Royal Caribbean's Plan to attract new cruisers

It's from April 17th, It's probably already been posted...but work cuts into both leisure and Cruise Critic surfing time.

Bloomberg TV. The link is here:

http://www.bloomberg.com/video/how-royal-caribbean-plans-to-attract-new-customers-rFqO5Zf0SPuVeNhRyTPxrQ.html?cmpid=yhoo

:)

I had not seen this, so appreciate you posting the link. I'm one who is extremely disappointed So. Flo is losing so many Royal new ships. I was counting on being on that first Anthem cruise out of Port Everglades. Adam said Southampton and Port Everglades. So couldn't he have moved it the following season. Its all so sad. And I will not be flying up to Bayonne. I'm disappointed Quantum is going to China.

This interview from Adam, I don't know, it just felt like a knife into the hearts of his loyal Americans. He didn't say he doesn't love us anymore, but he sure insinuated he loves those Chinese and wants to make sure they get their noodles, Chinese comics and whatever it takes to get them to shop.

I just felt like we Americans aren't shopping enough on his ships.

Just my humble opinion, but that is how I felt watching this.

He seemed really excited when he was talking about how the Chinese love to shop.

Royal Caribbean International. Keyword: International. The have to cater to EVERYONE.

There is a boatload of money to be made in the Asian market, and over a billion people to spend that money.

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Royal Caribbean International. Keyword: International. The have to cater to EVERYONE.

Exactly, I thought it was very forward looking interview.

"This interview from Adam, I don't know, it just felt like a knife into the hearts of his loyal Americans. He didn't say he doesn't love us anymore, but he sure insinuated he loves those Chinese and wants to make sure they get their noodles, Chinese comics and whatever it takes to get them to shop.

I just felt like we Americans aren't shopping enough on his ships.

Just my humble opinion, but that is how I felt watching this"

Well the politicians encouraged our factories to go over because they don't have so many crazy laws and taxes etc. over there like we do and now they make everything so now they have lots of money that this country could have had if we still made things. Guess we have to get used not being the biggest kahuna anymore. It's sad because we invented everything - all the electronics etc and we make barely anything in this country anymore. That's why they like to shop more - it's fun to shop when you have money!

I always get a kick when my fellow Americans act all hurt that a company would cater to another market. Here's the deal. Royal Caribbean INTERNATIONAL. Right now, Asia is huge. They are in the upswing of their vacation dollar spending time and America is kind of stagnant. If Royal wants to survive, they have to give a little to Asia.

It isn't like we don't still have, what? Eight or Nine ships year round out of America. And great ships, too! You're mad that all of Asia has to share three? Give me a break.

Royal Caribbean International. Keyword: International. The have to cater to EVERYONE.

...apparently at the expense of alienating many of their most loyal and repeat customers...that's not a business plan...that's a formula for financial disaster.

Saw the interview - it looked mostly like a case of Adam being in denial that there was any problem stemming from the recent decision, and trying to talk himself and anyone else who wanted to listen that this was a great idea.

Many loyal customer were not fooled.

As a stockholder I like it

As a cruiser I don't like it

Of course I have no intention of setting foot on one of the Quantam ships because of their new dinning plan! So don't know if I even count?

Would like to see one of the Voyager class come back since they are sending the new ships to Asia.

I fully expect that by 2017 at least one if not more of the Oasis class will go to Asia,

...apparently at the expense of alienating many of their most loyal and repeat customers...that's not a business plan...that's a formula for financial disaster.

 

Saw the interview - it looked mostly like a case of Adam being in denial that there was any problem stemming from the recent decision, and trying to talk himself and anyone else who wanted to listen that this was a great idea.

 

Many loyal customer were not fooled.

Financial disaster? Doubtful. I'm sure their business analysts know what they are doing. And I doubt they care about repeat versus new customers. In fact, they'd probably rather have new customers than repeats, since I would think new customers spend more and cost less to the cruise line (less perks).

:thumbup:

jayblue RCCL cruiser

...apparently at the expense of alienating many of their most loyal and repeat customers...that's not a business plan...that's a formula for financial disaster.

 

Saw the interview - it looked mostly like a case of Adam being in denial that there was any problem stemming from the recent decision, and trying to talk himself and anyone else who wanted to listen that this was a great idea.

 

Many loyal customer were not fooled.

Actually, it's not. There's far more money to be made in the Asian market, especially with a brand new ship that will generate MILLIONS of dollars per sailing. From a business standpoint, moving a mega-ship to the Asian market is brilliant. Now, am I disappointed that I won't be able to sail during the first year? YES! However, with the economy the way it is today, they're making the right financial choice.

Financial disaster? Doubtful. I'm sure their business analysts know what they are doing.

You mean like the ones that guided Enron, Kodak, Blockbuster, and Borders?

All those companies had strategies on getting bigger and gaining new customers. None exist today. So much for the experts.

Working for a Fortune 500 company here...one thing we know is ticking off your long time customers is a bad business choice. You don't need a Wall Street suit or MBA in business to appreciate that fact. It's universally considered the formula for failure if executed and not corrected quickly.

My goodness - some, not all, but some of you American's have just got to get off your high horse. The world does not begin and end with the U.S., in particular Florida. Actually, Floridians are the poorest spenders and want more perks than anyone else.

Time to share folks. There is a lot of money to be made out in that big old world in a lot of other countries and China leads the way.

Smart move on the part of RCI. Follow the money and don't worry about all those complaints being made in congress.

After listening to Adam and reading other info that has come out, I feel as if the initial sailings out of NJ for the Quantum will be used by Royal to test and perfect their new dynamic dining (which now makes sense considering the Asian focus he mentioned) and iron out any other issues. Will we have Chinese speaking comedians and singers??? I guess I should just go onboard and expect to be treated as a human guinea pig experiment :-).

I will probably keep my reservation because I made it when the first bookings came open, which means before the ridiculous double pricing for solos and the subsequent sky high rates. To book the ship now would cost me almost 3 times what I paid. And since both the Quantum & Anthem will not be easily accessible from Florida (relatively speaking NJ vs China), I guess it will be nice to see the new ship and then go back to the ones I really like, the smaller ships such as Rhapsody.

I think it's a smart business strategy, and I'm hoping in the end if the Asian market is successful and more money is made it may mean cheaper cruises for the all. I would also like to see more ships closer to my home (NY)so I don't have the added expense of flights. And if they can rotate ships into different ports every year or so it would give more opportunity for people to experience the various ships they offer not just what's close to them.

Actually, it's not. There's far more money to be made in the Asian market, especially with a brand new ship that will generate MILLIONS of dollars per sailing. From a business standpoint, moving a mega-ship to the Asian market is brilliant. Now, am I disappointed that I won't be able to sail during the first year? YES! However, with the economy the way it is today, they're making the right financial choice.

My goodness - some, not all, but some of you American's have just got to get off your high horse. The world does not begin and end with the U.S., in particular Florida. Actually, Floridians are the poorest spenders and want more perks than anyone else.

 

Time to share folks. There is a lot of money to be made out in that big old world in a lot of other countries and China leads the way.

 

Smart move on the part of RCI. Follow the money and don't worry about all those complaints being made in congress.

I agree with both of these. I think there are a lot of loyal RCI cruisers that are just upset because they're not getting their way. RCI is first and foremost a company. They are in business to make money. If they upset their loyal customers along the way, oh well. Their first responsibility is to their shareholders, whether their loyal customers like it or not.

I can't understand why Royal spent so much time and revenue hyping the new Quantum Class ships to the American market and then turned around and yanked Anthem right out of Fort Lauderdale and sent Quantum to China.

I was so eager to try Anthem, but now it feels like a type of bait and switch. I surely will not fly north to Bayonne just to sail to the same Caribbean islands every other Florida-based ship sails to.

Also China is a totally differently culture. I am unconvinced that Quantum Class ships were designed for the Asian market. Well one thing is sure, if Quantum is a gigantic success there, the competitor cruise lines will hasten to send their best and newest ships there too. Then maybe one day a Quantum Class ship will come back to Fort Lauderdale because that market will be as crowded with ships as Florida is today.

You mean like the ones that guided Enron, Kodak, Blockbuster, and Borders?

 

All those companies had strategies on getting bigger and gaining new customers. None exist today. So much for the experts.

 

Working for a Fortune 500 company here...one thing we know is ticking off your long time customers is a bad business choice. You don't need a Wall Street suit or MBA in business to appreciate that fact. It's universally considered the formula for failure if executed and not corrected quickly.

As far as your choice of companies to compare to RCCL, Eron was just a bunch of thieves but the others are classic examples of not changing as the market evolves. Kodak, Blockbuster and Borders are companies that did not find ways to evolve as the changes. I'm glad that RCL is trying to find new markets and stay a viable company. It never made any sense to bring Quantum to Fort Lauderdale. Oasis/Allure continue to sail full at premium prices. Bringing a new ship to Fort Lauderdale would just eat into those sales. As long as Oasis/Allure continue to thrive don't expect any changes. These plenty of new opportunities in Asia and RCL needs to offer the best product and that means new ships.

I agree with both of these. I think there are a lot of loyal RCI cruisers that are just upset because they're not getting their way. RCI is first and foremost a company. They are in business to make money. If they upset their loyal customers along the way, oh well. Their first responsibility is to their shareholders, whether their loyal customers like it or not.

That couldn't be more wrong.

RCI promoted an entirely different plan to U.S. cruisers and spent plenty of money hyping it for more than a year. Now they are completely altering what they told a mass public audience. Call it what you will...and plenty have already assigned labels like betrayal, deceptive, and even lying.

People made financial investments and plans based on this year-long trek of publicity surrounding RCI's heavy promotion of Quantum and Anthem. Now everything has changed on those two fronts.

It's not about "people getting their way"...it's about "people being grossly misled". I suspect there are plenty of shareholders among those who have experienced the effects of this highly-questionable turn of events.

RCI now has a PR problem. Carnival had their own debacles and still has not recovered from the effect of bad choices and bad publicity.

For an industry that has enough challenge gaining new customers, these kinds of moves should be rightfully questioned - especially by shareholders.

You mean like the ones that guided Enron, Kodak, Blockbuster, and Borders?

 

All those companies had strategies on getting bigger and gaining new customers. None exist today. So much for the experts.

 

Working for a Fortune 500 company here...one thing we know is ticking off your long time customers is a bad business choice. You don't need a Wall Street suit or MBA in business to appreciate that fact. It's universally considered the formula for failure if executed and not corrected quickly.

Huh?

Serving an emerging market with a product that has demand is not the same thing and not adjusting your business model due to lack of demand. Serving an emerging market is good for growth, it's good for the bottom line. It's good for business.

I don't have a good grasp on Enron beyond major accounting fraud, but Kodak, Blockbuster and Borders? They stuck with their business model instead of changing with the marketplace.

Borders was the first to go. They got manhandled by BN and by ebooks (heck, BN is in trouble now because their stores cost too much). Blockbuster? Hell, I worked at one while I was in college. The entire business model got replaced by the much cheaper Redbox vending kiosks and by Netflix. Both of those replacement options offer more convenience for a lower price and have less overhead costs. Both Borders and Blockbuster attempted to get into the modern business model, but it was reactionary and too late.

The same goes for Kodak. When you make a product that no one is using anymore(camera film), you're going out of business.

I also don't think the average customer is actually ticked off by Dynamic Dining or Quantum going to Asia. They probably don't know or don't care (keep in mind that the average RCI customer is actually a first timer... I've never been on a cruise that had more than 1/3 repeat passengers). Just the masses on cruise critic who have nothing better to do with their time. Ships are relocated all the time. My first RCI cruise was on Explorer out of Miami. Jewel was replaced by Brilliance here in Tampa this year. Vision is also coming to Tampa for the first time next fall.

Huh?

 

Serving an emerging market with a product that has demand is not the same thing and not adjusting your business model due to lack of demand. Serving an emerging market is good for growth, it's good for the bottom line. It's good for business.

Your statement is certainly true.

However what is missed - doing this at the expense of alienating your most loyal customer through misleading promotions running for more than a year is BAD business.

As far as your choice of companies to compare to RCCL, Eron was just a bunch of thieves but the others are classic examples of not changing as the market evolves. Kodak, Blockbuster and Borders are companies that did not find ways to evolve as the changes. I'm glad that RCL is trying to find new markets and stay a viable company. It never made any sense to bring Quantum to Fort Lauderdale. Oasis/Allure continue to sail full at premium prices. Bringing a new ship to Fort Lauderdale would just eat into those sales. As long as Oasis/Allure continue to thrive don't expect any changes. These plenty of new opportunities in Asia and RCL needs to offer the best product and that means new ships.

I was thinking the same thing.

If RCI is run by crooks like Enron was, then it really won't matter what markets they serve. And I think it's pretty obvious that unlike Kodak, Blockbuster, and Borders, RCI is definitely adjusting to modern technology and emerging markets.

Your statement is certainly true.

 

However what is missed - doing this at the expense of alienating your most loyal customer through misleading promotions running for more than a year is BAD business.

Loyal customers help fill the ships, but as I also stated in my previous post, a point you skipped over, is that the average customer has never been on a cruise before. The average customer likely doesn't care, because they don't know enough to care. My wife IS a loyal customer, and she wouldn't know jack about Quantum or Dynamic Dining if I hadn't told her about it.

Remember that most loyal and average customers are not here on cruise critic. This is a home mainly for the vocal minority.