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A change of heart at P&O?


pennib
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12 hours ago, wowzz said:

Not sure if I understand your rationale.

All businesses need to maximise their profits. 

Put simply, that means increasing prices, or reducing costs.  

So, Harrods, Claridges etc increase prices, because their clientele do not care. 

Mass market companies,  like P&O do not have that luxury, so they need to cut costs so as to still offer prices that are attractive to the mass market,  but at the same time maintain their overall profitability .

Therefore they have to reduce costs. 

Blimey,  I'm going back in time to when I had to produce my annual departmental budget !

Absolutely right but I guess the other thing that has come into play with P&O is that they have repositioned themselves in the market over the years. When I first cruised with them in 1997, they were closer to a luxury brand than than a mass-market brand. A bit like Harrods turning into Debenhams...

Obviously I appreciate that prices have been adjusted accordingly.

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1 hour ago, Interestedcruisefan said:

I normally love the thought of afternoon tea on a non cruise holiday 

 

On my current Arvia holiday I'm genuinely struggling to eat breakfast, lunch, dinner and fitting a mid afternoon snack in despite starting  the day with breakfast at either 6.30am in the buffet and/or 7am at Quays

 

I feel guilty eating the snack mid afternoon as it is

 

What do you guys sacrifice to be able to eat afternoon tea? 

 

Or do you manage to eat all of the above and afternoon tea as well?

I would have a very light lunch and afternoon tea would comprise a scone (with jam & cream of course) and maybe one small cake.

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30 minutes ago, Britboys said:

Absolutely right but I guess the other thing that has come into play with P&O is that they have repositioned themselves in the market over the years. When I first cruised with them in 1997, they were closer to a luxury brand than than a mass-market brand. A bit like Harrods turning into Debenhams...

Obviously I appreciate that prices have been adjusted accordingly.

I think your succinct statement about sums the position up. 

 

It's a very different P&O Cruises now, which will no longer suit many - but will better suit even more. And that's likely to be the more profitable route.

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7 minutes ago, Harry Peterson said:

I think your succinct statement about sums the position up. 

 

It's a very different P&O Cruises now, which will no longer suit many - but will better suit even more. And that's likely to be the more profitable route.

Indeed Harry. Their market strategy is no doubt the right one to grow the business...

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48 minutes ago, Harry Peterson said:

I think your succinct statement about sums the position up. 

 

It's a very different P&O Cruises now, which will no longer suit many - but will better suit even more. And that's likely to be the more profitable route.

Let’s hope P&O don’t end up like Debenhams by going bust and ceasing to exist.

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3 minutes ago, gkbiiii said:

No the're not, your fooled by corporate speak. 

Evidence please ! Find me a P&O Carribean fly/cruise from the year 2000 costing less than £1500, taking inflation into account.

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34 minutes ago, wowzz said:

In real terms, prices are cheaper than ever.


For those who are lucky enough to be able to avoid the school holidays, the big P&O ships are certainly offering some very cheap cruises. Prices are remaining high on the adult only ships, probably due to the number of traditionalists who don’t like anything bigger. I guess the older passenger profile on the small ships also helps, as retired folk are generally less affected by the cost of living crisis than those with mortgages and dependent children. 

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2 hours ago, Harry Peterson said:

I think your succinct statement about sums the position up. 

 

It's a very different P&O Cruises now, which will no longer suit many - but will better suit even more. And that's likely to be the more profitable route.

The age profile on Iona's current cruise is little different to our first P&O cruise in 2006, and most seem to be enjoying their experience. So if this continues I guess those who have been forecasting that P&O might struggle to fill the bigger ships could be proved wrong, despite no evening turn down, no afternoon tea in the MDR and entertainment aimed at a younger clientele.

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26 minutes ago, terrierjohn said:

The age profile on Iona's current cruise is little different to our first P&O cruise in 2006, and most seem to be enjoying their experience. So if this continues I guess those who have been forecasting that P&O might struggle to fill the bigger ships could be proved wrong, despite no evening turn down, no afternoon tea in the MDR and entertainment aimed at a younger clientele.


They will always fill them if the price is low enough. I’m not convinced that the business plan predicted having to sell cruises as cheaply as they currently doing though. Supply and demand seems to be working in the customers favour at present. 

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12 minutes ago, Selbourne said:


They will always fill them if the price is low enough. I’m not convinced that the business plan predicted having to sell cruises as cheaply as they currently doing though. Supply and demand seems to be working in the customers favour at present. 

Indeed,seeing a 7 night cruise to Norway advertised at £499 surely can't be bad value for money,how much is accommodation in Norway,not cheap last time I looked!

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20 minutes ago, snaefell said:

Indeed,seeing a 7 night cruise to Norway advertised at £499 surely can't be bad value for money,how much is accommodation in Norway,not cheap last time I looked!

And the recent 7 night Canaries fly-cruises at £464 including the flight...

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1 hour ago, gkbiiii said:

No the're not, your fooled by corporate speak. 

Of course they are. We are not paying anywhere near what we paid for our first cruise in 2001. Some cruises in the past 5 years have been 25% down on that first cruise. Pppn. In fact we have only paid more when in a suite and that was only just over what we paid.

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3 minutes ago, daiB said:

Of course they are. We are not paying anywhere near what we paid for our first cruise in 2001. Some cruises in the past 5 years have been 25% down on that first cruise. Pppn. In fact we have only paid more when in a suite and that was only just over what we paid.

Thank you Dai. However I feel your response will be ignored.

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