Drinks and wi-fi for $6.57 p.p. per day

[grandgeezer]

October 2, 2021 is a seven day Caribbean cruise, for two, on the Edge. Concierge, with AI is $2,906.88. Concierge, with just tips, is $2,861.88. A difference of $45. Divided by 14 (seven days times 2 people) is $3.21 p.p. per day for the classic drink package and wi-fi which is less than one soda, including tip. How could a company who went several billion dollars in debt  do this? I can think of two possibilities, poor management or the cost plus profit is built into the base price. Either way, it doesn't reflect well for the line.

[patty1955]

9 minutes ago, grandgeezer said:

October 2, 2021 is a seven day Caribbean cruise, for two, on the Edge. Concierge, with AI is $2,906.88. Concierge, with just tips, is $2,861.88. A difference of $45. Divided by 14 (seven days times 2 people) is $3.21 p.p. per day for the classic drink package and wi-fi which is less than one soda, including tip. How could a company who went several billion dollars in debt  do this? I can think of two possibilities, poor management or the cost plus profit is built into the base price. Either way, it doesn't reflect well for the line.

The wifi doesn't cost them anything. Alcohol is one of the most marked-up items on board. They're probably breaking even on the drink package. And they've raised the price of the cruises.  

[Bruin Steve]

Pricing is by supply and demand...and changes often.  And each category, each fare, is priced separately by a computer program.  this often gives rise to some strange anomalies.  One time, we managed to find a Concierge cabin on an Alaska cruise at a price over $50 pp LOWER than the price for an inside cabin.  On our Japan cruise, we got a price for a 2A Veranda for about 40% of the price for an inside cabin!  Yes, we grabbed it...

 

If you follow pricing close enough, you will see lots of those strange cases.  Not only on Celebrity, but other lines as well.  On one Princess cruise, we booked a Club Class Mini-Suite for only about $25 more per person than the lowest priced balcony.

[mom says]

Lol. I love to read how so many CC armchair wizards are SOOO much smarter than all of the experts in their respective fields within the cruise companies. Yeah, they have no idea what they're doing.  😂

[grandgeezer]

3 hours ago, patty1955 said:

The wifi doesn't cost them anything. Alcohol is one of the most marked-up items on board. They're probably breaking even on the drink package. And they've raised the price of the cruises.  

Did you miss the point about the daily cost is LESS that one soda, tip included?? The end of my post stated that a good part of the cost, and profit, was already built into the base price. Wi-Fi does cost. Do you think the equipment needed to allow a couple of thousand guests plus crew access it is cheap? What about the staff needed to keep it up and running?

[grandgeezer]

3 hours ago, Bruin Steve said:

Pricing is by supply and demand...and changes often.  And each category, each fare, is priced separately by a computer program.  this often gives rise to some strange anomalies.  One time, we managed to find a Concierge cabin on an Alaska cruise at a price over $50 pp LOWER than the price for an inside cabin.  On our Japan cruise, we got a price for a 2A Veranda for about 40% of the price for an inside cabin!  Yes, we grabbed it...

 

If you follow pricing close enough, you will see lots of those strange cases.  Not only on Celebrity, but other lines as well.  On one Princess cruise, we booked a Club Class Mini-Suite for only about $25 more per person than the lowest priced balcony.

I follow pricing closely. Your pricing is based strictly on cabin cost and that is entirely based on supply and demand, so sometimes they have to lower the price to fill the ship. We did a TA on the Silhouette 6-7 years ago and paid $600 p.p., plus taxes, and fees, for 13 days in an 1A balcony. 

I would bet that the vast majority of the AI, in my example was built into the base price. There is no way they can make money on unlimited drinks, all day, every day, for less than they get for one can of soda, including tip.

[patty1955]

14 minutes ago, grandgeezer said:

Did you miss the point about the daily cost is LESS that one soda, tip included?? 

Whose cost? The cruise line probably pays pennies for soda.

[NutsAboutGolf]

Are both rates pick your own room is the AI a guarantee and the non-AI is pick your own room?

[miched]

Pick any liquor or beer that is in the classic package.   A bottle of Jim Beam is about $19 where I live.  Figure the cruise line pays 1/2 of that, $10.   Do you think that you will drink a whole bottle of bourbon everyday?  
 

A 24 case of Heineken is around $24 where I live.   Figure the cruise line pays $12 per case.    Do you think you would drink 24 bottles of beer a day?  
 

Happy cruising 🌊🚢🇺🇸🌅 

 

 

H

Edited July 18, 2021 by miched

[kevanmia]

6 hours ago, grandgeezer said:

October 2, 2021 is a seven day Caribbean cruise, for two, on the Edge. Concierge, with AI is $2,906.88. Concierge, with just tips, is $2,861.88. A difference of $45. Divided by 14 (seven days times 2 people) is $3.21 p.p. per day for the classic drink package and wi-fi which is less than one soda, including tip. How could a company who went several billion dollars in debt  do this? I can think of two possibilities, poor management or the cost plus profit is built into the base price. Either way, it doesn't reflect well for the line.

 

I just priced this sailing on Celebrity.com (no CC number, military, etc.)  A Concierge guarantee is being offered for $280 p/p less than the AI rate.  GTY is cruise-only.  Yes, when you add back the gratuities, the difference is only like $170.  So, maybe slightly appealing to a non-drinker.

 

However, the way I would look at this (as someone who works in revenue management for a living) is that the AI fare is the real fare with the appropriate cost of all the bennies in there, and the cruise-only fare is an inflated fare where the cruise line is very happy for you to take because even though you are nominally paying less, there is a lot less cost associated with your booking and you are probably more profitable on a pp/pd basis.

[miched]

22 minutes ago, kevanmia said:

 

I just priced this sailing on Celebrity.com (no CC number, military, etc.)  A Concierge guarantee is being offered for $280 p/p less than the AI rate.  GTY is cruise-only.  Yes, when you add back the gratuities, the difference is only like $170.  So, maybe slightly appealing to a non-drinker.

 

However, the way I would look at this (as someone who works in revenue management for a living) is that the AI fare is the real fare with the appropriate cost of all the bennies in there, and the cruise-only fare is an inflated fare where the cruise line is very happy for you to take because even though you are nominally paying less, there is a lot less cost associated with your booking and you are probably more profitable on a pp/pd basis.

 
I think assessment is correct for most passengers.  There are those  passengers that  take the bare bones rate because they are Elite Plus or Zenith  in the CC.   They can basically get all the liquor they want at the happy hour, the breakfast, and etc.  The Zenith get more benefits and the elite plus are trying to get the points to become Zenith.  They get free espresso based drinks at Cafe al Bacio.    They also get SBC for using a future cruise certificate that can be used.  

There are many in that category that constantly cruise at rock bottom price and don’t spend a extra penny on board.  Had many brag to me about it.  

 

Happy cruising 🌊🚢🇺🇸🌅
 

 

[CHOPPERTESTER]

$207 pp/per night for a balcony on a seven day Caribbean cruise is way overpriced. So you're paying for it anyways.

[Jeremiah1212]

2021 Guarantee Fares or Simply Sail Fare are all over the place due to a number of factors. The difference isn't consistently that close. If you're a non-drinker, the Simply Sail Fares are generally more advantageous. 

Edited July 19, 2021 by Jeremiah1212

[PS0DSH]

2 hours ago, CHOPPERTESTER said:

$207 pp/per night for a balcony on a seven day Caribbean cruise is way overpriced. So you're paying for it anyways.

Agreed, I have never cruised on Celebrity for more than $130 per person per night. I have a 12 night cruise coming up just after Thanksgiving on the Equinox in a 1A balcony for $3100 all inclusive with $525 OBC. ($129 per nite)

Edited July 19, 2021 by PS0DSH

[Bruin Steve]

Another way to look at it is that they DON'T give you much of a break for NOT booking with the perks...

 

Same on Princess...We booked a Majestic Princess cruise on their AI fare--got Gratuities, Unlimited Drinks, Unlimited WiFi, $50 in OBC and a free night in a specialty restaurant...all for an additional $30 per person per night over the no frills rate...SAME cabin.

 

If you back out the gratuities (approx. $15 per night pp), the value of the Specialty Dinner (a little over approximately $4 per person per nigh, blended over the 7-night cruise) and the OBC (a little over $3.50 pp per night), that leaves about $7.50 per night for unlimited drinks and unlimited internet.  You'd have to be crazy NOT to take that deal either...You could drink more than that with one drink a day or 3 Cokes...

 

Still, some people book the no frills deal.  Why?  Who knows...I think the cruise lines only offer it that way because some people complain about being forced to buy the AI.  It's like saying "We're charging $1500 pp for an AI cruise...Wait, you don't want the perks?  Okay, special, just for YOU, $1475".  If you THINK you're saving money, maybe it appeals to you.

 

For me, I've got pretty high loyalty program status on both of these lines...yet, I still purchased most of my upcoming cruises AI.  Only one I have that isn't is a "lift-and-shift" that I got no frills about two years back on an unbelievable rate.  If Celebrity wanted to upgrade that to AI for me for under $7 a day, I'd grab it in a heartbeat!

[kevanmia]

Related thought - the "bare bones" price isn't always a bad deal.  I qualify for Interline and there was a decent gap between the cruise-only fare and the Al fare.  It would have made sense to take AI only if I was planning on paying the full cost of beverage package + wifi + grats.  Since I can usually do without the wifi unless there's an emergency, it was better to take the cruise-only rate and pay for the others separately.

 

Definitely understand the concern of people who don't have an option in "unbundling" the AI though - wait long enough and they'll get bored with it and switch.  Except for Royal Carib's "BOGO" (inflated price for guest one + non-inflated price for guest two = same price you otherwise would have paid except for fancy marketing) - cruise line promotions have relatively short shelf lives.