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Why are there brochure rates?


tripman

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I've booked cruises with Royal Caribbean, Princess, Holland America, Norwegian, Celebrity, and Carnival.

 

Each time, I get some form of the same speech: "your price comes to $xxx.xx, that is an incredible $yyy per person off of our brochure rate!!!!"

 

I've booked nearly a year out and as soon as two months...each time I get the same thing from them, kind of a "look how great we are for doing this for you."

 

I suspect everyone else gets something similar...so my question is, why in the world are there brochure rates? Is it purely psychological, that if people read the brochure and call, they think they are getting some fantastic deal when they could get that same price (or very close to it) from any travel agent, or online booking agency.

 

Is there something I'm missing? Does anyone actually pay a published rate? Why do they have them?

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I'm sure it's something like that. There may in fact be people who do pay brochure, but maybe just having higher brochure rates makes people think they are getting a deal. Probably the same as on those cards on the back of hotel room doors that say the rate for that room is way higher than what you actually get it for.

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Why do they have a list price on the window of a new automobile?

Does anyone actually pay that price?

 

Why do they advertise a list price for a home?

Does anyone actually pay that price?

 

Why do TV Marketeers offer to sell you a knife set that is "valued" at $300 for only $19.95?

 

Are people really that gullible?

 

YES.

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1. A few people will actually pay the brochure price -- maximum profit for the line.

 

2. The rest of us feel like we're getting a fantastic deal -- maximum sales and PR.

 

They ain't stupid. ;)

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Overime the brochure rates have become similar to a manufacturers list price which no one seems to ever pay. It's something that most of the cruise lines do so it will stay in place until some change it which is not likely.

 

In the end, value the cruise based on what the cost is rather than what the brochure rate is.

 

The major factor that will determine price come down to supply and demand.

 

Keith

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I think of brochure rates the same as I think of the rates on hotel doors ... they are the maximum that can be charged for that particular room during the advertised times. While they are usually there just to make it look lke you are getting a deal, I think they are also there to provide a ceiling so that operators cannot indiscriminately charge whatever rate they can milk out of someone (beach hotels during spring break ,etc).

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There's a glut of cruise ships in the Caribbean so unless you have set your mind on a particular ship/cruise then it pays to leave it to as late as you can for the best prices. It's all one big con to get more money out of us.

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But for popular cruises, people can end up paying close to the brochure rates because the cruise lines don't have to discount them as much.

 

For instance, I was tracking the prices of 10 Christmas cruises this summer--hoping that we would be able to book one after final payment if prices dropped.

 

Some of the prices did drop after final payment date--but others went up. The people who booked the last few cabins on some ships were paying a lot more than they would have if they had booked early.

 

Fortunately for us, the price of our cruise was a lot less--otherwise we'd be staying home in two weeks and not going.

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The brochure rates are what people that go on a waitlist are quoted, then once the waitlist clears, if it clears that is usually what is charged to get on a ship. I have only in one instance had a client actually pay the brochure price, and that is because they had family getting married on that particular cruise, and the ship was waitlisted, they had me put them on the waitlist, when it cleared for them 2 weeks before sailing, they were more than happy to pay brochure rate, which is what Princess was charging for that Junior Suite that is the only thing that cleared.

 

I've booked cruises with Royal Caribbean, Princess, Holland America, Norwegian, Celebrity, and Carnival.

 

Each time, I get some form of the same speech: "your price comes to $xxx.xx, that is an incredible $yyy per person off of our brochure rate!!!!"

 

I've booked nearly a year out and as soon as two months...each time I get the same thing from them, kind of a "look how great we are for doing this for you."

 

I suspect everyone else gets something similar...so my question is, why in the world are there brochure rates? Is it purely psychological, that if people read the brochure and call, they think they are getting some fantastic deal when they could get that same price (or very close to it) from any travel agent, or online booking agency.

 

Is there something I'm missing? Does anyone actually pay a published rate? Why do they have them?

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In many states, in order for a merchant to be able to run a percent-off sale, there has to be a verifiable published startting point. So if the cruise line runs a 50% off promotion they can be asked by the consumer protection agencies to show them the actual price that the discount is being figured from.

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Is there something I'm missing? Does anyone actually pay a published rate? Why do they have them?

Yeah.... my mother does. In her late 70's I informed her that you can dicker with the auto saleman to get a better price. She always paid what was on the window....... They must like seeing her come in. :rolleyes:

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