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

[littlelulu01]

Good questions....No, the gratuities on the promos do not count. First, they are pre-cruise and not onboard spend and gratuities can't be counted as corporate income...that said, the DSC does count since service charges belong to the employer.

 

You are right about meals and additional excursions, you also have to consider that the free drinks, free meals, shore excursion discounts, and free internet also represent a decrease since no money will be spent on those items. Is the cost of a few extra meals and a few more tours enough to not only cover the losses from the freebies, but to end up being a net gain sufficient enough to beat out both RCCL and CCL?

The Ncl freebies are making the company more in onboard profits than the competition. Ncl’s “free” perks are an opportunity for increased revenue once onboard- not a loss. The free perks are setup like a Kohl’s, “sale.” I can purchase a blender at Kohl’s for 80% off or I can purchase same blender at Costco not on sale for the same price. I think most savvy customers see through the “free” perks and realize they are not really saving the 5k advertised savings.

 

The beverage packages given as a perk are still making the cruise lines $. Alcohol sales are a huge profit maker for the industry. The lines didn’t decide to give up the revenue. Ncl’s ubp profit on the free ubp is just more than the competition. The competition gives you the beverage package and it comes with water bottles, speciality coffee... Ncl simply banned water and soda and created extra onboard opportunity to purchase their water, Starbucks, sodas... the competition is still making money off their free beverage packages but Ncl just makes more.

 

The “free” internet is a great way to entice the customer to upgrade to the premium unlimited package at a, “discount” The discounted rate is just bringing the cost down to what the competition is charging. Because Ncl gave me a free perk I, and many others. purchase the unlimited premium. In the end ncl’s Internet sales are more than competition.

 

Ksf- great way to stuff more onboard to spend more.

 

Free sdp? Lots supplement with additional nights a la carte or an additional package. My two week comes with 4 sdp. If I supplement with an add on package I’m actually only saving a few $ off the lesser per meal cost of the package I would have otherwise purchased. It’s a win win either way because Ncl gets you into the speciality venues, cut out the more expensive foods they previously had on offer in speciality venues that the competition still offers and they make more than the competition.

 

Free excursion credits? If you have the free at sea perk it’s still costing you more than the competition pricing. If you have double perks with distinctive voyage- you might save a little over the competition pricing but Ncl is still making $ and a lot more than the competition because a lot more will book with the cruise line instead of diy.

 

For the most of us the Ncl perks, even in a suite, are an opportunity to give the company more $ and not feel too bad about it.

 

A select few will benefit. The guy who has all five perks on a flash sale, no single supplement, distinctive voyage credit, drinks like a sailor, doesn’t gamble, eats like a high school football player, is happy with ship tap water and coffee and uses only his 250 min Internet package- Ncl likely doesn’t make much off him. Everyone else? They are somewhere in between making some some profit to making a lot of profit. We know they’re making more than the competition re onboard spending.

 

I’m guilty of giving them more than I used to once onboard and don’t resent it. They give me an excellent vacation in return.

[CruisingNole]

The Ncl freebies are making the company more in onboard profits than the competition. Ncl’s “free” perks are an opportunity for increased revenue once onboard- not a loss. The free perks are setup like a Kohl’s, “sale.” I can purchase a blender at Kohl’s for 80% off or I can purchase same blender at Costco not on sale for the same price. I think most savvy customers see through the “free” perks and realize they are not really saving the 5k advertised savings.

 

The beverage packages given as a perk are still making the cruise lines $. Alcohol sales are a huge profit maker for the industry. The lines didn’t decide to give up the revenue. Ncl’s ubp profit on the free ubp is just more than the competition. The competition gives you the beverage package and it comes with water bottles, speciality coffee... Ncl simply banned water and soda and created extra onboard opportunity to purchase their water, Starbucks, sodas... the competition is still making money off their free beverage packages but Ncl just makes more.

 

The “free” internet is a great way to entice the customer to upgrade to the premium unlimited package at a, “discount” The discounted rate is just bringing the cost down to what the competition is charging. Because Ncl gave me a free perk I, and many others. purchase the unlimited premium. In the end ncl’s Internet sales are more than competition.

 

Ksf- great way to stuff more onboard to spend more.

 

Free sdp? Lots supplement with additional nights a la carte or an additional package. My two week comes with 4 sdp. If I supplement with an add on package I’m actually only saving a few $ off the lesser per meal cost of the package I would have otherwise purchased. It’s a win win either way because Ncl gets you into the speciality venues, cut out the more expensive foods they previously had on offer in speciality venues that the competition still offers and they make more than the competition.

 

Free excursion credits? If you have the free at sea perk it’s still costing you more than the competition pricing. If you have double perks with distinctive voyage- you might save a little over the competition pricing but Ncl is still making $ and a lot more than the competition because a lot more will book with the cruise line instead of diy.

 

For the most of us the Ncl perks, even in a suite, are an opportunity to give the company more $ and not feel too bad about it.

 

A select few will benefit. The guy who has all five perks on a flash sale, no single supplement, distinctive voyage credit, drinks like a sailor, doesn’t gamble, eats like a high school football player, is happy with ship tap water and coffee and uses only his 250 min Internet package- Ncl likely doesn’t make much off him. Everyone else? They are somewhere in between making some some profit to making a lot of profit. We know they’re making more than the competition re onboard spending.

 

I’m guilty of giving them more than I used to once onboard and don’t resent it. They give me an excellent vacation in return.

 

Couldn't have said it better myself. People are suckers for choosing NCL because of the "free" perks. Nothing is free. You're paying one way or the other. And all of the "free" perks, for the most part, require (or greatly influence) the customer to spend additional money.

[drsel]

Couldn't have said it better myself. People are suckers for choosing NCL because of the "free" perks. Nothing is free. You're paying one way or the other. And all of the "free" perks, for the most part, require (or greatly influence) the customer to spend additional money.

Read his last line

"I’m guilty of giving them more than I used to once onboard and don’t resent it. They give me an excellent vacation in return."

He doesn't resent it one bit. He is convinced that NCL deserves it for giving him an excellent vacation in return.

[willsears94]

I love NCL having the "pay-to-play option." It essentially dissuades young families who want freebies and the low-rung class who were a part (and still are) the "sneak alcohol on board age." While cool to see, 'Flowrider' is not what drives my vacation. But I will pay 10 bucks to drive a go-cart a few times on a cruise ship for the sake of saying I've done it and/or just for pleasure.