Why the inconsistency with 3rd & 4th rates

[Into Cruising]

Why is there so much inconsistency with the 3rd & 4th rates on many cruise dates. I can understand why they might charge more for a suite,

On my sailing in June the 3rd & 4th person rate for an inside room is over $100 more than the rate for a balcony.

 

rate for 3rd person in Minisuite or Balcony $729

 

rate for 3rd person in Oceanview $909

 

Rate for 3rd person in Inside room $829

 

 

Can anyone explain this, or is the mode simply whatever the market will bear?

[chengkp75]

Simple. The 1st/2nd guests pay more for the balcony than the inside, so they want you to book the balcony.

[Into Cruising]

Prices have been so strange this year....

 

I would agree with you, except that I have also seen the price of an oceanview be higher than a balcony, on many occasions while checking pricing on this cruise. But even then the 3rd and 4th prices did not change?

[brookie848]

Wow...I didn't realize that the 3rd and 4th were so expensive in regular cabins. We are paying $299 for the third person in our H4 (Escape in February of 2018) and we paid $349 in February of this year.

[Into Cruising]

They jacked up the prices big time for summer vacations, when kids can travel.... They may say they are family friendly, but their prices during the summer say otherwise.

 

When I first started cruising, it was cheaper to take the kids than to pay to leave them at home....not so much any more.

[Into Cruising]

the friends and family cruise free promotions if they cover your dates.

[Warm Breezes]

It is simple economics at work. Supply vs Demand.

[Into Cruising]

There are only 5 inside cabins left at $829 each

 

There are 7+ oceanview cabins at $909 each

 

and 32+ balcony and Minisuites left at $729 each

 

 

For a family of 4 they are offering 13 distinct category of cabins at the $729 figure , 1 category of cabin at the $909 figure ; and 2 distinct categories at the $829 figure

 

so it looks like the fewer cabins they have left in a category, the more they can charge for it.

 

That probably answers why at times an oceanview is more expensive than a Balcony.....

 

So while it is simple economics, it is indeed faulty and a very poor business model.

[Warm Breezes]

There are only 5 inside cabins left at $829 each

 

There are 7+ oceanview cabins at $909 each

 

and 32+ balcony and Minisuites left at $729 each

 

 

For a family of 4 they are offering 13 distinct category of cabins at the $729 figure , 1 category of cabin at the $909 figure ; and 2 distinct categories at the $829 figure

 

so it looks like the fewer cabins they have left in a category, the more they can charge for it.

 

That probably answers why at times an oceanview is more expensive than a Balcony.....

 

So while it is simple economics, it is indeed faulty and a very poor business model.

 

I'm not so sure it is a poor business model. The goal is to get the people on the ship. Be it inside, OV, or balcony it doesn't matter. They want to sell out all the rooms. I'm sure they would rather sell a balcony at $729 than upgrade an inside sold at $529 earlier in the year to a balcony to try to resell the insides at a lower rate once they are all available again and have supply. They just want to get you on the ship. Once you are on is when they make the profits.

[Into Cruising]

Those prices are for the 3rd and 4th person in the cabin, not for the cabin per se.

 

 

If someone was looking for the least expensive cabin for 4

it would still be a inside cabin for 4 where you are paying $829 for each of the 3rd & 4th persons. The difference in the basic charge for 2 in a inside and 2 in a balcony, even with gouging the inside rate, it is still less than the balcony.

 

So it does not fill a higher category room. People still opt for the inside for 4 because the bottom line price is cheaper....they are just sticking it to the people booking the cheaper cabins.

[Liljo22]

It is simple economics at work. Supply vs Demand.

 

100% correct. A cruise is not any different than any other vacation. During off season they will charge less to try to fill more cabins and in the peak season charge more.

 

Disney just changed their theme park pricing so that you pay more during the peak season after always charging the same price no matter day.

Edited May 12, 2016 by Liljo22

[Into Cruising]

On NCL all 3rd and 4th people receive the same experience, but they have different rates depending on what room you are in.....

 

Common sense says the 3rd and 4th in a balcony room have a better experience than the 3rd or 4th crammed into a inside stateroom. But the 3rd & 4th in a cramped inside stateroom are the ones paying the premium for it.

 

So tell me what the 3rd and 4th persons get in a Oceanview room, that the 3rd and 4th person in a balcony do not get for their rate. I can tell you what the first two in the cabins get that makes the difference in cabin category differences. Might be more square footage, a bigger balcony a bigger bathroom, or a tub, so that is the price differentiator for the difference in prices between categories of cabins.

 

Does not hold true for adding a 3rd or 4th person.

 

Simply stating supply and demand is way too elemental.

 

Simply finish the following question:

 

NCL charges more for some 3rd and 4th passengers than others because ______________________________________________________.

 

These is only one answer, and it is because THEY CAN.

 

And of course it is economics, but it is certainly not supply side economics or demand side economics.

[Into Cruising]

If parents want to bring their kids, it is the only option...because paying for the inside room with the exorbitantly high 3/4th rate, is still going to be the least expensive option. Going to an oceanview or a Balcony or Minisuite is going to result in a higher bottom line price.

 

Try explaining to two clients that one is paying $729 per child in a Balcony room while the other is paying $909 per child in an Oceanview room.

[takeadip]

Prices have been so strange this year....

 

I would agree with you, except that I have also seen the price of an oceanview be higher than a balcony, on many occasions while checking pricing on this cruise. But even then the 3rd and 4th prices did not change?

 

Here is what i dont understand about room pricing...

 

if you look at princess: if a balcony is 950 for first 2 passengers and additional 199 for 3rd passenger your total for the room is $2,099 (950 +950+199) very simple...

 

Now lets look at NCL on ANY sailing...choose 2 passenger option and its $950 per person for a total of $1900 (950 +950) but when you add a 3rd person to the room the fare for passenger 1 and 2 skyrockets to $1350 per person and then the 3rd person price is $499 for a room total of $3199 (1350 +1350 +499) which is crazy!!!! i have called NCL and argued this point and they didnt know what to say...

 

Again...Princess pricing model is so much easier to understand...

 

does anyone else see this?????

 

Best,

mark

[flarad]

Here is what i dont understand about room pricing...

 

 

 

if you look at princess: if a balcony is 950 for first 2 passengers and additional 199 for 3rd passenger your total for the room is $2,099 (950 +950+199) very simple...

 

 

 

Now lets look at NCL on ANY sailing...choose 2 passenger option and its $950 per person for a total of $1900 (950 +950) but when you add a 3rd person to the room the fare for passenger 1 and 2 skyrockets to $1350 per person and then the 3rd person price is $499 for a room total of $3199 (1350 +1350 +499) which is crazy!!!! i have called NCL and argued this point and they didnt know what to say...

 

 

 

Again...Princess pricing model is so much easier to understand...

 

 

 

does anyone else see this?????

 

 

 

Bestmark

 

 

That is so interesting. So, for family cruise with grand kids, we need to consider Princess. DD is having fits that they have to pay full price for a newborn and a toddler. They eat practically.nothing..

Edited May 12, 2016 by aprilrad

[Crusin6]

Here is what i dont understand about room pricing...

 

 

 

if you look at princess: if a balcony is 950 for first 2 passengers and additional 199 for 3rd passenger your total for the room is $2,099 (950 +950+199) very simple...

 

 

 

Now lets look at NCL on ANY sailing...choose 2 passenger option and its $950 per person for a total of $1900 (950 +950) but when you add a 3rd person to the room the fare for passenger 1 and 2 skyrockets to $1350 per person and then the 3rd person price is $499 for a room total of $3199 (1350 +1350 +499) which is crazy!!!! i have called NCL and argued this point and they didnt know what to say...

 

 

 

Again...Princess pricing model is so much easier to understand...

 

 

 

does anyone else see this?????

 

 

 

Bestmark

 

 

That is so interesting. So, for family cruise with grand kids, we need to consider Princess. DD is having fits that they have to pay full price for a newborn and a toddler. They eat practically.nothing..

 

 

A newborn is under 3 months old after that they are infants until 12 months

 

 

Is ncl letting her take a baby 3 months and under on the ship?

 

Some lines don't allow that

 

 

Sent from my iPad using Forums

[EaglesWin]

 

These is only one answer, and it is because THEY CAN.

 

 

"Because they can" is the definition of the law of supply and demand.

[gsc500]

In some cases, it may be cheaper or not too much more to get 2 inside cabins than to have 4 in an inside. Always price it out and see.

[bonvoyagie]

Just did some mock bookings for the Jewel to AK for next week. I chose inside and balcony rooms - tried to do a mini suite but got locked out when changing to 3 people. However the 3rd person only added 449 to the fare for the inside and balcony. I also looked at the 3rd person on my upcoming cruise in a suite and the 3rd person was 998 for a 14 day cruise (which would be 499 for a 7 day).

 

In the past, mock bookings showed an avg per person fare so it spread the total over all people on the booking. I don't see them doing this anymore. They are simply showing the total cruise fare and total taxes and port fees - which are the same for all people in the cabin.

 

Cruise lines, have complex algorithms to vary prices based on many factors. Including how much a 3rd and 4th person would be. It gets real dicey with 4 pax as only certain rooms are set up for 4. Other factors include overall ship capacity.

 

Back in 2012 the price on our cabin went down a lot just before sailing - on the first two pax - the third pax went UP and for us it would just balance out.

 

They will manipulate the numbers to fill the ship at the most profitable rates.

 

The best advice is to book your cruise when the price and promotions are good enough for you to pull the trigger - then don't look at prices :D

 

There was a huge thread here last year that tried to explain the fare structure - the results were interesting - in a nutshell - if you want a suite or a particular cabin - book early. If cabin selection is not an issue then book late or a GTX. as that is when the bargains come out on the inside cabins - after the upsell fairy has waved her magic wand.