. Look what happened to Apple this past quarter and where the stock closed yesterday.

 

HaHaHa..............the first thing I thought of with the decrease in onboard spending was the drink package.

 

Not necessarily sharing of it, but I know my onboard bill was a lot higher before the drink package came out. It fortunately saved me money.

[Big_G]

 

It seems RCL business model has it becoming a cruise line for those who like to stay on the ship in a floating shopping mall with 5-6000 fellow passengers! And with additional new mega ships coming out in the next few years, its not going to change!

Celebrity will be the RCL line for better port choices with smaller ships!

 

With the big ships, it's more about the number of berths than keeping people on board. With that many berths, they need to keep people entertained. I'd go with a floating resort analogy over a shopping mall. I never understood the whole shopping mall thing. Royal has done a pretty good job with their ship variety but people seem to get hung-up with this image that they're all about monster ships. You're right about one thing, the smaller ships do the better and longer itineraries.

[John&LaLa]

With the big ships, it's more about the number of berths than keeping people on board. With that many berths, they need to keep people entertained. I'd go with a floating resort analogy over a shopping mall. I never understood the whole shopping mall thing. Royal has done a pretty good job with their ship variety but people seem to get hung-up with this image that they're all about monster ships. You're right about one thing, the smaller ships do the better and longer itineraries.

 

I never got the floating mall concept either. :confused:

[Paulette3028]

With the big ships, it's more about the number of berths than keeping people on board. With that many berths, they need to keep people entertained. I'd go with a floating resort analogy over a shopping mall. I never understood the whole shopping mall thing. Royal has done a pretty good job with their ship variety but people seem to get hung-up with this image that they're all about monster ships. You're right about one thing, the smaller ships do the better and longer itineraries.

 

All ships have a certain amount of 'shopping mall atmosphere', but these new ships are more like floating amusement parks to me. Good to attract families with children without being Disney.

[Big_G]

All ships have a certain amount of 'shopping mall atmosphere', but these new ships are more like floating amusement parks to me. Good to attract families with children without being Disney.

 

 

I kind of measure it this way, if you're shopaholic, you'd be severely disappointed if you thought you were on a mall cruise. Likewise, if you love amusement parks, you'd probably feel short changed. Floating resort kind of covers all the bases. Food, drink, accommodations, entertainment, and some rides and shopping sprinkled in. :D

 

 

Sent from my iPad using Tapatalk

[FUN33]

We were just on a Celebrity cruise; Canyon Ranch was charging $100 for a man's shave!!!!!! Would be very interesting to know how many of these are sold on an average seven day cruise.

[John&LaLa]

We were just on a Celebrity cruise; Canyon Ranch was charging $100 for a man's shave!!!!!! Would be very interesting to know how many of these are sold on an average seven day cruise.

 

What are they shaving. :o

[Paulette3028]

With the big ships, it's more about the number of berths than keeping people on board. With that many berths, they need to keep people entertained. I'd go with a floating resort analogy over a shopping mall. I never understood the whole shopping mall thing. Royal has done a pretty good job with their ship variety but people seem to get hung-up with this image that they're all about monster ships. You're right about one thing, the smaller ships do the better and longer itineraries.

 

Real 'professional shoppers',of which I am NOT one (I hate shopping -- it isn't therapy to me, it is a chore that has to get done when I NEED something), would be very disappointed.....at least the ones that I know.

[payitforward]

Maybe it's about time (and not only for RC!) to bring onboard prices down a bit (pics, alcohol, shops, internet etc) and come with new stuff. At school in Holland I was taught that if you bring prices down with X%, sales will go up with Y% resulting in an overall increased profit.

 

The item that jumps out at me is bottled water. People bring their own on board, or bring empty bottles to fill wherever they can because nobody wants to pay $4.00 a bottle! The average consumer can buy a CASE of bottled water for $2.50. If they were to cut the price in half, they would still make a significant profit on each bottle and probably sell 3-4 times as many.

[blyle]

Galveston is a perfect example. Carnival has been here for years bringing in larger and newer ships and now offering longer and different itineraries. Princess came in and NCL out of Houston. Lots of competition but Royal has the worst prices. We are diamond and haven't taken a cruise on Royal for a few years. I don't like the Dynamic Dining concept and from what I hear lots of others don't either. I don't eat at specialty restaurants because if I do they will add more. RC needs to decide who their passengers are and adjust to them.

[hintanjul]

What are they shaving. :o

That is priceless John my lad!!!

I am sitting here in freezing Northumberland (the Last Kingdom), counting down to my cruise next week when I read this.

So funny, especially with my imagination running wild!!!

Thanks for that......:D:D:D:D