Why are prices so high with lower fuel prices?

[Towel Critter]

We have been on 27 cruises with Carnival.

We decided to book the May 21st cruise on the Freedom out of Galveston. I thought the prices were kind of high. Carla always wants a balcony, I don't really care.

 

 

 

For us to get a balcony it is $1,928.32. In the past it cost around $1,200 and the last couple of years around $1,400 to $1,500 because of fuel prices they said. Fuel prices are way down right now.

 

 

 

While waiting for our personal cruise planner to call me back I went on Royal Caribbean just for the hell of it and looked. On May the first they have one out of Galveston, balcony is $1,797.98 with a $100.00 onboard credit. Going the same places except it goes to Falmouth Jamaica, which is supposed to be a nicer port. Nicer ship and better ports for about $250.00 less.

 

 

 

When my vacation planner called back I told her about this and she said all she could do is get us an extra $30.00 per person off. I asked why it was so high and she just said that cruising is real popular right now. Basically price gouging to me. I just told her I was going to have to think about it.

 

 

 

I don't really think I can change cruise lines right now but it pisses me off. If we went on Royal Caribbean we would lose all our privileges, long line to board, etc. Kind of feel like I wasted my time with Carnival all these years.

 

I feel your pocketbook pain. :-) Funny how Carnival's original stated mission was to make cruising affordable for everyone. I guess they don't care about that any longer.

[nwo4life]

I feel your pocketbook pain. :-) Funny how Carnival's original stated mission was to make cruising affordable for everyone. I guess they don't care about that any longer.

 

 

Please tell us where you can get more value for your vacation dollar than Carnival Cruise Line. I have yet to find it.

[ABoatNerd]

Excellent responses all around.

 

Reality is that people are booking a lot of cruises because they are "obedient consumers".

 

Most of the G20 countries rely on people to continue consumer purchases - it frankly is the foundation of each of the G20 economies; especially the god bless USA.

 

People in the USA and Canada in particular are being conditioned to look for a "deal" - well businesses are conditioned to make the maximum profit they can within the law. These are not compatible goals folks.

 

We have cruised since 1989. We have stopped all cruising due to high prices and lower product offerings. We sailed with Celebrity since 1992 and they will not have our business going forward. Further, we have stopped all vacation travel. The cost of travel is escalating well beyond inflation and the bull related to missed ports etc (Celebrity cancelled a stop in Bali yesterday due to terrorism threat) and more and more cost and effort due to terrorism is not something I will pay for, period.

 

We have purchased many National Geographic videos of the places we had planned to see and enjoy same with a lovely glass of wine and meal in the comfort of our home.

 

We are NOT being "obedient consumers". However, we have a lot of money for health care, food and retirement which are life essentials.

 

People make their unique decisions, but be realistic on the realities of a consumer driven purchasing reality. Until people stop buying cruises, price will go up and what you get for your purchase will go down! It is the same in restaurants and consumer products.

 

Capitalism is what divides the G20 from the also rans of this planet in the past and now. It comes with a cost to consumers. Put yourself first and ensure you have a big stockpile of cash to pay for life's essentials first, that gives you power and control and peace of mind.

 

The cruise lines do not care one bit about you so make sure you do the same!

 

ABoatNerd

[aznoohwee]

Carnival is actually losing money based on the current fuel prices. They purchase fuel derivatives and futures contracts to ensure that fluctuations in fuel prices have a minimal impact on cash flow. Their derivatives strategy is based on the premise that fuel prices fall within a certain range, an upper and lower bound based on historic prices. If the current price of fuel falls within this range they make money. Currently the price of oil is lower than their lower bound so they are losing money. You can read about this in their quarterly financial reports.

 

Sent from my SM-G900V using Tapatalk

[splash_in_the_water]

Per day? Per week? Per month? Per quarter? Per year? Per passenger? Per mile?

 

Can you be more specific so this figure means something?

 

look at your exaggerated comment lol.... yeah per passenger.....that's it!!

[Warm Breezes]

Excellent responses all around.

 

Reality is that people are booking a lot of cruises because they are "obedient consumers".

 

Most of the G20 countries rely on people to continue consumer purchases - it frankly is the foundation of each of the G20 economies; especially the god bless USA.

 

People in the USA and Canada in particular are being conditioned to look for a "deal" - well businesses are conditioned to make the maximum profit they can within the law. These are not compatible goals folks.

 

We have cruised since 1989. We have stopped all cruising due to high prices and lower product offerings. We sailed with Celebrity since 1992 and they will not have our business going forward. Further, we have stopped all vacation travel. The cost of travel is escalating well beyond inflation and the bull related to missed ports etc (Celebrity cancelled a stop in Bali yesterday due to terrorism threat) and more and more cost and effort due to terrorism is not something I will pay for, period.

 

We have purchased many National Geographic videos of the places we had planned to see and enjoy same with a lovely glass of wine and meal in the comfort of our home.

 

We are NOT being "obedient consumers". However, we have a lot of money for health care, food and retirement which are life essentials.

People make their unique decisions, but be realistic on the realities of a consumer driven purchasing reality. Until people stop buying cruises, price will go up and what you get for your purchase will go down! It is the same in restaurants and consumer products.

 

Capitalism is what divides the G20 from the also rans of this planet in the past and now. It comes with a cost to consumers. Put yourself first and ensure you have a big stockpile of cash to pay for life's essentials first, that gives you power and control and peace of mind.

 

The cruise lines do not care one bit about you so make sure you do the same!

 

ABoatNerd

 

I am NOT being an "obedient consumer". My DS will be graduating debt free with over $10k in the bank of his own savings in April and DD will also graduate in 3 years debt free and has over $8k of her own savings currently in the bank. We paid for their college less the scholarships they earned. They saved money by living at home and going to a great local university. We will be hitting the 1/2 century mark this year we have more than enough put away for the "essentials" that we could probably retire now if we really wanted to. My DH has a high school education, but has worked at the same work place since high school. I have a Master Degree that I got through scholarships, grants, working and only $4k in loans (no help from parents).

 

We put away that money for those "essentials" but we also made it a priority to take a week long vacation at least once a year with more long week ends as often as possible, even when we were first married and had to budget the money for vacations in. IMHO the cost of those vacations have not gone up. We have averaged between $2k - $4k total for every week long + vacation we have ever taken with our kids. Normally less if just DH and myself. I have had 2 close calls with death in my 49 years. We enjoy spending time exploring the world and relaxing together. IMHO a vacation is an "essential".

[NIATPAC29]

I do not see any issues with a 7 day vacay for 2 for @ 2000. Seems fantastic. If your $ supply is short do something cheaper. LIVE IN THE PRESENT--THE PAST IS OVER,GONE,DONE,FINITTO.

Edited March 8, 2016 by NIATPAC29

[cruiser fanatic]

We have been on 27 cruises with Carnival.

We decided to book the May 21st cruise on the Freedom out of Galveston. I thought the prices were kind of high. Carla always wants a balcony, I don't really care.

 

 

 

For us to get a balcony it is $1,928.32. In the past it cost around $1,200 and the last couple of years around $1,400 to $1,500 because of fuel prices they said. Fuel prices are way down right now.

 

 

 

While waiting for our personal cruise planner to call me back I went on Royal Caribbean just for the hell of it and looked. On May the first they have one out of Galveston, balcony is $1,797.98 with a $100.00 onboard credit. Going the same places except it goes to Falmouth Jamaica, which is supposed to be a nicer port. Nicer ship and better ports for about $250.00 less.

 

 

 

When my vacation planner called back I told her about this and she said all she could do is get us an extra $30.00 per person off. I asked why it was so high and she just said that cruising is real popular right now. Basically price gouging to me. I just told her I was going to have to think about it.

 

 

 

I don't really think I can change cruise lines right now but it pisses me off. If we went on Royal Caribbean we would lose all our privileges, long line to board, etc. Kind of feel like I wasted my time with Carnival all these years.

 

This is exactly why we chose Royal Caribbean out of Galveston for our May cruise. It was over $500 cheaper for an Ocean View then for an Ocean View on Carnival. It also came with a $200 OBC. We have been loyal to Carnival for many years but their prices have gone up and we want to try something new. We sailed Royal back in 2005 on the Rhapsody and had a wonderful time. I can't wait to sail one of their bigger and newer ships on the Liberty. I say try out Royal.

[Tapi]

We have purchased many National Geographic videos of the places we had planned to see and enjoy same with a lovely glass of wine and meal in the comfort of our home.

 

 

 

We are NOT being "obedient consumers". However, we have a lot of money for health care, food and retirement which are life essentials.

 

 

Put yourself first and ensure you have a big stockpile of cash to pay for life's essentials first, that gives you power and control and peace of mind.

 

 

 

I'm in favor of taking care of "life's essentials" first. I know that I speak for many on these boards when I say that I budget every month for life insurance, health insurance, 401K contributions, college funds, mortgage, all bills (including paying off any credit card balance), savings, etc. But you better be sure that I ALSO set aside money to relax and enjoy life in the form of vacations with my family. What's all that hard work, sacrificing, preparing for the future, and saving for a rainy day for if I can't take a few days to enjoy some of my favorite things in life?

 

For you, sitting in front of a TV to watch videos seems to replace well the actual action of taking a vacation, physically immersing yourself in new places and cultures and best of all, getting to experience these places with those you love while creating bonds and memories that will last a lifetime. With all due respect, for me, sitting at home watching videos of places that I want to visit instead of actually going there when I actually have the means, the time, and the health to do so not only sounds awfully depressing, but it just perpetuates what I consider a miserable way to live. Once again, I support taking care of life's essentials, but I also support enjoying life!

[PAPERBKWRITER]

When the demand is greater than the supply...guess what?

[gtalum]

Excellent responses all around.

 

Reality is that people are booking a lot of cruises because they are "obedient consumers".

 

Most of the G20 countries rely on people to continue consumer purchases - it frankly is the foundation of each of the G20 economies; especially the god bless USA.

 

People in the USA and Canada in particular are being conditioned to look for a "deal" - well businesses are conditioned to make the maximum profit they can within the law. These are not compatible goals folks.

 

We have cruised since 1989. We have stopped all cruising due to high prices and lower product offerings. We sailed with Celebrity since 1992 and they will not have our business going forward. Further, we have stopped all vacation travel. The cost of travel is escalating well beyond inflation and the bull related to missed ports etc (Celebrity cancelled a stop in Bali yesterday due to terrorism threat) and more and more cost and effort due to terrorism is not something I will pay for, period.

 

We have purchased many National Geographic videos of the places we had planned to see and enjoy same with a lovely glass of wine and meal in the comfort of our home.

 

We are NOT being "obedient consumers". However, we have a lot of money for health care, food and retirement which are life essentials.

 

People make their unique decisions, but be realistic on the realities of a consumer driven purchasing reality. Until people stop buying cruises, price will go up and what you get for your purchase will go down! It is the same in restaurants and consumer products.

 

Capitalism is what divides the G20 from the also rans of this planet in the past and now. It comes with a cost to consumers. Put yourself first and ensure you have a big stockpile of cash to pay for life's essentials first, that gives you power and control and peace of mind.

 

The cruise lines do not care one bit about you so make sure you do the same!

 

ABoatNerd

 

You only get one go-around in this life, and there's no award for dying with the most money in your various portfolios. ;)

 

We save enough to pay for our kids' college educations and to build a comfortable retirement, but we spend heavily on travel. Looking at a place on a video on your tv is in no way like actually visiting there.

[bruadhin]

Carnival is actually losing money based on the current fuel prices. They purchase fuel derivatives and futures contracts to ensure that fluctuations in fuel prices have a minimal impact on cash flow. Their derivatives strategy is based on the premise that fuel prices fall within a certain range, an upper and lower bound based on historic prices. If the current price of fuel falls within this range they make money. Currently the price of oil is lower than their lower bound so they are losing money. You can read about this in their quarterly financial reports.

 

Sent from my SM-G900V using Tapatalk

 

I wouldn't worry too much about Carnival. They would have implemented a fuel surcharge had fuel prices spiked, even as they enjoyed lower fuel prices due to previously purchased futures contracts. Also, I am pretty certain they and every other large user of fuel is busy buying every last futures contract they can at today's low prices.

 

Part of hedging is sometimes the market does the exact opposite of what you anticipated. Southwest has gotten burned on this before too.

[BeachChik]

Further, we have stopped all vacation travel. The cost of travel is escalating well beyond inflation and the bull related to missed ports etc (Celebrity cancelled a stop in Bali yesterday due to terrorism threat) and more and more cost and effort due to terrorism is not something I will pay for, period.

 

We have purchased many National Geographic videos of the places we had planned to see and enjoy same with a lovely glass of wine and meal in the comfort of our home.

 

ABoatNerd

 

I find this statement sad.

 

Watching a video is in no way comparable to visiting somewhere. Life is about experiencing things not sitting home hording money waiting to die rich.

 

We may not vacation every year but it is important to me and my family that we get out and see the world. And of course vacation money is dependent on our funds. Some years we spend as little as a few hundred dollars and some years we have spent up to 15k. And each was worth it. I don't work just to survive. I work to live and enjoy life.

 

I find your posts very contradictory. I January you posted that you were no longer planning to sail to French Polynesia because you watched a video and that was enough for you yet in February you post asking about itineraries for sailing in 2018. And fwiw as someone that has been to Tahiti, no video will ever show you what it is like.

Edited March 8, 2016 by BeachChik