Royal Carribean disloyal to loyal cruisers, how not to run a cruise line.

[jean87510]

2 hours ago, firefly333 said:

I was so busy with my mom I didnt get the last booster. 

 

I'm not sure what it was. I tested negative onboard. I was so surprised. I had been so sure I was going into isolation. Lol I pulled extra obc over and above tips out in the casino and got ready. Self isolated as much as I could. B2b. Wasnt a cold and not that sick, just couldnt get rid of it. 

 

One guy diagnosed with pneumonia said he was booked dec 2023 cancelled and moved to spring. Hes done with winter for a while. I had it in my lungs too. 

 

I'm less eager to cruise, this is twice in a row I got sick from my cruise. Last time was the food. Time to slow down bookings.  B2bs havent been lucky.

I got my flu vaccine October 1.  Went on the Allure 10/23-10/29  Started chills, fever, sore throat and headache 10/31.  Diagnosed with the flu 11/2.  Negative for covid and strep.  I swore I finally after 2.5 years got Covid.  Took me 3 weeks to feel better.

[Iceman-007]

On 1/6/2023 at 10:54 AM, HicksRA said:

Removing access to the Concierge Lounge concerned me about as much as dropping a penny in the parking lot and not bothering to bend over and pick it up. 

I do hope they don’t decide to put an expiration date on accrued points like some airlines have done. 

MSC cruises do that which is why I would not sail with them.  You  loose them if you do not sail with MSC at least every 3 years. 

[Cruising89143]

6 hours ago, livingonthebeach said:

 

So sorry to hear.  Was it the dreaded "C" souvenir or RSV? I was feeling lousy the last day on Odyssey and still not 100% almost a month later. I tested negative for C so maybe it was RSV? Who knows? On that cruise we had to make an emergency stop in Miami to let off a very sick crew member. They did not specify what it was. One passenger died on that sailing as well - again no one knows of what. 

 

I got the new booster (5th shot) just to be on the safe side for the next cruise.  

I have all of the boosters including the most current booster and we still brought it home after a recent Freedom/ Symphony cruise in early November. Luckily it was very mild. Took an eight night cruise on the Solstice last month and no sickness. Hopefully we had built up immunity which helped. 🙂

[Nunagoras]

On 1/6/2023 at 1:14 PM, PWP-001 said:

Well, I doubt anyone at Royal Caribbean will have time to shed a tear at losing you as a customer, as they work to reduce their debt. - True! And for each one departing there are 10 entering...

 

Selecting another line will give you the opportunity to see and experience first hand whether the grass is really greener. - With the ships so understaffed these days the answer is obvious... But let them to discover it first hand. Or does anyone think that any business wants to deliver worse service for the sake of deliver worse service once that will give them more profits? Things don't work that way!...

 

From the comments posted on several threads concerning the new policy of reserving the Concierge Lounge for Suite Guests, it seems that "crowd control" was necessary to maintain the atmosphere and ambience intended for the lounge. - Yeah!...

 

Since by your comments, you appear to be an Armchair CEO, let me ask... - Oh, well!...

 

If you were running the company, would you upset your high revenue guests whom have paid for a suite, by crowding their lounge by allowing access to far too many people?  - True suite prices at mainstream lines are basically at the level of mid luxury to sometimes full luxury cruise lines price tag. Understandably those guests need to receive some more. And they'll to demand it, reasonably!...

 

One positive change you didn't mention was the introduction of daily drink vouchers which can be used anywhere and anytime, giving loyal guests more freedom and eliminating the restriction of a limited hour guzzle-fest in the lounge. - And another not mentioned, the recent creation of activities for the 18-25 years old group that will to help as well with crowd control. Not all changes are for the worse, fortunately!...

 

The most prominent loyalty programs began with the major airlines.  And about a decade ago now they realized that some of their most loyal members -- as measured by annual miles flown -- were consuming a high amount of expensive benefits.  Yet they were spending FAR FAR less than others by finding deeply discounted "mileage runs" where they could accrue lots of miles and generate very little revenue for the company.  The answer was to add a dollar spend requirement in addition to miles.  Because after all, the company is in business to turn a profit. - Sure!...

 

The same applies to cruise lines.  And remember, cruise lines do not reset loyalty on an annual basis, like airlines.  So ask yourself, if you were CEO of a cruise line, would you really be so thrilled to shower loyalty perks on a cruiser who earned their status many years ago and hasn't sailed with you or generated revenue for you in many years?  How loyal have they been, if they haven't sailed with you?  - Of course!...

 

Don't be surprised if one day a major cruise line dramatically alters their program based on cruise nights as they are now, but with a MUCH LOWER requirement to attain status... but the only catch is that the cruise nights count is a rolling period of x years, meaning that status is based upon the number of cruise nights earned only looking back x years.  This way, loyalty is based upon current cruisers rather than those from days gone by.  - There is one doing it already: MSC!... Your status will only to be attained for 3 years. There is now an exception because of the pandemic... But the rule is the same for years!... No cruise in 3 years? No membership!...

 

[PWP-001]

19 hours ago, Cruisin'allovertheworld said:

Not if you acknowledge it and use it for the benefit of others who do not have as much as you.

 

Certainly it is if you wish to make things more difficult for some and then dismiss their increased struggle.

 

Loyalty programs ARE programs of privilege, and that shouldn't be a secret!  Gosh, I thought you would have figured that out.

 

Loyalty programs also DISCRIMINATE -- in a good way.  They treat those guests/passengers who they feel are higher revenue producers BETTER than they do others.  This is NOT to say the general passenger is treated poorly.  

 

Here's the definition of privilege that we're working with in the USA:

 

a special right, advantage, or immunity granted or available only to a particular person or group. 

 

As for loyalty programs, they specifically PROHIBIT the transfer of those benefits ..to others who do not have as much as you."

 

So next time you're traveling in a suite, don't try to sneak in to Coastal Kitchen your friend with no status who is staying in an interior room.

 

Currently I'm sailing on an Oasis Class ship in a Junior Suite, and I was told I could check daily as to availability of a dinner reservation for myself.  So when I approached the door the first time, I saw the card reader outside which didn't work for my card, and the door was locked.  I chuckled to myself as I imagined how many Barnacles with their  heir of entitlement yanked and pulled on those doors in frustration to attempt entrance.  At least RCI hasn't installed a sign that lights up or installed a voice stating:  "Get Away!  You don't belong here!"  I doubt they ever would... just as I doubt they'll ever send you a letter acknowledging the financial burden the changes to their program will cause you and ending with:  "let's face it:  our new program is just not right for you."  They'll leave that to you to figure out.

 

 

[Mick B]

Hi all,

Both my wife and I live in the UK. Although we can sail from Southampton to Europe or even the USA, we like to book our cruises based on several factors...

1) Where the ship is going (ports of call including somehere new)

2) Class of ship (Wife isn't a fan of too many people on board/crowds)

3) Cost of cruise (as we have limited money and have to be careful)

4) Getting to/from the ship (flying/staying in hotels etc)

5) Being able to have enough time off work to do the cruise.

 

We have to factor in not just the days on board, but also the days travelling. We do not like travelling on the day the ship leaves and prefer to be near the ship in case of any travel issues. So we have to leave home and travel a few days before and work our way bit by bit to the port and the same at the end. This makes a 7 day cruise turn into a 10/11 day holiday at the least. We can only do this twice a year due to holiday entitlement, but manage to do it.

 

My wife is not in the best of health and gets out of breath quickly when walking long distances, so we cruise in order to visit places for a few hours then get back on board and rest during the afternoon so we are fit for the evening. RCI allows us to do this perfectly and it has worked for us for 3 decades now.

Although we are D+, we did not cruise to become D+, we cruised to enjoy the places the ships would take us and to enjoy the ship itself and all the entertainment it provided.

I must admit that it was nice getting to Diamond and having access to the Diamond lounge.

We are more than happy with the things we get for free, bottle of wine in room (second if its our birthday onboard), 5 free drinks each to the value of $14, a photo each, laundry and seating in the theatre/ice shows etc, just some of the perks that add up to a lot of money.

I had been looking at all this for a few years and wondering how/if RCI would make any changes given the large amount of C&A members on each cruise.

It is possible for us to pay say as little as £900.00 for a week for the 2 of us and then get £60-70 per person, per day drinks vouchers. If you do the maths it is possible that with all the perks given, we almost get a free cruise (although we don't, but you can see what I mean).

Given that we are not the only ones, you can see why changes need to be made.

Although I am a bit saddened to not have access to the Concierge lounge, I must admit that now the free drinks between 5pm and 8pm have gone, there is a bit more space in the Diamond lounge as a place to go and get a nice coffee and chat (if machine is working) and a bite to eat. The opportunity to use the Concierge lounge now would only have been to use their coffee machine if the one in the Diamond lounge was broke.

At certain times of the day there is now a big queue for the Diamond lounge coffee machine.

I know I can use any of my 5 free drinks vouchers at the coffee shops, but we are not likely to swap a $14 alcoholic drink voucher for a $7 coffee.

One thing RCI did on our last voyage (which was a TA on the Anthem), was to give us an additional voucher for the coffee shops or MDR to have a special coffee. I believe this was just a one-off, but wouldn't it ne nice if RCI made this a full time thing for all D+ members as a way of balancing things out against removing other perks. It may cut the queue in the Diamond lounge too.

 

As you can see from above, although not done deliberately, we are 2 of those cruisers who get perks and do not necessarily spend a lot of money on board as a result. My wife cannot drink too much alcohol due to health issues, so therefore a drinks package is a waste of time for just me. The 5 free drinks are just about right for both of us and my wife can also have one of those Virgin drinks too.

 

It is possible that when we book a room on a ship, RCI may lose out to other customers who may possibly have taken the room instead of us and who may have gone to Chops every other night, booked almost every tour going and gambled heavily in the casino, but... this may have been their only cruise with RCI and they may never return again ever no matter what, whereas we return twice yearly, year after year and as I have said before, not for the perks (although they are very nice) but for the whole adventure.

BTW we have dined at all venues in the past and also done as many trips as we could too, but now we are older, we are happy with the food in the MDR and sometimes just getting off the ship for a small walk before getting back on again. We both work hard, so want to get the best holiday experience we possible can in return and to be able to do our own thing when we want to. Are we possibly to be considered bad/cheap customers for not wanting to repeat the same trips over and over or not wanting to pay for a Chops etc if we are happy with the menu in the MDR?

 

RCI needs to make sure they give their loyal customers the perks they promise whilst also giving the customers in suites their perks too to be fair.

 

I think another way for the cruise line to save money (rather than remove perks) is to get rid of food wastage in the MDR and Windjammer - but that's for another topic another day - hang on! Some of that is happening right now with menu changes! Another factor that may make some not want to cruise anymore too - oh no!

 

Mick.

 

 

Edited January 11, 2023 by Mick B

[PWP-001]

4 hours ago, Mick B said:

... some of the perks that add up to a lot of money.

 

 

It is possible for us to pay say as little as £900.00 for a week for the 2 of us and then get £60-70 per person, per day drinks vouchers. If you do the maths it is possible that with all the perks given, we almost get a free cruise (although we don't, but you can see what I mean).

Given that we are not the only ones, you can see why changes need to be made.

 

 

 

It used to be that filling every cabin was important-- even if it meant a discounted fare.  Because those "buying units" would spend on excursions, specialty dining, photos, drinks, etc., and the more "buying units" the more opportunity to enhance the profitability of the voyage.

 

While post COVID we read more posts about much higher cruise fares, the objective for higher profitability remains with incidental purchases on board.

 

So some of those perks can be seen as cannibalizing revenue:  giving it away and losing the opportunity for the sale.  How many have stopped purchasing a drink package now that they get vouchers for drinks around the clock, rather than just happy hour?  How many who purchased drinks a la carte don't need to because the vouchers are enough?  Sure, some only drink because they got the vouchers and otherwise wouldn't buy the drink.   

 

RCI made the decision to go with the vouchers for good reasons, but there's a good chance it's cut into profitability.  And to address that may mean limiting the benefits to the truly loyal that cruise consolidate and focus their cruises to the one line rather than straying and losing status.

[Jimbo]

4 hours ago, Mick B said:

Hi all,

Both my wife and I live in the UK. Although we can sail from Southampton to Europe or even the USA, we like to book our cruises based on several factors...

1) Where the ship is going (ports of call including somehere new)

2) Class of ship (Wife isn't a fan of too many people on board/crowds)

3) Cost of cruise (as we have limited money and have to be careful)

4) Getting to/from the ship (flying/staying in hotels etc)

5) Being able to have enough time off work to do the cruise.

 

We have to factor in not just the days on board, but also the days travelling. We do not like travelling on the day the ship leaves and prefer to be near the ship in case of any travel issues. So we have to leave home and travel a few days before and work our way bit by bit to the port and the same at the end. This makes a 7 day cruise turn into a 10/11 day holiday at the least. We can only do this twice a year due to holiday entitlement, but manage to do it.

 

My wife is not in the best of health and gets out of breath quickly when walking long distances, so we cruise in order to visit places for a few hours then get back on board and rest during the afternoon so we are fit for the evening. RCI allows us to do this perfectly and it has worked for us for 3 decades now.

Although we are D+, we did not cruise to become D+, we cruised to enjoy the places the ships would take us and to enjoy the ship itself and all the entertainment it provided.

I must admit that it was nice getting to Diamond and having access to the Diamond lounge.

We are more than happy with the things we get for free, bottle of wine in room (second if its our birthday onboard), 5 free drinks each to the value of $14, a photo each, laundry and seating in the theatre/ice shows etc, just some of the perks that add up to a lot of money.

I had been looking at all this for a few years and wondering how/if RCI would make any changes given the large amount of C&A members on each cruise.

It is possible for us to pay say as little as £900.00 for a week for the 2 of us and then get £60-70 per person, per day drinks vouchers. If you do the maths it is possible that with all the perks given, we almost get a free cruise (although we don't, but you can see what I mean).

Given that we are not the only ones, you can see why changes need to be made.

Although I am a bit saddened to not have access to the Concierge lounge, I must admit that now the free drinks between 5pm and 8pm have gone, there is a bit more space in the Diamond lounge as a place to go and get a nice coffee and chat (if machine is working) and a bite to eat. The opportunity to use the Concierge lounge now would only have been to use their coffee machine if the one in the Diamond lounge was broke.

At certain times of the day there is now a big queue for the Diamond lounge coffee machine.

I know I can use any of my 5 free drinks vouchers at the coffee shops, but we are not likely to swap a $14 alcoholic drink voucher for a $7 coffee.

One thing RCI did on our last voyage (which was a TA on the Anthem), was to give us an additional voucher for the coffee shops or MDR to have a special coffee. I believe this was just a one-off, but wouldn't it ne nice if RCI made this a full time thing for all D+ members as a way of balancing things out against removing other perks. It may cut the queue in the Diamond lounge too.

 

As you can see from above, although not done deliberately, we are 2 of those cruisers who get perks and do not necessarily spend a lot of money on board as a result. My wife cannot drink too much alcohol due to health issues, so therefore a drinks package is a waste of time for just me. The 5 free drinks are just about right for both of us and my wife can also have one of those Virgin drinks too.

 

It is possible that when we book a room on a ship, RCI may lose out to other customers who may possibly have taken the room instead of us and who may have gone to Chops every other night, booked almost every tour going and gambled heavily in the casino, but... this may have been their only cruise with RCI and they may never return again ever no matter what, whereas we return twice yearly, year after year and as I have said before, not for the perks (although they are very nice) but for the whole adventure.

BTW we have dined at all venues in the past and also done as many trips as we could too, but now we are older, we are happy with the food in the MDR and sometimes just getting off the ship for a small walk before getting back on again. We both work hard, so want to get the best holiday experience we possible can in return and to be able to do our own thing when we want to. Are we possibly to be considered bad/cheap customers for not wanting to repeat the same trips over and over or not wanting to pay for a Chops etc if we are happy with the menu in the MDR?

 

RCI needs to make sure they give their loyal customers the perks they promise whilst also giving the customers in suites their perks too to be fair.

 

I think another way for the cruise line to save money (rather than remove perks) is to get rid of food wastage in the MDR and Windjammer - but that's for another topic another day - hang on! Some of that is happening right now with menu changes! Another factor that may make some not want to cruise anymore too - oh no!

 

Mick.

 

 

Calculations are most likely off as  far as  how much the drinks cost Royal........They get huge discounts for buying a lot of liquor. So it might only cost the cruise line 2 or 3  bucks to make that $14.00 drink for you.

If the cruise line was losing their shirt on the drink vouchers they would stop. Don't think for one minute that the cruise line is losing money as soon as they  pull away from the pier.

[grandgeezer]

1 hour ago, Jimbo said:

Calculations are most likely off as  far as  how much the drinks cost Royal........They get huge discounts for buying a lot of liquor. So it might only cost the cruise line 2 or 3  bucks to make that $14.00 drink for you.

If the cruise line was losing their shirt on the drink vouchers they would stop. Don't think for one minute that the cruise line is losing money as soon as they  pull away from the pier.

Beer is our drink of choice so here’s my numbers. Around the major holidays, I can get my choice for about $.55, per twelve oz. serving, including state tax. I don’t buy it on the ship but the last I remember, it was over $9 including tip. My price is good if I buy one case or ten cases, though I usually stock up to make it until the next holiday. I don’t know what the cruise lines pay, but at their volume, fleet wide, but I’m sure it’s at least at my holiday price, or better, year around.

I would guess alcohol sales is their biggest moneymaker, percentage wise, than anything else they do.

[firefly333]

2 hours ago, grandgeezer said:

Beer is our drink of choice so here’s my numbers. Around the major holidays, I can get my choice for about $.55, per twelve oz. serving, including state tax. I don’t buy it on the ship but the last I remember, it was over $9 including tip. My price is good if I buy one case or ten cases, though I usually stock up to make it until the next holiday. I don’t know what the cruise lines pay, but at their volume, fleet wide, but I’m sure it’s at least at my holiday price, or better, year around.

I would guess alcohol sales is their biggest moneymaker, percentage wise, than anything else they do.

Idk if drinks are the biggest or not. I've read its casino and drinks. Not sure which is more profitable.  

[grandgeezer]

1 hour ago, firefly333 said:

Idk if drinks are the biggest or not. I've read its casino and drinks. Not sure which is more profitable.  

You might be right, I forgot about the casino. We never had any luck so we quit donating many years ago. We don’t expect to win, just get some entertainment for our money and that happened about as often as my brother in law buying a drink.

[nelblu]

1 hour ago, firefly333 said:

Idk if drinks are the biggest or not. I've read its casino and drinks. Not sure which is more profitable.  

My bet is on the casino.  Just from my personal experience. 😂 However, I make some of that up by an instant $ off certificate and an annual free cruise.

[HicksRA]

It always amazes me that a lot of people pay as much or more for the drink pkg as they did in cruise fare.  Staying sh1tfaced drunk for a week just doesn’t have that big of an appeal to me. The only time I ever bought it was when it was $18 a day and that deal died of Covid.  

[Engineroom Snipe]

1 hour ago, HicksRA said:

It always amazes me that a lot of people pay as much or more for the drink pkg as they did in cruise fare.  Staying sh1tfaced drunk for a week just doesn’t have that big of an appeal to me. The only time I ever bought it was when it was $18 a day and that deal died of Covid.  

The drink packages have such a long history.

 

Until the late 1990s, most drinks were on a cash basis including tips.

 

The cruise lines then transitioned slowly and methodically to charging your room for all expenses against your credit card to make it "more convenient for the cruiser" which translated into much higher onboard bills because cruisers were not able to easily track their expenditures (this was a time before you could check your account via your room TV for daily expenses).

 

The cruise lines got backlash about shocking credit card bills concerning onboard purchases and created the "Unlimited Drinking Packages" which would allow cruise customers to not be shocked by the amount purchased onboard and "plan their vacation expenses."

 

This has morphed into a desperate profit making mandatory practice by most cruise lines.

 

RCI typically advertises a $90 per day unlimited drink package times two persons in the room. Then add 18% mandatory "gratuity". $180 plus $32 gratuity per day for a cabin of two passengers.

 

$212 times seven days: $1486. Go to your local beverage store and that will buy you 100 liters of high quality drinks. 21 drinks per liter. You just payed for 2100 shots of alcohol. You need to drink 300 shots of alcohol for two people each day for one week to break even.

 

Oh, you say that you can get the special deal that gives each person 30% off on special Black Friday deals. Great, now you have to drink 200 shots of alcohol for two people each day for one week to break even.

 

This sounds like the used car salesman who says, " I am losing money on this deal."

 

That salesman would never let you leave the lot with any sale that loses them money.

 

 

[George C]

5 hours ago, firefly333 said:

Idk if drinks are the biggest or not. I've read its casino and drinks. Not sure which is more profitable.  

Definitely think it’s the drinks , sometimes people win at the casino, bar bill is always there. The 5 free drinks enables us to cruise without a drink package for the first time in years , we do book suites so have that happy hour . Instead of drink package we now get the UDP which is less than half the cost of drink package.

[CruisingHogFan]

4 hours ago, Engineroom Snipe said:

 

RCI typically advertises a $90 per day unlimited drink package times two persons in the room. Then add 18% mandatory "gratuity". $180 plus $32 gratuity per day for a cabin of two passengers.

 

$212 times seven days: $1486. Go to your local beverage store and that will buy you 100 liters of high quality drinks. 21 drinks per liter. You just payed for 2100 shots of alcohol. You need to drink 300 shots of alcohol for two people each day for one week to break even.

 

Oh, you say that you can get the special deal that gives each person 30% off on special Black Friday deals. Great, now you have to drink 200 shots of alcohol for two people each day for one week to break even.

 

This sounds like the used car salesman who says, " I am losing money on this deal."

 

That salesman would never let you leave the lot with any sale that loses them money.

 

 

This makes absolutely no sense and you sound like a used care salesman with this comparison!!  Why would you compare local liquor store prices to drink packages?

 

Drinks are currently $14.99 a day and every cruise we have booked for 2023 has drink packages between $72-$78 per day. So if I want the package at current rates it’s going take around 5 alcoholic drink per day to breakeven on the package compared to buying by the drink. Add the water, soda, coffee, juice I get each day and it’s less than 4 alcoholic drinks a day to break even on the drink package.

I will gladly pay these rates and even more than buying by the drink even after our vouchers  

 

[PWP-001]

17 hours ago, Jimbo said:

Calculations are most likely off as  far as  how much the drinks cost Royal........They get huge discounts for buying a lot of liquor. So it might only cost the cruise line 2 or 3  bucks to make that $14.00 drink for you.

If the cruise line was losing their shirt on the drink vouchers they would stop. Don't think for one minute that the cruise line is losing money as soon as they  pull away from the pier.

 

Rather than trying to figure out exact beverage cost and how much RCI pays for alcohol, instead just use typical beverage cost percentages (20% to 25% +/- a few points) to understand that beverage sales are profitable.  

 

Providing vouchers as a perk to loyal elites is not generally about the cost in as much as it's about the lost revenue opportunity.  Using 20% beverage cost and a $14 drink:  the line spends $2.80 to pour the drink rather than earning $11.20 when they sell it. 

 

So on a 7 day cruise, if a P couple with 6 daily vouchers each were to use all of them on a $14 drink, at a 20% beverage cost, it would cost $235 to pour the drinks, but more importantly that's a lost $940 towards profit over the week.  

 

Now that is a bit simplistic and there are other minimal costs; there's the argument for breakage (meaning unused vouchers); and not everyone uses the vouchers for alcohol.

 

The numbers above are for illustrative purposes.  I'm pretty sure that RCI's beverage cost is much lower than 20% and my educated guess is that it's closer to 12%.  If that were true, I'm sure the elites would jump on "See, my vouchers really aren't costing them much!"

 

But that's missing the point:  Opportunity Cost is the true expense.  The lost, highly profitable revenue is what creates the problem.    

 

 

[Ocean Boy]

2 hours ago, PWP-001 said:

 

 

But that's missing the point:  Opportunity Cost is the true expense.  The lost, highly profitable revenue is what creates the problem.    

 

 

There is only an opportunity cost if the person using a voucher would have otherwise paid for the drink or that voucher drink prevents someone else from buying a drink due to lack of inventory. 

[Engineroom Snipe]

6 hours ago, CruisingHogFan said:

This makes absolutely no sense and you sound like a used care salesman with this comparison!!  Why would you compare local liquor store prices to drink packages?

 

Drinks are currently $14.99 a day and every cruise we have booked for 2023 has drink packages between $72-$78 per day. So if I want the package at current rates it’s going take around 5 alcoholic drink per day to breakeven on the package compared to buying by the drink. Add the water, soda, coffee, juice I get each day and it’s less than 4 alcoholic drinks a day to break even on the drink package.

I will gladly pay these rates and even more than buying by the drink even after our vouchers  

 

 

I am waiting for a used care salesman to complain that I make used care salesman look bad. 😉

 

I get that you do not agree with my comparison. 😊

 

And yes, I think that everyone reading this post knows you meant to say 'car' instead of 'care'. I perform typos on many of my posts too.

 

As a follow-up post by @PWP-001 which discusses mark-ups, I have posted on other threads that RCI makes from 400% to 600% mark-up on their raw materials. They have to purchase and store it. How many minutes does it take for the bartender to make it?

 

The point, the production costs of those C&A drinks are low and really cannot be used for reducing the apparent cruise price unless you are currently buying drink packages or buy that many drinks on board every day as @Ocean Boy stated.

 

@PWP-001 discusses opportunity lost on profits. I do business and computer expenditure models on future technology investments. 

 

When capacity is high, those lost profits are definitely an item. I would have to dissuade a low profit customer (in this case, maybe a high-end C&A member who gets 'freebies') in favor of a cruiser who buys the packages. When capacities are lower, the model has to weigh those lost profits against empty cabins which are needed for base ship expenses such as fuel and payroll. As long as capacity is high, RCI will lean into the most profitable customers.

 

Feel free to call me a used care salesman anytime, I will smile and say you are entitled to your personal opinion.

 

Remember, I sell used care because there seems to be a severe shortage of new care in this world concerning how we treat each other.  😘😁

Edited January 12, 2023 by Engineroom Snipe

[DirtyDawg]

32 minutes ago, Engineroom Snipe said:

 

 As long as capacity is high, RCI will lean into the most profitable customers.

 

Along with every other profit seeking business on the planet. 

 

Yep, Royal Caribbean is just an ordinary, profit motivated, widget manufacturer who happens to make cruises.  And they will seek out the most profitable customers when the opportunity presents itself. 

 

Edited January 12, 2023 by DirtyDawg

[PWP-001]

1 hour ago, Ocean Boy said:

There is only an opportunity cost if the person using a voucher would have otherwise paid for the drink or that voucher drink prevents someone else from buying a drink due to lack of inventory. 

True.

And we all know that an unknown to us percentage of loyal elites only drink that drink because it's free and disembark with a zero folio.  Despite their loyalty, they're NOT the desired profitable passenger.

 

Thankfully not all loyal elites with benefits follow that pattern.  But think of those that would have bought the drink package, but now that they have all those vouchers decide to just supplement with a few drinks here and there not covered by their voucher allotment. 

 

Or others like me who will soon make it to D.  Right now I've been receiving comp drinks in the casino.  But I'm not one of those that will make a special trip to the casino anytime they're thirsty just  to get the free drink:  I pay for drinks elsewhere on board.  But I won't have to do that when I get my vouchers.

 

A little esoteric, but consider those who make the trip to the casino to avoid paying for drinks.  With vouchers, those are less trips to the casino for the free drink-- and potential lost casino revenue since they don't stop in as much.

[PWP-001]

1 hour ago, DirtyDawg said:

Along with every other profit seeking business on the planet. 

 

Yep, Royal Caribbean is just an ordinary, profit motivated, widget manufacturer who happens to make cruises.  And they will seek out the most profitable customers when the opportunity presents itself. 

 

You are correct, and there's nothing wrong with that.  

 

Part of the reason they can claim profitability is that they provide a desirable SERVICE that cruisers are willing to buy.  They are focused on delivering a positive guest EXPERIENCE profitably.

 

There is a difference between a manufacturer with a widget to sell and the service industry.

[DirtyDawg]

5 minutes ago, PWP-001 said:

You are correct, and there's nothing wrong with that.  

 

Part of the reason they can claim profitability is that they provide a desirable SERVICE that cruisers are willing to buy.  They are focused on delivering a positive guest EXPERIENCE profitably.

 

There is a difference between a manufacturer with a widget to sell and the service industry.

There is no difference in the essential things. All producers, no matter if they produce a service or a physical good, seek to earn a profit by satisfying their customers with their product they produce (i.e. produce whet the consumer wants). Both must control their costs and satisfy their customers to the point where their costumers (as a whole) will buy their product at a price that earns the producer a satisfactory return.  

[Ocean Boy]

34 minutes ago, PWP-001 said:

True.

And we all know that an unknown to us percentage of loyal elites only drink that drink because it's free and disembark with a zero folio.  Despite their loyalty, they're NOT the desired profitable passenger.

 

They will be when the next virus sweeps across the planet and they are the only people willing to step foot aboard a cruise ship.

 

A healthy patient who comes into the office once a year for a physical is just as important to me as one who has medical issues and is in every three months. Everyone is important no matter their contribution. Some even cost the practice money depending on needs and insurance reimbursement. However, their good will, word of mouth, and referrals help make up that individual financial loss. If one grandmother and her issues provide a net loss I'm willing to take that in return for her three children and eight grand kids. 

 

There are too many variables to pin each individual to overall business profit and loss. The overall mix of the population is far more important. 

[Vibe]

34 minutes ago, Ocean Boy said:

They will be when the next virus sweeps across the planet and they are the only people willing to step foot aboard a cruise ship.

 

A healthy patient who comes into the office once a year for a physical is just as important to me as one who has medical issues and is in every three months. Everyone is important no matter their contribution. Some even cost the practice money depending on needs and insurance reimbursement. However, their good will, word of mouth, and referrals help make up that individual financial loss. If one grandmother and her issues provide a net loss I'm willing to take that in return for her three children and eight grand kids. 

 

There are too many variables to pin each individual to overall business profit and loss. The overall mix of the population is far more important. 

Smart business sense

Edited January 12, 2023 by Vibe