RCL's first quarter numbers

[grandgeezer]

For the first quarter of 2015, RCL's revenue was down 5% from the first quarter last year, $1.8 billion vs $1.9 billion. Profits were up 70%, $45.2 million vs $26.5 million. Just think how much higher the profits would have been if they wouldn't have given away all the "free" stuff such as drinks. obc, and prepaid gratuities.

[blueboro]

Or, how many people might have gone on a different line without the perks?

[need2cruisesoon]

Another reason from them to justify cut backs and increase fee for specialty dining. Good news for the stock holders.

Edited May 5, 2015 by need2cruisesoon

[WpgCruise]

Indeed.

 

A $100 million here, a $100 million there...................pretty soon you're talking real money.

 

I get such a kick out of people lambasting the Leadership and Management of multi billion dollar corporations. If these critic are so knowledgeable in what the customer wants, why aren't they on the Boards or in a Leadership role ?

Edited May 5, 2015 by WpgCruise

[Iamcruzin]

For the first quarter of 2015, RCL's revenue was down 5% from the first quarter last year, $1.8 billion vs $1.9 billion. Profits were up 70%, $45.2 million vs $26.5 million. Just think how much higher the profits would have been if they wouldn't have given away all the "free" stuff such as drinks. obc, and prepaid gratuities.

 

How much could it have cost them to give away the perks if revenue is only down 5%. Looks like they made it up in profit. A 70% increase in profit is a damned good number. Apparently the promotions are filling the ships at a better rate than the usual last minute deals that fill the ships with those on a fixed income who don't spend on board.

[jan-n-john]

How much could it have cost them to give away the perks if revenue is only down 5%. Looks like they made it up in profit. A 70% increase in profit is a damned good number. Apparently the promotions are filling the ships at a better rate than the usual last minute deals that fill the ships with those on a fixed income who don't spend on board.

 

I haven't looked at the numbers, but it's likely that most of the increased profit came from reduced fuel costs, not from marketing steps. If anybody has made the comparison it would be interesting to hear.

[spongebobshayne]

No such thing as a free perk. The cost of the perks are added to the cruise fares. That's why the profits were up 70%.

[Iamcruzin]

No such thing as a free perk. The cost of the perks are added to the cruise fares. That's why the profits were up 70%.

It's funny that you mention this as the OP has posted the same statement in other threads. I was actually surprised that he posted a statement about the perks being free.

[rdhnd]

Another reason from them to justify cut backs and increase fee for specialty dining. Good news for the stock holders.

 

This was not good news for stock holders. Prior to the release of the quarterly statement ... stock was at $80 a share ... today it is about $67. But in a way all is good because I bought when it was down at $12 a couple of years ago.

[4774Papa]

I haven't looked at the numbers, but it's likely that most of the increased profit came from reduced fuel costs, not from marketing steps. If anybody has made the comparison it would be interesting to hear.

Smartest answer that I have seen yet on this thread

[wwcruisers]

No such thing as a free perk. The cost of the perks are added to the cruise fares. That's why the profits were up 70%.

 

It's funny that you mention this as the OP has posted the same statement in other threads. I was actually surprised that he posted a statement about the perks being free.

 

 

I have to agree with the observation that X isn't giving anything away for free, with these promos! And, while I'm sure that some folks are finding an occasional great deal -- those have always been out there.

 

What DH and I have experienced in the last two years, is a geometric rise in cabin rates. While we used to "splurge" on a sky suite occasionally, we now find ourselves totally priced-out of that market (and its perks). We're lucky to find an affordable Concierge Class cabin -- and on some cruises, even a reasonably-priced 2C veranda! :eek:

 

What I'm starting to see (from the customer's point of view -- not the stock investor's) is the law of diminishing returns. How much more are people willing to pay, to get these perks? When I analyze our spending habits versus the "free" promo perks, this is what I come up with:

 

-- DRINK PACKAGE: We've enjoyed this perk several times, and have even upgraded to premium. But, on face value, is it worth it? In over a decade of cruising, we've never had a bar bill anywhere near the cost of even the classic package. So, could we live without it? Yes.

-- PRE-PAID GRATUITIES: We were going to pay those anyway. Having recently switched to Select Dining, it's nice to have that cost taken care of early. Is it great to have someone else (X or a TA) pick up that tab? Of course. But, for most of us, tips are just an expense built-in to the cost of cruising.

-- OBC: We've had this applied to our current cruise (booking onboard), as well as the more traditional method of applying it to the future cruise. And yes, it's nice to have a few $$ to splurge on something like a specialty restaurant dinner. But, here again, we don't traditionally spend that much $$ onboard. It has been a long time since we walked off the ship with a large bill for onboard purchases.

 

I'm glad that X and its parent company are doing well. But, maybe this recent hiccup in the stock earnings should be a wake-up call for them. It doesn't matter how many "goodies" you are giving away with a cabin (or class of cabins). If folks simply can't afford your prices, they'll look elsewhere. Just my $.02. ;)

[spongebobshayne]

I have to agree with the observation that X isn't giving anything away for free, with these promos! And, while I'm sure that some folks are finding an occasional great deal -- those have always been out there.

 

What DH and I have experienced in the last two years, is a geometric rise in cabin rates. While we used to "splurge" on a sky suite occasionally, we now find ourselves totally priced-out of that market (and its perks). We're lucky to find an affordable Concierge Class cabin -- and on some cruises, even a reasonably-priced 2C veranda! :eek:

 

What I'm starting to see (from the customer's point of view -- not the stock investor's) is the law of diminishing returns. How much more are people willing to pay, to get these perks? When I analyze our spending habits versus the "free" promo perks, this is what I come up with:

 

-- DRINK PACKAGE: We've enjoyed this perk several times, and have even upgraded to premium. But, on face value, is it worth it? In over a decade of cruising, we've never had a bar bill anywhere near the cost of even the classic package. So, could we live without it? Yes.

-- PRE-PAID GRATUITIES: We were going to pay those anyway. Having recently switched to Select Dining, it's nice to have that cost taken care of early. Is it great to have someone else (X or a TA) pick up that tab? Of course. But, for most of us, tips are just an expense built-in to the cost of cruising.

-- OBC: We've had this applied to our current cruise (booking onboard), as well as the more traditional method of applying it to the future cruise. And yes, it's nice to have a few $$ to splurge on something like a specialty restaurant dinner. But, here again, we don't traditionally spend that much $$ onboard. It has been a long time since we walked off the ship with a large bill for onboard purchases.

 

I'm glad that X and its parent company are doing well. But, maybe this recent hiccup in the stock earnings should be a wake-up call for them. It doesn't matter how many "goodies" you are giving away with a cabin (or class of cabins). If folks simply can't afford your prices, they'll look elsewhere. Just my $.02. ;)

 

Well said and couldn't agree more.