Why doesn't Celebrity lower the price when there are so many cancellations

[stromer]

I have booked a Celebrity cruise in Aug 2020 on the Summit (outside cabin) and paid the down payment with final payment due in about 2 weeks.  In the last 16 days the amount of vacant cabins has gone up from 249 to 383 (226 are balconies) - a huge increase.  In the last 5 days the vacant cabins went up by 44 - which is the same as cancellations.  During that time the price has not changed and the balcony price is still very high.  In normal times if there were this amount of cancellations, the price would drop.  We all know these are not normal times but it would seem that if there were an approximately 35% vacancy rate the revenue department would lower prices to attract more passengers.  

Does anyone have any theories on why Celebrity does not choose to lower the price.  Could it be that Celebrity thinks the Coronovirus crisis will keep people from cruising no matter what the price is - i.e if they lower the price a lot they still won't get any more passangers so they might as well keep the price as it is currently. 

What will happen if the ship sails with vacant cabins?  Will they offer upgrades or allow people to switch to a better cabin at low cost?

Thanks, Rick

 

 

 

 

 

 

 

 

 

 

 

 

[dolittle]

They know very few will book at almost any price ,and that this cruise may or may not go off anyway. Once things start up for real (ships going out) prices will drop to fill all cabins.

[Bo1953]

They will closer to sailing date...

 

If necessary.

 

bon voyage

[omeinv]

32 minutes ago, stromer said:

I have booked a Celebrity cruise in Aug 2020 on the Summit (outside cabin) and paid the down payment with final payment due in about 2 weeks.  In the last 16 days the amount of vacant cabins has gone up from 249 to 383 (226 are balconies) - a huge increase.  In the last 5 days the vacant cabins went up by 44 - which is the same as cancellations.  During that time the price has not changed and the balcony price is still very high.  In normal times if there were this amount of cancellations, the price would drop.  We all know these are not normal times but it would seem that if there were an approximately 35% vacancy rate the revenue department would lower prices to attract more passengers.  

Does anyone have any theories on why Celebrity does not choose to lower the price.  Could it be that Celebrity thinks the Coronovirus crisis will keep people from cruising no matter what the price is - i.e if they lower the price a lot they still won't get any more passangers so they might as well keep the price as it is currently. 

What will happen if the ship sails with vacant cabins?  Will they offer upgrades or allow people to switch to a better cabin at low cost?

Thanks, Rick

 

 

 

 

 

 

 

 

 

 

 

 

I think you have figured out their basic thinking.  At this point a lower price would not likely encourage a significant increase in bookings, like it would normally.  What it would encourage is people that have booked already to re-fare at the lower price, thus losing even more money. 

 

I would expect there may be some significant price drops after final payment, which could open up some nice upgrade opportunities for you.

 

Harris

Denver, CO

[wildescapade]

I booked a cruise on the Edge for April 11, 2021. I booked it last year while I was onboard. Up until just recently, the price kept increasing. When I checked last weekend, the price dropped by $800 per cabin. I called them at 730 am on Sunday. It took 5 minutes to change! I kept the two perks that I already had, $450 OBC and the drinks package. I am over the moon!

[az_tchr]

Los Angeles has banned sporting events and concerts - any activity with large crowds in close proximity - until 2021.  Universities are discussing remaining online until 2021.  Maybe Celebrity is not encouraging bookings for cruises that are becoming less and less likely to happen.

[babylene]

It's not only the cruiselines. I checked the air to Fort Lauderdale in January and it is through the roof. The hotel we already booked has also raised its price considerably. And we don't even know if Jan. will be a go.

[upwarduk]

1 hour ago, babylene said:

It's not only the cruiselines. I checked the air to Fort Lauderdale in January and it is through the roof. The hotel we already booked has also raised its price considerably. And we don't even know if Jan. will be a go.

I heard yesterday that P&O have taken the FULL AMOUNT from a Credit Card for a cruise booked recently  for January 2021 ( not just the deposit).

Beware.

[Oville]

OP, do really think you’ll be sailing on the Summit in August?

[stromer]

I have looked at the roll calls for my cruise, posts on numerous threads here and other cruise lines and looked at all the Corono virus curves and most predict that they will be close to the minimum in May.  The economy should have a rolling start soon but who knows what will happen by June or July.  I think if there are no cruises by August 2020, then there will other bigger problems that will exist.  People can talk forever about what the future is with no agreement at all.  I have paid my NRD and will get it back if the cruise does not happen (numerous threads have discussed getting 100% back or getting a 125% as FCC).

Another question - I can do 2 things:

1. If I cancel now or before final payment is due (minus a $100 pp penalty) I might be able to rebook at a lower price after the final payment is due if the price drops as the cruise date gets closer.  OR

2. If I don't cancel before final payment and the price drops after FP, I won't be able to get a better price.  It was advised that one could ask for an upgrade if the upgrade cabin is more than the current price.  

any comments on the above strategy?

Rick 

[JT1962]

I have seen several articles saying that some cruise lines are planning on sailing approximately 1/2 full when they first begin sailing to allow for social distancing. One report stated Carnival was considering having a vacant cabin between each occupied cabin. If that is the case, the cruise lines would need to keep the prices higher for those that were sailing to cover the cost of the sailing.

[BigAl94]

Let me make an analogy, if you were looking for a new suite of furniture and the store was having major cash flow problems and a possibility of filing for bankruptcy, would you pay for the suite in advance in the hope that they will deliver or make a refund? I think not. Apply the same to any cruise line.

[bouhunter]

3 hours ago, JT1962 said:

I have seen several articles saying that some cruise lines are planning on sailing approximately 1/2 full when they first begin sailing to allow for social distancing. One report stated Carnival was considering having a vacant cabin between each occupied cabin. If that is the case, the cruise lines would need to keep the prices higher for those that were sailing to cover the cost of the sailing.

I'm sorry but any "article or report" suggesting that social distancing is possible on a cruise ship is a joke.  It's not possible.  Unless maybe they sail at 10% occupancy......which obviously isn't going to happen.

Edited April 16, 2020 by bouhunter

[JT1962]

I'm sorry but any "article or report" suggesting that social distancing is possible on a cruise ship is a joke.  It's not possible.  Unless maybe they sail at 10% occupancy......which obviously isn't going to happen.

 

I don’t see it being possible either, but it’s not just something someone made up or was predicting. The reports are coming from Carnival.

 

“Carnival Corp. is considering temporarily limiting the number of passengers on its ships when they begin sailing again, two sources close to the matter told Business Insider.

 

The company would do so by preventing passengers from booking certain cabins, the sources said.

 

Two possibilities include allowing passengers to only book cabins with access to fresh air or making sure there are empty cabins between occupied ones, sources said.”

 

https://www.businessinsider.com/carnival-might-restrict-number-of-passengers-when-cruises-resume-2020-4

 

 

 

 

 

 

[Palms2Pines2Sea]

I think one reason prices are remaining high is a direct result of the many FCCs that are currently in the hands of those anxious to cruise again.

😎

[deliver42]

 vacant cabin between occupied cabins is totally useless. You still have narrow hallways and areas where social distancing is impossible.

[Georgia_Peaches]

10 minutes ago, Palms2Pines2Sea said:

I think one reason prices are remaining high is a direct result of the many FCCs that are currently in the hands of those anxious to cruise again.

😎

That's my thought as well.  Keep prices high because people have FCC to burn.  I believe all the major lines are doing this.

[sasset]

12 hours ago, bouhunter said:

I'm sorry but any "article or report" suggesting that social distancing is possible on a cruise ship is a joke.  It's not possible.  Unless maybe they sail at 10% occupancy......which obviously isn't going to happen.

Two words:

Martini Bar

[Turtles06]

20 hours ago, Oville said:

OP, do really think you’ll be sailing on the Summit in August?

That was my reaction as well.

[jelayne]

We had a $990 pp price drop on our April 2021 sailing about 10 days ago.