Cruise Fare Bargains?

[Phillygirl3]

Is it just me but has anyone else noticed that any new brochures that are mailed from cruise lines seem to reflect higher prices?  My TA told me that there would be many bargains as cruise lines need to get people back to cruising and fill their cabins.  Of course, maybe it's true for the mega ships who are cruising the Caribbean.  I have received brochures or offers via email from Regent, Silversea, Oceania, etc. and their fares seem to be higher even though they are saying that the fare is $1,000 less or that you are getting a credit.  It seems to me that some of the higher end cruises are increasing their fares, not reducing them.  I have a Viking cruise scheduled for 2021 and I do hope that it doesn't become the third cruise that I have had cancelled due to the pandemic.  I am so mourning the loss of the ability to travel.

[xeena]

we have an oct 24, 2021 viking ocean cruise....resulting from cancelled april and january cruises. so this oct one is already paid for....but, who knows if that will go...and flights?  another worry even if italy lets US citizens in!  i envision viking scheduling flights with multiple connections from CLT that we will hate!  what an awful mess for everyone.

[Peregrina651]

16 hours ago, Phillygirl3 said:

My TA told me that there would be many bargains as cruise lines need to get people back to cruising and fill their cabins. 

 

That may have been a true statement at the start of the pandemic, when we had little idea how devastating the effects of the disease and our attempts to slow it down would actually be.

 

Nonetheless, there may be a germ of truth in the statement but I don't think we will see those bargains until after the cruise lines have resumed sailing, or at least announced that they will be resuming operation.

[Jim Avery]

48 minutes ago, Peregrina651 said:

 

That may have been a true statement at the start of the pandemic, when we had little idea how devastating the effects of the disease and our attempts to slow it down would actually be.

 

Nonetheless, there may be a germ of truth in the statement but I don't think we will see those bargains until after the cruise lines have resumed sailing, or at least announced that they will be resuming operation.

And after they absorb the mountain of vouchers. Until then I think prices will be higher.

[Ragnar Danneskjold]

Plus, throw in “expected returns”.  For example, it has been shown that when the the number of doctors in an area increases, which should increase competition, prices actually increase.  Doctors have an “expected” level of income.  I saw the same thing with construction contractors during the great recession.  Also, restaurant prices increased during the great recession.

 

Frank del Rio as much as said this regarding not reducing Regent fares.

 

Elasticity of demand/pricing only goes so far with many “goods”.

 

 

”Professor Ragnar”

 

PS - A little travel example.  Back in 2009, after “the crash” we wanted to stay at the Ritz Carlton in St. Thomas.  I checked their on-line prices and they were very high.  So I called the hotel to see if I could wrangle a deal.  The very snooty lady on the phone said they were not offering any discounts because they were heavily booked on the dates I wanted.

I checked back on line a few times and miraculously caught a 30% discount that lasted all of an hour on one day.  I checked back a few times and it never showed up again.

 

When we got to the hotel it was practically deserted for our entire stay!

 

Another example of price inelasticity wrt demand, which is particularly true of luxury goods.

 

 

 

Edited October 10, 2020 by Ragnar Danneskjold

[Jim Avery]

Ha, Ragnar, only ships burn more cash than you.  But I agree with you on this.  All the money represented by these vouchers are paying for some of the expenses on the fleet this year.  Next year those expenses will be there and more so but the ships will be full of voucher pax.  Can't buy fuel with a redeemed voucher.  Sorry to say, I think next year will be harder on the cruise industry than this terrible year.  Even the scrappers don't want any more ships right now.  Saddens me to see the travel industry hurt so badly. 

[Ragnar Danneskjold]

€500 notes are excellent for lighting cigars.  Burn with a hot, low smoke/residue flame.  Learned it from my Russian friends.

[Jim Avery]

3 minutes ago, Ragnar Danneskjold said:

€500 notes are excellent for lighting cigars.  Burn with a hot, low smoke/residue flame.  Learned it from my Russian friends.

Is your pool finished yet?  Casa Ragnar is the only place in California where we can eat good food without a mask.....

[Ragnar Danneskjold]

Not yet, still in the design phase.  The architect is in high demand, so it is taking a long time...  Aiming to swim by June 1.

Edited October 10, 2020 by Ragnar Danneskjold

[Nunagoras]

Well: How can they to offer discounts if they don't even know when will they be ready to resume service as it was before the pandemic?

 

Indeed: Lots of vouchers... And no need to print more...

 

I completely agree with the poster who said next year to be more difficult than this for the whole industry, unfortunately.

[Cienfuegos]

The name of the game right now is staying afloat, and in business.  The (publicly traded) lines are burning a lot of cash, analysts are regularly refining the liquidity forecasts.