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More gratuity increases. When will it stop?


BabsinTX
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I agree but when people on the forum get into the whole "...it's not this, it's that..." because of the language that NCL uses, it is a waste of time.

 

Out of morbid curiosity, I wonder what those people who have the DSC refunded do when NCL offers waived DSC as a promo. Do those people skip the promo, pay the DSC, then have it refunded? :confused:

I remember a poster asking if the got free gratuties as a perk, could the ask that it be refunded to them, because they don't pay the DSC.

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it might help all of us to check with other cruise lines to see what their service charges are.

Good idea! Still only 15% on Princess (OBTW, they just went up on the package price also).

From their website:

Enjoy a wide range of drinks for $59.99 per day plus a 15% gratuity. The Premier Beverage Package includes any individual beverage item such as fountain soda, bottled water, cocktails, spirits, wine by the glass, beers, coffee and tea, up to $12 (retail value). A 25% discount is also offered on all bottles of wine when purchased in bars, dining room or specialty restaurants.

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Good idea! Still only 15% on Princess (OBTW, they just went up on the package price also).

From their website:

Enjoy a wide range of drinks for $59.99 per day plus a 15% gratuity. The Premier Beverage Package includes any individual beverage item such as fountain soda, bottled water, cocktails, spirits, wine by the glass, beers, coffee and tea, up to $12 (retail value). A 25% discount is also offered on all bottles of wine when purchased in bars, dining room or specialty restaurants.

 

Wow! It sounds like Princess is cheaper than NCL. I sure wish a lot of the people from Carnival that are moving to NCL, because it's so cheap, would try Princess instead.

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NCL doesn't comp anything. You're selecting a fare that has the beverage package included in the price. It's like if you're flying and buy a fare that includes alcoholic drinks on a flight is the airline giving you free drinks or did you just pay more to for a certain fare that included drinks? Don't fall into the "but it's free" trap because it's not.

 

Example:

 

Next sailing on the Escape )12/9/17):

 

Sail away inside = $339 per person

Inside with 1 free perk = $499 per person

 

So you just paid $160 plus $120 in service charges for your "free" drink package...which means $280 extra per person.

 

So I can't really answer your question since it's a flawed question to begin with. As far as other cruise lines, MSC throws in free drinks at meal time even with their most basic fares...now that's FREE.

 

I'm aware of that. They are winning though because their model which can be inclusive of drinks is still coming in routinely less than their competitors where you have to add the full price + the gratuties to their base fare.

 

So while it is true nothing is 'free', they have found a way to pass on something the consumers overwhelmingly want at a lower price than their competitors.

 

 

Also, your comparison is flawed becaue you are comparing sail away rates which are always GTYs with the normal rates which are pick your own cabin (except last minute). That method holds a value itself just as with other lines so it just isn't the chosen perk that is creating the price difference.

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Wow! It sounds like Princess is cheaper than NCL. I sure wish a lot of the people from Carnival that are moving to NCL, because it's so cheap, would try Princess instead.

Also, Princess doesn't require all adults in the cabin to purchase the bev pkg.... however, they don't give it away as a perk nearly as often as NCL.....on the other hand, they don't charge gratuities when they do. So....we need to look at all the options and make informed decisions.

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I had sticker shock when the final price appeared. Not sure which part you could not understand.

 

Well, if you were booking on their site, and watching the sidebar, you would see how the price rises as you select items. Everything except what we call the DSC is on that bottom line on the right, and is accurate from when it first appears. The "govt taxes and fees" you mention are listed on the very first pricing page when you select your choice of cabin type and price.

 

But I get what you mean. It's like the taxi analogy where the bottom line keeps going up as you go along. And it is surprising how much we pay in taxes on these cruises, and that is truly ironic because US based cruise lines sailing foreign flagged ships do not pay any income tax on their ship-based earnings.

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I'm aware of that. They are winning though because their model which can be inclusive of drinks is still coming in routinely less than their competitors where you have to add the full price + the gratuties to their base fare.

 

So while it is true nothing is 'free', they have found a way to pass on something the consumers overwhelmingly want at a lower price than their competitors.

 

 

Also, your comparison is flawed becaue you are comparing sail away rates which are always GTYs with the normal rates which are pick your own cabin (except last minute). That method holds a value itself just as with other lines so it just isn't the chosen perk that is creating the price difference.

 

That's incorrect. Many of the categories that NCL offers even with perks are simply guarantee rooms.

 

For example, that same sailing on 12/9/17 on the Escape you don't even have the option to pick your inside room because the other categories are sold out. I is however available for a balcony room.

 

Balcony sail away guarantee = $549 per person

Balcony guarantee with perks = $749 per person

Balcony with room selection with perks = $999 per person

 

Is it cheaper? I don't know...even Celebrity is offering a drink package as one of their perks now and their fares are very comparable.

 

I also booked a Yacht Club suite on the MSC Seaside next year for about the same price I could sail in a Mini-Suite on NCL and get a whole lot more. Yes, drink package included and no service charge.

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And it is surprising how much we pay in taxes on these cruises, and that is truly ironic because US based cruise lines sailing foreign flagged ships do not pay any income tax on their ship-based earnings.

 

Not really surprising, nor ironic, since every ship, carrying everything imaginable, coming into a port anywhere in the world pays the same port taxes. It is all figured into the retail prices of the goods that are brought by sea, so you just never see it or think about it. You pay the same airport taxes whether flying American Airlines or Lufthansa.

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It will never stop. If you look at the big picture, NCL has been the Master of "nickel and diming" for the last 10 to 12 years. That is their business model and it has worked well. So much in fact that other mass market cruise lines eventually follow to some degree.

They know that some will complain for a couple of months but their latest increase will soon be accepted as the norm.

As long as their ships fill up and their bottom line increases, they don't care what you think. Take it from a retired accountant, it's all about the bottom line. These are service charges ( not tips, not gratuities) and they go towards the bottom line, not employees.

I know this dose of reality will offend some. So mote it be.

of course it is the bottom line; isn't that how all businesses work?

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That's incorrect. Many of the categories that NCL offers even with perks are simply guarantee rooms.

 

For example, that same sailing on 12/9/17 on the Escape you don't even have the option to pick your inside room because the other categories are sold out. I is however available for a balcony room.

 

Balcony sail away guarantee = $549 per person

Balcony guarantee with perks = $749 per person

Balcony with room selection with perks = $999 per person

 

 

 

Which is why I said (except last minute). You are dealing with a sold out or near sold out ship.

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of course it is the bottom line; isn't that how all businesses work?

 

Mostly. Most corporations promise their investors / shareholders that they will try to minimize costs and maximize profits within the confines of good "business judgement". That good "business judgement" is a source of immunity from lawsuits and criminal actions against the directors. So NCL could decide it's good "business judgement" to compete in the percentage of service charge area and reduce the service charge added to bar bills to 10% to encourage long-term growth through loyal, returning customers and as a hedge against over-supply when MSC and Virgin add capacity.

 

But they don't do that because this increase doesn't matter. There will be very few people upset so much by an additional $25 spent on a vacation that cost them $2,500 that they will sail with another cruise line because of it.

 

To the thread title: when will it stop? Only when it doesn't make good business sense to charge more, and people rebel and quit cruising NCL. Until that time you will see annual or bi-annual increases in the total cost of the cruise.

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These increases will stop once there is a decline in NCL bookings. Over a year ago, I said that FDR's price increases (at all levels) would hurt bookings and they would stop. I was WRONG. I used to scratch my head with how much a RCCL cruise was compared to NCL. It was a no brainer to sail NCL. But NCL is now really pricy but other cruise lines are welcoming NCL loyalists. How could you blame NCL. Everytime they raise prices or fees, their revenue goes up without hurting bookings. At some point I think this will backfire but don't take my word for it. I could be wrong again :o

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These increases will stop once there is a decline in NCL bookings. Over a year ago, I said that FDR's price increases (at all levels) would hurt bookings and they would stop. I was WRONG. I used to scratch my head with how much a RCCL cruise was compared to NCL. It was a no brainer to sail NCL. But NCL is now really pricy but other cruise lines are welcoming NCL loyalists. How could you blame NCL. Everytime they raise prices or fees, their revenue goes up without hurting bookings. At some point I think this will backfire but don't take my word for it. I could be wrong again :o

 

They had some missteps at the beginning, but FDR's team learned how to increase prices without a lot of controversy or blowback. It kind of reminds me of when Disney hired Eisner and Wells, and the first thing they did is introduce annual ticket price increases (which have doubled over the last ten years, far outpacing inflation). Parking went up 11% this year at Disneyland as an example of a service that hasn't changed but receives a greater-than-inflation increase that people don't notice. The result has been that the perceived value of the Disney experience has increased along with the ticket price. You expect Disney to raise prices each year. You expect it of NCL too. And my impression is that NCL is getting more attention from RCL refugees because the pricing is becoming closer and sometimes surpassing RCL.

 

I predict they will be able to get the mandatory service fee on beverages and meals up to about 25% without any trouble over the next two years.

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