Frank Del Rio: " . . . the emphasis will continue to be push prices up . . .

[Host Jazzbeau]

It's been difficult trying to figure out what both Norwegian and Celebrity are trying to do at the moment, but I think they are both trying to achieve the same results -- with completely different approaches.

 

Celebrity is heading toward all-inclusive with their Good-Better-Best pricing model [Good includes some things that were previously a la carte; Better includes more, etc.] -- the result is to increase guaranteed total revenue and decrease the need for upselling onboard. The goal is to put more distance between Celebrity and the mass-market lines [which may then allow Azamara to move up, when they get new ships]. This seems to be the usual approach in the cruise industry [see Crystal, Oceania & Regent -- all succeeded by becoming more inclusive over the last few years].

 

In my view, Sheehan succeeded in changing the perception of Norwegian from less-than-Carnival to more-than. This was a big move, and he should be congratulated for it. But they are still stuck in the mass-market commodity-cruise segment that limits revenue per passenger. So they would like to move into the space that Celebrity now owns [and may be vacating]. But the move is too big to do all at once. Too many things need improving, and you can't drive away your present customers before you attract the new ones [see "J.C. Penney case study" in Marketing 101]. So FDR is raising revenue in nickels and dimes, putting the first emphasis on getting the ships in tip-top condition, hopefully using the lobster and prime rib income to improve the rest of the MDR menus. Step-by-step: increase revenue, improve product. If it works, he's a genius. But it is Hell to live through!

Edited November 10, 2015 by Host Jazzbeau

[beerman2]

But since they are giving away the Ultimate Beverage Package, if you chose to take it, you can't get your Shareholder OBC.

 

NCL is not giving away the drink package. Last year our cruise on the Epic cost us $799 which included the package.

 

This year looking at the Escape and the cruise will cost $1164, so in essence NCL raised the price to COVER the cost.

 

Nothing is ever FREE, the consumer will pay!

[gpb11]

you can't drive away your present customers before you attract the new ones

You also can't be successful if you drive away your new customers either; see the reports from passengers on the Star these recent weeks. That was my first NCL experience and it fell below my expectations. I may give NCL another chance, but only if there's a substantial reason to choose them over a different line.

Edited November 10, 2015 by gpb11

[hypercafe]

I think he is handling the high end badly. We came back from the GEM last month from a haven room. After paying for what is sold as a luxery trip it seems funny to still have to pay for OJ in the morning, now prime rib ect. It should be more inclusive IMO.

[janpo]

I think he is handling the high end badly. We came back from the GEM last month from a haven room. After paying for what is sold as a luxery trip it seems funny to still have to pay for OJ in the morning, now prime rib ect. It should be more inclusive IMO.

 

Oj has a charge now?

[my3sonsnj]

Wish NCL would just increase pricing on staterooms rather than adding extra fees. It is very difficult to compare costs and NCL may actually be more expensive than other cruise lines but we can't make that determination because of initial pricing.

[NLH Arizona]

Wish NCL would not included any extras in the cruise fare. If one wants the beverage package, they pay for it, if one wants the SDP, they pay for it, etc. What they are doing is the same thing that Celebrity and other lines do, they add a perk, but the cost of that perk is partially or entirely paid by you one way or another. Keep fares low and let the customers choose what extras they want. That is what NCL use to do best, but they followed the other cruise lines with all the "free" promotional perks.

[hypercafe]

Wish NCL would just increase pricing on staterooms rather than adding extra fees. It is very difficult to compare costs and NCL may actually be more expensive than other cruise lines but we can't make that determination because of initial pricing.

 

I agree to a point. I do not think they should be AI however they have added a surcharge to anything that is special, like the a la cart in the MDR. I also do not like the a la cart in the speciality restaurants. Also seems they have taken away many nice touchés. On our last trip we were invited to dinner with the Captain. They used to have a special menu for his table and take a complimentary group picture, all that's gone. Even their packages are out of line IMO. The price of the romance package has doubled and things were removed. They charge about the same as X for their UDP but do not include water, coffees, shakes. FDR wants to charge more however I fail to see how the cruise experience has gotten better. And the cruise price has gone up.

[pizzalady1]

Oj has a charge now?

 

Fresh squeezed OJ has always had an upcharge. The OJ from a concentrate is still free.

[NLH Arizona]

Fresh squeezed OJ has always had an upcharge. The OJ from a concentrate is still free.

Thanks for the clarification, I thought it was always a for a fee item.

[backsbanny]

I believe that with all these changes mr del rio is just going to send away all the loyal ncl guests...on a long run i see BIG changes on ncl unfortunately

[bmwman]

So if he is just speaking to placate the investors that translates into he doesn't mean what he is saying? I don't believe that for one second. Del Rio has a vision to make NCL the gateway cruise line for Oceania and to do that he needs to transform NCL away from what it has been into something different. Yes, that's just business and he may be able to pull it off, but I have no interest in sailing on Oceania lite.

 

"Oceania Lite" love it!!:)

[bmwman]

NCL is not giving away the drink package. Last year our cruise on the Epic cost us $799 which included the package.

 

This year looking at the Escape and the cruise will cost $1164, so in essence NCL raised the price to COVER the cost.

 

Nothing is ever FREE, the consumer will pay!

 

Absolutely the packages are priced in :rolleyes:

[backsbanny]

Nothing is free

[electro]

A very good and objective outlook. I see him as trying to make NCL a choice, for those, like you and I who want something a litte special but not the Oceania experience.

 

I don't see this. You can't become more upscale just by charging more and adding more fees.

You actually have to give the customer a more upscale experience and I haven't seen that yet.

Most of the recent reviews are saying the service is worse that it has been on previous cruises. From slow service at the bars and restaurants to rude and uncaring staff.

Margaritaville certainly doesn't say upscale to me, quite the opposite.

Nor does the pooping dog statue that was added to the Epic.

YMMV.

 

Lois

[electro]

FDR wants to charge more however I fail to see how the cruise experience has gotten better. And the cruise price has gone up.

 

I totally agree with this statement!

 

Lois

[sparks1093]

I don't see this. You can't become more upscale just by charging more and adding more fees.

You actually have to give the customer a more upscale experience and I haven't seen that yet.

Most of the recent reviews are saying the service is worse that it has been on previous cruises. From slow service at the bars and restaurants to rude and uncaring staff.

Margaritaville certainly doesn't say upscale to me, quite the opposite.

Nor does the pooping dog statue that was added to the Epic.

YMMV.

 

Lois

 

That is the purported purpose behind all of the ships except the newest going in to dry dock before 2017- installing upgraded carpets, upgrading décor, new china and cutlery and linens, all so None of that will get me onboard there ship though, although I am sure there will be many who will take my place.

[electro]

That is the purported purpose behind all of the ships except the newest going in to dry dock before 2017- installing upgraded carpets, upgrading décor, new china and cutlery and linens, all so None of that will get me onboard there ship though, although I am sure there will be many who will take my place.

 

I would take quick, friendly service over new linens anyway.

What good are new linens and cutlery if service is crap?

[ano]

Wish NCL would not included any extras in the cruise fare. If one wants the beverage package, they pay for it, if one wants the SDP, they pay for it, etc. What they are doing is the same thing that Celebrity and other lines do, they add a perk, but the cost of that perk is partially or entirely paid by you one way or another. Keep fares low and let the customers choose what extras they want. That is what NCL use to do best, but they followed the other cruise lines with all the "free" promotional perks.

I disagree. We have a cruiseline that charges for everything so that prices are low. They are called Carnival.

 

Imagine if they included unlimited free drinks, unlimited soda, paid gratuities, $75 off each port excursion, free airport transfers and free Internet for everyone? Do you really think any of these things are that expensive to offer? Yes it would add cost but not that much. No mass market cruise does it, and NCL could pull it off for half the price the luxury line charge. And just think, they could eliminate everything it takes to track and recover all these costs.

 

I would be first in line for such a cruise.

[NLH Arizona]

I disagree. We have a cruiseline that charges for everything so that prices are low. They are called Carnival.

 

Imagine if they included unlimited free drinks, unlimited soda, paid gratuities, $75 off each port excursion, free airport transfers and free Internet for everyone? Do you really think any of these things are that expensive to offer? Yes it would add cost but not that much. No mass market cruise does it, and NCL could pull it off for half the price the luxury line charge. And just think, they could eliminate everything it takes to track and recover all these costs.

 

I would be first in line for such a cruise.

Carnival is never a cruise line that I would cruise on.

 

No, I don't think any of the things are that expensive, but that doesn't change my opinion that I would like NCL to have base fare and if you want any extra's, like UBP, SDP, etc., you pay for it. I don't want to pay for things I don't use or don't want. If they want a promotional offer, then make a percentage off the fare. Fine to disagree.

[legion3]

I disagree. We have a cruiseline that charges for everything so that prices are low. They are called Carnival.

 

Imagine if they included unlimited free drinks, unlimited soda, paid gratuities, $75 off each port excursion, free airport transfers and free Internet for everyone? Do you really think any of these things are that expensive to offer? Yes it would add cost but not that much. No mass market cruise does it, and NCL could pull it off for half the price the luxury line charge. And just think, they could eliminate everything it takes to track and recover all these costs.

 

I would be first in line for such a cruise.

 

CCL charges for everything? I spent way more out of pocket $ on NCL

 

But NCL does it on the cheap even so.

 

Phooey on NCL

[ano]

Carnival is never a cruise line that I would cruise on.

 

No, I don't think any of the things are that expensive, but that doesn't change my opinion that I would like NCL to have base fare and if you want any extra's, like UBP, SDP, etc., you pay for it. I don't want to pay for things I don't use or don't want. If they want a promotional offer, then make a percentage off the fare. Fine to disagree.

Maybe you should try Carnival, because its just like you describe. Want a better meal at dinner, get that door card out.

 

Our entire world is based on the premise that you may not use everything available, but it all evens out. Does your gym only have the pieces of equipment you use? Why pay for a stair climber you may never use? And a hotel, what if you don't use the pool or gym? Do they give you a refund for not using them? Not hotels I use. And I bet you only pay for the cable channels you watch? You do know ESPN gets $6/month if you watch it or not.

[NLH Arizona]

Maybe you should try Carnival, because its just like you describe. Want a better meal at dinner, get that door card out.

 

Our entire world is based on the premise that you may not use everything available, but it all evens out. Does your gym only have the pieces of equipment you use? Why pay for a stair climber you may never use? And a hotel, what if you don't use the pool or gym? Do they give you a refund for not using them? Not hotels I use. And I bet you only pay for the cable channels you watch? You do know ESPN gets $6/month if you watch it or not.

No, sorry, I'd never consider Carnival. I have great dinners in the specialty restaurants on NCL, but thanks for the suggestion.

 

Big difference in a gym having equipment and a cruise line. Not asking for a refund, just don't want NCL to become inclusive. A cable company is a far cry from a cruise line as well.

[ano]

CCL charges for everything? I spent way more out of pocket $ on NCL

 

But NCL does it on the cheap even so.

 

Phooey on NCL

 

I never said NCL didn't charge for everything.

 

NCL has a $7.95 room service charge. On the cruise I just finished, it appears almost nobody is paying compared to cruises I've taken in the past. I never used it. NCL can't be generating much revenue from it. I will never take another NCL cruise because of it, and heard the same from another passenger. (And I barely ever use it anyway.)

 

I go on vacation NOT pay for things like this, and it has nothing to do with money or the total price I pay for the cruise.

 

Next cruise will be Oceania.

[ano]

No, sorry, I'd never consider Carnival. I have great dinners in the specialty restaurants on NCL, but thanks for the suggestion.

 

Big difference in a gym having equipment and a cruise line. Not asking for a refund, just don't want NCL to become inclusive. A cable company is a far cry from a cruise line as well.

 

Your VERY correct. A cruise is a VACATION when I LEAST want to be bothered with these things. That's why I take a cruise. No hotel charges, no rental car, no restaurants and tip calculators.