Heard new CEO on a radio show

[shipshape sam]

Have sailed Celebrity for many years and they are our first choice when we look to cruise. Our MDR experience this past April on 14 day Constellation was excellent. We (actually me) likes to book way early and had seen a number of times that in the end could have paid less. Did get the choice of cabin and I don't regret early booking, but due to pricing lately we are waiting now till we decide we want to go 'now' and will look for last minute specials. Also, we are also doing a lot of "land" based trips, which for us have been cheaper.

 

I have said many times, Celebrity mgt and Royal mgt are pretty sharp and consider a lot of inputs (including from us bean counters/operations mgr) and then apply all the data inputs into what their long term strategy is. Otherwise they would be whipped sawed by their decisions. Not to say that they could not make short term decisions as in business you also have to consider short term (quarterly results).

 

Having said above, I find the term 'big checkbooks' unfortunate. People like value for their hard earned money and if they believe the value is there, they will pay for it. For me, we tend to book CC. Have never sailed AQ or above, but each and every time, it is a value judgement. So Celebrity has to be conscious of this and market to that demographic that sees the value proposition for their pricing/product-service.

 

For us, we have sailed Princess a number of times as well as HAL and I am not a high maintenance person and without missing a beat can sail on either of them again. I like Celebrity as we have been Elite for many, many years and even that is not as strong a motivation as we don't even use most of the amenities as in the past. Last 14 day cruise did not even go to evening Captains Club lounge which used to be a big motivation.

 

Anyway, I am sure Celebrity has lots of data/metrics to promote/back-up the strategy proposed.

 

I just hope I am sailing on Celebrity. :)

[MMDown Under]

I haven't listened to the broadcast but if the intended audience were Travel Agents whose income is based on the amount of the booking then I can understand the emphasis on increasing prices. Now if he intended to speak to the people who actually buy the tickets the message, I am sure, would be based on value and the quality of the product.

I don't care if the price goes up for everyone else, :rolleyes: just increase the number of discounts for (fill in the blank here) and of course retired people.. :D the ones with the time on their hands to fill the ships.

 

I agree there is a secondary market of those who are retired, able to cruise at short notice. I only tried the Celebrity product because they offered a special discount for seniors.

[tanelicus]

Seems to me the strategy has been to keep prices low and try to increase revenue with onboard spending for the casino, spa, shops, beverage packages, etc. Is that no longer working well enough?

 

Would be nice if the OP would not just leave everyone hanging, but would come back and elaborate on what he heard.......perhaps he is popping some corn

 

People paying less might not translate to having more money to spend onboard. They might be penny pinchers who suck down every last drop of the free lemonade, or people who enjoy cruising with Celebrity, but don't have the budget to spend more onboard.

 

Raise prices to keep up appearances, yet find ways to creatively get folks on board. A lost passenger is one who doesn't spend.

 

Perhaps Celebrity is giving up on trying to get the younger crowd on their ships, and just staying with being the competition to HAL.

[Gail & Marty sailing away]

Is the product going to be going up in quality to reflect paying more?

Great point .....

[takemewithyou]

I realize that it is not just retirees who cruise. But the reality for many others in this country is - they can't afford to cruise! They can't afford to even take a vacation! They would love to be able to take one. We, who frequent these boards, are very lucky that we can afford to cruise. Many people do not have a job and are losing their homes to foreclosure - at least where I live and it's been going on for quite awhile now. Everyone has had to tighten their belts and decide what they can afford and give up some things to some degree. Many younger people are working hard to keep their jobs and just support their families.

 

Retirees have a lot of time and sometimes a little more diposable income. I just can't see trying to increase prices right now to a great degree. The economy is very uncertain.

 

I think the people with the "fat checkbooks" ( a regrettable statement - IMO) may not be the ones cruising X - rather they are on other lines like Regent, Seabourn, Crystal, etc.

 

I always thought X had a good business model - if you wanted luxury and were willing to pay for it, there was something for everyone - from PH to suites to AQ to CC to regular insides and balconies. Once the beverage packages were introduced - there was another big revenue producer!

 

I remain skeptical and will wait and watch what develops. The timing of this is interesting - based on what I see in the economy. I am sure there was pressure on Mr Bayley from above to "show them the money".

[dgraham]

We may be discussing this after the first move has already been made. Having booked the Silhouette for next summer, I check back occasionally and at one point during the summer all the Silhouette Europe prices in all categories went up by about $600 pp. Quite an increase!

[Christine Frances]

Both our Baltic (Eclipse) and Med (Silhouette) for next June have gone way up since we booked in Mar. But just noticed on the price tracking website that a sale started today in Europe for insides to balcony.

[takemewithyou]

I think you are right. We have another cruise on the books - British Isles for next August. We booked the day reservations were first opened and the price is up over $800 pp. since then.

 

Maybe that will be our last cruise to Europe.......

[socreader]

As much as I would like cheap, cheap prices, the above post by CoachT reflects the realistic economic hopes and market positioning that Celebrity management seeks and wants. At $700 million each, those nice Solstice-type ships are costly to build, finance and operate. For our Jan. 20-Feb. 3, 2014, Celebrity Solstice sailing, departing Sydney, doing 14 days on this ship, finishing in Auckland, we booked early on the first day when available. Now, we watch and wait to see how bookings go and if there will be some price adjustments.

 

The points by Tangocherie and mmemichele are also of merit. This includes: "As the new CEO, I'm sure he has a mandate to increase revenue. By announcing his wish to increase pricing, he is pandering to his bosses. The reality of today's market with high total stateroom capacity is another matter. Consumers are savy and will more often than not look for the good deal. Seems to me what he said is mostly wishfull thinking. I personnally will watch X pricing very carefully before committing." and "bottom line is for me itinerary and pricing"

 

We look first at itinerary and then start comparing all of the different cruise ship offerings, pricings, values, special factors, etc.

 

THANKS! Enjoy! Terry in Ohio

 

Did a June 7-19, 2011, Solstice cruise from Barcelona that had stops in Villefranche, ports near Pisa and Rome, Naples, Kotor, Venice and Dubrovnik. Enjoyed great weather and a wonderful trip. Dozens of wonderful visuals with key highlights, tips, comments, etc., on these postings. We are now at 101,851 views for this live/blog re-cap on our first sailing with Celebrity and much on wonderful Barcelona. Check these postings and added info at:

http://www.boards.cruisecritic.com/showthread.php?t=1426474

 

I am so glad we are booked for cruises onX through Winter 2014. From reading your posts it appears we really got a good deal.

[Jade13]

I finished listening to the whole show. They want to charge more, they think their product is worth it and earned it and deserves it. I am a loyal X cruiser and a shareholder, but this news has me really scared. They may just price me out of their ships! :eek:

 

I am just very concerned! :eek:

 

We cruise on both Celebrity and HAL (and Azamara). The Celebrity product has been getting better while HAL has stayed the same. But, we love the HAL itineraries and crew. Our preference is actually Azamara, but besides the price increases (more like 100%, not the 25% or so they claim), we have had 4 itineraries canceled (on two the ports and two really canceled), and not interested in their itineraries this or next year especially with the prices.

 

On every HAL cruise we have been on, the cruises have sold out months in advance (Alaska, Europe, Canada New England, VOV - transatlantic, South America) while Celebrity goes on Sale after final payment). They aren't selling out the ships at the current pricing.

 

The price increases on Celebrity will not work unless they come up with better, longer, and more exotic itineraries. We won't book Celebrity at higher prices. For us the itineraries are not interesting enough.

 

We are booked for Xpedition in 2014 even though we have been to the Galapagos before, but it is one of our favorite places.

[johhnnyt]

“It is far better to accustom our mind to bear the ills we have than to speculate on those which may befall us.”

[A Sixth?]

Think of to whom new CEO, Michael Bayley, is speaking to.

 

"...a radio show for travel agents and they had the new CEO, Michael Bayley, featured today. Celebrity is determined to push pricing higher "

:rolleyes::cool:

[CoachT]

Think of to whom new CEO, Michael Bayley, is speaking to.

 

"...a radio show for travel agents and they had the new CEO, Michael Bayley, featured today. Celebrity is determined to push pricing higher "

:rolleyes::cool:

He has said the same thing to shareholders. People cruising Celebrity for the past four years have being doing so at a discount. Soon that discount will be over and the price will come more in line with premium product they are already offering.

[A Sixth?]

He has said the same thing to shareholders. People cruising Celebrity for the past four years have being doing so at a discount. Soon that discount will be over and the price will come more in line with premium product they are already offering.

 

Well, I'm Elite on both Princess and Celebrity and while I usually cruise "X" these days, if the two offered similar itineraries and "X" was more expensive... guess who I'm going with. :cool:

 

Competition will dictate the price of Celebrities product IMHO

[CoachT]

Well, I'm Elite on both Princess and Celebrity and while I usually cruise "X" these days, if the two offered similar itineraries and "X" was more expensive... guess who I'm going with. :cool:

 

Competition will dictate the price of Celebrities product IMHO

And that is fine, but Mr. Bayley and others feel that Celebrity is a superior product.

[Orator]

Some past posts would indicate that there is a core of people who would like to see Celebrity appeal more to the upscale cruiser. They want fewer children and less "noise". This crowd says that they are willing to pay more for what they desire. Perhaps the bean counters feel the same way. Perhaps they believe that they can drop their "lower end" cruiser and make more revenue by attracting the "upscale cruiser" who might spend more on Spa, Specialty Resturants, drinks and in the shops. They are constantly collecting data and perhaps that's what the numbers are telling them. They may also figure that it's easier to start with a higher price and lower it if market conditions require. Unless we've been to the meetings it's impossible to know the details. In the end each potential cruiser will decide what they want to do. Some will stay, some will move up to a premium line, some will move down to a lower price point. My money, my choice!

[USVI-4-me]

I'm wondering what I'll write when a new thread begins to welcome the next CEO.

[TLCOhio]

. They are constantly collecting data and perhaps that's what the numbers are telling them. They may also figure that it's easier to start with a higher price and lower it if market conditions require. Unless we've been to the meetings it's impossible to know the details. In the end each potential cruiser will decide what they want to do. Some will stay, some will move up to a premium line, some will move down to a lower price point. My money, my choice!

 

USVI-4-me: I'm wondering what I'll write when a new thread begins to welcome the next CEO.

 

Great above highlighted points by Orator. It's Business 101!! Lots of research and testing for the economic models that will work' date=' pay the bills and improve the long-term finances so that they keep the current ships looking sharp, building new/better ships in the future, etc..

 

Per USVI-4-me's comments, this new CEO will be around for some time. He's an insider with long company experience and I doubt he'll make any major gaffes. It's just working hard to get the job done. It's not like some sports owners with big egos doing musical chairs with their managers being changed every year or two.

 

THANKS! Enjoy! Terry in Ohio[/font']

 

Did a June 7-19, 2011, Solstice cruise from Barcelona that had stops in Villefranche, ports near Pisa and Rome, Naples, Kotor, Venice and Dubrovnik. Enjoyed great weather and a wonderful trip. Dozens of wonderful visuals with key highlights, tips, comments, etc., on these postings. We are now at 101,946 views for this live/blog re-cap on our first sailing with Celebrity and much on wonderful Barcelona. Check these postings and added info at:

http://www.boards.cruisecritic.com/showthread.php?t=1426474

[wwcruisers]

Some past posts would indicate that there is a core of people who would like to see Celebrity appeal more to the upscale cruiser. They want fewer children and less "noise". This crowd says that they are willing to pay more for what they desire. Perhaps the bean counters feel the same way.

 

Sounds like what the bean counters at RCCL were thinking about Azamara, a few years ago. Then, they priced it right out of the range of many Celebrity cruisers! :mad: I really hope that they don't do that with Celebrity.

[Orator]

Sounds like what the bean counters at RCCL were thinking about Azamara, a few years ago. Then, they priced it right out of the range of many Celebrity cruisers! :mad: I really hope that they don't do that with Celebrity.

 

I agree!

[CoachT]

Sounds like what the bean counters at RCCL were thinking about Azamara, a few years ago. Then, they priced it right out of the range of many Celebrity cruisers! :mad: I really hope that they don't do that with Celebrity.

I honestly hope they price it higher. It will improve the quality of the experience on board as well as improve the performance for the shareholders.

[Orator]

I honestly hope they price it higher. It will improve the quality of the experience on board as well as improve the performance for the shareholders.

 

It may indeed improve the bottom line. As a shareholder I appreciate that. However, how will it "improve the quality of the experience" if there are no changes to current offerings. What wil they be doing? Increase quality of meals? That wil have a negative impact on the bottom line. Increase Elite perks? That will have a negative impact on the bottom line. Provide free bottled water? That will have a negative impact on the botton line. What would you guess they would do to improve the experience?

[A Sixth?]

It may indeed improve the bottom line. As a shareholder I appreciate that. However, how will it "improve the quality of the experience" if there are no changes to current offerings. What wil they be doing? Increase quality of meals? That wil have a negative impact on the bottom line. Increase Elite perks? That will have a negative impact on the bottom line. Provide free bottled water? That will have a negative impact on the botton line. What would you guess they would do to improve the experience?

 

Bring back skeet shooting, but instead of skeets .... :eek::cool:

 

[C 2 C]

I honestly hope they price it higher. It will improve the quality of the experience on board as well as improve the performance for the shareholders.

 

How often do you "experience the quality" on board?

 

Celebrity provides us with our annual condo at sea for about a third of the year. If the price of the condo goes up, I'll find another condo. For those who do not cruise that often, a price increase might not matter that much if the "quality" of the clientele is improved... (I think that is the implication)..

I would not mind paying more if the food in the MDR improved, or if the same production show did not run for five years, or if the comedians changed their punch lines once a decade, or if the music volume were turned down, or if chairs were available around the pool, or if we did not have to worry about dress code issues....

Frankly, I have not noticed the a big difference in the quality of X over Princess or HAL. The smoking policy and the wonderful staff on board has kept us coming back year after year.

 

If an increase in price means an increase in the quality of the product many passengers will be happy. Stockholders will only be happy if the price increase will yield a higher return. They could care less if the quality improves. Only by getting all cruise lines to increase ticket prices will present passengers stay loyal. Loyalty has a price and it goes both ways. I doubt that charging more without improving the product will lead to a higher profit margin while there is so much choice for people with disposable income.

 

[CoachT]

It may indeed improve the bottom line. As a shareholder I appreciate that. However, how will it "improve the quality of the experience" if there are no changes to current offerings. What wil they be doing? Increase quality of meals? That wil have a negative impact on the bottom line. Increase Elite perks? That will have a negative impact on the bottom line. Provide free bottled water? That will have a negative impact on the botton line. What would you guess they would do to improve the experience?

 

The fact of the matter and what no ones wants to talk about, is the fact that a higher price will in fact bring about a higher quality of passenger. The experience has gone down. Now some will take it personality, but if you do a search you will find countless examples of posts that prove my point.

 

Many of those who got on board with a discount put no value in their experience. Take two average people and give them the same rental car, have one pay the full going rate for a premium luxury experience and have the other pay half or more of that. Guess who is going to treat that car with more care. A gross generalization? Maybe, but I think you get my point.

 

Sure there can be boorish people with money, but I promise you the overall experience on Celebrity dropped the moment people who had never been able to afford it suddenly could. Pricing it out of reach of some people is absolutely going to improve the entire overall experience right away.