Does Del Rio not like discounting cabins to fill the ship?

[WashyWashyHappyHappy95]

I read somewhere on here that the Breakaway has been making a lot of sailings, because Del Rio doesn't like discounting cabins to fill up the ship.

 

Is this true? Is it to keep up with his new "premium" rebranding of NCL? What could the benefit of sailing with empty cabins possibly be? If you're a week or two out from the cruise, why not fill up the last ones that don't seem to be moving at regular prices? At least then they'll buy drinks, use the casino, etc.

[FLSteve11]

I read somewhere on here that the Breakaway has been making a lot of sailings, because Del Rio doesn't like discounting cabins to fill up the ship.

 

Is this true? Is it to keep up with his new "premium" rebranding of NCL? What could the benefit of sailing with empty cabins possibly be? If you're a week or two out from the cruise, why not fill up the last ones that don't seem to be moving at regular prices? At least then they'll buy drinks, use the casino, etc.

 

No CEO likes doing it! :) They do it when they have to sometimes, but sometimes they try not to (like RCL who said they're not going to). They certainly don't want to try and have people look for cheap rates if they can help it. They want to discourage too many people from waiting to book to the end hoping for deals.

[WashyWashyHappyHappy95]

No CEO likes doing it! :) They do it when they have to sometimes, but sometimes they try not to (like RCL who said they're not going to). They certainly don't want to try and have people look for cheap rates if they can help it. They want to discourage too many people from waiting to book to the end hoping for deals.

 

Yeah, but to the point where the ship is sailing with tons of empty cabins like Breakaway is lately?

 

I'd think that once your a a week out from sailing, whatever's open should be priced to SELL. I can't see how the numbers work if you're saying keeping rates high is better than filling late unfilled cabins at a lower rate, but at least getting more people for shore excursions, the daily services charge, and of course that cash cow DRINKS

[triptolemus]

Consider this... the inflated prices are paying for the empty cabins.

 

The point is they don't want people waiting until 1 week before sailing to book.

[AdoraBelle]

http://boards.cruisecritic.com/showthread.php?t=2389306

[www3traveler]

I forget what the percent is of cabins left open on any of the ships. Sometimes there is a need to move people from one cabin to another for major maintenance issues, or needing rooms if they have to rescue people- stranded boaters, people from Cuba, needing space to isolate either passengers or staff.

[my3sonsnj]

Yeah, but to the point where the ship is sailing with tons of empty cabins like Breakaway is lately?

 

I'd think that once your a a week out from sailing, whatever's open should be priced to SELL. I can't see how the numbers work if you're saying keeping rates high is better than filling late unfilled cabins at a lower rate, but at least getting more people for shore excursions, the daily services charge, and of course that cash cow DRINKS

 

This is exactly why the stock price tanked since the beginning of the year and especially after last week's conference call on second quarter financials.

[garnet115]

Yeah, but to the point where the ship is sailing with tons of empty cabins like Breakaway is lately?

 

 

 

I'd think that once your a a week out from sailing, whatever's open should be priced to SELL. I can't see how the numbers work if you're saying keeping rates high is better than filling late unfilled cabins at a lower rate, but at least getting more people for shore excursions, the daily services charge, and of course that cash cow DRINKS

 

 

What makes you think Breakaway is sailing with tons of empty cabins? I am sailing next week and the ship is just about sold out. I believe it's been the same the last few weeks. There was a nice price drop a few weeks ago, but prices started going up again in the last week as categories started selling out.

[sfaaa]

I read somewhere on here that the Breakaway has been making a lot of sailings, because Del Rio doesn't like discounting cabins to fill up the ship.

 

Is this true? Is it to keep up with his new "premium" rebranding of NCL? What could the benefit of sailing with empty cabins possibly be? If you're a week or two out from the cruise, why not fill up the last ones that don't seem to be moving at regular prices? At least then they'll buy drinks, use the casino, etc.

 

That's just an assumption and not a guarantee. A lot of penny-pinching last minute cheap deal cruisers would just camp out at the buffet and don't spend an extra dime on the ship. Not the kind of preferred clientele NCL wants.

[sparks1093]

Del Rio has said from day one that he wants NCL to get away from discounting in order to fill ships, that's why he offers tons of perks to entice people to book.

[casofilia]

I'm expecting a lot of flaming on this BUT!!

 

In New Zealand we have the principle of "User Pays". I am all in favour of cruising with the same principle. Pay for the cruise, and that includes 3 meals a day in MDRs and all day in the buffet and other free restaurants and nothing else, as one price. Then pay for everything else on a "user pays" principle as we do now, when we don't have the various perks, for specialty dining, for shorex, for alcohol, for the spa.

[sfaaa]

I'm expecting a lot of flaming on this BUT!!

 

In New Zealand we have the principle of "User Pays". I am all in favour of cruising with the same principle. Pay for the cruise, and that includes 3 meals a day in MDRs and all day in the buffet and other free restaurants and nothing else, as one price. Then pay for everything else on a "user pays" principle as we do now, when we don't have the various perks, for specialty dining, for shorex, for alcohol, for the spa.

 

Nothing wrong with this at all. It's similar to the Carnival business model and it works very well for them. NCL just wants to try a different route.

[david_sobe]

Consider this... the inflated prices are paying for the empty cabins.

 

The point is they don't want people waiting until 1 week before sailing to book.

BINGO

DING DING DING

We have a winner!

[jingle5616]

Although NCL has had a good booking summer, they have dumped cabins this spring and summer. Right now you can book NCL Escape for $399 interior GTX for August. Andy and Franky might not like dumping cabins, but they do. You just have to watch and move swiftly when they do.

[Zippeedee]

I received email today from two different online booking sites offering extra OBC and cash back for either the Dawn or the Breakaway, plus all the extras. They have not cut the single supplement so it doesn't work for me. There were tons of cabins to choose from over the next few weeks.

[Fido Chuckwagon]

This is exactly why the stock price tanked since the beginning of the year and especially after last week's conference call on second quarter financials.

 

The good news for cruisers is that after the abysmal stock and profit performances lately it's likely that Frank Del Fee-oh and Andy Stuart will be shown the door by the Board some time soon. Hopefully the new CEO will have a philosophy more like Kevin Sheehan's and can repair all the damage to the brand that has been done by these two clowns. I say this as both a cruiser of NCL and a stockholder.

[lettienets]

The good news for cruisers is that after the abysmal stock and profit performances lately it's likely that Frank Del Fee-oh and Andy Stuart will be shown the door by the Board some time soon. Hopefully the new CEO will have a philosophy more like Kevin Sheehan's and can repair all the damage to the brand that has been done by these two clowns. I say this as both a cruiser of NCL and a stockholder.

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[luvtheships]

I forget what the percent is of cabins left open on any of the ships. Sometimes there is a need to move people from one cabin to another for major maintenance issues, or needing rooms if they have to rescue people- stranded boaters, people from Cuba, needing space to isolate either passengers or staff.

 

 

Stranded boaters are not housed with pax. They are kept isolated

 

Think about it as its a major safety issue

[FSNA5861]

I'm expecting a lot of flaming on this BUT!!

 

In New Zealand we have the principle of "User Pays". I am all in favour of cruising with the same principle. Pay for the cruise, and that includes 3 meals a day in MDRs and all day in the buffet and other free restaurants and nothing else, as one price. Then pay for everything else on a "user pays" principle as we do now, when we don't have the various perks, for specialty dining, for shorex, for alcohol, for the spa.

 

I agree with your opinion.

 

When we started cruising in 2012, it was exactly as you described it. The rates were affordable then. It definitely was a "users pay" for drinks, specialty restaurants and the like.

 

The Free at Sea promotions , although appealing to many, have resulted in major price increases wich makes it not so affordable for young families and retirees.

[HowardK]

How long until this has a continued adverse effect? Will mid-September to October off season bookings have price drops or will they do more upsells for damage control? Pretty soon Andre Champegne (2016) will be considered premium despite the fact it is $2.99 in real life.

[mking8288]

Well, as long as stockholders & Wall Street sounding happy with the financial projections vs. actual results, already mid-point into Q3 ... they know the internal numbers already - football is in the field and the goal posts are marked.

 

Furlough the back office operations, trim the onboard crew headcounts, and do more chartering ... send & keep more ships in Asia, etc. They got options ... wait, isn't Cuba on the radar. :p

[boatseller]

It's because the load factor of a ship or airplane is really a very small consideration in the revenue model of a cruise line or airline. That 'full' equals profit is a common misconception.

 

NCL would be perfectly happy dispatching a ship with sold out Haven and Balconies at their target prices (notice this what the promos are based on), and an empty inside.

 

Similarly, airlines don't put a value on a seat, usually a flight number. While they don't want empty seats to go out, there are many instances where a flight makes more money selling fewer, higher priced tickets. Just like it's also ok if the Wednesday flight "looses" money so long as the Thursday flight makes money.

[biker@sea]

Del Rio has said from day one that he wants NCL to get away from discounting in order to fill ships, that's why he offers tons of perks to entice people to book.

 

Alienating a segment of cliental is probable not the smartest thing he has done.

 

 

All it will take is a few Hurricanes, and some noro and more Zika and he will be begging for last minute discount cruisers to fill cabin's.

 

.

[babs135]

http://boards.cruisecritic.com/showthread.php?t=2389306

 

Read the thread What is CAS? Seen this mentioned quite a bit.

[mking8288]

Airlines don't need to fly full, that's true but U.S. based carriers are typically at 90%+ capacity. But, they also carry below the belly - cargo and freights make money, at a premium ... like fresh New England/Atlantic/Canadian cold water lobsters out of BOS to PEK on non-stops.

 

Airlines can substitute, instead of cancelling flights, equipment or aircrafts, switching out a B747 to a B777 or from A320 to a CRJ900 if warranted, and, keep their top flyers happy - doing a combo of upgrades, compensations & mileage points for goodwill. ;)

 

Does NCL want to get into cargo business & transport goods on a TA - like JAL or Air China - I am sure if the prices are competitive, prospective customers would consider - and, container boxes as cargo do not complain at all. :eek: That's revenue too.

 

The China market is very unique - they might just find ships less than full when it is NOT sailing on one of the mainland's national holidays when some families are working & kids are schooling.

Edited August 14, 2016 by mking8288