Lower Oil = Higher Cruise Prices

[Hlitner]

Lets put some numbers to this stuff. Last month we took an Eclipse Cruise and had our chosen A2 Cabin (Aqua Class) for about $4800 which included classic drink package, pre paid gratuitites, and $600 in OBCs (some from the cruise line and some from our cruise agency. The same category for the same cruise next year (Nov 2016) in the same cabin with the "Go Better" option would now be $6766 and this would have fewer OBCs. That represents about a 50% price increase! And this same cruise, last year in Nov 2015, was about $800 cheaper then this year, so in just two years the price increase in in excess of 60%. And this at a time when fuel prices (a major expense for the cruise lines) are now less then half the cost of a couple of years ago. When we look at the current pricing for Aqua on our selected 14 day cruise it costs about $240 per passenger day. This starts getting close to some discounted deals on better cruise lines.

 

I should add that we had booked this cruise for 2016 just prior to the new Go Better/Best policy and our price was actually about $1000 less then the new price! We are now looking at several other options (including an ultra-luxury cruise line and also a Haven Suite on Norwegian) and might eventually cancel the X booking to replace it (same weeks) with a higher-end option. Yes, Celebrity still is a great product and we really enjoy the line. But having cruised on 14 different cruise lines we are always open to other options and Celebrity is now pricing themselves out of the market.

 

So what is the future? We suspect that X is going to be forced into offering some last minute special deals for those of us who can do last minute bookings. We have recently grabbed some amazing deals on the new Regal Princess and on HAL's Prinsendam by doing last minute bookings, both of which resulted from those lines overpricing their product to earlier bookers.

 

Once upon a time, many frequent cruisers played the last minute bargain hunting game. The cruise lines then changed their pricing to often give advantages to early bookers. But now, it looks like history is about the repeat itself with the far better deals going to last minute bookers. So be it.

 

Hank

[K.T.B.]

If I remember correctly, airlines, cruise lines, et al, all have a contract that they sign with whatever oil company they deal with. They pay the price of oil at the time of signing, albeit with some sort of "bulk discount" involved. It's set for however many years or months the contract is in effect. Currently, the price is about $38 a barrel. A year ago it was around $62.

 

It's all about the timing.....

[Lastdance]

It is all about the game and what we as consumers are wiling to pay for the opportunity cost. Also, it is a choice; no one is making us pay that price. Companies are in it for the bottom line and we are in it for what we feel is a fair deal...that deal looks differently for each one of us, according to our lifelong filters and experiences. Just remember that you can't take it with you so sometimes you just have to be happy with what you have. :cool:

[keithm]

Why should Celebrity charge higher cruise prices when oil prices have gone down so low ? :eek:

 

What say you ?

Usually, they book contracts that may extend out a few years. Unfortunately, the higher fuel prices get locked in that way.

[roquejo]

Why would they?, same case with the airlines not lower their fares...supply and demand...

 

If you want lower cruise fares, book on those less in demand IT's like re-positioning or TA's.

 

Cruise lines are not typically earning on repositionings, rather they sail out of necessity to move their ships from one home port to another due to seasonal demand....

 

But still, the demand is picking up on those as people are getting wiser, so their prices are generally not as cheap as before.... but still you can find a good deal on those on selected sailings...

[sarahuk]

Agreed. The OP's question is pointless. Why ?

 

1. It's all about supply and demand. As long as folks are willing to pay the higher price, why should they charge less ? That's business.

 

2. You'd think some folks think Celebrity is a non-profit organization.

 

I think it is a little rude to suggest the OP,s question is pointless and as a host I am disappointed you had to stoop to this level. Just because you don't agree with someone,s point of view, it does not make it pointless. Having different opinions opens up discussions which some of us like to read - it's not what you say but how you say it!!

[Big_G]

I think it is a little rude to suggest the OP,s question is pointless and as a host I am disappointed you had to stoop to this level. Just because you don't agree with someone,s point of view, it does not make it pointless. Having different opinions opens up discussions which some of us like to read - it's not what you say but how you say it!!

 

I think you're jumping the gun. I doubt Andy's comment was directed at the OP. Some people seem to have a problem with Celebrity and other lines taking advantage of lower operating costs to make a profit. I'm pretty sure that was the gist of his comment. I've never seen a rude comment from him in all the time I've been on Cruise Critic.

[goody1]

I think it is a little rude to suggest the OP,s question is pointless and as a host I am disappointed you had to stoop to this level. Just because you don't agree with someone,s point of view, it does not make it pointless. Having different opinions opens up discussions which some of us like to read - it's not what you say but how you say it!!

 

I totally agree.

[florisdekort]

Agreed. The OP's question is pointless. Why ?

 

 

 

1. It's all about supply and demand. As long as folks are willing to pay the higher price, why should they charge less ? That's business.

 

 

 

2. You'd think some folks think Celebrity is a non-profit organization.

 

 

Very well said. Couldn't agree more.

[Wine-O]

I think it is a little rude to suggest the OP,s question is pointless and as a host I am disappointed you had to stoop to this level. Just because you don't agree with someone,s point of view, it does not make it pointless. Having different opinions opens up discussions which some of us like to read - it's not what you say but how you say it!!

 

The OP has the propensity to starting these types of negative threads.

[C-Dragons]

I think it is a little rude to suggest the OP,s question is pointless and as a host I am disappointed you had to stoop to this level. Just because you don't agree with someone,s point of view, it does not make it pointless. Having different opinions opens up discussions which some of us like to read - it's not what you say but how you say it!!

 

Andy, rude?

With all due respect, your comment has no merit. What level is he stooping to? As you point out different opinions open up dialogue, and Andy is entitled to express his opinion just as you are.

 

Merry Christmas.

[cruise47]

Supply & Demand. Crude Oil Prices has been down for 84 straight months. But cruises prices & air lines prices are up..

[HappySailer88]

I totally agree.

I second that agree...

[justcrusn]

Please realize an important fact.

CELEBRITY CRUISE LINE DOES NOT SET THE PRICE.

 

All they can do is ask.

 

We, the consumers actually set the price by what we are willing to pay.

The ship will not sail empty, if no one is buying then pricing will adjust until they do.

A cruise represents discretionary spending, it is a want NOT a need.

 

If you are a top photographer pricing weddings at $5,000 but NO ONE is booking, you lower your price until they do. Maybe $3,000 keeps you fully booked, so you charge that.

You cannot simply charge whatever you want, supply and demand has a role.

 

 

There are strategies for cruising cheap, even on celebrity, but you likely will get a guarantee cabin, inside cabin, sail on a TA, or look for past final payment deals.

[Banjo]

I am surprised no one mentioned this but with a strong dollar they are increasing profits on European cruises. Other then sailings from Southampton, most of the passengers on European cruises are from the US and pay in dollars. The dollar can pay for so much more went pegged against the Euro.

[greydog]

Why should Celebrity charge higher cruise prices when oil prices have gone down so low ? :eek:

What say you ?

 

There is continuing tension between competitive prices responding to production costs changes and meeting shareholder investment expectations. New 2015 EPA rules have raised fuel costs, other things equal (government study forecast +30%). There were widespread great deals industry-wide during the last recession when demand was weak, now the pendulum has swung reacting to stronger demand.

 

I've noticed how the price premium for OV and above has widened likely associated with BBB. But the cheaper insides remain for the more 'value' oriented. Also, cost of providing the superior loyalty perqs has to be recovered, i.e. no such things as free lunch. :)

 

Investors also are aware of the lower fuel prices and adjust their expectations for financial performance. We cruisers generally love new ships with more amenities - these need to be financed which is facilitated by healthy financial performance. HAPPY CRUISING

[teecee60]

 

CELEBRITY CRUISE LINE DOES NOT SET THE PRICE.

 

All they can do is ask. We, the consumers actually set the price by what we are willing to pay.

 

The ship will not sail empty, if no one is buying then pricing will adjust until they do.

 

There are strategies for cruising cheap, even on celebrity,

 

but you likely will get a guarantee cabin, inside cabin, sail on a TA, or look for past final payment deals.

 

 

 

So what is the future?

 

We suspect that X is going to be forced into offering last minute deals for those of us who do last minute bookings.

 

We have recently grabbed some amazing deals on the new Regal Princess and on HAL's Prinsendam by doing last minute bookings, both of which resulted from those lines overpricing their product to earlier bookers.

 

Once upon a time, many frequent cruisers played the last minute bargain hunting game. The cruise lines then changed their pricing to often give advantages to early bookers.

 

But now, it looks like history is about the repeat itself with the far better deals going to last minute bookers. So be it.

 

 

28 Feb, 14 night "round-the-horn" cruise on Infinity just passed final payment date.

 

Lo and behold...the price just dropped several hundred dollars. :eek: :D ;)

 

You can now do a fantastic itinerary, 28 night B2B cruise on Celebrity, for just $1,807pp with $500 OBC (shareholder benefit)

 

(and yes...taxes and tips ARE extra... cruises are always priced that way :rolleyes: )

 

One way flight to Buenos Aires through Choice Air (recently renamed Air2Sea) from Miami is under $570pp.

Edited December 25, 2015 by teecee60