Oceania Sales Healthy Again

[StanandJim]

An encouraging quote from FDR:

 

Q: What would you say the turning point was when sales began normalizing?

 

A: In January and February and early March, things picked up. They were not normal, but there was business. It really turned back in mid-March. And it's not a coincidence that the stock market hit its low point on March 9 and has since rallied from there. [Oceania] has now sold 47% of 2010. We are right now tracking 3 percentage points behind where we were last year at this time, and we are catching up every week. Occupancy will be slightly down in 2009 vs. 2008, but we are on pace to return to normal in 2010

 

So, the vultures can quit circling. Oceania has fielded the "economic Tsunami" without significantly dropping their pricepoint (give or take a few onboard credits).

 

What is even more exciting is that next week (in August), we're due to finally see the deck plans for the fabulous Marina! :D

[Leonid]

What's going to grab my attention is the new suite that's between the VS and the PH.

[meow!]

So, the vultures can quit circling.

In a healthy society, people discuss topics from different points of view, some positive, some negative and some indeterminate. It is up to the individual readers to form their own opinions after reading different views. It will be unfortunate if everyone has to have similar outlook, it is essential to have freedom in variety.

 

As for vultures, they serve a useful role in the eco-system. Can you imagine what it will be like without vultures?

[lovecruisingtoo]

 

So, the vultures can quit circling. Oceania has fielded the "economic Tsunami" without significantly dropping their pricepoint (give or take a few onboard credits).

 

What is even more exciting is that next week (in August), we're due to finally see the deck plans for the fabulous Marina! :D

 

 

You need to look at more than just a management statement to see if a company is truly healthy. Just because bookings are up do not mean that the bookings are profitable. Last year O was not discounting the cruises (beyond the normal 2 for 1). This year they have been giving $2,000 per cabin in additional discounts. On this point alone, they have dropped their "pricepoint". In addition there are other, less obvious, price reductions; single supplement has been reduced from 100% to 25 or 50 percent on many cruises; prepaid gratuities etc.

 

Also, if you do some research, you will see that in the past, many of the suite categories sold out within a few days of being released. For the 2010 season, very few sailings have sold out categories.

 

This does not mean that they are in a dire situation, just that you can twist numbers and data to portray the situation you want (e.g. FDR talks about booking numbers, not average price per cabin / revenue).

[cruiseyguy]

Same as with the airlines. Filling planes at $200 per person for a transcontinental flight is not a winning business strategy.

[lovecruisingtoo]

Same as with the airlines. Filling planes at $200 per person for a transcontinental flight is not a winning business strategy.

 

Agree completely. That is why with the airlines you cannot rely strictly on their load factors.

[WaterView2]

There is also the point that no 2010 cruises have reached their final payment date. It is possible that their still may be some drop off from the early bookings.

[Paul123]

Talk about opening up a hornet's nest? I must say I did personally speak to FDR just very recently and he was really enthusiastic and very optimistic about his market and how it now shaped up after the fright everyone in his industry got last fall.

[suec12]

I propose that Oceania give each passenger that booked and sailed during the recent unpleasantness a perpetual $100 OBC on future cruises! It was nice to book our trip for next year for less than the one we took in the spring - I wonder if we will see the prices for 2010 prices start to increase if the the cruises are already 50% booked! I'm a little surprised bookings are that healthy.

[LAexNY]

I propose that Oceania give each passenger that booked and sailed during the recent unpleasantness a perpetual $100 OBC on future cruises! It was nice to book our trip for next year for less than the one we took in the spring - I wonder if we will see the prices for 2010 prices start to increase if the the cruises are already 50% booked! I'm a little surprised bookings are that healthy.

 

So let me understand. You think you should get a lifetime award because you took advantage of reduced cruise prices?

[LHT28]

I propose that Oceania give each passenger that booked and sailed during the recent unpleasantness a perpetual $100 OBC on future cruises!

 

What unpleasantness?

Did you have a bad cruise you feel you need compensation for or what?

 

Lyn

[LAexNY]

What unpleasantness?

Did you have a bad cruise you feel you need compensation for or what?

 

Lyn

 

I'm assuming the unpleasantness she referred to is the recession.

[LHT28]

I'm assuming the unpleasantness she referred to is the recession.

Then it is an odd request of Oceania ...maybe they should ask the bank for a credit also;)

 

Lyn

[vaitape]

Perhaps suec12 was making a bit of a joke?

[lovecruisingtoo]

I must say I did personally speak to FDR just very recently and he was really enthusiastic and very optimistic about his market and how it now shaped up after the fright everyone in his industry got last fall.

 

Part of his job is to be "enthusiastic and very optimistic" about his line. What would you, and everyone else, do if he said booking were very bad, cash flow was off etc? It is called marketing. Tell the people you need to book now or you will not get the cabin category you want and guess what happens? People tend to say, OK I will book now and I can always cancel and get my money back.

[St. Louis]

Talk about opening up a hornet's nest? I must say I did personally speak to FDR just very recently and he was really enthusiastic and very optimistic about his market and how it now shaped up after the fright everyone in his industry got last fall.

 

I think everyone was pretty optimistic and enthusiastic about Oceania's predecessor, Renaissance, just before they declared bankruptcy.