why no past guest rates?

I just called NCL to ask about a past guest rate and was told they are not available on all cruises. Just out of curiosity I was wondering if anyone knew why they wouldn't have them available for all cruises? Wouldn't that be a way to keep people coming back, a small incentive?

I just called NCL to ask about a past guest rate and was told they are not available on all cruises. Just out of curiosity I was wondering if anyone knew why they wouldn't have them available for all cruises? Wouldn't that be a way to keep people coming back, a small incentive?

Isn't that what the Latitudes rates are all about?

Exactly that is what latitudes is

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I just called NCL to ask about a past guest rate and was told they are not available on all cruises. Just out of curiosity I was wondering if anyone knew why they wouldn't have them available for all cruises? Wouldn't that be a way to keep people coming back, a small incentive?

You make the mistake of assuming that cruise lines want you to come back.

Conventional wisdom tells us that past customers - if they are happy - are desirable to bring back again.

Conventional wisdom tells us that it is far more expensive to get a new customer than to keep a past customer happy and coming back.

Conventional wisdom tells us that if a customer is happy, he is the best advertisement for your business.

Now let's look at the reality.................

Most cruise lines have more business than they can handle. NCL has unfortunately been on a downward spiral in the past few years, and has not been able to enjoy that "problem". But things are changing for the better quite rapidly at NCL, and they are beginning to see increased bookings. Those increased bookings will lead to fewer and fewer incentives to bring you back again.

When your business is getting more customers than you can handle, and you cannot expand quickly enough to handle the increased volume, you have the advantage of being able to choose your customers. That's a huge advantage for a company.

Despite conventional wisdom, history has shown us that the very best average customer on a cruise ship is the first-timer.

Why is that?

Because cruise lines today ONLY make profit from onboard spending. The business model in our industry has evolved to selling cruises at cost - or even at a loss - to lure first-timers onboard and then shake all the money out of your pockets once you are onboard.

NCL was the leader in this practice, and has developed it very well.

The real problem happens with return cruisers. After the first or second cruise, you figure out that you don't need to buy EVERY drink of the day, photo, t-shirt, tour, and spa service. You figure out how to book your own tours and save a bundle. Your friends tell you how to smuggle alcohol and other drinks onboard to reduce your bar bill.

You also figure out how everything works, and start comparing this cruise with your first cruise - which is always the best one. You start demanding higher quality, you complain more often, and you rate the onboard services and products lower since you now can compare them to your previous cruise experiences.

In effect, you quickly become an undesirable customer.

Our research shows very clearly the co-relation between the number of cruises you have taken and the amount of money you spend onboard. The relation is not a good one.

Carnival Cruises has been the most profitable cruise line in the world for the past 23 consecutive years.

Why is that?

Because they do NOT want you to come back after taking your first cruise with them.

Better to have you complaining and saving money on a competitor's ship.

Replacing you with new first-timer is far more cost effective.

Holland America Line has the highest percentage of return cruisers in the industry.

They also have one of the worst financial records in the industry.

Their frequent cruisers don't spend any money at all onboard their ships.

This is a sad state of affairs for any business, as it allows us to get lazy with the first-timers, and gives us little incentive to improve the product.

It also forces a company like HAL to alienate the loyal return customers in order to make room for the first-timers who can bring profitability.

One might ask why would they offer it.

When I guy milk at Kroger, they do not give me a break.

When I fly Delta, they do not give me a break.

When I buy a jacket at Sears, they do not give me a break.

Just business I guess. In my business, people ask if we give discounts to certain groups. As much as I might like to, my landlord, bank, insurance agent, suppliers etc do not give me a corresponding discount.

But, they often run Latitudes sales.

One might ask why would they offer it.

 

When I guy milk at Kroger, they do not give me a break.

When I fly Delta, they do not give me a break.

When I buy a jacket at Sears, they do not give me a break.

Kroger has a Plus Rewards Card.

Delta has Skymiles

Sears offers special coupons if you have their credit card.

Kroger has a Plus Rewards Card.

Delta has Skymiles

Sears offers special coupons if you have their credit card.

While some cruises may not have special pricing for Latitudes members (perhaps the price is already low, or there are promotions already involved), NCL definitely has a "rewards" program based on points for NCL repeat customers.

Platinum members get very nice benefits, but all levels get some type of benefit.

NCL is no different than any other example you have given.

While some cruises may not have special pricing for Latitudes members (perhaps the price is already low, or there are promotions already involved), NCL definitely has a "rewards" program based on points for NCL repeat customers.

 

Platinum members get very nice benefits, but all levels get some type of benefit.

 

NCL is no different than any other example you have given.

Exactly. I think the thing to realize is that NCL is going to offer past guest rates and/or other discounts on the itineraries that aren't selling as well as they'd like. No need to offer a discount on a product that's selling at levels they find acceptable.

I just called NCL to ask about a past guest rate and was told they are not available on all cruises. Just out of curiosity I was wondering if anyone knew why they wouldn't have them available for all cruises? Wouldn't that be a way to keep people coming back, a small incentive?

wow, I can think of a couple reasons: number 1-if it is a popular cruise season or itinerary and the ship is going to sell out they have no incentive to offer any discounts and 2-the latitude club is the reward for frequent guests. Airlines do not offer special rates, restaurants do not and hotels don't either. Yes, they have point systems that can get you free or discounted rooms but they are not available all the time and require a lot of stays. At least the better chains work that way.

You make the mistake of assuming that cruise lines want you to come back.

 

Conventional wisdom tells us that past customers - if they are happy - are desirable to bring back again.

Conventional wisdom tells us that it is far more expensive to get a new customer than to keep a past customer happy and coming back.

Conventional wisdom tells us that if a customer is happy, he is the best advertisement for your business.

 

Now let's look at the reality.................

 

Most cruise lines have more business than they can handle. NCL has unfortunately been on a downward spiral in the past few years, and has not been able to enjoy that "problem". But things are changing for the better quite rapidly at NCL, and they are beginning to see increased bookings. Those increased bookings will lead to fewer and fewer incentives to bring you back again.

 

When your business is getting more customers than you can handle, and you cannot expand quickly enough to handle the increased volume, you have the advantage of being able to choose your customers. That's a huge advantage for a company.

 

Despite conventional wisdom, history has shown us that the very best average customer on a cruise ship is the first-timer.

Why is that?

 

Because cruise lines today ONLY make profit from onboard spending. The business model in our industry has evolved to selling cruises at cost - or even at a loss - to lure first-timers onboard and then shake all the money out of your pockets once you are onboard.

NCL was the leader in this practice, and has developed it very well.

 

The real problem happens with return cruisers. After the first or second cruise, you figure out that you don't need to buy EVERY drink of the day, photo, t-shirt, tour, and spa service. You figure out how to book your own tours and save a bundle. Your friends tell you how to smuggle alcohol and other drinks onboard to reduce your bar bill.

 

You also figure out how everything works, and start comparing this cruise with your first cruise - which is always the best one. You start demanding higher quality, you complain more often, and you rate the onboard services and products lower since you now can compare them to your previous cruise experiences.

In effect, you quickly become an undesirable customer.

 

Our research shows very clearly the co-relation between the number of cruises you have taken and the amount of money you spend onboard. The relation is not a good one.

 

Carnival Cruises has been the most profitable cruise line in the world for the past 23 consecutive years.

Why is that?

Because they do NOT want you to come back after taking your first cruise with them.

Better to have you complaining and saving money on a competitor's ship.

Replacing you with new first-timer is far more cost effective.

 

Holland America Line has the highest percentage of return cruisers in the industry.

They also have one of the worst financial records in the industry.

Their frequent cruisers don't spend any money at all onboard their ships.

 

This is a sad state of affairs for any business, as it allows us to get lazy with the first-timers, and gives us little incentive to improve the product.

It also forces a company like HAL to alienate the loyal return customers in order to make room for the first-timers who can bring profitability.

BruceMuzz, when I participate in online forums, I purposely avoid quoting long posts. But this one is so good it bears repeating.

It may not be what we WANT to hear. Nevertheless, it's an accurate assessment. Brilliant

Sent from my DROID RAZR using Forums mobile app

BruceMuzz, when I participate in online forums, I purposely avoid quoting long posts. But this one is so good it bears repeating.

 

It may not be what we WANT to hear. Nevertheless, it's an accurate assessment. Brilliant

 

Sent from my DROID RAZR using Forums mobile app

I agree, fantastic post. The one thing I would want to mention, though, is our favorite cruise was our last, not our first, and that was on the Disney Fantasy, but we all know Disney cruise lines follow a very different business model.

Great analysis.