Should perks be equal in value?

[bigbenboys]

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

 

On our last cruise I did the math. We had all 3 of the 123go. We could have booked without the 123go. In the end it was about $150 pp for us to have the drink package on a 7 night cruise.

 

With the 123go promo. We normally take the perks in this order. Gratuities then OBC and last the drink package. We already get drinks at the elite events. How many drinks do I really need.

[AmberCascades]

"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....

 

Ah, it is all becoming clearer. So you've worked hard to gain your Elite Plus status, with all its perks, and now us newbies (relative newbies) come along and we are tossed perks right and left, without "earning" them, thus negating the specialness of your Elite Plus status?

 

Don't worry, according to Grandgeezer we are all paying for it anyway. :) I don't know about those simpler days of cruising but you are right, Celebrity is using it as a way to get new bookings. And it's working for them, as far as I know.

[neverbeenhere]

Thank You, Patrick.

[smtcan]

On our last cruise I did the math. We had all 3 of the 123go. We could have booked without the 123go. In the end it was about $150 pp for us to have the drink package on a 7 night cruise.

 

With the 123go promo. We normally take the perks in this order. Gratuities then OBC and last the drink package. We already get drinks at the elite events. How many drinks do I really need.

 

My thoughts exactly. We recently took a cruise with a resident discount, which was $600 pp less than the price with 3 perks. We had some OBC from an old future cruise certificate, which was not combinable at that time, so when we did the math it would have cost us $300 each for the drink package. We know from past experience that our bar bill is never near that - happy hour and Elite+ coffees really make a difference to our costs.

[Mynki]

We looked at a cruise a few days ago through a US travel agent. It had the 123 offer. Option one was $400 OBC etc. Or we could book the cruise with no 123 options for $400 less......

 

No offence but people who believe the 'perks' are free are simply naïve or even deluded.

[Cruizen Susan]

We looked at a cruise a few days ago through a US travel agent. It had the 123 offer. Option one was $400 OBC etc. Or we could book the cruise with no 123 options for $400 less......

 

No offence but people who believe the 'perks' are free are simply naïve or even deluded.

 

I don't think that ANYone is saying that the perks are free. It's just that a savvy consumer, when doing the math, who has taken past cruise and land vacations, adds it up and comes out better than they did 10-15 or more years ago, with the 123 package.

 

Yes, often the perks are added at the same time the prices go up. ERGO there is nothing free indeed. But careful shopping around, and often very early booking, can merit quite a few bonus goodies at a rock bottom price when the cruise line is testing a sailing to see if it's a go.

[Cruizen Susan]

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

 

Agreed!! and jaded and cynical? Me thinks so. But in my experience, careful shopping gives me the best bang for my buck, and we often wonder how they are even breaking even with some of our cruises!

[AmberCascades]

We looked at a cruise a few days ago through a US travel agent. It had the 123 offer. Option one was $400 OBC etc. Or we could book the cruise with no 123 options for $400 less......

 

No offence but people who believe the 'perks' are free are simply naïve or even deluded.

 

Wow. Well, I think even your average bear could figure out if that was a deal or no deal (I say no deal).

 

Basically, it's going to be about value, perceived or real, when booking a cruise. You have to factor in the applicable discounts (military, age, residence, etc.), then any perks being offered, whether it's better to take the discounts or the perks, then there's the sailing date - which can affect the price - plus the cost of flying (maybe the cruise is cheap at certain times but airfair is more - or vice versa), then there's whatever your TA might throw in there.

 

As I said before, I don't care how Celebrity wants to cut up my fare and use it - if I've weighed all the cost factors, and timing issues, and come up with a vacation for a price that makes me happy, then why do I care who else is getting what perks and what it costs the cruise line to give them those perks.

 

How much cheaper would my cruise be if people higher up than me in the Captain's Club weren't getting free drinks and laundry and internet? It doesn't matter. That's not my business. I just keep my eyes on my own plate and don't worry about who's getting more than me.

[cle-guy]

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

 

What is wrong about them?

 

I'm from a background in hospitality (BS in Hotel Administration from the Ohio State University and 7 years managing hotels and restaurants for Marriott and their affiliated brands).

 

Industry standards suggest that a typical restaurant incurs a beverage cost of 22% to 28%. I scaled this back to 15% to 20% assuming RCL is getting far better pricing on its liquors and beers than normal restaurants do do to economies of volume purchasing, and that they also have higher than average prices on many beverages.

 

Curious to hear what you might think is wrong with my other interpretations of figures.

[AmberCascades]

I don't think that ANYone is saying that the perks are free. It's just that a savvy consumer' date=' when doing the math, who has taken past cruise and land vacations, adds it up and comes out better than they did 10-15 or more years ago, with the 123 package.

 

Yes, often the perks are added at the same time the prices go up. ERGO there is nothing free indeed. But careful shopping around, and often very early booking, can merit quite a few bonus goodies at a rock bottom price when the cruise line is testing a sailing to see if it's a go.[/quote']

 

You got your two short posts in while I was writing my novella. :D

 

It has been our experience that early booking and smart figuring out of perks has resulted in us being very, very happy with the prices we've paid.

[cle-guy]

I always determine my final actual out-of-pocket cruise cost when making decisions.

 

Crusie fare

taxes and fees

gratuities

cost of drinks I think I'll consume (I assume premium beverage package)

Internet pakckage

Cost of 2 specialty dinners

=TOTAL GROSS CRUISE COST

 

Then I subtract for value of perks I receive

Less OBC from TA

Less OBC from X if included

Less Prepaid gratuities if included

Less Classic Beverage Package Included

Less Internet Package if included

Less included Specialty Dinners if included

= NET CRUISE COST

 

I put it in excel, then start plugging in appropriate variables to see what cabin category makes most sense. Sometimes find that a suite with the included perks comes out not too much different than a veranda, sometimes find an inside with no perks comes out the same as a veranda with perks, so take the veranda.

[Cruizen Susan]

You got your two short posts in while I was writing my novella. :D

 

It has been our experience that early booking and smart figuring out of perks has resulted in us being very, very happy with the prices we've paid.

 

A voice of reason!! We're on the same page, and it's not the greed page, or the penny-pinching page, or the you got more than me page, or the jealous because I'm an elite plus so you shouldn't be getting all this page!!

[Mynki]

Wow. Well, I think even your average bear could figure out if that was a deal or no deal (I say no deal).

 

Basically, it's going to be about value, perceived or real, when booking a cruise. You have to factor in the applicable discounts (military, age, residence, etc.), then any perks being offered, whether it's better to take the discounts or the perks, then there's the sailing date - which can affect the price - plus the cost of flying (maybe the cruise is cheap at certain times but airfair is more - or vice versa), then there's whatever your TA might throw in there.

 

As I said before, I don't care how Celebrity wants to cut up my fare and use it - if I've weighed all the cost factors, and timing issues, and come up with a vacation for a price that makes me happy, then why do I care who else is getting what perks and what it costs the cruise line to give them those perks.

 

How much cheaper would my cruise be if people higher up than me in the Captain's Club weren't getting free drinks and laundry and internet? It doesn't matter. That's not my business. I just keep my eyes on my own plate and don't worry about who's getting more than me.

 

You missed my point didn't you..... :D :D

[AmberCascades]

You missed my point didn't you..... :D :D

 

Your point was that your "free" drinks package would cost $400.

 

That has not been my personal experience. Please see my post above. :)

[CanadianDee]

I always determine my final actual out-of-pocket cruise cost when making decisions.

 

Crusie fare

taxes and fees

gratuities

cost of drinks I think I'll consume (I assume premium beverage package)

Internet pakckage

Cost of 2 specialty dinners

=TOTAL GROSS CRUISE COST

 

Then I subtract for value of perks I receive

Less OBC from TA

Less OBC from X if included

Less Prepaid gratuities if included

Less Classic Beverage Package Included

Less Internet Package if included

Less included Specialty Dinners if included

= NET CRUISE COST

 

I put it in excel, then start plugging in appropriate variables to see what cabin category makes most sense. Sometimes find that a suite with the included perks comes out not too much different than a veranda, sometimes find an inside with no perks comes out the same as a veranda with perks, so take the veranda.

 

Finding other people who plan their vacations on a spreadsheet makes me weep with joy. :)

 

I have not much to add, except that I'd agree with those who've said it takes a little price/perk watching along with factoring in what's important to one in terms of extras, but that you can ultimately walk away with a very good deal.

[Mynki]

[quote name='AmberCascades']Your point was that your "free" drinks package would cost $400.

That has not been my personal experience. Please see my post above. :)[/QUOTE]

No that was not my point at all. You have misunderstood as I suspected....

My post was aimed at the OP. ;)

You then proceeded to state the obvious when it comes to calculating the total cost of a vacation, rather than discussing the value of perks specifically. Not quite the same thing.

[miched]

[quote name='cle-guy']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".[/QUOTE]

Thanks for breaking down what I was trying to illustrate, plus showing why the drink pack could and normally does generate more revenue.

happy cruising 🌊🚢🇺🇸🌞

[varoo]

[quote name='DinaS']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.

[B]They give you choices so you can pick the best value for YOURSELF[/B].[/quote] [SIZE=3]It makes no difference what the perks are worth to someone else, or what they are worth to the cruise line.

The only thing that matters to us is how much the perks are worth to us.

Many times those all-inclusive offers don't give you choices so you can pick the best value for yourself because the only choice you get is to take it or leave it.

Even when they offer special category discounted rates without perks, the value can vary greatly from one offer to another.
So even for the same person who does not want or need a beverage package, there is no consistency as to whether it is better to take the higher price with the perks or to take the lower price without the perks.

The reality is that some of those special category discounted bargain prices without the perks really are much better than others.


However, people who do not qualify for the special category discounted rates don't even get the choice and always need to pay the inflated prices if they want the cruise, whether or not they want the perks that are included.

The big winner is the cruise line.


[/SIZE]

[wallie5446]

[quote name='varoo'][SIZE=3]

The big winner is the cruise line.


[/SIZE][/QUOTE]

Because no matter how much whinning is done on Cruise Critic, we are going to keep booking and keep the ship's full.

The proff is in the pudding!
( if you have sailed X for awhile, you know where that came from! )

[Snit13]

As far as I know I can not take my money with me.

I book what I want when I want it and have a great time seeing the world. I can not worry about free or not free perks that may or may not be offered. I normally book a year or two out as cabin location is important to us. When given the option of only 1 perk, we choose the paid gratuities since we can control what we drink and what we spend while cruising. I know friends who always select the drink package....important to them, not important to us.

However, I am not happy with Celebrity taking away my cabin flowers, my chocolates and now it appears my comp. bottle of bubbly. We always had breakfast on balcony and used the bubbly to make mimosas. It was bad enough they took Michael's Club from us.

All in all we still love Celebrity and will cruise until the money runs out or we go to the great beyond, whichever comes first.

Any cruise beats working.

[actuarian]

[quote name='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.[/QUOTE]

I would respectfully disagree with the comment that the beverage package is very little money to them. It is true that cruise lines purchase beverages at a much lower price that the price available to most of us. However, sale of drinks is a very important part of revenue. Cruise lines usually cannot even break even if a ship is full but cruisers do not spend any money on-board. On-board revenue is necessary for cruise lines to make a profit and sales of drinks are a major part of that. Therefore, the real cost of a complementary beverage package is not the cost of the spirits but the lost revenue from selling them on-board. It is very difficult to make up for that loss.

[james'mommy]

We booked a cruise for March of 16 when we were on the Summit last April so when I got the 123 postcard I called to see if I could switch my booking. I was prepared to give up my obc from booking while onboard. I got to keep that obc (which somehow got increased by $100), got a new $300 obc, free drinks and free tips. Only cost me a $100 more. Certainly worth the extra 100 bucks in my opinion.

[TomTN]

[quote name='rjrpar']Your 15% to 20% is not right and I doubt your other numbers are either.[/QUOTE]

[quote name='neverbeenhere']15 to 20% pour cost average, sounds about right.[/QUOTE]

I audited bars in the past. Owners are always concerned about their markup, and the possibility of theft. They know what their cost should be.
15-20% is right on target.

Look at it like this: a Quart of booze cost $25. It has 32 oz. So there are 21 drinks in a bottle. If a shot is sold for $6 then the revenue produced is $126.

Most shelf booze cost less than $25/qt and most drinks sell for more than $6.

So the conservative calculation is:

25/126= 19.8 %

[Happy Cruiser 6143]

[quote name='AmberCascades']Ah, it is all becoming clearer. So you've worked hard to gain your Elite Plus status, with all its perks, and now us newbies (relative newbies) come along and we are tossed perks right and left, without "earning" them, thus negating the specialness of your Elite Plus status?

[/QUOTE]

[FONT="Verdana"][SIZE="3"]Wow, what a snarky comment! The poster said nothing about "negating the specialness of your Elite Plus status."

Personally, I am happy for any perks Celebrity chooses to send my way. If and when I cease to find value in cruising with Celebrity, I shall cease to do so.

[/SIZE][/FONT]

[cle-guy]

[quote name='Snit13']
However, I am not happy with Celebrity taking away my cabin flowers, my chocolates and now it appears my comp. bottle of bubbly. We always had breakfast on balcony and used the bubbly to make mimosas. It was bad enough they took Michael's Club from us.
.[/QUOTE]

Chocolates are back ( i left dozen of them uneaten and ready for the cabin steward to throw away just 2 weeks ago), Elites still get flowers on formal night, and bubbly is provided on embarkation to all still, as well as a bottle in cabin for Concierge and higher cabins. Edited May 3, 2015 by cle-guy