Royal Caribbean using dynamic pricing as demand surges

[HBE4]

4 hours ago, twangster said:

Royal has had dynamic pricing since like forever.  

 

4 hours ago, Husky1987 said:

Yep, it's not like "supply and demand" is a new economic thing.

 

2 hours ago, JsMom2 said:

This is nothing new!

 

I was thinking the same thing. Terms like "Surge Pricing" or Dynamic Pricing" are just new, scary terms for good old fashioned "Supply and Demand" that's been around forever and apply to everything. Airlines have been doing it forever.

 

The only difference is that in today's hi-tech world of instant information, prices can be adjusted hourly instead daily or weekly. 

 

I will admit, it is annoying when trying to plan something and the price is is constantly changing. When booking an Uber to the airport one time, the price fluctuated between $35 up to $125, back for to $45 within a 45 minute span. I quickly booked at $45 and never looked back.

 

 

 

[F27TW]

This is also called "gouging".    This is really  no different whatsoever than after a disaster of some kind, businesses raising the prices on water, lumber, baby formula, general supplies, etc. "because demand increases".  That's looked at as being a heinous practice.. yet its OK when RC does it?     Why?

 

 

[Tiggerontheseas]

10 minutes ago, F27TW said:

This is also called "gouging".    This is really  no different whatsoever than after a disaster of some kind, businesses raising the prices on water, lumber, baby formula, general supplies, etc. "because demand increases".  That's looked at as being a heinous practice.. yet its OK when RC does it?     Why?

 

 

 

I see your point, but I think the heinous practice label usually gets applied to life necessities ( as you mentioned, like water, baby formula)   A waterpark doesn't really fall into those categories so the outrage shouldn't be as high.  Although the parents dealing with whining kids because they refused to buy the ridiculously priced waterpark tickets might disagree that it's not life and death.  LOL!

[chengkp75]

19 minutes ago, F27TW said:

This is also called "gouging".    This is really  no different whatsoever than after a disaster of some kind, businesses raising the prices on water, lumber, baby formula, general supplies, etc. "because demand increases".  That's looked at as being a heinous practice.. yet its OK when RC does it?     Why?

 

 

In the case you pose, those are "necessities".  Nothing that RCI offers for sale is anything other than a very optional purchase, that you are free to buy or not, and which will not affect your ability to live.

 

Was the surge in used car prices "gouging"?

Edited March 13, 2023 by chengkp75

[mk-ultra]

4 hours ago, chengkp75 said:

So, when RCI uses "dynamic pricing" and the price of something goes up, everyone is up in arms, but when you score a price reduction on the fare because of the same "dynamic pricing" (lowering the price to increase demand), all you hear is crickets, except to brag on what a good deal you got.

 

Chuckle.  I see similar psychology at work at blackjack tables.  A player who is superstitious or otherwise just ignorant of the statistics only notices when another's play seems to be to their detriment.  "You took my 10 with a dumb hit!"  "You stole the dealer's bust card!" "You should always do X!".  Odd, they never seem to notice when a play they dislike turns out to favor them.

[twangster]

On 3/13/2023 at 1:16 PM, F27TW said:

This is also called "gouging".    This is really  no different whatsoever than after a disaster of some kind, businesses raising the prices on water, lumber, baby formula, general supplies, etc. "because demand increases".  That's looked at as being a heinous practice.. yet its OK when RC does it?     Why?

 

 

 

Airlines have been doing it for years.  Look around the next time you fly.  Some folks near you probably spent less than you did and some folks paid way more.   

 

Supply and demand pricing concepts have been around for decades.  This is hardly a new practice.  Royal has been mining data for over a decade as well and using that data to model pricing.  

 

Look at the price of a house in one city or neighborhood versus another.  It's well known that in real estate it's all about location, location, location which is just another way of saying demand, demand, demand.  Is that gouging?

 

Edited March 16, 2023 by twangster

[nimbex1970]

As long as we pay, the prices will raise.  There is a huge surge back to cruising post covid, I don't blame any business in maximizing their profit after 2 plus years of losses.  The ships are FULL, so folks are paying. How much I am willing to spend, led me to NCL for two planned cruises.  Of course I will fill in some dates with RCL, but the big 19 day ones are on another line. So in the end, there is a point where RCL price points itself out. Then they will adapt with lower fees when lower booking happens.. no different than hotels and all-inclusives.. So I just buy at a price point that is satisfactory, I don't control the process and never did. 

[Starry Eyes]

47 minutes ago, nimbex1970 said:

As long as we pay, the prices will raise.  There is a huge surge back to cruising post covid, I don't blame any business in maximizing their profit after 2 plus years of losses.  The ships are FULL, so folks are paying. How much I am willing to spend, led me to NCL for two planned cruises.  Of course I will fill in some dates with RCL, but the big 19 day ones are on another line. So in the end, there is a point where RCL price points itself out. Then they will adapt with lower fees when lower booking happens.. no different than hotels and all-inclusives.. So I just buy at a price point that is satisfactory, I don't control the process and never did. 

Yes, and whenever we feel cruising no longer offers a good value for my vacation dollar, we will opt for other vacations.  

Edited March 17, 2023 by Starry Eyes

[not-enough-cruising]

46 minutes ago, dada2199cc said:

 

Because that's how markets work.

 

Gouging actually PREVENTS shortages from occurring.  Whenever there's a massive weather problem coming up, I actually have been known to go and buy 1000 gallons of water because I can.  If stores were allowed to "gouge" and raise prices to meet demand, then I wouldn't buy even 5, but everyone could get some water.

 

Also, "gouging" occurs when businesses don't know if their business will dry up momentarily.  Water store has a hurricane coming.  They have 500 gallons of water left and may get zero gallons more for a month, so raising the price of water lets them pay rent.

 

Just because your feelings say it's wrong doesn't mean it's wrong.

However the gouging you are describing is illegal in most areas.

 

For the record, I do not believe Royals pricing models are gouging in any way, not even close.