Can Someone Please Explain to Me RCL's Marketing Strategy

[docsdrillers]

We are a family of 3 from Canada that has gone on 3 Med cruises and one Baltic Cruise in the past 4 years.

 

Most recently we traveled with Celebrity on the Silhouette in a suite and thoroughly enjoyed Luminae and the new Suite perks.

 

We began looking at options for May 2016 and found an intriguing itinerary on RCl however their current pricing policy/strategy leaves me dumbfounded as to how they expect to compete with X.

 

They failed with their much anticipated announcement about their new Suite program. Until it goes fleet wide and adds more useful perks it falls well below their competitors.

 

Firstly,if we book a Grand suite for the 3 of us the only added perk is access to the Concierge lounge which is of no consequence as we are Diamond already.

 

Secondly,the pricing for the third person at 3129.00 is almost 50% more expensive than booking a balcony cabin even after paying the single supplement...How does that even remotely make sense and better yet who would be stupid enough to pay those crazy third person rates.

 

So clearly it's cheaper for us to have two cabins with more space and two bathrooms rather than having all of us in one Suite.

 

How does that benefit RCl's bottom line...we take up an extra cabin which results in lost revenue....makes no sense to me...

 

The ship is virtually unsold including almost all of the high end inventory.

 

Is RCL trying to discourage families?

 

If they stick with this marketing strategy as well as implying they will no longer heavily reduce cabin prices after final pay then frankly this company will be in trouble.

 

I'd love to hear others thoughts on what seems to be RCL's lack of vision and poor marketing strategies..

 

As far as i'm concerned they are driving the high end market and families into the hands of their competitors.

 

IMHO

[marci22]

I would just book the two cabins. Keep watching for price reductions on other categories.

[docsdrillers]

Don't get me wrong,we love RCL and are still planning on going on this cruise.

 

We have booked a Junior suite and a D2 for now.

 

But frankly if there was a comparable itinerary on X we'd go there as a first choice in a heartbeat.

 

Luminae was amazing and the suite perks including Michaels club access beats RCL hands down anytime.

 

I would just book the two cabins. Keep watching for price reductions on other categories.

[orville99]

Don't get me wrong,we love RCL and are still planning on going on this cruise.

 

We have booked a Junior suite and a D2 for now.

 

But frankly if there was a comparable itinerary on X we'd go there as a first choice in a heartbeat.

 

Luminae was amazing and the suite perks including Michaels club access beats RCL hands down anytime.

 

If they drive you into the arms of Celebrity, they win anyway :)

[setsail]

 

 

 

 

 

 

 

If they stick with this marketing strategy as well as implying they will no longer heavily reduce cabin prices after final pay then frankly this company will be in trouble.

 

I'd love to hear others thoughts on what seems to be RCL's lack of vision and poor marketing strategies..

 

As far as i'm concerned they are driving the high end market and families into the hands of their competitors.

 

IMHO

 

Its a pretty simple strategy, if you don't like the set up then you have the option of stepping aside and making room for hundreds of others who are fine, and there are many as rci sails at 104% capacity. What they said about reducing cabin prices is that if the price was reduced at 40,30,20, or 10 days out it would not be reduced anymore. All well within the FP.

Edited September 26, 2015 by setsail

[Big_G]

 

We began looking at options for May 2016 and found an intriguing itinerary on RCl however their current pricing policy/strategy leaves me dumbfounded as to how they expect to compete with X.

 

 

They aren't competing with Celebrity.

 

 

They failed with their much anticipated announcement about their new Suite program. Until it goes fleet wide and adds more useful perks it falls well below their competitors.

 

 

Not sure how a new unimplemented program can be a failure. They're still not competing with Celebrity.

 

 

Firstly,if we book a Grand suite for the 3 of us the only added perk is access to the Concierge lounge which is of no consequence as we are Diamond already.

 

 

Not true.

 

Secondly,the pricing for the third person at 3129.00 is almost 50% more expensive than booking a balcony cabin even after paying the single supplement...How does that even remotely make sense and better yet who would be stupid enough to pay those crazy third person rates.

 

So clearly it's cheaper for us to have two cabins with more space and two bathrooms rather than having all of us in one Suite.

 

But not everyone's family is in a position to book a separate room for the kiddies.

 

How does that benefit RCl's bottom line...we take up an extra cabin which results in lost revenue....makes no sense to me...

 

The ship is virtually unsold including almost all of the high end inventory.

 

Is RCL trying to discourage families?

 

If they stick with this marketing strategy as well as implying they will no longer heavily reduce cabin prices after final pay then frankly this company will be in trouble.

 

I'd love to hear others thoughts on what seems to be RCL's lack of vision and poor marketing strategies..

 

As far as i'm concerned they are driving the high end market and families into the hands of their competitors.

 

IMHO

 

RCL stock is up 27 percent since April. When people look at it from their own perspective it's not really an objective evaluation. I'm not happy with the higher prices either but it's all about supply and demand.

[docsdrillers]

Perhaps i should have clarified that they are competing in the high end range of inventories.

 

Anyone who decides they want to travel in suites will compare all cruise lines to determine which line gives them the most bang for their dollar.

 

And in that marketplace i feel that currently RCL is a complete failure.

 

If it costs me the same to sail in Grande Suite for 3 of us vs a Royal suite on X then hands down X blows RCL out of the water.

 

In addition to Luminae you get unlimited internet,unlimited specialty dining as well as 3 Premium drink packages,free minibar drinks etc etc etc....plus other perks like Butlers and Michaels club access and Concierge.

 

 

They aren't competing with Celebrity.

 

 

 

Not sure how a new unimplemented program can be a failure. They're still not competing with Celebrity.

 

 

 

Not true.

 

 

 

But not everyone's family is in a position to book a separate room for the kiddies.

 

 

 

RCL stock is up 27 percent since April. When people look at it from their own perspective it's not really an objective evaluation. I'm not happy with the higher prices either but it's all about supply and demand.

[Diplomacy]

Perhaps i should have clarified that they are competing in the high end range of inventories....If it costs me the same to sail in Grande Suite for 3 of us vs a Royal suite on X then hands down X blows RCL out of the water.

 

 

No, they really aren't. RCCL owns Celebrity Cruise lines. They even offer reciprocity across the two brands. Booking with either is a win for RCCL.

Edited September 26, 2015 by Diplomacy

[RCmommy]

We are a family of 3 from Canada that has gone on 3 Med cruises and one Baltic Cruise in the past 4 years.

 

Most recently we traveled with Celebrity on the Silhouette in a suite and thoroughly enjoyed Luminae and the new Suite perks.

 

We began looking at options for May 2016 and found an intriguing itinerary on RCl however their current pricing policy/strategy leaves me dumbfounded as to how they expect to compete with X.

 

They failed with their much anticipated announcement about their new Suite program. Until it goes fleet wide and adds more useful perks it falls well below their competitors.

 

Firstly,if we book a Grand suite for the 3 of us the only added perk is access to the Concierge lounge which is of no consequence as we are Diamond already.

 

Secondly,the pricing for the third person at 3129.00 is almost 50% more expensive than booking a balcony cabin even after paying the single supplement...How does that even remotely make sense and better yet who would be stupid enough to pay those crazy third person rates.

 

So clearly it's cheaper for us to have two cabins with more space and two bathrooms rather than having all of us in one Suite.

 

How does that benefit RCl's bottom line...we take up an extra cabin which results in lost revenue....makes no sense to me...

 

The ship is virtually unsold including almost all of the high end inventory.

 

Is RCL trying to discourage families?

 

If they stick with this marketing strategy as well as implying they will no longer heavily reduce cabin prices after final pay then frankly this company will be in trouble.

 

I'd love to hear others thoughts on what seems to be RCL's lack of vision and poor marketing strategies..

 

As far as i'm concerned they are driving the high end market and families into the hands of their competitors.

 

IMHO

 

 

When we booked our upcoming sailing it was cheaper by $300 to book two Central Park view cabins than an inside one.

 

About 7 weeks later I called looking to get a balcony, and to put the four of us in one balcony (we currently have two cp view) is minimum $1500 more.

[Big_G]

Perhaps i should have clarified that they are competing in the high end range of inventories.

 

Anyone who decides they want to travel in suites will compare all cruise lines to determine which line gives them the most bang for their dollar.

 

And in that marketplace i feel that currently RCL is a complete failure.

 

If it costs me the same to sail in Grande Suite for 3 of us vs a Royal suite on X then hands down X blows RCL out of the water.

 

In addition to Luminae you get unlimited internet,unlimited specialty dining as well as 3 Premium drink packages,free minibar drinks etc etc etc....plus other perks like Butlers and Michaels club access and Concierge.

 

No, they really aren't. RCCL owns Celebrity Cruise lines. They even offer reciprocity across the two brands. Booking with either is a win for RCCL.

 

What Diplomacy said is what I meant. I'd also add that your paying for to different styles of cruising.

[Starry Eyes]

Perhaps i should have clarified that they are competing in the high end range of inventories.

 

Anyone who decides they want to travel in suites will compare all cruise lines to determine which line gives them the most bang for their dollar.

 

And in that marketplace i feel that currently RCL is a complete failure.

 

If it costs me the same to sail in Grande Suite for 3 of us vs a Royal suite on X then hands down X blows RCL out of the water.

 

In addition to Luminae you get unlimited internet,unlimited specialty dining as well as 3 Premium drink packages,free minibar drinks etc etc etc....plus other perks like Butlers and Michaels club access and Concierge.

A corporation competes with others, not with itself. As the corporation owns Royal Caribbean and Celebrity, they are happy if you love either one or both those lines. And they want you to be able to distinguish the two...one line might suit some people, another line suits others, sometimes choices change for different cruises or points in life.

 

I agree, third person pricing can be odd and often seems too high to me....yet they seem to sell...meaning they still make sense for some parties. If nearly all triple/quad spaces are taken, the triple/quad rates can be crazy high. If you books double plus a solo, you will pay a solo supplement and in so doing may have opened up a slot for them to sell a triple to somebody else....if they can sell that at a premium, their marketing might make sense.

 

btw, diamond status will not get you into the CL...just the DL (assuming the ship you are considering has both CL and DL).

[SheehanDJ]

Cruise pricing has always confused me, that being said, they have a lot more info available to them with trends and what not that us normal folk will never have.

 

I've never stayed in a suite as I would never be able to justify the cost for what is received. It just doesn't hold value to me. A lot of folks want the suites though and are willing to pay a premium for them, as long as that desire is there they are going to be priced in a way that doesn't make sense.

 

The same held true for PR rooms. When the Navigator class first came out the PR cabins were the exact same price as any other interior cabin. The following year they were just under the cost of a balcony, the year after they were pricing around an OV. Now they are a couple bucks more than a standard interior. The new wore off them, and they are no longer an "in thing"

 

The same is going to happen with the new interior rooms with the virtual balconies, they will more pricey for a little while then the new will wear off and they will stabilize at a few buck more than a regular interior. Brilliant idea on RCCL's part for throwing a couple of large TVs against a wall.

 

Suites are never going to come down in price and they are never going to be able to be compared to another cabin catagory because they are going to keep adding to them with low actual dollar cost vs high dollar demand. Thus their new suite program.

[riclop]

RCCL wins anyway.

[RocketMan275]

 

Secondly,the pricing for the third person at 3129.00 is almost 50% more expensive than booking a balcony cabin even after paying the single supplement...How does that even remotely make sense and better yet who would be stupid enough to pay those crazy third person rates.

 

So clearly it's cheaper for us to have two cabins with more space and two bathrooms rather than having all of us in one Suite.

 

How does that benefit RCl's bottom line...we take up an extra cabin which results in lost revenue....makes no sense to me...

 

The ship is virtually unsold including almost all of the high end inventory.

 

Is RCL trying to discourage families?

 

IMHO

 

The reason for extremely high 3rd/4th passenger fares is easy to explain. There are a finite number of seats in lifeboats. Every passenger must have a seat so there is an upper limit to the number of passengers. Simply put, not every cabin that can accommodate 3 or 4 passengers can be sold with 3 or 4 passengers without violating the requirement for a seat in a life boat. If there are too many passengers sailing as 3rd or 4th passengers, then other cabins must sail empty. The solution is to increase the 3rd/4th passenger rates to discourage additional bookings.

[offshorefriend]

The reason for extremely high 3rd/4th passenger fares is easy to explain. There are a finite number of seats in lifeboats. Every passenger must have a seat so there is an upper limit to the number of passengers. Simply put, not every cabin that can accommodate 3 or 4 passengers can be sold with 3 or 4 passengers without violating the requirement for a seat in a life boat. If there are too many passengers sailing as 3rd or 4th passengers, then other cabins must sail empty. The solution is to increase the 3rd/4th passenger rates to discourage additional bookings.

 

 

That would make sense!

 

 

offshorefriend Ute

[Paulxyz2004]

Brilliant idea on RCCL's part for throwing a couple of large TVs against a wall.

 

Disney has been doing this for quite a while already, Though they had a virtual window, not a virtual balcony;)

[zeridan]

We are a family of 3 from Canada that has gone on 3 Med cruises and one Baltic Cruise in the past 4 years.

 

Most recently we traveled with Celebrity on the Silhouette in a suite and thoroughly enjoyed Luminae and the new Suite perks.

 

We began looking at options for May 2016 and found an intriguing itinerary on RCl however their current pricing policy/strategy leaves me dumbfounded as to how they expect to compete with X.

 

They failed with their much anticipated announcement about their new Suite program. Until it goes fleet wide and adds more useful perks it falls well below their competitors.

 

Firstly,if we book a Grand suite for the 3 of us the only added perk is access to the Concierge lounge which is of no consequence as we are Diamond already.

 

Secondly,the pricing for the third person at 3129.00 is almost 50% more expensive than booking a balcony cabin even after paying the single supplement...How does that even remotely make sense and better yet who would be stupid enough to pay those crazy third person rates.

 

So clearly it's cheaper for us to have two cabins with more space and two bathrooms rather than having all of us in one Suite.

 

How does that benefit RCl's bottom line...we take up an extra cabin which results in lost revenue....makes no sense to me...

 

The ship is virtually unsold including almost all of the high end inventory.

 

Is RCL trying to discourage families?

 

If they stick with this marketing strategy as well as implying they will no longer heavily reduce cabin prices after final pay then frankly this company will be in trouble.

 

I'd love to hear others thoughts on what seems to be RCL's lack of vision and poor marketing strategies..

 

As far as i'm concerned they are driving the high end market and families into the hands of their competitors.

 

IMHO

 

They are not in competition with X. The brands are supposed to be different so that they capture different clientele.

 

That sailing. like virtually all of their other ones, will sail full. Their company is growing and stock is doing very well. You may not like their marketing but I think as far as their shareholders are concerned their "vision" and "Strategy" is working just fine.