new versus old pricing

[meow!]

Another thread in this column discussed pricing for frequent (100+ days) Silversea cruisers. This time, let us take a look for ordinary Venetian members (less than 100 days).

 

Just for example, take the Panama Canal voyage. In December, 2007, it was 40% off for Venetian members, at $5,142 per person double occupancy for 15 days, or $343 per diem, and this number includes port charges, etc., but excludes travel agent rebates, American Express shipboard credits and air fare.

 

Now, from Silversea's website, again for a minimal vista suite, for April 2010, a 15 day Panama crossing will cost at 60% off $5113 including port charges. This time take off $500 for the included air fare, and it becomes $4,616 or $308 per diem. What you gain is basically the included air fare. So it does actually become cheaper.

 

There is just one long term worry though. The list price in December, 2007 was $8,570. Now it has become $12,095. That is an increase of 41% or 12% per year compounded. This list price may reflect the cruise lines' desire to charge commensurately more if the economy recovers and the market can bear it. The 12% per annum theoretical increase is double what it used to be several years ago.

 

Silversea is not the only cruise line inflating list prices to give higher percentage discounts. Oceania, for example, is also raising list prices to give more special (e.g. $2,000 per cabin beyond its nearly perpetual "2 for 1" with included air) discounts on a large number of voyages. This may signal a new trend in the cruise industry for the foreseeable future. Any comments?

[Jade13]

 

Silversea is not the only cruise line inflating list prices to give higher percentage discounts. Oceania, for example, is also raising list prices to give more special (e.g. $2,000 per cabin beyond its nearly perpetual "2 for 1" with included air) discounts on a large number of voyages. This may signal a new trend in the cruise industry for the foreseeable future. Any comments?

 

Yes. I noticed this too! Silverseas is now stuck because they offered 50% off this year and now to continue offing "discounts" the prices for next year just seem inflated to me so that some 10 night prices are starting at $6,000 or so. But who would have paid $12,000 in the first place. I'm talking about some itineraries that may be available on other lines and not "Antarctica".

[wripro]

Silversea's new pricing reminds me of a bargain basement store that raises its prices just so it can put a big red tag on the item which proclaims 60% off. That is what they have done, jacked up the brochure rates so they can claim a higher discount. It probably came from the same marketing whiz who brought us "butler service for all categories" a useless addition to the wonderful service provided by the stewardesses and room service. If this promotion doesn't work I wouldn't be surprised to see a different approach soon.

[Friscorays]

I've been looking at an Antarctica trip on the Prince Albert in an "Adventurer" cabin. Here is the current on-line pricing for the same 17 day Holiday itinerary:

 

December 21, 2009: base $14,595, $8757 at 40% off.

December 19, 2010: base $17995, $12596 at 30% off.

 

This is roughly a 45% increase in actual cost. The only thing I can figure is that they are hoping the economy will recover and sales will pick up. If not, this gives them the option of offering increased percentages off in order to fill the cabins. If the 2010 itinerary were to go to 50% discount, pricing would be roughly the same year to year.

 

Is this the consensus as to what seems to be going on?

[meow!]

Is this the consensus as to what seems to be going on?

That is quite possible!

[wripro]

Trust me, if this round of discounts doesn't fill the ships there will be a new and different set of discounts. They'll keep trying new promotions all the time. Remember "New and Improved Tide?" These are new and improved prices until the come out with newer and more improved ones.

[Keith1010]

Seabourn did the same thing when they came out with their pricing and in time has made adjustments. If the rooms do not move they will continue to reduce pricing as the did in 2009.

 

Keith

[Goldens4]

Remember our 2009 Thanksgiving cruise? When I first booked (2/09) it was 40% off. Then, at the end of June, I checked SS website again and it was 50% off, $1000.00 OBC (for 2 guests) and airfare or credit. Naturally, I let everyone on the boards know so we could get an adjustment. Come to your own conclusions, but I concur with the theories on this thread. Also, if you already have booked, I would suggest checking he SS site once a week. You never know what "goodies" you may find. :)

[meow!]

We agree. And on a neighbouring thread in this column, you mentioned that you have been watching that voyage since 2006. So in this aspect, we are similar in patience .. meow!

[Keith1010]

Remember our 2009 Thanksgiving cruise? When I first booked (2/09) it was 40% off. Then, at the end of June, I checked SS website again and it was 50% off, $1000.00 OBC (for 2 guests) and airfare or credit. Naturally, I let everyone on the boards know so we could get an adjustment. Come to your own conclusions, but I concur with the theories on this thread. Also, if you already have booked, I would suggest checking he SS site once a week. You never know what "goodies" you may find. :)

 

Excellent advice. Hopefully, the TA's will check as well but always a good idea to check price from time to time along with other amentiies such as the OBC you mentioned.

 

On a related note, we tend to book our hotels very far in advance. This way we get the desired room type. At the same time if the rates should go up (still happens once in a while) we know that our price will remain the same but should the rates fall we can followup to get lower rates. I have seen rates fall three to four times in a nine to twelve month period for various luxury hotels that we have stayed at along with one for an up coming pre-cruise.

 

Keith

[DebbieH103]

Just another thought on land and cruise for luxury guests - these products sell the cheapest and the most expensive categories out first and sell into the middle. If high end categories are desired, they may be hard to get, and on Silver Spirit, getting a vista will be difficult, I would guess.

 

Golden likes to travel at Thanksgiving, so watching the itinerary was very important. She and I both know those ports, so the timing is more important sometimes than anything, and when hubbies like to do Caribbean vs. traveling far, it is good to see when just the hot spot works.

 

Now when dates are flexible and so on, it makes a lot of sense to compare reverse itineraries and so on. That is why we switched our Asia in May because it was MUCH cheaper to do the reverse itin, and then this has worked a number of other times.

 

The "new" pricing really is the old pricing before the 60% or close to it. The previous pricing with the 60% had some complaints but was a response to people not liking extended APB. Silversea can only respond to so much to try to please everyone. I use the pricing changes to know something has changed, but I look at the base cruise fare and amenities for a true pic. Like now, I scan the whole year and look for the best price Caribbean and best price Europe. Some things are great out there to Europe with the free air on some 7 nights. We have got used to going longer, but we have never had free air on anything we wanted (nor free OBC), so I think after 8 SS trips that I should be looking to some of that. My husband just likes the ship, whereas I want to see new places. It is tough when two people have different goals.

[Mike2131]

I've been looking at an Antarctica trip on the Prince Albert in an "Adventurer" cabin. Here is the current on-line pricing for the same 17 day Holiday itinerary:

 

December 21, 2009: base $14,595, $8757 at 40% off.

December 19, 2010: base $17995, $12596 at 30% off.

 

This is roughly a 45% increase in actual cost. The only thing I can figure is that they are hoping the economy will recover and sales will pick up. If not, this gives them the option of offering increased percentages off in order to fill the cabins. If the 2010 itinerary were to go to 50% discount, pricing would be roughly the same year to year.

 

Is this the consensus as to what seems to be going on?

We booked our June 2010 expedition early and fully paid in advance. The same % discount is now offered, but the pp fare for our Adventurer cabin is now over $700 more!

 

I remember that Sunday when they changed the fare discounts and the "bargains" that had us (and a lot of other cruise enthusiasts) really excited. Then the other shoe dropped and the brochure prices shot up! The December 2010 cruise we were looking at (SS, but not PA II) shot up over $1,000 pp before my eyes. Disappointing.

[Friscorays]

I'll follow things closely. I understand that prices generally increase year to year but paying 45% more for a trip than I would have the year before is something that I am not sure I am willing to do.

[meow!]

Some things are great out there to Europe with the free air on some 7 nights..

We generally agree with your posting. However, going to Europe for only 7 days (especially from the West coast) is kind of difficult on the body with those long flights cramped in an economy seat and especially the time change jet lag, unless of course, you stay pre-/post-cruise on your own!

[DebbieH103]

Which is a good reason to take the air credit. From Houston, I can be in Europe as quickly (or as not quickly, as it is) as half the Caribbean. Some people can't go for much longer than a week.