Cruise Lines Should Target Their Most Profitable Customers

[Huddler]

Couldn't you present your argument omitting references to "tightwads, tighter than a crab's ass" (By the way, something new for me. The things I learn on CC!!), or "miserly old curmudgeons"?

 

You probably will get more responses to these slurs than you will to your idea!

I apologize for my hyperbole and certainly didnt mean to offend anyone. If my off color characterizations, which were meant in jest, offended you, I am sorry.

[Huddler]

Not everyone has money to blow like you have, but we are not any less customers because of that. And we certainly don't deserve to be called the names you are calling us.

You might have the money, but you don't have the class.

I didnt call anyone a name. I used some characterizations for people who dont spend money onboard. If I offended you by my words, it was unintentional and i apologize for offending your sensibilities.

[Huddler]

Allright, I'll step up to the plate. Perhaps they don't want to target you because you make other people not want to be on the same cruise you are due to your outspoken and offensive commentary about those with less money to blow on a cruise. And so the end result is simply break even rather than profit. :eek:

 

But in all seriousness, my guess would be that a) their systems don't track this type of information (which IMO is bad, they should since it's good for them and for the customer), or b) they are confident they'll get you back or get someone like you back anyways, and don't feel the need to "fight" for your dollars since they're coming anyways. Or so they assume...

I NEVER said someone didnt have less money to spend. I was referring to unprofitable customers who DONT spend. The ability to spend is not directly proportional to one's spending habits. Not sure how you inferred that I was slamming people less finanically well off.

[Karynanne]

Most crabs (blue, and stone) prefer water temperatures in excess of 70 degrees.

 

Dungeness crabs are found off the coast of No. California. Definitely not warm waters here. I think we're getting a bit OT....

[Orator]

Didn't that cruise director seems to equate spending money with having fun? I guess the "fun" part is the extra comp.I don't drink, gamble,or take ship excursions ( oh,maybe one or two). Take an average of 3 cruises a year, guess I just don't know the fun I'm missing.

I am confident that the cruiseline execs will do all they can to encourage business.

[C 2 C]

The simplest way to reward spending of any kind is to use point(s) per dollar spent, whether it's for the cruise booking or charges on board. Forget about captain's club "perks":rolleyes: just count the dollars flowing into company coffers and give "frequent cruiser" points. Then allow passengers to use their points for upgrades, spa treatments, bottles of wine, excursions, casino credits, specialty restaurants or future cruises. It's not reinventing the "wheel"; it's using systems perfected by the airlines (who are of course losing billions and complaining about people actually using the frequent flyer miles they were awarded.)

[Denny01]

What a great thread.

Big Spenders vs Cheapos, High Rollers vs Tightwads, Valuable Customers vs Marks, Cheap vs Not Stupid, OP hyperbole and colorful language vs OP apologies, Blue and Stone Crabs vs Dungeness Crabs.

I’m at work right now, and this has lightened my day. Thank you OP. I know you are trying to make a business point, and a good one, but you also made it fun reading.

To the post that didn’t believe the cruise lines tracked this type of information, i.e. spending trends: since we are provided a very detailed list on our cruise cards, the cruise line has and uses that information a great deal. I’d love it if Celebrity would target us based on our spending profile, but all I’d get is discounts for cheap red wine!

Denny

[bobbyleduck]

This is the funniest bunch of "CRABS" I've seen on this board in a long time! Just SPEND BABY SPEND!

 

Happy cruising to all!

 

Bob

[Huddler]

I am actually shocked that people didnt attempt to answer my point, but were alot more interested in being offended by what was clearly tongue in cheek rhetoric. Are people here really so sensitive to get hurt by what I said in that post? Wow! Have we reached the place in political correctness that you cant even attempt light hearted humor in making a point without everyone getting their panties bunched up? Good Lord. I have never cruised Celebrity but have a 14 day Baltic Cruise booked for June 2010. I have sailed many other lines including Oceania, so I posted this topic there as well, and got a totally different reaction. Again, my post was not intended to be offensive in any way whatsoever. I just wanted to generate conversation about how cruise line target customers and why they dont reward their most profitable among us. Thats it. I wasnt "bragging" or trying to put down others. But several sure latched onto that and disregarded everything else.

[CruisingChick]

But do they really want to target all repeat customers equally? Why dont they target their most profitable customers more than others? .

 

My husband has been wondering the same thing for years.

 

We don't smuggle on alcohol, wine, water, etc. We buy them on the ship, we gamble in the casino, we go to the Speciality Restaurant, etc. etc. I think on our last Constellation cruise we put our Martini Bar bartender's kid through college.

 

My husband always wondered if they track how much people spend on board, and if not, why don't they? Because that's where they make a good chunk of their profits.

[halbfl2]

Hi Huddler,

 

I think you make a very valid point. People love to read more into things and I ready your post "very tongue in cheek."

 

I worked in large group sales in the Hotel Industry for 10 years and you are right on target. Before I booked any group I would get a detailed history of what they spent at the last hotel they were at, or mine, if they were a repeat customer. If all they did was buy rooms, get a couple of meeting rooms and buy some coffee service, I wouldn't book them. I would hold out for the group that would increase revenue across the board, room revenue, food and beverage, spa, etc... These groups were the ones I coveted and the meeting planner got treated right. Upgrades, a couple of free things thrown in, etc... to make sure they knew I valued their business. (On a fun note for today's time, the big spenders were always banks and insurance companies. Ummm...)

 

The current economic climate will make my next cruise were I will be one of the crab in cold water tight asses :}... and I think the cruise line would be better off courting people like you, than me right now. My industry has been decimated by the economy and I work twice as hard for half as much money as I use to make. So no balcony for me this time, it's a category Z. I'll book my own shore excursions and keep a closer eye on my bar bill than before.

 

The cruise line can tell how much people spend per room through the sign and sail card. I think they would be well served to review the revenue per occupied room for the guests and do some target marketing to people like you, who will spend the revenue they need to make a profit in these tough times. After all, if you got a personal call from a Celebrity vacation planner and they thanked you for your business and offered you a little something for your business you would probably book before you got off the phone.

 

Happy Cruising,

 

Nancy

 

I agree with you completely. We're not big spenders on cruises, but I certainly would not be the least offended if I knew someone that was and they got "perks". If they're not already in the best cabins, upgrade them w/o fee to a better one. Give them a dinner in one of the specialty rest., or a free massage. I think they already get preferential boarding, etc. and that's fine w/me. Look at the airlines with all they're upgrades to business class for their cust. w/tons of miles. It would just be nice to know that they're spending their own money.

[ma_in_ak]

My husband and I only cruise once every few years and would have to go on more than 1 or 2 cruises on the same cruise line to get any perks, but we are some that spend a lot on board - a bottle of wine with dinner, a drink or 2 after dinner in the clubs or at the show, shore excursions, I'm a sucked for Bingo, and as my husband calls them a "boat drink" or 2 by the pool in the afternoon, a few photos. Maybe we would cruise more often if we were sent a hot deal to come spend our money with them again. But, maybe not. We fly with airline miles so we tend to book a long time in advance for whatever we decide to do next. But along the same lines, that means we don't pay the lower rate for the last minute price drops. We pay the full price. And even if the price drops last minute to where we could upgrade to a suite, I'm not sure we would since we chose the exact cabin we wanted - we splurged fora balcony this time, and for an aft balcony at that, and I chose room # 8338 so my husband wouldn't forget which room we are in (no joke - it's happend). So if we could upgrade to a suite, we'd have to decide if we wanted to give up our chosen room. So, we may be of the few that pay more on purpose to get what we want, and because we want to get the airline tickets with miles.

 

But, I do agree wtih Huddler - why not entice the ones who have a large bill onboard? I also think that they should go by dollars spent not number of cruises. Why should an inside cabin get the same credit as a large suite? And those who choose to spend less get the same as those who go for broke and buy everything? The cruiseline may benefit by changing the way they do things. You know that they have the info.

[cvaty]

I am actually shocked that people didnt attempt to answer my point, but were alot more interested in being offended by what was clearly tongue in cheek rhetoric. Are people here really so sensitive to get hurt by what I said in that post? Wow! Have we reached the place in political correctness that you cant even attempt light hearted humor in making a point without everyone getting their panties bunched up? Good Lord. I have never cruised Celebrity but have a 14 day Baltic Cruise booked for June 2010. I have sailed many other lines including Oceania, so I posted this topic there as well, and got a totally different reaction. Again, my post was not intended to be offensive in any way whatsoever. I just wanted to generate conversation about how cruise line target customers and why they dont reward their most profitable among us. Thats it. I wasnt "bragging" or trying to put down others. But several sure latched onto that and disregarded everything else.

 

You mean something like certificates?!

 

Im sorry the answers may come offensive.

I collimate with you on the political correctness aspect.

[jeffreytg]

Here is an example:

 

Our total charges on the ship were $1055 for the 7 day 3/15 Solstice

But, add to that-

• 4 speciaity restaurant meals that were pre-paid
  
• Tux Rental that was pre-paid
  
• 6 Shore excursions that were pre-paid
  

Adding all of that in we get close to $1800 in spending on top of our CC room price.

 

They made a mint off of us. But, my cruise enjoyment is not impacted by whether or not the cruise line made margin off of me. We enjoyed ourselves and that is what counts most.

 

I've cruised and spent much less. We simply went for broke this time.

 

How do we know that the cruise lines don't target more profitable customers? Does Celebrity advertise on TV on time periods and on channles that provide them with a demograpohic that data shows tends to generate a higher return to them? Does Celebrity advertise in periodicals with readership that fits a simular dempgraphic?

 

The fact that targeting isn't obvious, does not mean that it does not occur.

[kitty9]

This club is "The Blue Chip Club", and you do get gambling perks. BUT you do have to spend time and money in the casino in order to be rated, and for the perks to be alloted on subsequent cruises.

 

We've been offered 4 free cruises on X, via the casino management. It does happen, but I don't know how often or how much you have to gamble.

[richsea]

I apologize for my hyperbole and certainly didnt mean to offend anyone. If my off color characterizations, which were meant in jest, offended you, I am sorry.

 

No offense taken, at least here. In fact, I enjoyed your post when taken in the spirit that it was intended. Just one question; exactly how tight is a crab's ass in cold water, & how does one go about measuring it:D?

[kitty9]

As for offering perks, I'm stumped how they would do that. For instance, we tend to take longer cruises and book the PH. Others book the 4 or 5 day cruises in an inside cabin. If they offer perks on cruises taken, there's a huge difference between days cruised and money spent. I'm not sure I like the idea of awards based on money spent on the ships. While you can do that with the casino, similar to how Vegas casinos reward their whales, how do you do that with other spending and is that fair? How can you "punish" those who cruise often, in lower cost accommodations, but due to their personal economic situation, don't spend much on board? What if you have someone who is disabled, cannot drink or take shore excursions but they cruise often? Can you discriminate against them? Same for the elderly---many take meds that don't permit alcohol and because of their age, they may not take tours. Can they be discriminated against?

 

Many lines are cutting back on their perks. Crystal, for example, used to have one of the best frequent cruiser programs, but they drastically cut that program about 5 years ago. They used to reward their frequent cruisers by giving them on board credit for every cruise, two category upgrades at 5, 10, 15, 20 and so on cruises, free business class air upgrades (at certain milestone levels) and eventually a free cruise. They used to say that if you took a cruise of 17 days or more, it counted as two cruises. But slowly they upped that number to 21 then 24 and finally 28 days.

 

But with any perk program, they have to make sure that whatever they do, the perks can be achieved equally without discriminating against any passenger.

[Karynanne]

We've been offered 4 free cruises on X, via the casino management. It does happen, but I don't know how often or how much you have to gamble.

 

The Blue Chip Club does offer complimentary cruises every so often. They usually give you a choice of dates to choose from. I'm not sure of the slot limits, but table bets have to be a minimum of $50 per hand, and usually a specific number of hours played.

[hcat]

The simplest way to reward spending of any kind is to use point(s) per dollar spent, whether it's for the cruise booking or charges on board. Forget about captain's club "perks":rolleyes: just count the dollars flowing into company coffers and give "frequent cruiser" points. Then allow passengers to use their points for upgrades, spa treatments, bottles of wine, excursions, casino credits, specialty restaurants or future cruises. It's not reinventing the "wheel"; it's using systems perfected by the airlines (who are of course losing billions and complaining about people actually using the frequent flyer miles they were awarded.)

 

As usual , you have proposed a simple, fair & easy way to manage this issue!

Since you cruise quite a bit, I hope you'll mention this idea on board to those who provide feedback on policy!

[Deeliteful]

I thought the OP made a serious point and made me lol in doing so! I will add my two penneth (or two cents worth) that as a (usually) solo cruiser I often pay 200% fare but I know my on board bill is pretty high compared to many couples - that annoys the hell out of me. (The fact that I'm being charged so much more).

 

This next cruise I have a room mate and I saved over $2000 on my original solo booking.

 

Guess I'll be drunk in the casino every night!

 

(That's tongue firmly planted in cheek for those that don't know the difference!!)

[GXmanDC]

I found the OP very tongue-in-cheek, I don't think he was being critical of the more value-focused cruisers.

 

I have often wondered why the cruise lines don't reward their big spenders any differently than as a repeat customer. I see why some are against rewarding the big spenders, most likely you aren't big spenders. I wouldn't want Celebrity to change the existing loyalty program. But I think the Celebrity (or RCI in my case) should look at these big spenders.

 

On an average sailing most of us are bringing the cruise up to a break even point, our fare + minimal purchases (i.e., the $7.25 drink per passenger per day figure). OP is going to pay his fare, pay the $7.25/day and then spend a lot more money. That is profit, profit, proft. Wouldn't it be in Celebrity/RCI's best interest to get Big Spender back on the ship? It does no good if Big Spender decides to take a land vacation or head over to Oceania. Get him back on Celebrity. I think they should examine how to get big spenders to come back more often.

 

Also, Big Spender is keeping the profits up and that means they don't need to raise the fares.

[G'ma]

ALL cruiselines are concerned about one thing: Full Ships.

 

When they sail with empty cabins, the expected average revenue per cabin is lost.

 

Unless they keep the "perks" process generally "democratic", they will lose cruisers...... The first to go will be the bread-and-butter cruisers and new cruisers...who will change to a line where they can at least look at a goal for more perks and the disparity isn't so obvious.

 

While the big spenders are a plus to the bottom line, the other 80% of the ship, who are on a budget, spend more as a group.......

 

The math comparing "big spenders" to moderate spenders would show revenue from the more moderate outstrip those who throw money around...

 

It's not that one is better or worse than the other. It's simply a fact that, with full cabins, they will make money. I don't think they care where the money comes from....

[ikelmay]

I would have no problems at all if the cruise lines offer incentives to the 'high rollers'............ so long as I can take three cruises a year watching the dollar signs to their one mega blow out - if it makes them happy and they feel privileged, terrific.

[Huddler]

There is a high roller casino "club" with cruises and other ammenities being comped. Guess the OP isn't "high" enough for Celebrity to notice.

Ive never sailed on Celebrity but have a Baltic Cruise booked for next summer. This year I am taking the wife and kids on the Disney Cruise after spending 3 days in Disney World. Unfortunately for me, they dont have a casino on Disney as I love to gamble. After my cruise on Celebrity, I will let you know whether I am invited into the high roller club, ok?

[Huddler]

I can't figure why a cruise line should target someone who is already a "big spender" and is doing that without further incentive. It is not as if they are going to stop cruising or move to another line.

With so many other competing cruise lines and land vacations options available today, what makes you think the "big spender" wont move to another cruise line or choose a land vacation? My entire post was designed around that: use hosts and comps to encourage the most profitable customers to come back on board and prevent them from spending all that potential revenue somewhere else. Take me for example. I have cruised several lines with no regard to brand loyalty. Why not have a "host" reach out to me on a personal basis and encourage me to come back. Have them find out where I am interested in going next, and then keep in contact about cruises that I have shown some interest. Make me feel like I am a VIP. Casino's do this all the time with great results.