$2. DEPOSITS COMING TOMORROW

[HappyInVan]

40 minutes ago, Menocchio said:

As for why cruise lines keep doing bonkers promotions when cruising is supposedly doing so well, it's because they want to do *even better*... 

 

They would be doing even better by increasing prices and margins, not dropping prices. Nor by cramming more people onboard the ships, and increasing stress on pax and staff.

 

The theory is that companies discount because they've set the prices too high and demand is too low.

[Menocchio]

2 minutes ago, HappyInVan said:

 

They would be doing even better by increasing prices and margins, not dropping prices. Nor by cramming more people onboard the ships, and increasing stress on pax and staff.

 

The theory is that companies discount because they've set the prices too high and demand is too low.

The prevailing belief as I understand it is that onboard spending is king, and fares are less important. Full capacity is the goal, all the time. 

[HappyInVan]

1 hour ago, Menocchio said:

The prevailing belief as I understand it is that onboard spending is king, and fares are less important. Full capacity is the goal, all the time. 

 

Onboard spending is an important supplement when you are selling $49/day fares. Less important when you are able to charge $99/day fares. Unfortunately, the experiences on a $49 ship is poorer than on a $99 or $199 ship.

 

Like ship capacity, there's a limit on capacity in bars, restaurants and on excursions. So, there's little room for growth in onboard spending unless you have a different $class$ of pax. Cognac instead of beer. Fillet mignon instead of pork belly.

 

Perhaps, HAL will add a 5th and 6th pax capacity to the cabins?

Edited April 23 by HappyInVan