Princess pricing/marketing strategy

[jimmieg]

We are loyal Princess elite passengers (29 cruises). We've also cruised with RC, HAL, Norwegian, Celebrity, but not in the last decade. That said, I always keep my eye on pricing. Especially in light of the slow turnover of production shows, predictable menus and even guest performers we've seen many times . It seems Princess starts pricing lower and discounts less. However, the competition has been more generous with OBC, gratuities included, drink packages, etc. I see a comparable cruise with a ton of incentives, then see "my line" is offering a fairly meaningless $0-$85 for a 14 day cruise.

Maybe it's all hype and marketing. I still run a spreadsheet for my cruising and try to look at bottom line. Maybe I'm wondering if the grass is greener. On the other hand, returning to Princess 2-3 times a year is like returning to my cabin by the sea. Not blowing me away, but as comfortable as an old pair of jeans. Thoughts? Anybody been where I am?

[Lulubelle45]

Maybe try Celebrity. You say it's been a decade on Princess only? I sailed Alaska last year on X and the shows food etc was very pleasing. I'm still checking out cruise lines, have sailed NCL HAL before and will be on my first Princess next month. The unlimited drink package offered by X was a great perk in their 1 2 3 go offer.

[SilverLining4Me]

I always check pricing for balcony cabins and itinerary against the competition. So far, our cruises to Alaska have had the best deals with Princess for the dates we wanted.

 

I think it pays to watch pricing even after you have booked a cruise. It really can save you some money "IF" the pricing is lowered and is not for "new bookings only". We save major $$$ on a cruise to Alaska by keeping track of the rates before final payment due date.

[Colo Cruiser]

Good points.

[Pam in CA]

You can watch pricing all you want but if you request a quote from a TA who books a high volume of Princess cruises, you can save 10-20% plus OBC and perks. TAs are not allowed to advertise or promote discounted fares so if you're looking at just the Princess website, you're comparing apples to oranges.

[jimmieg]

Just for clarification, I always book at the best discounted rate, and check before final, and sometimes take agency obc and sometimes cash rebate...

But, the question is not how to get best Princess rate, but how their bottom line pricing/promotions compare to other lines promos, ie 123go, etc.

[caribill]

But, the question is not how to get best Princess rate, but how their bottom line pricing/promotions compare to other lines promos, ie 123go, etc.

 

Some of the other lines (RCI for one) have told stock analysts that they no prefer to not lower prces, but offer booking incentives instead.

 

Princess lowers the prices to fill the ships and thus does not have as many incentives.

 

So, yes, it is different ways of marketing.

[dorisis]

Some of the other lines (RCI for one) have told stock analysts that they no prefer to not lower prces, but offer booking incentives instead.

 

Princess lowers the prices to fill the ships and thus does not have as many incentives.

 

So, yes, it is different ways of marketing.

 

Princess also offers combinable OBCs For us that can mean lower cost overall. Other lines have larger cabins. I understand the old shoe feeling on Princess. But most important to me is itinerary. Then all the other factors must be weighed'

[Iamcruzin]

Celebrity's promotions seem to be filling ships early. Many on that board are upset because now that the promotions have ended the prices have either stayed the same or have gone up. I guess they were hoping the prices would drop after the promo. I realize that a drink package doesn't hold value for some especially if you are elite or elite plus since one of the perks is free cocktails in the evening. Apparently it holds true value to most of the passengers because even at 30 days out the Bermuda cruise that I booked for next year is $300 less than the same sailing this year with no perks. I was hoping to catch a fire sale since I can drive to port. Looks like it won't happen.

[Iamcruzin]

double post

Edited April 5, 2015 by Iamcruzin

[susancruzs]

I'm with Pam on this. I pretty much sail Princess or RCI, comes down to itinerary, not promotions/perks. If I were booking 7 day cruises instead of a 25 day cruise each year, I might take a different approach.

 

I book with a travel agent handling a huge volume. Same gal for 15 years and a top agent every year for Princess and RCI. The cruise lines can't even come close to the price I get. This year for my Med then TA, price difference is almost a thousand dollars.

 

Everyone has their own approach what they have to do to meet their needs, what they feel is a good price. In a past life, 30 years ago I was a travel agent doing outside sales. I've been cruising since 1982, seen all the ups, downs, changes, marketing and pricing and what lines do to get business doesn't really matter to me.

[DrJohn]

We are loyal Princess elite passengers (29 cruises). We've also cruised with RC, HAL, Norwegian, Celebrity, but not in the last decade. That said, I always keep my eye on pricing. Especially in light of the slow turnover of production shows, predictable menus and even guest performers we've seen many times . It seems Princess starts pricing lower and discounts less. However, the competition has been more generous with OBC, gratuities included, drink packages, etc. I see a comparable cruise with a ton of incentives, then see "my line" is offering a fairly meaningless $0-$85 for a 14 day cruise.

Maybe it's all hype and marketing. I still run a spreadsheet for my cruising and try to look at bottom line. Maybe I'm wondering if the grass is greener. On the other hand, returning to Princess 2-3 times a year is like returning to my cabin by the sea. Not blowing me away, but as comfortable as an old pair of jeans. Thoughts? Anybody been where I am?

 

Our thoughts are very similar to yours. We anticipated booking b2b2b 2016 European cruises when they were first announced but learned the rates were extremely high -- so in our view Princess is no longer providing greater value than other lines. We used to book early but now will wait and see as well as consider many other options.

[West Coast Gal]

While of course I prefer Princess . . . the other day I was talking to a friend of mine and was floored by the deal that she got with Celebrity. I have been asking the same questions. I have always felt that Princess's service was more crisp than the other lines of her class, that Princess's itineraries were more interesting to me . . . but the food has seen a decrease in uniqueness over the years, so has many of the entertainments. I hope that their marketing department gets a clue.

[Colo Cruiser]

Our thoughts are very similar to yours. We anticipated booking b2b2b 2016 European cruises when they were first announced but learned the rates were extremely high -- so in our view Princess is no longer providing greater value than other lines. We used to book early but now will wait and see as well as consider many other options.

 

We are seeing this high pricing more and more. Come on Princess!!

We may have to start looking elsewhere too. :(

[lucky cal]

I wish I would stumble upon one of those great TAs who deeply discount and then provide other perks besides, but I haven't been that lucky over the years. Our current TA does provide fairly generous OBC, but no discounts or other perks.

 

We're not loyal to any one cruise line, so maybe that's part of the problem?

[caribill]

Celebrity's promotions seem to be filling ships early. Many on that board are upset because now that the promotions have ended the prices have either stayed the same or have gone up. I guess they were hoping the prices would drop after the promo.

 

As I said in my prior post (and shown again below) Some cruise lines will keep the price the same and not adjust prices to be lower. They will just add or remove incentives to book.

 

This helps the bottom line in several ways. First is that the actual cost of the incentives to the cruise line is no doubt lower than the cost of lowering prices. Second is that those already booked will not see a lower price to be refared to, so booking income from them is not reduced.

 

Some of the other lines (RCI for one) have told stock analysts that they now prefer to not lower prices, but offer booking incentives instead.

 

[kruisey]

As I said in my prior post (and shown again below) Some cruise lines will keep the price the same and not adjust prices to be lower. They will just add or remove incentives to book.

 

This helps the bottom line in several ways. First is that the actual cost of the incentives to the cruise line is no doubt lower than the cost of lowering prices. Second is that those already booked will not see a lower price to be refared to, so booking income from them is not reduced.

 

How does Princess know you have booked if you do not sign in and look at the specials?

Last year I booked a cruise with Princess for a certain price,it was then reduced and I got the lower price?:confused:

Edited April 5, 2015 by kruisey

[avcruz]

I am, for the first time in nearly a decade, cruising a line other than Princess this year. As such I have been hanging out on the NCL boards recently and I find it amusing that there are a lot of similar comments on those boards too regarding the decline in the food quality, lack of service, raised prices, etc. etc.

 

The big stink CC members have with NCL right now is the "nickel & diming".

They have just announced a fee for room service, an increase in the auto gratuity for drinks to 18% and an increase in the daily service charge all in the last month. Many on those boards are expressing similar sentiments about trying another line.

 

I try to consider all aspects of my cruise vacation - price, itinerary, vessel, inclusions, OBC or other perks when figuring out the cruise "cost". To me the ultimate test is am I satisfied with the value I'm getting? If I can answer yes to that question, then no matter what I paid, it was worth it...

[Papa Yoda]

...

 

But, the question is not how to get best Princess rate, but how their bottom line pricing/promotions compare to other lines promos, ie 123go, etc.

 

Mine too, we've only cruised Princess the last few years.

 

I think we're looking for numbers like the following bogus examples:

 

For the similar itinerary, same class and as identical as possible cabin, best price after promo/discount/loyalty/OBC per person double occupancy

 

HAL $220

Princess $205

Celebrity $210

NCL $190

Carnival $100

 

(totally made up numbers)

 

include drinking the same, specialty dining etc. exclude shore excursions/spa

 

This looks hard to figure and I'd imagine the lines don't want to make it any easier...

[jimmieg]

Yes. Bottom line pricing. And since we like to cruise a lot, I want to make my cruising $$ go the furthest.

I can easily put a value on prepaid gratuities which have a set value to me. Beverage package I have to value less, as I would never drink the value of a drink package, but maybe a glass of wine or 2 at dinner.

So now it is down to cruise price for similar brand and itinerary. I shop the OBC'S with the big online agencies. The big box membership, the 90-day ticker folks, the private sale holiday folks from New England. I just don't see Princess trying as hard to lure me.

However, I'd give up elite perks, stockholder, etc to change. And where I used to book as far in advance as possible, I now have the luxury of booking late - and usually prices come down, or I wait. (I did book one 30 day for April, 2016, months ago because I wanted a particular cabin. It was at launch fare, and I doubt any real sales happen at those rates, but I have time)

Thanks for your observations.

Edited April 5, 2015 by jimmieg

[caribill]

This helps the bottom line in several ways. First is that the actual cost of the incentives to the cruise line is no doubt lower than the cost of lowering prices. Second is that those already booked will not see a lower price to be refared to, so booking income from them is not reduced.

 

How does Princess know you have booked if you do not sign in and look at the specials?

Last year I booked a cruise with Princess for a certain price,it was then reduced and I got the lower price?:confused:

 

My comment was for the cruise lines such as RCI and Celebrity which prefer not to change pricing, but just adjust amenities. For those lines, there would be no lower price to refare to.

 

Princess, as you experienced, is using a different pricing strategy and you were able to refare.

[kruisey]

My comment was for the cruise lines such as RCI and Celebrity which prefer not to change pricing, but just adjust amenities. For those lines, there would be no lower price to refare to.

 

Princess, as you experienced, is using a different pricing strategy and you were able to refare.

 

In all my cruises I have only ever sailed with Princess and I must say I prefer their refare ...:)

[caribill]

In all my cruises I have only ever sailed with Princess and I must say I prefer their refare ...:)

 

Until recently RCI did have changing pricing and you could refare up until final payment time. Several years ago we had a B2B2B that had refares at four different times and we ended up saving 24% compared to the price we originally booked.

 

RCI may still be doing some price reductions, but not as many as in the past.

 

Carnival entices early bookings by promising you can get any price reduction right up until right before embarkation day as long as you book early enough.

 

As with Princess, with Carnival you must discover the reduced pricing on your own and then contact your TA or the cruise line (if not using a TA) to get the refare.

Edited April 5, 2015 by caribill

[lovevacadays]

We are seeing this high pricing more and more. Come on Princess!!

We may have to start looking elsewhere too. :(

 

I agree. I look at prices on Princess' website and then check with my TA. Even with the TA discount it seems like Princess is really starting cruises out with a very high fare. Yes, if you want to wait until a few months before, you may get a great fare. I could be wrong but it seems to me that Princess rates on the cruises I look at (Mexico, Pacific Coastal, and Caribbean) are very high to start out.

[caribill]

We live near the ports of Houston and Galveston. Most seven day cruises from both ports have basically the same itinerary, if not the same, then the same number of ports.

 

Every time I have checked pricing on Princess, NCL, RCI and Carnival I find that Princess has the lowest pricing. Following is without any past passenger pricing or TA discount pricing for a 7-day cruise in November, 2015 over Thanksgiving.

 

Princess balcony $799

NCL balcony $1099

RCI balcony $1235

CCL balcony $979

 

Of course, of these four cruise lines, only Princess allows TAs to give a discount.