Should perks be equal in value?

[ISABELLA]

This has been bothering me for sometime and I would like to hear you point of view. When Celebrity offers perk like 123, I think they should be same value-

OBC $$ or prepaid gratuity or beverage package. Most people pick drinks over other 2, but I don't drink, so I feel that I am paying indirectly more for my cruise because X had to compensate for the cost of the drinking package.

I don't think it is fair....What do you think?

[ClaudiaB]

They're perks and they don't have to give them at all. I'm grateful for what I get but I don't cruise for perks.

 

And although the retail value per Celebrity of the beverage package is higher dollar, in reality it's probably very little money to them, compared to other perks. The gratuities and on board credit cost them way more than a beverage package.

[DinaS]

This has been bothering me for sometime and I would like to hear you point of view. When Celebrity offers perk like 123, I think they should be same value-

OBC $$ or prepaid gratuity or beverage package. Most people pick drinks over other 2, but I don't drink, so I feel that I am paying indirectly more for my cruise because X had to compensate for the cost of the drinking package.

I don't think it is fair....What do you think?

 

 

If you don't drink, then the beverage package has no value for you.

 

We drink, but nowhere close to the value of the beverage package, so it's only worth about $100-125 to each of us. They do not have to compensate for our drinking package.

 

They give you choices so you can pick the best value for YOURSELF.

[AmberCascades]

The cost to Celebrity for the beverage package is not equal to the value received by its passengers. I have no idea what their liquor/coffee/water costs are. Nor do I care.

 

They offer a selection of perks so that people can select the one that works best for them. So if you don't drink, pick something else.

 

Complaining about free stuff is the height of a sense of entitlement, to me. So now Celebrity can't win because the perks aren't all the same monetary value.

 

Maybe you should book when they aren't offering any perks at all and then you won't be bothered by it.

[grandgeezer]

The cost to Celebrity for the beverage package is not equal to the value received by its passengers. I have no idea what their liquor/coffee/water costs are. Nor do I care.

 

They offer a selection of perks so that people can select the one that works best for them. So if you don't drink, pick something else.

 

Complaining about free stuff is the height of a sense of entitlement, to me. So now Celebrity can't win because the perks aren't all the same monetary value.

 

Maybe you should book when they aren't offering any perks at all and then you won't be bothered by it.

 

If you think the perks are free, then I have some ocean front property in Kansas for sale. There is a cost built into the fare, how much, I have no idea.

[upwarduk]

You will find the inside cabins cheaper, as they don't have any perks.

Also a guarantee and on our next cruise 2D balcony.

[miched]

They are most likely if equal value to the cruise line.

 

Gratuities have a actual value.

 

SBC and drink packages are revenue producing. You have to spend the SBC on board and it is worth less than the actual value because they will receive some back. I understand that they may be eliminating redemption in the casino?

 

The drink pack may will cost the passenger more if they purchased it but for the cruise line the actual cost isn't that much.

 

happy cruisng 🌊🚢🇺🇸🌞

[4774Papa]

This has been bothering me for sometime and I would like to hear you point of view. When Celebrity offers perk like 123, I think they should be same value-

OBC $$ or prepaid gratuity or beverage package. Most people pick drinks over other 2, but I don't drink, so I feel that I am paying indirectly more for my cruise because X had to compensate for the cost of the drinking package.

I don't think it is fair....What do you think?

Your logic doesn't pan out. The different values of the three options does not necessarily reflect on raising the overall pricing.

 

First, the drinks packages have different values to different people. We are elite and have the free happy hour, so we spend far less than most persons on alcohol.

Second, even if the three options have different values, people have the choice that best suits them. This evens out the benefit of the 123Go package for all.

Third, Celebrity still has to compete with other cruise lines for overall value, which minimizes the impact of the 123Go.

 

Further, in my opinion, unless you drink copious quantities of alcohol, the drinks packages are no bargain. It would not surprise me that X makes an overall profit on the packages for those that purchase the packages.

[AmberCascades]

If you think the perks are free, then I have some ocean front property in Kansas for sale. There is a cost built into the fare, how much, I have no idea.

 

Maybe they're not free. But Celebrity must like us very, very much, since we've never been able to find a lower fare than what we've paid, and we get the perks we want. We are happy. We don't complain.

[RDC1]

When you look at costs to the cruise line you should keep in mind that there are two types of costs:

 

1. actual costs - the amount the cruise line has to pay for whatever they have given away.

 

2. opportunity costs - the revenue that they are giving up when they give something away

 

On the drink packages I would agree that the actual cost of product that is consumed with them is fairly small (probably in the $20 percent range of the list price of the package). However, considering that most people that select that option would normally buy them or pay for individual drinks at a substantial percentage of the package cost (if they don't spend much on drinks then they would select something else) the opportunity cost impact to the revenue line (their normal profit in selling a package) makes up for the difference between actual and list price.

[Cruizen Susan]

Perks are perks. EXTRA goodies! They never used to give these extra incentives. I'm content, having been cruising for 25 years or more. I'll take whatever they want to tempt me with

[AmberCascades]

Perks are perks. EXTRA goodies! They never used to give these extra incentives. I'm content' date=' having been cruising for 25 years or more. I'll take whatever they want to tempt me with[/quote']

 

Exactly. When we were looking around for our first cruise (only a couple of years ago) we saw all this stuff being offered by Celebrity. Good price, free stuff, and it fit into vacation time I already had booked.

 

So that got us in their doors and they've proven to us, time and again, that we made the right choice.

 

Are they making or losing money on us? I don't know. But they have two loyal customers they didn't have before.

[ISABELLA]

The cost to Celebrity for the beverage package is not equal to the value received by its passengers. I have no idea what their liquor/coffee/water costs are. Nor do I care.

 

They offer a selection of perks so that people can select the one that works best for them. So if you don't drink, pick something else.

 

Complaining about free stuff is the height of a sense of entitlement, to me. So now Celebrity can't win because the perks aren't all the same monetary value.

 

Maybe you should book when they aren't offering any perks at all and then you won't be bothered by it.

 

This is for a discussion - you don't have to bite by head off......

[Cruizen Susan]

If you think the perks are free, then I have some ocean front property in Kansas for sale. There is a cost built into the fare, how much, I have no idea.

 

I've cruised WITH perks, and I've cruised WITHOUT perks. We always do the math, book early and ALWAYS come out with a great deal. I compare apples with apples, cruise vs. land AI vacays, and cruise withOUT the perks by getting a less expensive cabin. It always works in our favor. For example. March 2017 on the Equinox: Aqua cabin, 500. OBC, free pre-paid gratuities, and beverage package. Oh and free upgrade to A1, premiere cabin 1605. Total cost for 10 days on the Equinox for 2 people? 3711. I paid that much 20 years ago, without the perks!

 

It's not nice to insult your fellow cruise critic friends by saying how gullible we are.

[ISABELLA]

Your logic doesn't pan out. The different values of the three options does not necessarily reflect on raising the overall pricing.

 

First, the drinks packages have different values to different people. We are elite and have the free happy hour, so we spend far less than most persons on alcohol.

Second, even if the three options have different values, people have the choice that best suits them. This evens out the benefit of the 123Go package for all.

Third, Celebrity still has to compete with other cruise lines for overall value, which minimizes the impact of the 123Go.

 

Further, in my opinion, unless you drink copious quantities of alcohol, the drinks packages are no bargain. It would not surprise me that X makes an overall profit on the packages for those that purchase the packages.

 

Maybe my logic is off, but if anyone who drinks and have to buy a beverage package - it is $1200 expense ( for 10 days cruise) on top of the cruise cost. If it is perk - it is free $1200 value to a passenger. I am not discussing value to a cruise line or looking for a compensation in differences.

I understand that a lot of people who choose a beverage package would not be happy if this perk will get less value ( like going from unlimited amount of drinks to a limited).

[AmberCascades]

I apologize for sounding harsh. It sounded as if you were saying "I have no use for that, so no one else should get it either".

 

As someone here pointed out, to Celebrity the cost of each perk is probably about the same (which speaks directly to your post).

 

It is the value to the consumer that is different. A drink package is of no use to some. Free air is of no use to others.

 

With so many things being cut out these days, if I can get a perceived value from someone, then I will accept it. Complain too much and companies won't bother anymore.

[cle-guy]

You can choose to book a promotional fare that doesn't include any perks, that might make it feel better.

[AmberCascades]

Maybe my logic is off, but if anyone who drinks and have to buy a beverage package - it is $1200 expense ( for 10 days cruise) on top of the cruise cost. If it is perk - it is free $1200 value to a passenger. I am not discussing value to a cruise line or looking for a compensation in differences.

I understand that a lot of people who choose a beverage package would not be happy if this perk will get less value ( like going from unlimited amount of drinks to a limited).

 

So you are thinking maybe Celebrity should offer people $1,200 OBC? Or $1,200 in gratuities? Or, since gratuities (for us anyway) are usually under $200, that everyone should only get $200 worth of drinks, or OBC or air?

 

I wouldn't buy a beverage package as we don't drink that much. But.....it's an amazing incentive for me to book with Celebrity because now I don't have to pay for my cappucino, or occasional glass of wine or cocktail. For me, this gives them the edge. I could go to any other cruise line and buy my own drinks, or pay for my gratuities or whatever. With Celebrity I don't have to.

 

Sorry, it still sounds to me like you are saying "It's of no value to me so no one else should get it". Sort of party-pooperish. But I don't know you and it's difficult to read "tone" in a post, so I may be wrong.

 

I'm all for theoretical discussions (so long as my freebies aren't at risk :) ).

[cle-guy]

They are most likely if equal value to the cruise line.

 

Gratuities have a actual value.

 

SBC and drink packages are revenue producing. You have to spend the SBC on board and it is worth less than the actual value because they will receive some back. I understand that they may be eliminating redemption in the casino?

 

The drink pack may will cost the passenger more if they purchased it but for the cruise line the actual cost isn't that much.

 

happy cruisng

 

OBC has a real cost to X as well, especially if used in the shops or spa, which are run by 3rd parties. Likely X has to pay them in full for any OBC redemptions, as if it were a cash sale. If OBC is used in dining however, then X does OK with it. Of course X will still get their standard royalty/commissisn form the SPA and shops as if it were any other sale.

 

As to cost of drinks package, a typical bar would shoot for cost to be around 15% to 20% of revenue. So if the drinks packages is valued at $350, it costs X about $52.50 to deliver on the package, plus the 18% included gratuity ($63) which is paid out to the staff TOTALING $115.50 in real $$ cost to the line.

 

So now it makes sense that they give $200 in OBC with COSTS them on average say $125-$150 in real money, Gratuities for 22 on 7 day costs them $175 in real money. So as to cost, the 3 perks on offer are relatively the same, yet the beverage package looks amazing to most consumers so far as "perceived value" goes. And on top of that, the classic package being free, entices us to spend the extra money to upgrade, thus generating real dollars for X by offering something "free".

Edited May 1, 2015 by cle-guy

[rjrpar]

Your 15% to 20% is not right and I doubt your other numbers are either.

[grandgeezer]

Could someone give me the web site for the Kansas Oceanfront property deal. I don't want to miss the opportunity as I missed the Montana oceanfront property offer a few years ago.

 

You can get this right through Celebrity. They figure if people think their perks a free, they'll believe anything.

[gimletgal]

I apologize for sounding harsh. It sounded as if you were saying "I have no use for that, so no one else should get it either".

 

As someone here pointed out, to Celebrity the cost of each perk is probably about the same (which speaks directly to your post).

 

It is the value to the consumer that is different. A drink package is of no use to some. Free air is of no use to others.

 

With so many things being cut out these days, if I can get a perceived value from someone, then I will accept it. Complain too much and companies won't bother anymore.

 

Your posts on this thread have made way too much sense so far!!! :D Have to say I agree with everything you have said.

[neverbeenhere]

15 to 20% pour cost average, sounds about right.

[ISABELLA]

"So you are thinking maybe Celebrity should offer people $1,200 OBC? Or $1,200 in gratuities" -

That is not what I am thinking or suggesting....

 

Maybe I just think differently.....maybe it's just me.

I do like Celebrity and being Elite Plus, I get free perks, that I enjoy during the cruise, but I remember days when life was simpler without gimmicks of booking a cruise.

Without a doubt, 123 promo made Celerity more successful in generating new bookings....

[AmberCascades]

You can get this right through Celebrity. They figure if people think their perks a free, they'll believe anything.

 

Where would I find this information on my cruise documents (about paying for perks - I have enough Kansasian beachfront property)?

 

If I pay a price I'm happy with, get the cabin I want, and get 1, 2 or 3 extra things thrown in....and then the price only goes up after I've booked....where am I to deduce that this non-freebie is coming from?

 

And if I'm happy with my cruise fare, do I really care how the cruiseline chooses to slice and dice any profits they are getting?

 

Or are you just being jaded and cynical? Did someone tinkle on your cornflakes this morning geezer? :D