Interesting comment from Princess.

[terrierjohn]

Thank you for your email and for your comments regarding the US fares.

 

As I am sure you are aware, the US market is nearly 10 times that of the UK and is much more competitive. As a commercially viable organisation operating on both sides of the Atlantic, there are a number of differences

in the markets where our cruises are sold. For example, with respect to the marketing costs, the UK market does not benefit from the same economies of scale. Therefore, when our fares are calculated, all these factors have to be taken in to account and we set our fares at the most competitive level within the markets in which we operate.

 

I received the above reply from Princess customer service in response to a question as to why US prices are much lower than UK prices, well now we all know, it's because Princess believe they can screw their UK customers.

[Druke I]

Is that not what the free market economy is all about?

 

I'm not saying that it is fair, but they will charge what the market will bear!

[sjbdtz]

Thank you for your email and for your comments regarding the US fares.

 

As I am sure you are aware, the US market is nearly 10 times that of the UK and is much more competitive. As a commercially viable organisation operating on both sides of the Atlantic, there are a number of differences

in the markets where our cruises are sold. For example, with respect to the marketing costs, the UK market does not benefit from the same economies of scale. Therefore, when our fares are calculated, all these factors have to be taken in to account and we set our fares at the most competitive level within the markets in which we operate.

 

I received the above reply from Princess customer service in response to a question as to why US prices are much lower than UK prices, well now we all know, it's because Princess believe they can screw their UK customers.

 

 

Wow. I've got to get my glasses fixed.

 

I would have sworn that they said that the market-size in the UK didn't provide the same economies of scale, as applied to the cost structures to provide the service.

[terrierjohn]

Wow. I've got to get my glasses fixed.

 

I would have sworn that they said that the market-size in the UK didn't provide the same economies of scale, as applied to the cost structures to provide the service.

...but the costs are all in place to provide cruises for the US market, so all the UK arm of Princess needs to cover is a few extra sales staff. Economies of scale would suggest that we in the UK should get our cruises at marginal cost since you have paid all the set up costs.:rolleyes:

[Kristabel]

Princess should perhaps have saved themselves some money on the UK sales staff, who I found to be rude and obstructive.

 

I ended up booking direct with Princess in USA as the UK staff refused to let me book cruise only, and would only let me book to fly from Manchester not from London. The American staff I have dealt with could not have been more helpful.

[willysgrandma]

It works the same way for us in the U.S. if we go on vacation to the U.K. Due to the exchange rate, everything is a lot more money in Europe for a hotel, dinner, etc. than it is for us in the U.S.

[fnewman]

...but the costs are all in place to provide cruises for the US market, so all the UK arm of Princess needs to cover is a few extra sales staff. Economies of scale would suggest that we in the UK should get our cruises at marginal cost since you have paid all the set up costs.:rolleyes:

 

Not completely true. The total cost (and margin) for operating any cruise is the sum total of all the fares paid, not just the US cruisers. In other words, if they divided the total cost of service equally among all passengers, fares for lower volume markets would go down while other would have to go up. Unfortunately, it works the same in many economic models (not only cruises) so if Princess changed theirs it would put them at a disadvantage against others competing in the larger volume markets.

[fnewman]

Sorry

[jajohnson]

From what I observed while living in the UK, everything is priced proportionatly higher than either the US or the rest of Continental Europe. This extends from cruises to cars. When I asked the local people why, they almost uniformly answered "thats the way it has always been". To me this means that the previous posters have the correct answer..........because thats what the market will bear..........

[terrierjohn]

Not completely true. The total cost (and margin) for operating any cruise is the sum total of all the fares paid, not just the US cruisers. In other words, if they divided the total cost of service equally among all passengers, fares for lower volume markets would go down while other would have to go up. Unfortunately, it works the same in many economic models (not only cruises) so if Princess changed theirs it would put them at a disadvantage against others competing in the larger volume markets.

Is that Democratic or Republican economic theory? :p Think about it, if a ship full of US cruisers is economically viable, then reducing US passengers and adding higher paying UK passengers must increase the bottom line profit.

[LUCY55]

There are variations in the US prices based on location. Enter different zip codes (or cities) in major travel sites and you will see considerable variation in pricing. Diamond Princess balcony for our sailing is $400-500 cheaper if you are from Iowa instead of Illinois. This is an ouch for me--but my sister from Iowa is happy. Another thing I find interesting is that several sailings in the same month have the same rooms available. I think someone writes a computer program that sets prices and releases rooms to the major travel sites in a way to maximize profits.

[sjbdtz]

Terrierjohn, many threads on this board & others comment on how in UK everyone is paid, by law, a sustaining wage...such that tipping is not required, and in fact frowned upon.

 

What that does indirectly, is translate to higher relative salaries for the call centre, possibly for the IT services to the call centre, the telephone charges, transatlantic communications with the Miami head office.

 

Then there's the separate marketing initatives which apparently carry a higher cost. Advertising to a marketplace of 300 million people costs less per person than advertising to a marketplace of 60 million people.

 

That's an economy of scale.

 

Presumably, the company could advertise solely to the US marketplace, and refuse to sell to off-shore customers. That's the baseline.

 

Any costs they incur to accommodate people from other countries, should be borne by the customers in those other countries.

 

If they had to employ translators & french-speaking personnel to market in France, then I don't see why the US fares should increase.

 

It is a reality of the marketplace that prices & fares are regional. Distribution, support & marketing costs are all variable, and pricing typically reflects those disparities.

 

S.

[jhannah]

Since it costs almost $1.90 US for me to purchase one GBP, my visits to your fine country require more sacrifice on my part than other European nations that have adopted the Euro. Am I to think the UK is screwing me?

[JPRLHR]

Since it costs almost $1.90 US for me to purchase one GBP, my visits to your fine country require more sacrifice on my part than other European nations that have adopted the Euro. Am I to think the UK is screwing me?

 

Far from it. The vast majority of people in those countries who chose to join the Euro Zone saw their cost of living rise dramatically as suppliers & retailers saw fit to hide price hikes in the conversion factor from their old currencies. Just ask the Irish..!!

 

It's not the UK that set the $-£ conversion rate.

[A Sixth?]

Since it costs almost $1.90 US for me to purchase one GBP, my visits to your fine country require more sacrifice on my part than other European nations that have adopted the Euro. Am I to think the UK is screwing me?

 

 

????????:confused:

 

So.... using that thought line since you get almost 11 Mexican pesos for a US dollar you must be getting 11 times more for your money, :D (LOL!!!!)

[japester]

This isn't unique to the UK. I see the same thing in the US. Not only does your state of origin affect the price, but the port you sail from as well. I live in Texas, a few hours from the Galveston port. We have few ships to choose from. So when I go online and see all sorts of discounted fares, guess what port they aren't from? Yup. If I lived in Florida, New York, or Seattle (all of which I've lived in---odd, eh?) I would find better deals. Because they are bigger, more active ports.

 

So it's not the US versus the UK. It's a sliding scale based on available consumers, numbers of ships, and the general market conditions.

 

But I am sorry you have to pay higher prices. I know that is never fun. :o

 

Jape

[Princess Chatterer]

And on the Sea Princess British style "arm chair" bingo cost more to play in the Vista lounge than American bingo on the other Princess ships. It must be an economy of scale thing. <G>

[iancal]

That sort of reply is an insult to the person making the inquiry. It is an indication of what Princess thinks of their customers-simply fob them off with an excuse that does not hold water. There are just too many places to spend your holiday money. The only way to cure it is to vote with your feet. The world is a small place and many suppliers who act in this manner simply enable the establishment of a 'grey' market. Consumers are getting too savvy for this type of nonsense.

[spongerob]

Since it costs almost $1.90 US for me to purchase one GBP, my visits to your fine country require more sacrifice on my part than other European nations that have adopted the Euro. Am I to think the UK is screwing me?

I hate to disagree with you, Jim. When we travel to the UK, we're paying the same prices as the local people. In essence, we're all being screwed, but that's what you get in a socialist economic system. Their complaint is that they want to come here, and do the same things we do, but have to pay a much higher price for the same products and services. That just doesn't make sense to them.

[sjbdtz]

I hate to disagree with you, Jim. When we travel to the UK, we're paying the same prices as the local people. In essence, we're all being screwed, but that's what you get in a socialist economic system. Their complaint is that they want to come here, and do the same things we do, but have to pay a much higher price for the same products and services. That just doesn't make sense to them.

 

We had these debates regarding price on our last trip, and determined that although the COST was higher for us in UK, the currency units per product were mostly the same...that is $2 for a can of coke was not far off L2(pounds).

 

The difference is regional pricing. I'm fairly certain that a can of coke in downtown London may cost more than one in Manchester, or a less expensive region.

[spongerob]

We noticed the same thing. A restaurant item that might cost $15 here, cost 15 pounds in London. I'm sure if we lived in New York city, we wouldn't find the difference quite as noticeable.

 

To truly compare prices on cruises, though, one has to know the date at which a quote was asked for, and try to compare pricing at the same time in the US. I think people who live here make the same comparisons; they see a special price post final-payment and wonder why they can't get the difference knocked off their fare.

 

I don't really understand why the UK travel agencies are so restrictive. If they book early and cancel, they lose the deposit. If they book early and prices fall later on, they can't get the lower price themselves as we are able to in the US. If you read the Celebrity board, you'll see the exact same complaints about pricing posted by UK residents there, too.

[Tom O.]

It sounds to me that Princess needs more competition for the UK market. Whenever prices seem to high for a certain product, a little extra competition usually takes care of it. I don't know if other cruise lines have similar pricing structures, but I would think that if other lines offer cruises at lower rates to the UK, then Princess will lower theirs as well.