To Plus or not to Plus.., our experience

[BamaVol]

41 minutes ago, kywildcatfanone said:

They don't have to. The plus package is purchased by 75% of guests, and they are making huge amounts of profit on it, so they can let some go for free.  I would guess this occurs when the bars are busy.  The medallion isn't perfect, as if there are 10 people squeezing into a space at the bar, it's still time consuming for the bartenders to determine who you are, and for a coke or water, if you are busy, why bother. 

I’m curious how you have access to product line profitability on Princess.  If it’s not giving up too much information, what is the gross margin on Plus and Premier package sales?

[kywildcatfanone]

You don't think they make huge profits on packages they offer in lieu of higher cruise prices?  Have you bought the same thing in a grocery store, and then in a hotel or other business and the price was 3-10x?  That's what I was talking about.  Sorry for the confusion.  

[CruizinSusan70]

12 minutes ago, kywildcatfanone said:

You don't think they make huge profits on packages they offer in lieu of higher cruise prices?  Have you bought the same thing in a grocery store, and then in a hotel or other business and the price was 3-10x?  That's what I was talking about.  Sorry for the confusion.  

Even if you don't know how much profit they are making on the two different packages, where did the 75% number that you quoted come from?  Was it out of thin air or a report that you stumbled across somewhere that you could possibly provide a link to?

[kywildcatfanone]

I think it's higher quite honestly, or it was before the recent increases, but my TA has told me that in calls she has been on with Princess reps, that number has been mentioned, as well as her own bookings reflect that.  Based upon the conversations on cruise critic, I think it's probably pretty accurate.  It might have dropped based upon the recent price increases, but that was from a conversation I had with her last year.  

[CruizinSusan70]

1 minute ago, kywildcatfanone said:

I think it's higher quite honestly, or it was before the recent increases, but my TA has told me that in calls she has been on with Princess reps, that number has been mentioned, as well as her own bookings reflect that.  Based upon the conversations on cruise critic, I think it's probably pretty accurate.  It might have dropped based upon the recent price increases, but that was from a conversation I had with her last year.  

Thanks for clearing it up.  It was a number based upon a conversation that your TA had with his or her CSR at Princess using that CSR's personal numbers.  Certainly not anything concrete based upon nationwide numbers on average, so basically a worthless hypothesis since it was based on the findings of a single rep from a conversation that took place a year ago.

[kywildcatfanone]

What is my comment that big a deal with you?  Do you not think 3/4 used to get a package?  I don't understand the hostility in your comment?

[BamaVol]

3 hours ago, kywildcatfanone said:

You don't think they make huge profits on packages they offer in lieu of higher cruise prices?  Have you bought the same thing in a grocery store, and then in a hotel or other business and the price was 3-10x?  That's what I was talking about.  Sorry for the confusion.  

I thought maybe you had access to CCL value stream accounting data.  It is dangerous for businesses to make profitability assumptions.  To do so for your own amusement is harmless.

 

On the surface, it would appear that CCL/Princess wasn’t satisfied with the package profitability at $40 or $50.  It remains to be seen whether $60 holds for long.  The comparison isn’t to what you would pay for a drink at home.  It is to how many drinks would passengers buy without a package, if that option was taken off the table, and at what prices.  There are two value streams here: Plus/Premier and pay per drink.
 

I was hoping you had information that would help curious ccers predict whether the price of Plus is going up again soon. Strategic pricing theory says you raise the price until you meet resistance and then check whether profits are still increasing ( since you will sell fewer packages and those who purchase them may feel the need to drink more to get their money’s worth). If profits drop, you’ve gone too far.

Edited May 19, 2023 by BamaVol

[kywildcatfanone]

1 minute ago, BamaVol said:

I was hoping you had information that would help curious ccers predict whether the price of Plus is going up again soon.

Seeing as how they just raised prices earlier this year, I would think they would have to give it decent run time to see how the price increase impact sales.  It seems Princess method is keep the cruise price as low as possible, and then charge more for everything else.  If it's working, it's working. Everyone can choose what and what not to participate.  Celebrity Cruises prices are even higher, so I'm sure once they feel comfortable they will initiate another increase.  I suspect regular price increases are going to be the norm till they start seeing reduced bookings.  Same with any other business.

 

3 minutes ago, BamaVol said:

On the surface, it would appear that CCL/Princess wasn’t satisfied with the package profitability at $40 or $50.  It remains to be seen whether $60 holds for long.  The comparison isn’t to what you would pay for a drink at home.  It is to how many drinks would passengers buy without a package, if that option was taken off the table, And at what prices.  There are two value streams here: Plus/Premier and pay per drink.

My take on that would be that th update on it was very satisfactory, in fact, so much so that significant increase could be made and their research would show most people would continue to pay, even at the increased prices.  I suspect that is working overall.  Same with the removal of benefits which seem to occur regularly now.

 

I do wish they offered a coffee/soft drink/mocktail package for like $30 for those of use who aren't either big drinkers or drinkers at all.  I would very much consider that, regardless of whether I could justify the price with a spreadsheet.

 

I do think for many people, vacation is something they don't watch their spending that closely on because they choose not to, which is perfectly fine, and everyone's freedom to do.  

 

[reedprincess]

37 minutes ago, kywildcatfanone said:

 

I do wish they offered a coffee/soft drink/mocktail package for like $30 for those of use who aren't either big drinkers or drinkers at all.  I would very much consider that, regardless of whether I could justify the price with a spreadsheet.

Zero Proof package, $29.95 per night plus 18% ... 

 

 

 

Tour wish is granted. Zero Proof package is $29.95 and includes specialty coffees, sodas, mocktails, etc:

"Zero Alcohol Package

Enjoy premium and specialty coffees and teas along with sodas, fresh juices and healthy smoothies (juice bar), hot chocolate, "zero-proof" mocktails, bottled water, San Pellegrino, Evian and Red Bull Energy Drinks throughout your entire cruise with this zero-alcohol beverage package.

 

The Zero-Alcohol Drink Package is $29.99 USD* per person, per day." 

 

If you're meaning $30 total, yeah - that's wildly unrealistic, unless it was for a specific amount of drinks, like the old coffee card. And even then, it's only be 5 or so drinks, at current pricing. 

[memoak]

Princess definitely loses money on us. Prior to drink packages we would budget $50 per person per day for drinks so $60 including Wi-Fi and gratuities is a real deal

[voljeep]

4 minutes ago, memoak said:

Princess definitely loses money on us. Prior to drink packages we would budget $50 per person per day for drinks so $60 including Wi-Fi and gratuities is a real deal

at your current consumption with the drink package, how much would you daily total be at Princess prices?  I don't even want to know what mine would cost🤑

 

6 Pelligrino

4 beers

6 'Princess' pour wines (cab)

2 cocktails at Crooners

1Irish coffee

2 Kahlua and cream - you know - chocolate milk.

Edited May 19, 2023 by voljeep

[memoak]

22 minutes ago, voljeep said:

at your current consumption with the drink package, how much would you daily total be at Princess prices?  I don't even want to know what mine would cost🤑

 

6 Pelligrino

4 beers

6 'Princess' pour wines (cab)

2 cocktails at Crooners

1Irish coffee

2 Kahlua and cream - you know - chocolate milk.

My guess would be at least $80 per person per day not counting specialty coffee and waters. Then I would still have to pay for Wi-Fi and gratuities 

[MissP22]

3 hours ago, BamaVol said:

On the surface, it would appear that CCL/Princess wasn’t satisfied with the package profitability at $40 or $50.  It remains to be seen whether $60 holds for long.

They've raised the price so high that sharing seemed to be common on our last cruise. It's hard to feel that you're getting you money's worth if you only have 5 or 6 drinks a day.

My prediction is that $70 per day will soon arrive. 

[BamaVol]

14 minutes ago, MissP22 said:

They've raised the price so high that sharing seemed to be common on our last cruise. It's hard to feel that you're getting you money's worth if you only have 5 or 6 drinks a day.

My prediction is that $70 per day will soon arrive. 

I would still be ahead at that price. I think anything much more than that is the wrong side of break-even for us. 
 

My liver can’t keep up with @voljeep

Edited May 19, 2023 by BamaVol

[voljeep]

14 minutes ago, MissP22 said:

They've raised the price so high that sharing seemed to be common on our last cruise. It's hard to feel that you're getting you money's worth if you only have 5 or 6 drinks a day.

My prediction is that $70 per day will soon arrive. 

share what if both have PLUS?

[memoak]

52 minutes ago, MissP22 said:

They've raised the price so high that sharing seemed to be common on our last cruise. It's hard to feel that you're getting you money's worth if you only have 5 or 6 drinks a day.

My prediction is that $70 per day will soon arrive. 

Since the first 2 in a cabin hsve to take the plus are you handing your medallion to strangers. ?  5 drinks a day at $10 a drink you are still way ahead

[Tedferg]

We are on the 'Bubble' between those who drink enough and those who do not drink alcohol. First thing, WiFi has no interest for us. Port intensive cruise so plenty of chances to check email ashore.

 

12 day cruise, 12*2*60=$1440.

Gratuities $384

OBC $610

So, Plus - OBC = $830 or $69/Day. We always bought Plus at $40 or $80 for both, so $69 is a no-brainer, right?

 

However, OBC - Grat = $226 remainder.

2 $10 Cocktails before dinner; 2 $12 Glasses of wine with dinner; perhaps 2$10 Nightcaps is $64*1.18 * 12=$906. $906-$226OBC=$680.

 

Difference $830-$680=$150 - Throw in daily waters and IC coffees, a couple of indulgent cocktails and convenience, Plus comes out on top. But----- DW almost never has a Nightcap, and we can pre-purchase water for the cabin at $7. Hence the 'Bubble'

 

[wany]

I consider myself as opportunity drinker. I can drink decent quantity if I want to. I can finish a bottle of wine by myself in one evening at home. But I don't often buy alcohol at home, and I can stay dry for half a year without any issue.

I had plus on my last Princess trip and had 7-9 drinks everyday. Then I was on a NCL trip without the drink package and I did not buy any drink at all. I have to admit I had a better time on the Princess trip than the NCL one. 

To me its almost like if I want to pay ~$30 extra per day to drink or just not drinking at all. decision... decision...

[CruizinSusan70]

14 hours ago, kywildcatfanone said:

What is my comment that big a deal with you?  Do you not think 3/4 used to get a package?  I don't understand the hostility in your comment?

No hostility, just wanted a link if you had one.  So, your 75% is your personal hypothesis, nothing more, nothing less.

[CruizinSusan70]

12 hours ago, kywildcatfanone said:

I do wish they offered a coffee/soft drink/mocktail package for like $30 for those of use who aren't either big drinkers or drinkers at all.  

Celebrity, RCI and MSC all offer this option in case you didn't know.

[CruizinSusan70]

11 hours ago, voljeep said:

at your current consumption with the drink package, how much would you daily total be at Princess prices?  I don't even want to know what mine would cost🤑

 

6 Pelligrino

4 beers

6 'Princess' pour wines (cab)

2 cocktails at Crooners

1Irish coffee

2 Kahlua and cream - you know - chocolate milk.

Maxing out those 15 alcoholic drinks per day. 🍺🍷🍹🍸🥃☕

[CruizinSusan70]

3 hours ago, wany said:

 

To me its almost like if I want to pay ~$30 extra per day to drink or just not drinking at all. decision... decision...

The only decision for us to cruise with alcohol or as a teetotaler is on Royal Caribbean because of the Dynamic Pricing policy of their drinks package and how expensive it is compared to the competition.

Since the drinks packages can be included as a "package" on Princess, Celebrity, NCL and MSC, we always choose to book it that way.  We also always get Cheers on Carnival since we like their bars and have the 10% discount with gift cards.

As usual, it always comes down to the bottom line.  We've paid it for 28 days at 40.00, will have it for at least 42 days at 60.  Hopefully it doesn't increase to 70 before Caribbean sailings open up for fall/winter 2025-2026 on the Sun & the Star.

[MissP22]

13 hours ago, memoak said:

Since the first 2 in a cabin hsve to take the plus are you handing your medallion to strangers. ? 

Just the drinks, not the medallion. 

[EightFurryPaws]

Just wondering how this works...

I'll be on the Crown with the plus package.

At the breakfast buffet, if I want the regular coffee from the IC, not the syrup coffee from the buffet, can a crew member get this for me or do I bring it from the IC myself?

 

[CruizinSusan70]

4 hours ago, EightFurryPaws said:

Just wondering how this works...

I'll be on the Crown with the plus package.

At the breakfast buffet, if I want the regular coffee from the IC, not the syrup coffee from the buffet, can a crew member get this for me or do I bring it from the IC myself?

 

If you're lazy and don't wish to get your coffee at the IC or get an alcoholic drink at a bar, yes, you can order it on your cell phone and your app will kick in with your location as to where you're at so your drink of choice can be delivered to you.  We always go to the IC for espressos or to our bar of choice to get a drink instead of having it delivered.