Other lines following Royals lead in ending discounting

[NightOne]

Carl, what are the 'investment earnings on the float'?

 

As for how higher prices mat affect demand see my answer in my previous post.

 

All that deposit money that people put down 24, 18, 12, or 6 months in advance can be put to work in revenue generating investment activities. Earlier bookings are obviously better for increasing the amount and length of use of this. :)

 

The float is actually what got Ted Arinson "kicked out" of NCL and led him to start Carnival which became the world's largest cruise company.

[teecee60]

 

The CEO(s) of a cruise line say that the company is going to get rid of last minute discounting and everyone here responds "No you're not".

 

I believe them when they say it.

 

THAT'S THE POINT! If even HALF of their customers believe it, and continue to book early at full price, RCCL will be quite happy. :rolleyes:

 

Explain to me then, how the June 26th sailing of Radiance OTS 7 night cruise to Alaska has a "brochure price" of $1721pp...

 

... and a major online site is selling it today for $336pp. :eek:

 

OR the June 19th sailing at $389pp... or the June 5th sailing at $502pp...

 

OR why the RCCL web site has two pages entitled "Last Minute Cruises" and "Hot Deals"

 

 

 

It's really just a matter of how much fortitude and control the decision makers have.

 

As stated by the OP... it is ALSO really just a matter of how much fortitude and control the CONSUMERS have. ;)

 

In my example above to NightOne, it is fairly obvious the consumer does NOT agree with the "brochure rate" and is refusing to pay it, or even HALF of it.

 

It DOES appear to look like the CONSUMER is willing to pay somewhere around ONE FOURTH (or LESS) than the "brochure rate,"

 

AND that RCCL is willing to DO what its CEO says it will NOT DO. Fill empty cabins and make at least SOME money :cool:

Edited May 26, 2015 by teecee60

[DEEDIA]

Scenario, a Ship is due to Sail in a Month, but has 500 Cabins empty, what do RCI do carry on with high prices (blaming the public for not booking early) or offer other incentives ie, drinks packages, OBC, Transfers, up grades, so who gets the best deal now.

[NightOne]

Scenario, a Ship is due to Sail in a Month, but has 500 Cabins empty, what do RCI do carry on with high prices (blaming the public for not booking early) or offer other incentives ie, drinks packages, OBC, Transfers, up grades, so who gets the best deal now.

 

Scenario B - A ship is already sold out 75 days before sailing because people know there is no need to wait until the last minute for deals because there are not going to be any

 

We can make up all the scenarios we want but we are not the cruise line. I still do not know why people want to cling to this so bad. Maybe it doesn't work out in the long term and they reverse their decision. After all, corporations don't always get it right on the 1st, 2nd, 3rd, or even 4th attempt. However, in the short term I certainly believe they are going to try and make a go of it. :)

[RocketMan275]

I taught both Economics 101 and Business 257 (as such). It comes down to discipline. If market data shows that discounting adversely affects the bottom line, and that the pain of transitioning the market (based on expected consumer reaction and the affect of competition) is such that there is a break-even point in the medium-term, then a rational business will pursue such a strategy. Heck - there have been businesses that have proceeded with pricing policies deliberately intended to alienate certain customers and drive them away, hopefully to the competition. It's really just a matter of how much fortitude and control the decision makers have.

 

As I said when Royal first stated they were eliminating last minute discounting, this could be a 'pricing signal' to the other lines. The lines can't communicate directly but they can make public statements. Royal said, look guys, we can make a ton more money if we all stop the last minute discounts. Now, it seems that both Carnival and Norwegian have basically said that they're going along with the no late discount plans.

 

That upsets a lot of folks who are throwing out a lot of arguments that the cruise lines won't succeed. IMHO, most of those 'arguments' are more wishful thinking that thoughtful analysis.

[AtlantaCruiser72]

I think people are mis-understanding what is meant by "last minute" discounting. There will always be targeted fares offered after final payment, but they are trying to eliminate the last minute "junk" fares that have often appeared within the last 30 days of sailing. Will this hold true 100% of the time and for all sailings? No, but if they can publicly state they are eliminating the practice and offer good fares/perks early in the booking cycle, then perhaps they can recondition the buying habits of many cruisers.

 

I have gotten quite a few calls Over the last five months with passengers looking for deep last minute discounts. 98% of the time they are disappointed. The only place I've really seen "crazy cheap" deals have been on Carnivals 3-4 day jaunts from Long Beach, and even those are fewer and fewer.

[emdia43]

When did they stop discounting? They still have the weekly Promowave sales...........:rolleyes:

http://www.creative.rccl.com/Sales/Royal/Multi_Dest/Special_Offers/rci_sales_event.pdf

[John&LaLa]

When did they stop discounting? They still have the weekly Promowave sales...........:rolleyes:

http://www.creative.rccl.com/Sales/Royal/Multi_Dest/Special_Offers/rci_sales_event.pdf

 

Yea, but those are not fire sale prices of the past

[AtlantaCruiser72]

When did they stop discounting? They still have the weekly Promowave sales...........:rolleyes:

http://www.creative.rccl.com/Sales/Royal/Multi_Dest/Special_Offers/rci_sales_event.pdf

 

These "last minute" deals are NOWHERE near the level of discounting we've previously seen from RCCL. The 4nt cruise has the lowest rate per passenger, per day at $94.75. Considering we have seen junk fares as low as $35/day in the past this seems to uphold RCCL's intent.

[AtlantaCruiser72]

Explain to me then, how the June 26th sailing of Radiance OTS 7 night cruise to Alaska has a "brochure price" of $1721pp...

 

... and a major online site is selling it today for $336pp. :eek:

 

OR the June 19th sailing at $389pp... or the June 5th sailing at $502pp

 

I am not doubting you numbers, but I work for a large Internet travel agency group, and cannot find the fares you have listed. The below rates are direct from RCCL's live inventory available to travel agents through cruisingpower (their travel agency portal).

 

6/26 Cat Z gty (3 available) $626pp plus taxes of $191.24

 

6/19 Cat Z gty (2 available) $482pp plus taxes of $192.03

 

6/5 Cat Q gty (1 available) $812.50pp plus taxes of $192.03

 

All of these rates include the NCF of $235 in the base fare (which travel agencies are supposed to advertise in the upfront price). Also RCCL does not allow discounting by travel agents. So, unless RCCL gave the particular agency in question a few cabins to sell at a rate below anyone else, these fares are either false advertising or have sold out.

[John&LaLa]

I just booked a 34 night B2B on Explorer OTS for UNDER $50pp/day. :eek: :D :cool:

 

So I'm not quite ready to panic just yet. :rolleyes:

 

Can you share details, sounds interesting

[teecee60]

Can you share details, sounds interesting

 

11 night cruise to New Zealand, R/T Sydney on 12 April 2016 Now $637pp up from $599pp yesterday. We got $150 OBC from the web agency, but were greatly disappointed to find out AFTERWARDS, that the $200 shareholder benefit was not allowed.

 

24 night transpacific cruise, Sydney to Seattle on 23 April 2016. Now $1106pp, up from $1049pp yesterday. We got $250 OBC from the web agency, but again, we were VERY disappointed to find out AFTERWARDS that the $250 shareholder benefit was not allowed.

 

 

I am not doubting you numbers, but I work for a large Internet travel agency group, and cannot find the fares you have listed.

 

RCCL does not allow discounting by travel agents. So, unless RCCL gave the particular agency in question a few cabins to sell at a rate below anyone else, these fares are either false advertising or have sold out.

 

The first time I heard similar statements was from an indignant fellow cruiser on Celebrity Infinity during a 14 night Panama Canal cruise several years ago.

 

We were having dinner a few nights before the end of the cruise, and the conversation turned to what a great experience it had been, and how pleased we were with the prices. He thought his $1799 price for an OV was a GREAT deal and simply REFUSED to believe that I paid only $799. (for an inside) He basically called me a liar.

 

I urged him to go to the internet café onboard to see for himself and didn't see him again until debark. This time he was EXTREMELY apologetic and told me they had booked the return cruise back through the canal for only $699pp.

 

The same story on Sapphire Princess a couple of years ago. A 14 night Alaskan cruise for $799pp with $500 OBC. :)

 

The same story two years ago on Celebrity Reflection. A 15 night transatlantic from Rome to Miami for $449pp with $250 OBC. :eek:

 

The same story just two months ago with another transatlantic on Celebrity Silhouette, a 14 night cruise for $699pp with $450 OBC. I was called a liar on the CC roll call by another "Doubting Thomas."

 

AND a 15 night cruise from Southampton on Celebrity Constellation for $609pp with $400 OBC.

 

These are NOT restricted "interline rates" but fares available to anyone who has the flexibility to plan and travel after final payment date, and is willing to do a little research and book when the deals present themselves. :rolleyes:

 

Yes, the prices quoted are all for inside cabins. With a billion dollar cruise ship and all its amenities around me, and a couple thousand people to meet, the only time I spend in the cabin is to sleep and shower. I can watch TV at home.

 

Actually, I hope EVERYBODY else books early and pays full price for Grand Suites so the Cruise lines can meet their profit goals.

 

Everybody has their own priorities, and is free to spend their money however they want. This works REALLY well for me.

Edited May 27, 2015 by teecee60

[John&LaLa]

11 night cruise to New Zealand, R/T Sydney on 12 April 2016 Now $637pp up from $599pp yesterday. We got $150 OBC from the web agency, but were greatly disappointed to find out AFTERWARDS, that the $200 shareholder benefit was not allowed.

 

24 night transpacific cruise, Sydney to Seattle on 23 April 2016. Now $1106pp, up from $1049pp yesterday. We got $250 OBC from the web agency, but again, we were VERY disappointed to find out AFTERWARDS that the $250 shareholder benefit was not allowed.

 

ok, so does the $50 pp still work out with out shareholder credit?

 

cheers

Edited May 27, 2015 by John&LaLa

[CP3o]

Carnival still allows Early Saver bookings to get price decreases until close to sailing, right? So maybe Carnival needed to "save" on the decreases they were giving those who had already booked and locked in. (Which pax don't do on RCCL, no incentive, do not get price adjustments after final payment.)

 

Maybe Carnival will give breaks to certain catagories, military, TAs, etc when they need to fill ship but NOT lower prices which lets Early Saver bookings bring down their rates to the lowest.