Bloomberg News Reports: NCL's guests spend more in extra fees than most other lines.

[eddeb]

I can not get the link to copy and paste. Perhaps a computer savvy

 

CC'er can assist.

 

Please check out bloomberg news. enter pursuits or cruises and the article from

 

today will pop up.

 

Very informative and good information for smart cruisers everywhere!

 

If someone can post this link I thank you. My daughter could do it in 10

 

seconds I'm sure.

 

I had a few comments on the seemingly mercurial price increases, and would

 

enjoy some views from our family of fellow cruisers.

 

Take care and safe travels.

 

May your seas be flat.

 

And your tummies be fat... :)

 

We are the Moore's

 

Tampa Bay :cool:

[flacousa]

https://www.bloomberg.com/news/articles/2018-06-07/go-karts-on-deck-19-laser-tag-coax-cruisers-to-open-wallets

 

 

Sent from my iPad using Tapatalk

[eddeb]

Thanks so much.:cool:

 

Ed

[BNBR]

So much for all the "included" packages, lol. Brilliant marketing I'd say.

[Two Wheels Only]

It is fairly simple..."It’s all about giving customers options, according to Andy Stuart, chief executive of the Norwegian line.

 

“Someone could come on a cruise and eat in the main restaurants, they can not drink alcohol and they can walk off and not spend a dime if they choose to,” he said in an interview in the Bliss’s Haven lounge. “Someone else can come on the ship and spend a lot of money, depending on the experience they choose.”"

[david_sobe]

When there are more areas for upcharge its a no brainer there is going to be more upcharges. NCL is pretty clever in discovering more and more ways to either raise fees or create new ones. Specialty restaurants used to be the minority on board. Now they are the majority of restaurants on board. Entertainment used to be included in the standard cruise price. NCL started charging for some entertainment years ago. Deck activities used to be included but now some deck activities are added fees.

Its threads like this that make the cheerleader's heads explode. No one is attacking NCL for just pointing out the obvious. I never could understand why some people just get so defensive for commenting or posting a thread like this. This is actually very good news for NCL. It shows their philosophy is working and they are making lots of money.

I see "choices" and "al a carte" lines coming soon. There were ALWAYS choices, its just that more and more of the "choices" come with fees ;)

[BostonGal35]

we fall in the middle. we have some on board expense, but very little now since always take advantage of the UBP. the 20% grat on the package value has saved us TONS.

[shof515]

“Someone could come on a cruise and eat in the main restaurants, they can not drink alcohol and they can walk off and not spend a dime if they choose to,"

that is me.whatever i do spend onboard is covered by onboard credits, so i not spending a dime.

[LrgPizza]

Deck activities used to be included but now some deck activities are added fees.

This is one I've never seen. Example? I must be missing some good stuff when I'm on board.

 

*** Never mind. I assume you mean the laser tag or go karts. I wasn't thinking along those lines. My mind was picturing a fee for the sexy legs contest. Ha! "Deck activities" didn't really register at first.

[SeaShark]

we fall in the middle. we have some on board expense, but very little now since always take advantage of the UBP. the 20% grat on the package value has saved us TONS.

 

that is me.whatever i do spend onboard is covered by onboard credits, so i not spending a dime.

 

 

So doesn't one just have to wonder . . . If people are just spending the OBC or if people are spending very little because of drink packages, dining packages, internet packages, shore excursion discounts, etc that come with the CONSTANT Free @ Sea promotions, then just how is the onboard spending INCREASING?

 

IOW, how do you give away all those drink packages, all those specialty meals, etc and yet somehow people have increased their onboard spending???

[LrgPizza]

So doesn't one just have to wonder . . . If people are just spending the OBC or if people are spending very little because of drink packages, dining packages, internet packages, shore excursion discounts, etc that come with the CONSTANT Free @ Sea promotions, then just how is the onboard spending INCREASING?

 

IOW, how do you give away all those drink packages, all those specialty meals, etc and yet somehow people have increased their onboard spending???

Because once you're on the ship, you feel like you don't owe anything, since the things you mentioned have already been paid for. So you spend your money on other stuff you might not usually buy...

 

We used to buy our drinks on cruises. We'd get off the ship owing over $1000 on our account. Then we started purchasing drink packages. Now we might buy things in the gift shop, pay for certain games, etc. We get off the ship owing $200 on our account. We have actually spent MORE, because we wouldn't have spent that additional $200 on top of the $1000 in the past. I think that's what people do and how they spend more. It really is good business sense and this article proves it works for NCL.

[SeaShark]

Because once you're on the ship, you feel like you don't owe anything, since the things you mentioned have already been paid for. So you spend your money on other stuff you might not usually buy...

 

We used to buy our drinks on cruises. We'd get off the ship owing over $1000 on our account. Then we started purchasing drink packages. Now we might buy things in the gift shop, pay for certain games, etc. We get off the ship owing $200 on our account. We have actually spent MORE, because we wouldn't have spent that additional $200 on top of the $1000 in the past. I think that's what people do and how they spend more. It really is good business sense and this article proves it works for NCL.

 

That is faulty math. People onboard are spending MORE than they used to...not less. So, using your example, if you spent over $1000 in the past, you'd be spending more than $1000 now...even though your drinks were free. Spending $200 now is spending $800 LESS than you used to.

[LrgPizza]

That is faulty math. People onboard are spending MORE than they used to...not less. So, using your example, if you spent over $1000 in the past, you'd be spending more than $1000 now...even though your drinks were free. Spending $200 now is spending $800 LESS than you used to.

No, the math is fine. The fault is that the words "on board" didn't register with me. While we are spending more overall, we are indeed spending less on board. I had read it wrong.

[SeaShark]

No, the math is fine. The fault is that the words "on board" didn't register with me. While we are spending more overall, we are indeed spending less on board. I had read it wrong.

 

While YOU may be spending less onboard, the entire point of the article (something that is also mentioned in NCLH's annual reports) is that onboard spending is increasing. So my point still stands. With all of the free drinks, and all of the free meals, and all of the OBC that the previous poster mentioned, what is causing people to actually INCREASE their spending over and above what they used to spend when all of those things were NOT included??

[KeithJenner]

So doesn't one just have to wonder . . . If people are just spending the OBC or if people are spending very little because of drink packages, dining packages, internet packages, shore excursion discounts, etc that come with the CONSTANT Free @ Sea promotions, then just how is the onboard spending INCREASING?

 

IOW, how do you give away all those drink packages, all those specialty meals, etc and yet somehow people have increased their onboard spending???

 

It all depends on how it is measured. Perhaps, in order to come up with that per person onboard spend they are allocating an amount of the value of promo packages. That is the problem with reports like this, they say things like that people spend $76 per person per day without explaining how that is calculated.

 

For example, if we take my last cruise, which is fairly typical for us these days. We got the UBP and SDP as a promo and then purchased another SDP for our son. We spent a bit onboard and bought 4 Cruisenext vouchers with a value of $1,000 receiving $500 OBC against them. Our final bill was $549.72, so we spent $49.72 on top of the cruise next vouchers. We prepaid the DSC.

 

What was our total additional spend? Is it based on the $49.72 we spent around the ship ($1.66pppd), or do we base it on the final bill ($18pppd). Do we take into account that we have $1,000 of cruise next vouchers to spend, which would make our onboard spend negative (minus $15pppd), or do we need to add in the value of the SDP and UBP we got as a promo, which takes it up to about $99 per person per day.

 

When that report says that people spend $76pppd we have no idea of what is included in that.

[SeaShark]

It all depends on how it is measured. Perhaps, in order to come up with that per person onboard spend they are allocating an amount of the value of promo packages. That is the problem with reports like this, they say things like that people spend $76 per person per day without explaining how that is calculated.

 

For example, if we take my last cruise, which is fairly typical for us these days. We got the UBP and SDP as a promo and then purchased another SDP for our son. We spent a bit onboard and bought 4 Cruisenext vouchers with a value of $1,000 receiving $500 OBC against them. Our final bill was $549.72, so we spent $49.72 on top of the cruise next vouchers. We prepaid the DSC.

 

What was our total additional spend? Is it based on the $49.72 we spent around the ship ($1.66pppd), or do we base it on the final bill ($18pppd). Do we take into account that we have $1,000 of cruise next vouchers to spend, which would make our onboard spend negative (minus $15pppd), or do we need to add in the value of the SDP and UBP we got as a promo, which takes it up to about $99 per person per day.

 

When that report says that people spend $76pppd we have no idea of what is included in that.

 

Sometimes we can't (won't?) see the forest for the trees.

 

It doesn't matter how onboard spend is calculated...the point of it all is that however it is calculated, onboard spending now is MORE THAN onboard spending was in the past. Free drinks, free meals, more OBC, yet more spending???

[KeithJenner]

Sometimes we can't (won't?) see the forest for the trees.

 

It doesn't matter how onboard spend is calculated...the point of it all is that however it is calculated, onboard spending now is MORE THAN onboard spending was in the past. Free drinks, free meals, more OBC, yet more spending???

 

It matters very much now it is calculated.

 

For example (and these numbers are made up), before the UBP was given as a promo, people may have spent, let's say, an average of $500 on beverages on a 7 day cruise. With the UBP being offered as a promo, let us say that 80% of people take that promo, at a notional value of $750 per person.

 

As a result, if the notional value of the UBP has been taken into account in calculating onboard spend, average spend on beverages has increased by 20% from $500 to $600 as a result of the promo UBP.

 

Basically, the numbers are meaningless, and statements based on them are equally meaningless if we don't understand what those figures actually represent.

[SeaShark]

It matters very much now it is calculated.

 

For example (and these numbers are made up), before the UBP was given as a promo, people may have spent, let's say, an average of $500 on beverages on a 7 day cruise. With the UBP being offered as a promo, let us say that 80% of people take that promo, at a notional value of $750 per person.

 

As a result, if the notional value of the UBP has been taken into account in calculating onboard spend, average spend on beverages has increased by 20% from $500 to $600 as a result of the promo UBP.

 

Basically, the numbers are meaningless, and statements based on them are equally meaningless if we don't understand what those figures actually represent.

 

No...now you're just conflating and obfuscating unnecessarily. This only entails onboard spending, which is just expenses incurred onboard. It does not count any pre-paid items or "notional values". It is onboard spending...a typical, and well-defined industry term. As I stated a few posts back, reading the NCLH annual reports will give a lot of insight and understanding. It isn't some mysterious and complicated thing.

 

 

And don't forget the obvious: it isn't the number itself that is in question (which is why "how" it is calculated isn't important) it is the fact that the number is INCREASING that is the point.

[KeithJenner]

Deleted. Some things just aren’t worth the effort.

Edited June 8, 2018 by KeithJenner

[Guest hrtcruises]

Sometimes we can't (won't?) see the forest for the trees.

 

It doesn't matter how onboard spend is calculated...the point of it all is that however it is calculated, onboard spending now is MORE THAN onboard spending was in the past. Free drinks, free meals, more OBC, yet more spending???

Perhaps their comparing it to a time when most onboard spending was drinks and the spa. Between all the new things (race cars, speciality shows, etc.) and most people only selecting one to two "free" options that may not be drinks or the 3 speciality restaurants on a 7-day cruise, it may just equate to more onboard spending because there is simply just more things to pay for that is of interest to a higher number of people than before. Just a guess...

 

...Or there could just be a surprising number of people on NCL ordering room service all-day everyday after they implemented a fee. [emoji6]

[LrgPizza]

While YOU may be spending less onboard, the entire point of the article (something that is also mentioned in NCLH's annual reports) is that onboard spending is increasing. So my point still stands. With all of the free drinks, and all of the free meals, and all of the OBC that the previous poster mentioned, what is causing people to actually INCREASE their spending over and above what they used to spend when all of those things were NOT included??

You can't even register when someone posts something agreeing with you. It's kind of funny. You still try to argue. I bet I could post one of your posts as if it was my own, and you'd try to argue it. LOL! empty.

[GA Dave]

Last time we sailed (2002), my onboard spend was right around $1000 (DW and I). They are now saying it has increased to $76/day/person. If I look at that, 76 * 7 days * 2 people = $1064. Still seems reasonable to me, given that we have the UBP and three free specialty dinners. Guess I will be visiting the gelato shop and the candy shop alot this time! :D

[NLH Arizona]

I do spend more onboard on NCL then I do on Celebrity, becasue my front end spend on Celebrity is higher, thus on NCL I spend more on spa treatments, whereas on Celebrity I don't spend as much,

[MrMike45]

I do spend more onboard on NCL then I do on Celebrity, becasue my front end spend on Celebrity is higher, thus on NCL I spend more on spa treatments, whereas on Celebrity I don't spend as much,

 

I wanted to say this, but figured it would just get bashed. I don't have the time (or desire really) to do a mock booking on all the major cruise lines for a similar sized ship/itinerary/and dates. But my assumption is that NCL would be the cheapest "base fare" of them all.

 

So kind of makes sense that the onboard (optional) charges are more on NCL. You pay more for a Royal cruise...but get activities free (regardless if you do them or not). NCL, you pay less, but if you want to do X-Y-Z you pay for them.

[Zippeedee]

NCL is offering more choices that people are willing to pay for. No one forces anyone to buy a spa treatment, a ticket to Wine Lovers, etc. I would rather pay a smaller base amount and have more choices. I won't use the go karts or go to the same Cirque show repeatedly so why should I pay for them in my cabin cost?