RCL to end last minute discounting ??

[WhenIsLobsterNight]

Our story.

 

 

"Overall, Cruise Critic readers are pleased with Fain's announcement."

 

Um, who are you trying to kid? The people displeased with the announcement vastly outnumber those pleased by a vast majority. In fact, I really have yet to see many comments supporting that decision at all. RCCL has jacked up prices for 2016 sailings way up compared to previous years and now are saying prices wont be coming down in the future. Who exactly likes this?

[orville99]

Our story.

 

 

WOW, talk about selective perception. you pick one post out of a thread and conclude that overall, Cruise Critic readers are pleased? The "unpleased" outnumber the "pleased" on that thread 10-to-1. I guess overall, you don't have a clue what we think.

[critterchick]

Our story.

 

Perhaps you should wait until you have more than 20 responses before you comment that, "overall Cruise Critics readers are pleased.":)

 

I noticed that the new policy is only in effect for North American sailings. If that means that the new artificial BOGOHOAX rates will remain in effect, then I'm not pleased at all. However, if prices end up normalizing before the last minute, then perhaps we'll book more cruises with RCI. For now, Princess fits the bill just fine and, although we sometimes miss the fabulous crew on RCI ships, we're more interested in getting a good product at a fair price, which we aren't seeing in most of the newly released itineraries.

 

And there's no reason to feel foolish for booking a cruise early on. Cabin location, the need to plan with an employer and airfare considerations all factor in to the decision of when to book. Not many people can take advantage of the last minute rates, and I suspect that many of those who do also spend little money onboard, so they aren't RCI's favored demographic. I would bet that they could sell the cabins for next to nothing provided that the passengers then book excursions, specialty restaurants and spa appointments, buy merchandise and beverage packages and gamble heavily. Those are the people who book in advance and plan everything. Just my opinion.

Edited April 20, 2015 by critterchick

[Lady Hudson]

I agree. To think that the vast number of people would be happy paying more is silly, IMHO. It sounds like sour grapes to me if you are unhappy with some folks paying less than your fare. That's the way of the pricing wars -- think airplanes and hotels.

 

I know that some people have to travel at certain times or need a certain cabin type or location. And for this you have to pay more. For those of us who are now retired and can travel whenever and don't care about cabin type, we will be happy with last minute deals.

 

I still think that the profit margin will prevail and there will be few empty cabins on ships.

[setsail]

Some need to re-read. He will not do last minute price drops in America, but then describes last minute as 10,20, or 30 days out. That tells me they WILL do price drops if needed inside of FP but only up to 30,20,10 days before.

 

This suites me, I will gladly take a price drop/upgrade 30 days out.

Edited April 20, 2015 by setsail

[VRUNNER]

We priced out a 9 day for four of us in a Balcony a year ago on LOS. It was 6300.00 (E1). We decided to do a camping trip instead to Disney, cheapest way to do Disney!! [emoji3] (this upcoming Christmas) While looking for the best cruise price we signed up for all the different sites that sell cruises. We have been getting the weekly emails for months and a few weeks ago after final payment we saw interiors for the same cruise for 2800.00. Obviously we booked. Then a week ago we found there was balcony guarantees for 3600.00. So we paid the difference and upgrade, we were assigned a room immediately, D1. So I am guessing the discounting hasn't stopped... For us that was a huge price drop for the same thing. We have cruised twice before in ten years. I would never book a cruise early again. They can say all they want, it's a business. They have to fill the ship because that's were the profits come from, people spending money on board.

[MR LED]

I do not think this is a good strategy at all. I almost left RCCL for good due to their BOGO price increase “sale.” The only reason I booked the Freedom of the Seas for May was due to the GOING, GOING, GONE sale in March. Otherwise I was ready to book NCL. Even though I may have paid a few hundred less than others, RCCL has already made that up by my purchase of full price drink packages and specialty restaurants.

Why would RCCL want to have empty cabins? They will lose money from the last minute passengers purchasing drinks, specialty restaurants, shore excursions, photos, merchandise etc, etc, etc… The only way to make up for the decline of onboard revenue is to create a BOGO Version 2.0 price increase to make up the difference. Then we all pay more.

[nbsjcruiser]

I do not think this is a good strategy at all. I almost left RCCL for good due to their BOGO price increase “sale.” The only reason I booked the Freedom of the Seas for May was due to the GOING, GOING, GONE sale in March. Otherwise I was ready to book NCL. Even though I may have paid a few hundred less than others, RCCL has already made that up by my purchase of full price drink packages and specialty restaurants.

Why would RCCL want to have empty cabins? They will lose money from the last minute passengers purchasing drinks, specialty restaurants, shore excursions, photos, merchandise etc, etc, etc… The only way to make up for the decline of onboard revenue is to create a BOGO Version 2.0 price increase to make up the difference. Then we all pay more.

 

The BOGO sale left a bad taste in my mouth as well. If there's one thing I hate more than being lied to its being lied to with the idea that I'm dumb enough to believe it. Had we not already had the NOS booked at a good price months ago, we would be skipping RCL this fall. As it is, we're on the NCL Getaway next year (our 3rd NCL cruise) and I'll be buying a future cruise credit while I'm on the Getaway to book another cruise the following year. Until I start seeing some honesty in the pricing policies at RCL, the fall of 2015 will be our last RCL cruise for a good long while.

[NightOne]

Looks like earnings were released and "The Miami-based cruise company said strong last-minute pricing on Caribbean cruises was the primary driver of quarter's results." (income up)

 

http://www.sun-sentinel.com/business/tourism/fl-royal-caribbean-1q15-results-20150420-story.html

 

A little bit confused on exactly what they are saying here. Higher prices drove better last-minute sales revenue? or lower pricing led to more last minute bookings?

[nbsjcruiser]

Our story.

 

Uhm - what!? Talk about pre-emptive assumptions.

 

I suggest you read the entire thread instead of cherry picking one post and saying overall we're all pleased with it.

[NightOne]

The BOGO sale left a bad taste in my mouth as well. If there's one thing I hate more than being lied to its being lied to with the idea that I'm dumb enough to believe it. Had we not already had the NOS booked at a good price months ago, we would be skipping RCL this fall. As it is, we're on the NCL Getaway next year (our 3rd NCL cruise) and I'll be buying a future cruise credit while I'm on the Getaway to book another cruise the following year. Until I start seeing some honesty in the pricing policies at RCL, the fall of 2015 will be our last RCL cruise for a good long while.

 

If you haven't learned by now that all of these "sales" are BS then you are a bit out of touch. I am not talking about cruises but everywhere.

 

Every car dealer is having a sale every week.

Every department store is having a sale every week.

Every mattress store is having a sale every week.

Every tire store is having a sale every week.

etc. etc. etc.

 

Act NOW because this won't last long!

 

40%, 50%, 60% OFF.

 

Off of WHAT? Inflated prices that no one ever paid in the first place.

 

You ever see that small print on some of the department store sale signs that say "original price may have not actually resulted in real sales"? So your product with a $2000 price tag that is marked down to $1000 never actually sold to anyone at $2000.

 

However, what retailers find is that when they take away all the fake sales it greatly affects their revenue.

 

I blame us as consumers. :)

[marci22]

Our story.

 

Well, I was being a little sarcastic. I think most people get annoyed when their cruise drops drastically in price after final. And I would like the ship to sail at less than peak capacity.

 

I understand that they have to try their prices out before they adjust downwards, but maybe they will start doing it sooner rather than later. Just saying they won't drop prices isn't going to make people book faster. There is just so much discretionary income that people have.

[klingoncruiser]

So.... no more last minute discounts. REALLY? Who thunk up this plan?

 

I am about to retire, so I was looking forward to finally being able to take some much cheaper cruises, some at last minute. I would have done 5 or 6 cruises or more this way instead of the two I take now. How is that helping? I would gladly fill a room for them and yes, I will spend some more money doing it.

 

I am at a loss. RCI has lost it's mind. I bet it "works" for a while and then some one will blink and it is off to the races again. Not all ports are created equal either. It is one thing to fill a ship out of Lauderdale, it is quite another to fill it out of NOLA or Galveston or LA.

 

We will see.....

[setsail]

So.... no more last minute discounts. REALLY? Who thunk up this plan?

 

I am about to retire, so I was looking forward to finally being able to take some much cheaper cruises, some at last minute. I would have done 5 or 6 cruises or more this way instead of the two I take now. How is that helping? I would gladly fill a room for them and yes, I will spend some more money doing it.

 

I am at a loss. RCI has lost it's mind. I bet it "works" for a while and then some one will blink and it is off to the races again. Not all ports are created equal either. It is one thing to fill a ship out of Lauderdale, it is quite another to fill it out of NOLA or Galveston or LA.

 

We will see.....

 

Post #30

[marci22]

Some need to re-read. He will not do last minute price drops in America, but then describes last minute as 10,20, or 30 days out. That tells me they WILL do price drops if needed inside of FP but only up to 30,20,10 days before.

 

This suites me, I will gladly take a price drop/upgrade 30 days out.

 

The way I interpret this is that they will not do price drops closer than 30 days out.

 

I do think that people would prefer the discounting to be done earlier. Face it they are going to fill their ships and sometimes they have to do that by dramatically discounting prices. He's just debating when it's going to happen. I don't think people care when, as long as they get the price they are looking for.

[irishgal432]

I tend to book when I see a good deal on a suite. I went on 6 cruises last year. 1 with my husband. 1 with a good friend for my birthday who has never cruised before. 1 with my sisters, daughters and neices several who have never cruised before, 1 with a group of my daughters friends, 1 with my family husband and kids and 1 with my sister and her husband (he never had cruised before).

 

I have 2 booked for this year Alaska and Oasis with my family booked last May.

 

I have none booked after September.

 

My tennis team of 12 wants to go on a girls cruise and my sister wants me to plan a cruise for her group of friends to go on, but I haven't found any good deals.

 

 

 

In essence Royal has not only lost my bookings, but several more because of their pricing strategies and "sales".

 

In the past we may have gotten good deals on the rooms but ended up with drink packages, excursions, speciality resturants which ended up adding to the bottom line.

[Esmerelda]

I am sometimes just amazed at some of the stupid things that RC is doing these days. They just aren't making brownie points with many people including myself. The BOGO is the biggest accounting joke I've ever seen and it goes onto infinity and beyond and there is no savings. Their prices have gone up at least 40-60% since this same time last year. We sailed on the Allure eastern route last August for about $1400 per person for a Jr Suite. That was booked about 12 months out. That same cabin a year out in 2014 for 2015 was priced $1878. That's a hike of 35% in price. Right now that same cabin is advertised for $2300 per person. Seriously...unbelievable.

 

I just booked a cruise on RC in May a week or so ago. I didn't get a great deal but an ok deal. Its my anniversary so I'm dealing with it but I'm really over it. I guess RC would rather let cabins sit empty then to get a lower price for it. What about their "Going going gone" sale every week? I'm assuming that will be yanked soon also. I can't say much about the drink prices but I'm not buying any package and I'm sure as heck not drinking a bunch of $12-14 drinks each day. That is absurd and no we do not pay that here in the area we live in (close to Cincinnati). We just went out a few weeks ago and I had martini with dinner, I think it was $8.50 and this was a very upscale restaurant. Had it been $14, I wouldn't have even ordered it.

 

I have one more cruise on RC in October, a 10 day one (if I even keep it). We will be diamond after this one in May and to be honest, I really don't care. A few years ago, I would have been very excited about turning Diamond. I told my hubby, I think its time for a change and he agreed. RC thinks the average consumers are just a bunch of nit wits. Some of us are professionals who own our own businesses. Yes, I believe in inflation but normal inflation, not at the 'RC" rate of inflation. I hope my May cruise goes well or I will re-book my October cruise on someone else's cruise line.

[movie buff]

I think RCCL opened a can of worms when they started many years ago having what some people called their Happy Hour sales.. From anywhere 2 to 6 weeks out they discounted unsold space. They are doing it right now with RRCL as well as Celebrity. If you are retired or don't mind waiting until a couple of weeks prior you can save big bucks. It makes sense because not every cruise date is popular and why would you not want to fill up empty space. Yes I know if you paid full retail you don't like this concept. But stores do this, car dealers do this, all of the time. It is called trying to make revenue or you have to take a loss. The soliution to this problem with cruises is to just price the cruise at a good rate to begin with. You have historical date from past years to know when the softer season is and use that date for pricing. Of course you could still very well have some cruises with empty cabins closer to the date. So do what NCL does. They call people and upswell empty space at the last minute and it is not published. Unless you brag to someone about it nobody will know. What is the point in having empty cabins when you sail? You can still try and make revenue on the ship.

[Big_G]

No offense to the weekend CEO's on this site :D but they must be doing something right. I booked my category this March for Freedom this May and it's been $900 pp higher until last week when they sold out. Don't get me wrong, I'm not happy with their pricing schemes either but they're no different than any other sales oriented company and I still got what I wanted at a reasonable price. Right now we have know plans to run for the hills.

[Setting sail for fun]

We took advantage of the last minute prices several times and enjoyed it. With the big increase in drink prices and discontinuing last minute discounts, I probably will not be booking a future cruise at this point. Will see what the future has in store, but so far the news from RCCL has not been good!

[RocketMan275]

I agree. To think that the vast number of people would be happy paying more is silly, IMHO. It sounds like sour grapes to me if you are unhappy with some folks paying less than your fare. That's the way of the pricing wars -- think airplanes and hotels.

 

 

Actually, there are many folks who are more concerned about paying the same rate as others than they are about getting a better rate.

 

"I like this," Cruise Critic member marci22 wrote on the Royal Caribbean forum. "You won't feel like an idiot for paying more for a similar cabin that gets discounted after final [payment date], and the ship won't be as crowded."

 

That comment reflects many viewpoints. Studies have shown many are attracted to 'no haggle pricing' because they know they will not find out that their neighbor paid less for their purchase than they did. Read an article where many reported that they would like a law requiring all sellers to sell at the same price even if it meant they would have to pay more. Said they didn't like looking for bargains and liked just buying something know they got the best available price.

 

BTW, I like bargain shopping. My buddy was telling me how great no haggle auto pricing was since he knew that the sales price would be what it was on the window sticker. Told him, he could buy any car on any lot for sticker price. I don't think he understood.

[RocketMan275]

I've read a lot of comments that RCI can make more money by deeply discounting unsold cabins at the last minute because the loss on discounted cabin fares will be more than offset by the money these people spend on-board.

 

It's not clear that the ones who trying to find a cruise at the last minute at the cheapest possible price will spend any money on-board. Why should they if all they're trying to do is sale as cheaply as possible? If you doubt that, stop and think the complaints about pre-paid gratuities preventing passengers from using their obc to pay for gratuities.

 

I suspect that RCI knows more about making money on a cruise ship than the majority of CC posters. RCI tracks who spends what, where and how much on-board. If they were losing money by not deeply discounting last minute cabins, they would know it.

[steveru621]

This game of chicken the entire travel industry plays with their customers has been accelerating over the last few decades mainly because of the Internet and companies like Priceline. No part of the travel industry wants to train their customers the best deals occur xx days before purchase.

 

He didn't say he would never discount, but would try to change the parameters. I'm sure the pricing algorithms at all the major cruise lines have been honed almost to perfection.

 

He can not get around the fact an unsold cabin will mean that ship will lose more money. They probably won't make money, but he knows that they will lose less. If you have already filled the tank, purchased all the perishable food, and have a fixed number of employees, any money you get for an unsold cabin is gravy so to speak.

 

He can try to change behaviors all he wants, but in the end he needs a**es in the seats.

[TM38Rob]

I remember reading a few years back the Mr. Fain would rather sail the ships half empty than to do deep discounts. I think this was when the economy was down.

 

Now that they think the economy is on an upturn, they are trying to raise prices any way they can. The higher fares they've already been charging lately are to help offset the cost of the empty staterooms. That is, if the last minute bookers are only looking for deep discounts and decide not to book at full fare.

 

The elimination of discounts last minute being for North America only. All Royal Caribbean cruises in North America embark and/or disembark from the United States.

 

In the short term, less people on board a ship may seem like a good idea in terms of less people in public areas. However, it will also mean less crew. In the event they happen to sell out a cruise for a particular sailing, there will not be enough crew on board to deliver the WOW or Gold Anchor Service or whatever you want to call an excellent cruise vacation.

 

In the long term, when the new ports in China are built and open for business, Royal Caribbean will use the declining ticket sales as their "proof" that demand is down in North America and use it as an excuse to redeploy ships from U.S. ports to the China market. They already have 5 ships going to China, who seem to be willing and able to pay higher prices to go on a cruise. This would mean less capacity from U.S. ports, and even higher prices in the future.

[Mikew0805]

Yeah what they say and what they do, when there is unsold inventory are two different things.

 

There is no principle here, and anyone who thinks there is has forgotten that RCI cares about one thing, and one thing only... it's own bottom line.

 

Speaking of BS, in late March I got Navigator, this Sunday in a D1 for less than $1000 total for two including all taxes.

 

Not discounting huh?

Edited April 21, 2015 by Mikew0805