is the "nickel and dining" that bad?

[mistertoaster]

Below is from today's WSJ. It appears the major cruise lines are increasingly depending on onboard spending to meet revenue targets. They have very little pricing power on base fares. There are too many competitors and only so many folks that want to cruise. The key is to get you on the ship and hope you spend, spend, spend. As others have stated, it is up to the passenger to manage their on board spending budget. Clearly, cruise lines are following the airline model and looking to garner fees whenever or wherever possible.

 

"Royal Caribbean Cruises Ltd. reported better-than-expected revenue and earnings as the cruise-ship operator benefited from increases in onboard spending on beverages and Internet access."

[KeithJenner]

Undoubtedly, on board spend is key. There is a TV program around which discusses it on NCL.

 

I know from previous financials that the newer ship, with their increased options for extra charges are the ones which make the most money.

 

I don't know how this fits in with the offering of the booking perks like UBP and SDP, which certainly have an impact on onboard spend for us as an example. I guess that a lot of people find other things to spend on. That is one reason why charges for other things have been increased, I assume.

 

All speculation of course.

[steveknj]

Below is from today's WSJ. It appears the major cruise lines are increasingly depending on onboard spending to meet revenue targets. They have very little pricing power on base fares. There are too many competitors and only so many folks that want to cruise. The key is to get you on the ship and hope you spend, spend, spend. As others have stated, it is up to the passenger to manage their on board spending budget. Clearly, cruise lines are following the airline model and looking to garner fees whenever or wherever possible.

 

"Royal Caribbean Cruises Ltd. reported better-than-expected revenue and earnings as the cruise-ship operator benefited from increases in onboard spending on beverages and Internet access."

 

What "worries" me about this is what I consider nickel and diming and that's the constant push, either over the loudspeaker and other places on board to get you to spend. I don't mind it too much, but sometimes it gets a bit overbearing. I can usually turn on my hard sell filter, but hopefully it won't be too bad.

[Cauzneffct]

Below is from today's WSJ. It appears the major cruise lines are increasingly depending on onboard spending to meet revenue targets. They have very little pricing power on base fares. There are too many competitors and only so many folks that want to cruise. The key is to get you on the ship and hope you spend, spend, spend. As others have stated, it is up to the passenger to manage their on board spending budget. Clearly, cruise lines are following the airline model and looking to garner fees whenever or wherever possible.

 

"Royal Caribbean Cruises Ltd. reported better-than-expected revenue and earnings as the cruise-ship operator benefited from increases in onboard spending on beverages and Internet access."

 

My main issue with the numerous changes in the past year hasn't been that they'll break the bank, but that they seem indicative of a company that doesn't know what its doing or can't implement that which it does. It would seem to me that if FDR is interested in getting $5 per person per day in extra spending, the easiest way to do that would be to raise fares by $5 per day. I know that a fare that's higher by $35 for a 7 day cruise would not have been a deal breaker for us, particularly considering the "freebies" which were offered and the fact that our cabin ultimately dropped in price by $200 per person.

 

Also, that $5 is then baked into the cake for everyone to see and, moreover, is guaranteed and not dependent on people "spending" it on board. Throw in the fact that fares fluctuate pretty regularly, and I wonder if people would even realize that their fare is $5 per day more than it theoretically could have been.

 

I guess my point/question is would an extra $5 in fare per day really turn off that many cruisers? More than the annoyance factor of having multiple DSC increases, charging for formerly free venues/services, etc?

Edited April 29, 2016 by Cauzneffct

[Warm Breezes]

What "worries" me about this is what I consider nickel and diming and that's the constant push, either over the loudspeaker and other places on board to get you to spend. I don't mind it too much, but sometimes it gets a bit overbearing. I can usually turn on my hard sell filter, but hopefully it won't be too bad.

 

I must be able to tone those out pretty well because that is something I never even pay attention to so it doesn't bother me.

[Aquahound]

What "worries" me about this is what I consider nickel and diming and that's the constant push, either over the loudspeaker and other places on board to get you to spend.

 

Thanks for reminding me of that. NCL is the worst at on-board announcements. Others lines have scaled them back, but NCL still does it 3-4 times daily and they seem to go on forever. And did I mention loud!?

[Quilting_Cruiser]

Thanks for reminding me of that. NCL is the worst at on-board announcements. Others lines have scaled them back, but NCL still does it 3-4 times daily and they seem to go on forever. And did I mention loud!?

 

I take it you haven't sailed Carnival? My last couple of cruises have been on NCL after several on Carnival and I've found the lack of announcements (as compared to Carnival) refreshing! It's all about perspective. LOL.

[Liljo22]

I have not read this entire thread' date=' but putting in my 2 cents....

I recently cancelled my NCL cruise and rebooked with RCL.

 

I felt they were doing sur-charge overkill.

Want to watch an evening show that is of some better quality? $30 per person

Want room service? $8

Want to go to a nicer and less busy deck to lay in the sun? $65 (?)

Way too many surcharge restaurants in my opinion.

 

I have been spoiled by Disney in the past - pay one price, get everything, even pop! We would pay $20 or something for Palo brunch surcharge, but I could leave that ship with only tips on my end bill if I wanted, and do and see everything. Yes, the outset of the cost was more, and in the end if I added up all the NCL charges, it came out about the same as Disney.

 

Re-booked on RCL Harmony of the Seas, paid $800 less than NCL for the same balcony type stateroom. Tons of dining choices that don't cost extra, and all entertainment is included. Plus I think the Harmony looks WAY more fun than the Escape I was booked on. Much more to do it seems.

 

Happy with my decision - not a fan of all the charges from NCL![/quote']

 

Really? I have taken Disney before and thought it was great but the price difference is way too much. We are cruising summer 2017 and I have been pricing out all cruise lines. An standard inside on the Disney Fantasy 7 day cruise for my 4 is $8965. A Balcony on the Escape 7 day including the UBP and SDP is $4942. So you are saying that NCL is going to upcharge me $4,000 in extras in that seven days?

 

We just took the Dawn this past March and my final bill was $654 of which $378 was DSC. We ate in the Moderno one night and ate in the MDR the rest.

 

I actually decided on the new Carnival Vista Oceanview in the Family section and its is $3,800. Even if we eat in a specialty every night, we still wouldn't come close to the Disney prices.

Edited April 29, 2016 by Liljo22

[janpo]

My main issue with the numerous changes in the past year hasn't been that they'll break the bank, but that they seem indicative of a company that doesn't know what its doing or can't implement that which it does. It would seem to me that if FDR is interested in getting $5 per person per day in extra spending, the easiest way to do that would be to raise fares by $5 per day. I know that a fare that's higher by $35 for a 7 day cruise would not have been a deal breaker for us, particularly considering the "freebies" which were offered and the fact that our cabin ultimately dropped in price by $200 per person.

 

Also, that $5 is then baked into the cake for everyone to see and, moreover, is guaranteed and not dependent on people "spending" it on board. Throw in the fact that fares fluctuate pretty regularly, and I wonder if people would even realize that their fare is $5 per day more than it theoretically could have been.

 

I guess my point/question is would an extra $5 in fare per day really turn off that many cruisers? More than the annoyance factor of having multiple DSC increases, charging for formerly free venues/services, etc?

 

 

FDR has gone far beyond the extra $5 pp per day.

[ollienbertsmum]

What "worries" me about this is what I consider nickel and diming and that's the constant push, either over the loudspeaker and other places on board to get you to spend. I don't mind it too much, but sometimes it gets a bit overbearing. I can usually turn on my hard sell filter, but hopefully it won't be too bad.

 

Last week I did not notice anyone trying to encourage me to spend extra apart from through the flyers that were left in our room each night. We did put about $50 more in the casino than we had intended but we were given a 50 photo package and only actually took away 6 of them.

[mianmike]

FDR has gone far beyond the extra $5 pp per day.

 

Yes FDR is definitely an overachiever when it comes to extracting extra $ from his captive audience. Got to give him credit as he needs to somehow justify his title of highest paid cruise industry CEO.

[pieshops]

every person who walks into any store, cruise line, sporting event, etc walk in having either spent money to be there or plans on spending money when they get there. From that point on it is the job of every business to try and get more out of you, that is the the bonus money. No different then when you go onto the restaurant and they after you order would you like to also maybe try ......... or when before you even ask for a dessert menu they bring over this beautiful dessert tray, or Disney selling balloons or pins etc - you get the point.

 

There is nothing wrong with this, that is business, if you don't want it don't buy it. We have done cruises when all we ate was in the specialties pre UDP and we have done them with none. I have never felt that It was in your face time share marketing sales on a cruise but they do try and sell you, we have been victims of it also lol

[mugtech]

All this penny pinching talk seems silly when I look at last minute cruise prices. We are doing 7 days on Gem out of NYC to the Bahamas 5/7 for $449 each inside cabin, could have had a balcony for $649 each. The Spirit 12 day Med on 5/7 is selling for $549 inside and $599 outside while the 12 day return trip 5/19 is $599 and $649. At these prices I don't need any other deals, room service, specialty meals etc.

[janpo]

All this penny pinching talk seems silly when I look at last minute cruise prices. We are doing 7 days on Gem out of NYC to the Bahamas 5/7 for $449 each inside cabin, could have had a balcony for $649 each. The Spirit 12 day Med on 5/7 is selling for $549 inside and $599 outside while the 12 day return trip 5/19 is $599 and $649. At these prices I don't need any other deals, room service, specialty meals etc.

 

 

Not everyone can do last minute cruises. So that does not make it silly to talk about pricing.

[mugtech]

One can plan the cruises in advance, just not pay for the cabins until the last minute. We have already planned for a 2017 TA, just won't buy the tickets until last minute. This year 16 day TA'S were selling for $499 each.

[beerman2]

One can plan the cruises in advance, just not pay for the cabins until the last minute. We have already planned for a 2017 TA, just won't buy the tickets until last minute. This year 16 day TA'S were selling for $499 each.

 

True if one is able to drive to a port! If plans involve having to fly might not make it so inexpensive.

 

If only airlines would do same to fill planes and not jack up prices the closer you get, it would be more appealing!

[navybankerteacher]

True if one is able to drive to a port! If plans involve having to fly might not make it so inexpensive.

 

If only airlines would do same to fill planes and not jack up prices the closer you get, it would be more appealing!

 

Airlines and cruise companies DO do the same thing: cut fares if they are not selling well, and increase fares if they are selling well.

 

The last minute approach works if you are flexible enough to be happy to go or not go - depending upon the total cost at the time you decide to go, and your willingness to accept whatever accommodations are available at the time you decide to go.

[beerman2]

Airlines and cruise companies DO do the same thing: cut fares if they are not selling well, and increase fares if they are selling well.

 

The last minute approach works if you are flexible enough to be happy to go or not go - depending upon the total cost at the time you decide to go, and your willingness to accept whatever accommodations are available at the time you decide to go.

 

Could you share the airlines that do that? The only one I've found is the one everyone complains about Spirit!

 

But it could be also that I'm comfortable enough with Spirit that I book as soon as I see a price that works or use points. LOL

 

Classic example we are flying to FLL in late Sept early Oct. for 82.40 R/T for 2 using points and includes the 30.00 checked bag free each way.

[Burgmeister]

One can plan the cruises in advance, just not pay for the cabins until the last minute. We have already planned for a 2017 TA, just won't buy the tickets until last minute. This year 16 day TA'S were selling for $499 each.

This is fine if there are 2 of you and you don't need to sail at a popular time (during school holidays for example). Most of the great deals you see late on are either not during school holidays or, if they are, are for 2 person cabins. As soon as you state that you require a cabin for 3 the price shoots up.

 

Also, as beerman2 has said, great if you don't need to book a last minute flight.

[KeithJenner]

The last minute approach works if you are flexible enough to be happy to go or not go - depending upon the total cost at the time you decide to go, and your willingness to accept whatever accommodations are available at the time you decide to go.

 

 

So it's fine for people without kids, no jobs (or the ability to book or change holiday at short notice), who are quite happy to risk their enjoyment of their holidays due to noisy/inconvenient locations, and don't mind if their plans have to be cancelled at the last minute when prices aren't right.

 

A holiday plan for the masses. :)

Edited April 30, 2016 by KeithJenner

[4774Papa]

Our last NCL cruise was on the Star and the first day we were asked about 15 times if we wanted to buy a beverage package. It was irritating to begin with and evolved to the point that I was near showing my a--. Fortunately, I didn't, but I sure wrote this up on the evaluation at the end of the cruise.

[Quilting_Cruiser]

Our last NCL cruise was on the Star and the first day we were asked about 15 times if we wanted to buy a beverage package. It was irritating to begin with and evolved to the point that I was near showing my a--. Fortunately, I didn't, but I sure wrote this up on the evaluation at the end of the cruise.

 

Fifteen times??? That crazy. I've never been asked. Not even once.

[wdsted]

We just booked a balcony cabin to the western Caribbean. For just north of $2600, we get the booze and dining packags, service charges included. NCL can nickel and dime me any time!