Allure OTS - October 2022 sailing "Deluxe Beverage package"

[bgoff60]

Just checked in on the DBP for the Oct 14 sailing on the Allure...Imaging my surprise - not even some MADE UP MATH discount program to tempt you...

Glad we are Diamond and can try out other options that look more like pay as you go with a free 4 drink kicker...

RCI - you have failed.

 

[bgoff60]

...I know the routine...try back tomorrow - it will change...

[Merion_Mom]

And when you board, they will be offering BOGOhalf, so that works out to $73.50 pp pd.

[AltarEgo]

17 hours ago, bgoff60 said:

Just checked in on the DBP for the Oct 14 sailing on the Allure...Imaging my surprise - not even some MADE UP MATH discount program to tempt you...

Glad we are Diamond and can try out other options that look more like pay as you go with a free 4 drink kicker...

RCI - you have failed.

 

They failed with you. And, they failed with us. If more people would stop paying the inflated prices for the DBP the prices would come down. Don't expect to happen anytime soon though, because RCCL's onboard revenues are way up right now.

[taglovestocruise]

2 hours ago, AltarEgo said:

They failed with you. And, they failed with us. If more people would stop paying the inflated prices for the DBP the prices would come down. Don't expect to happen anytime soon though, because RCCL's onboard revenues are way up right now.

So many D's and above on some sailings they need to make up lost revenue from all the free drinks. We have 17 nights coming up at the end of Sep.  Thats 170 voucher drinks totaling over $2200 in free cocktails, $2600 if you figure in the 18% they lose. 

[Ocean Boy]

7 minutes ago, taglovestocruise said:

So many D's and above on some sailings they need to make up lost revenue from all the free drinks. We have 17 nights coming up at the end of Sep.  Thats 170 voucher drinks totaling over $2200 in free cocktails, $2600 if you figure in the 18% they lose. 

That is assuming you would have actually bought 170 drinks. And the expense to RCI to buy the ingredients for those 170 drinks is no where near that number. 

 

And don't forget who was actually making reservations and going to sea when cruising restarted and creating a revenue stream. It sure wasn't first time cruisers jumping back in the ships. It is all much more complicated than your simple math.

[AltarEgo]

10 hours ago, taglovestocruise said:

So many D's and above on some sailings they need to make up lost revenue from all the free drinks. We have 17 nights coming up at the end of Sep.  Thats 170 voucher drinks totaling over $2200 in free cocktails, $2600 if you figure in the 18% they lose. 

Seriously? That's highly doubtful when you consider that they used to offer UNLIMITED alcoholic beverages in the Diamond Lounge during the old Happy Hour. The current high prices of the DBP is an exercise in maximizing profits. Fortune 500 companies base their decisions on what's beneficial for the company, not their customers.

[AltarEgo]

11 hours ago, Ocean Boy said:

That is assuming you would have actually bought 170 drinks. And the expense to RCI to buy the ingredients for those 170 drinks is no where near that number. 

 

And don't forget who was actually making reservations and going to sea when cruising restarted and creating a revenue stream. It sure wasn't first time cruisers jumping back in the ships. It is all much more complicated than your simple math.

How many people equate retail pricing to the actual cost paid by the seller for their products? Too many.

[CruisingHogFan]

16 hours ago, AltarEgo said:

They failed with you. And, they failed with us. If more people would stop paying the inflated prices for the DBP the prices would come down. Don't expect to happen anytime soon though, because RCCL's onboard revenues are way up right now.

Still just 7-8 drinks at price point to break even on the package. Not hard to do at all even with the 4 free ones so we will continue on to purchase the package. 

[AltarEgo]

18 minutes ago, CruisingHogFan said:

Still just 7-8 drinks at price point to break even on the package. Not hard to do at all even with the 4 free ones so we will continue on to purchase the package. 

Your money, your choice, and the shareholders of RCL stock appreciate the choice you made.

Edited August 6, 2022 by AltarEgo

[topnole]

2 hours ago, AltarEgo said:

Seriously? That's highly doubtful when you consider that they used to offer UNLIMITED alcoholic beverages in the Diamond Lounge during the old Happy Hour. The current high prices of the DBP is an exercise in maximizing profits. Fortune 500 companies base their decisions on what's beneficial for the company, not their customers.

How do you maximize profit when you have no profit?   This is more like minimizing loses.  Big difference.  
 

I get the feeling you have never made executive decisions for a large company, because they most certainly do base decisions based on customers as well as other stakeholders.   
 

 

[topnole]

16 minutes ago, AltarEgo said:

Your money, your choice, and the shareholders of RCL stock appreciate the choice you made.

I doubt anyone who bought the stock a few years ago appreciate anything about owning the stock let alone the beverage packages.  Royal is losing money and has debt up to their ears.   

[AltarEgo]

26 minutes ago, topnole said:

How do you maximize profit when you have no profit?   This is more like minimizing loses.  Big difference.  
 

I get the feeling you have never made executive decisions for a large company, because they most certainly do base decisions based on customers as well as other stakeholders.   
 

 

Interesting; Corporations aren't in business to maximize profits and shareholder value? That's news to me. Perhaps I should have been more specific, that decisions on what's beneficial for the company take priority to those decisions that benefit non-shareholding customers. Someone with even a basic understanding of supply and demand knows what the price hikes are about, which is maximizing revenue.

Edited August 6, 2022 by AltarEgo

[topnole]

3 minutes ago, AltarEgo said:

Interesting; Corporations aren't in business to maximize profits and shareholder value? That's news to me. Perhaps I should have been more specific, that decisions on what's beneficial for the company take priority to those decisions that benefit non-shareholding customers. Someone with even a basic understanding of supply and demand knows what the price hikes are about. 

Corporations are in business to make a return on investment.  And yes this includes maximizing profit.  But that implies maximizing long run profit (not short-run).  Otherwise a firm would never invest in R&D because that would lower current profit.  
 

I think you are misunderstanding a lot of basic business concepts and the situation for Royal.  You are essentially arguing corporate greed which is ridiculous.  Right now all of the cruise lines are just trying to survive.  To use an analogy, they aren’t fat cats trying to eat even more.  They are starving cats trying to get enough food in their systems to survive.   Huge difference and your suggestion they are charging high prices on drinks simply to increase profit at the harm of customers is ridiculous.  They are losing money right now.  Not adding in to existing profit.    
 

All the cruise lines have adjusted their

business models over their years.  That means they charge very low fares and now rely on lots of add on purchases to make money.   Cruise fares for a week long trip in the 1980s was often more than what it costs now for a balcony cabin on most of the oasis class ships.  They lose money if you buy a cheap cabin and spend nothing extra?   Is that bad for the customer?   Nope. So how can you say they are just trying to line the pockets of shareholders (who have lost their butts the last several years)?   If you add in the high price for the drink package and the cheap cruise fare it is still pretty reasonable in price compared to how expensive cruises were decades ago.  It’s just a different business model now (like most airlines charging extras for many things).  
 

Your narrative sounds compelling, but only to people who no zero about business and zero about Royal as a company.  

[topnole]

34 minutes ago, AltarEgo said:

Interesting; Corporations aren't in business to maximize profits and shareholder value? That's news to me. Perhaps I should have been more specific, that decisions on what's beneficial for the company take priority to those decisions that benefit non-shareholding customers. Someone with even a basic understanding of supply and demand knows what the price hikes are about. 

By the way, if a decision is based on supply and demand it has nothing to do with who it benefits.  It is simply a market driven decision based on economic pressures.   So you are defeating your argument with your own statements.  A company isn’t purposefully putting shareholders ahead of any other stakeholders if they are setting price based on supply and demand.  
 

You also don’t seem to understand that customers benefit if Royal stays in business.  If Royal doesn’t make enough revenue to cover costs, they will eventually go out of business.  They have leveraged themselves to the point that there isn’t much room left for

that option.  So unless they establish sustainable cash flow to pay all expenses, they will be out of business.  Creating that cash flow mean getting people on board and more importantly now (with their business model), getting them to spend a lot onboard just to make a modest profit margin.  
 

There is much more to satisfying stakeholders than what you are suggesting.  And many other stakeholders exist in this equation besides stockholders and customers.  But for now it is the stockholders getting the worst of it.  

Edited August 6, 2022 by topnole

[CruisingHogFan]

1 hour ago, AltarEgo said:

Your money, your choice, and the shareholders of RCL stock appreciate the choice you made.

Well since I own stock I guess I appreciate myself! 😂

 

Drink prices onboard are comparable to our local restaurants. $15.34 per drink so it’s basic math if you will save money or not.
 

We personally save hundreds by buying the package vs paying per drink at the current prices so it’s a smart choice for us.

[AltarEgo]

Just now, CruisingHogFan said:

Well since I own stock I guess I appreciate myself! 😂

 

Drink prices onboard are comparable to our local restaurants. $15.34 per drink so it’s basic math if you will save money or not.
 

We personally save hundreds by buying the package vs paying per drink at the current prices so it’s a smart choice for us.

Some people drink more than others and can justify the cost for themselves. If an establishment where I live charged $15 + for a cocktail, they, like RCL, won't get my business. Like most things in life, one size does not fit all.

[AltarEgo]

14 minutes ago, topnole said:

By the way, if a decision is based on supply and demand it has nothing to do with who it benefits.  It is simply a market driven decision based on economic pressures.   So you are defeating your argument with your own statements.  A company isn’t purposefully putting shareholders ahead of any other stakeholders if they are setting price based on supply and demand.  
 

You also don’t seem to understand that customers benefit if Royal stays in business.  If Royal doesn’t make enough revenue to cover costs, they will eventually go out of business.  They have leveraged themselves to the point that there isn’t much room left for

that option.  So unless they establish sustainable cash flow to pay all expenses, they will be out of business.  Creating that cash flow mean getting people on board and more importantly now (with their business model), getting them to spend a lot onboard just to make a modest profit margin.  
 

There is much more to satisfying stakeholders than what you are suggesting.  And many other stakeholders exist in this equation besides stockholders and customers.  But for now it is the stockholders getting the worst of it.  

This post was about the high prices of the DBP and I'm not getting dragged into a protracted discussion on a cruise related message board about the financial situation of a Fortune 500 company. RCG isn't the only corporation to take a hit from the Covid pandemic. RCG will survive, but not at my expense. And, I'm not all that surprised by your Ad hominem attacks. They tell us way more about you than me.

Edited August 6, 2022 by AltarEgo

[Biker19]

5 minutes ago, AltarEgo said:

I'm not getting dragged into a protracted discussion on a cruise related message board about the financial situation of a Fortune 500 company

You can do that over in the RCL stock thread.

[topnole]

4 minutes ago, AltarEgo said:

This post was about the high prices of the DBP and I'm not getting dragged into a protracted discussion on a cruise related message board about the financial situation of a Fortune 500 company. RCG isn't the only corporation to take a hit from the Covid pandemic. RCG will survive, but not at my expense.

You can do a week long cruise with a balcony on one of their best ships for under 100 a day per person.  A couple could easily do an oasis class cruise right now with a drink package for under $2500.    Give me a break.  
 

Sure I would like the drinks to be cheaper.  We all would.  But cruising is the cheapest game in town right now.  Go fly somewhere, pay for a hotel,

and rent a car.  Cruising is dirt cheap compared to that.  

[topnole]

10 minutes ago, AltarEgo said:

This post was about the high prices of the DBP and I'm not getting dragged into a protracted discussion on a cruise related message board about the financial situation of a Fortune 500 company. RCG isn't the only corporation to take a hit from the Covid pandemic. RCG will survive, but not at my expense.

You were the one who decided

to incorrectly bring the corporate greed aspect into it.  So perhaps you should stay on topic.  

[AltarEgo]

No doubt cruising is a good value if all the add-ons are avoided. But I recently returned from a 7 day vacation to an all inclusive resort in Playa Del Carmen. Hotel and airfare just under $1500 for a couple. Is that normal? No, but there are deals out there that are a better value than cruising, but certainly not as many.

[AltarEgo]

7 minutes ago, topnole said:

You were the one who decided

to incorrectly bring the corporate greed aspect into it.  So perhaps you should stay on topic.  

Please topnole, point out where I specifically mentioned corporate greed. On second thought , never mind, I don't want to be any part of the reason for getting this thread shut down. Have a nice day!

[Ocean Boy]

3 hours ago, AltarEgo said:

How many people equate retail pricing to the actual cost paid by the seller for their products? Too many.

The point is that if they are going to give something to you with no charge it is good to have it be something that doesn't have a high cost to them.

[topnole]

1 hour ago, AltarEgo said:

No doubt cruising is a good value if all the add-ons are avoided. But I recently returned from a 7 day vacation to an all inclusive resort in Playa Del Carmen. Hotel and airfare just under $1500 for a couple. Is that normal? No, but there are deals out there that are a better value than cruising, but certainly not as many.

Well.  Even with the elevated cost of drink packages, you can still find balcony cabins in the biggest ships for sometimes as low as 400-600 a person for a week.  I’ve seen some ridiculous prices on oasis class ships.  
 

With some searching you could find a week on a great ship and buy a drink package for two and the ultimate dining plan for under 2500.  Ten years ago it always used to cost my wife and I at least that to cruise on oasis class in the cheapest of weeks.  And we weren’t dining at the specialty restaurants or spending 400-500+ each on a drinking package. There were no drink packages back then and you paid as you go.  That is still an option for anyone.  It isn’t DBP or nothing.  
 

So to me they are simply adjusting their business model and generating revenues in different ways.  Now they lose money on regular cabins and nickel and dime (or more like quarter and dollar) on even more stuff.  
 

In the end, the cost to take a cruise for two is probably cheaper now than when my wife and I started mainly sailing Royal and their bigger ships.  My main interest is the price including everything and not just the beverage package.  If the price of the cabin is dirt cheap, it offsets the higher DBP cost.  Cruising is still really cheap even with the increase in drink prices.  I suspect most recognize this and that creates the demand for the drink package.  So long as demand is high and costs of supplies keep rising, the price for that aspect of the cruise will remain seemingly high.  But in the end, $200 more for two packages is not a big deal to most people.   They accept it as part of the cost of a cruise.