Business History Books » Business Plans » LOW PRICES = LOWER QUALITY ???
LOW PRICES = LOWER QUALITY ???
Question:
The recent downturn in the cruise industry has caused them to lower prices to all time lows. For example – Princess – Mexican Riveria $499, Celebrity $399 – Carribean. I am sure other low prices can be found. With these low prices does anyone know if the cruise lines are lowering quality in the areas of food, shows, service, etc. With these low prices, it would seem like they would skimp a little on food – not offer as much lobster or filet mignon. etc, Maybe the shows might not be as extravagant. Any opinions, Thanks, Rick
Response:
Princess (Royal princess) cutting cost!! First cruise we were ever on with no filet mignon & bad lobster , also had to send back two steaks that were all fat & gristle! Just a very few of the things wrong with this cruise from HELL! First & LAST cruise with this cheap outfit. MACAW
Response:
> Princess (Royal princess) cutting cost!! First cruise we were ever on > with no filet mignon & bad lobster , also had to send back two steaks > that were all fat & gristle! Just a very few of the things wrong with > this cruise from HELL! First & LAST cruise with this cheap outfit. > MACAW
In addition to that, they have just started implementing NO CARRY-ON alcohol except for 1 bottle of wine. A cruiser reported that on the October 13 Dawn Princess cruise that there were large signs at the gangway advertising the new alcohol policy. This is just another line gone bad. Just as cheapo as RCI and Carnival with their "Liquor Police". CB — Posted from pppta02-259.ght.airmail.net [207.13.27.133] via Mailgate.ORG Server – http://www.Mailgate.ORG
Response:
> This is just another line gone bad. Just as cheapo as RCI and Carnival > with their "Liquor Police".
All the mass market lines follow one anothers policies. In spite of the industries labeling some as premium these lines have always been more similiar to each other than different. In the present pricing situation they are all driven to cost cutting. The longer the prices are lower the more cost cutting is going to take place. They could have lower prices for a short term period and hope to make it up with more customers in the long term. But if the lower prices continue and the cabins are still hard to fill, then they are going to get squeezed and they will have to make more cuts. Any differention will become less and less. What I predicted a few years ago is taking place. The greed to win market share would result in overbuilding of the capacity. Sooner or later there had to be a downturn in the business cycle. And unfortunatly that downturn in the cycle coincided with the terrorist attacks. It only takes a small amount of people changing their vacation plans to have a huge effect on a leisure industry like the cruise industry. Don’t be surprised if one or more of the big three, Carnival, RCI or Princess goes under or merged. Just as sooner or later there had to be downturn in the business cycle, there will someday be a recovery, but the old days of cruising are probably gone forever. — Charles
Response:
I think what we were used to ten years ago and what we are getting now is very different. But its not all bad. Its obvious that there will be a shake out of the weak players in the industry in the next year or two. Cash wins. Cash flow is important, but the lines with cash reserves will survive. Lines who depend on cash flow only probably won’t. Lines who drop prices and fill ships will just be losing money slower than they normally would unless the passengers who get on the ships at $499 don’t spend at least that much again on board at the shops, etc. In a way I kind of like what is happening. I love big ships with lots of things going on (but then I like small intimate ships, too, <g>). Nowadays I can afford to go on 2-3 7 day cruises a year. Its easy. I just don’t drink a lot, don’t buy over priced photos, don’t buy inches of gold or art work, and don’t take overpriced and unimaginative excursions. Take advantage of what IS free. Great food, free entertainment, interesting people, warm Caribbean breezes or awe inspiring glaciers. Window shopping in exotic ports doesn’t cost anything! Researching the ports and going it on your own is always cheaper. Spend your money wisely and it will go a long way. After the shake out, cruise lines will recognize that the real competition are land based resorts. Like at a land based resort, I like being able to cruise often, without having to pay for many of the services I don’t use. Provide me with the important stuff at a low price and don’t make me pay for something I won’t use anyway. As long as the really important stuff I go on cruises for – the exceptional service, the excellent food, the clean rooms, the attractive pool areas, the atmosphere of enjoyment are not altered, who cares if they don’t have a midnight buffet every night, that they make me carry my towel from my room to the pool, that they won’t let me carry three gallons of booze on board with me, or that I have to pay for soft drinks at dinner. I don’t drink soft drinks anyway, so why should I pay for you to have them? If you paid $499 for a cruise don’t complain that they want $1.00 for a soft drink with your dinner. Ten years ago when you went cruising, soft drinks were free, but the cruise was $999! Go to have fun and you will. MrTractor
– Hide quoted text — Show quoted text -> This is just another line gone bad. Just as cheapo as RCI and Carnival > with their "Liquor Police". > All the mass market lines follow one anothers policies. In spite of the > industries labeling some as premium these lines have always been more > similiar to each other than different. In the present pricing situation > they are all driven to cost cutting. > The longer the prices are lower the more cost cutting is going to take > place. They could have lower prices for a short term period and hope to > make it up with more customers in the long term. But if the lower > prices continue and the cabins are still hard to fill, then they are > going to get squeezed and they will have to make more cuts. Any > differention will become less and less. > What I predicted a few years ago is taking place. The greed to win > market share would result in overbuilding of the capacity. Sooner or > later there had to be a downturn in the business cycle. And > unfortunatly that downturn in the cycle coincided with the terrorist > attacks. It only takes a small amount of people changing their vacation > plans to have a huge effect on a leisure industry like the cruise > industry. Don’t be surprised if one or more of the big three, Carnival, > RCI or Princess goes under or merged. > Just as sooner or later there had to be downturn in the business cycle, > there will someday be a recovery, but the old days of cruising are > probably gone forever. > — > Charles
Response:
The recent downturn in the cruise industry has caused them to lower prices to all time lows. For example – Princess – Mexican Riveria $499, Celebrity $399 – Carribean. I am sure other low prices can be found. With these low prices does anyone know if the cruise lines are lowering quality in the areas of food, shows, service, etc. With these low prices, it would seem like they would skimp a little on food – not offer as much lobster or filet mignon. etc, Maybe the shows might not be as extravagant. Any opinions, Thanks, Rick
Response:
Princess (Royal princess) cutting cost!! First cruise we were ever on with no filet mignon & bad lobster , also had to send back two steaks that were all fat & gristle! Just a very few of the things wrong with this cruise from HELL! First & LAST cruise with this cheap outfit. MACAW
Response:
> Princess (Royal princess) cutting cost!! First cruise we were ever on > with no filet mignon & bad lobster , also had to send back two steaks > that were all fat & gristle! Just a very few of the things wrong with > this cruise from HELL! First & LAST cruise with this cheap outfit. > MACAW
In addition to that, they have just started implementing NO CARRY-ON alcohol except for 1 bottle of wine. A cruiser reported that on the October 13 Dawn Princess cruise that there were large signs at the gangway advertising the new alcohol policy. This is just another line gone bad. Just as cheapo as RCI and Carnival with their "Liquor Police". CB — Posted from pppta02-259.ght.airmail.net [207.13.27.133] via Mailgate.ORG Server – http://www.Mailgate.ORG
Response:
> This is just another line gone bad. Just as cheapo as RCI and Carnival > with their "Liquor Police".
All the mass market lines follow one anothers policies. In spite of the industries labeling some as premium these lines have always been more similiar to each other than different. In the present pricing situation they are all driven to cost cutting. The longer the prices are lower the more cost cutting is going to take place. They could have lower prices for a short term period and hope to make it up with more customers in the long term. But if the lower prices continue and the cabins are still hard to fill, then they are going to get squeezed and they will have to make more cuts. Any differention will become less and less. What I predicted a few years ago is taking place. The greed to win market share would result in overbuilding of the capacity. Sooner or later there had to be a downturn in the business cycle. And unfortunatly that downturn in the cycle coincided with the terrorist attacks. It only takes a small amount of people changing their vacation plans to have a huge effect on a leisure industry like the cruise industry. Don’t be surprised if one or more of the big three, Carnival, RCI or Princess goes under or merged. Just as sooner or later there had to be downturn in the business cycle, there will someday be a recovery, but the old days of cruising are probably gone forever. — Charles
Response:
I think what we were used to ten years ago and what we are getting now is very different. But its not all bad. Its obvious that there will be a shake out of the weak players in the industry in the next year or two. Cash wins. Cash flow is important, but the lines with cash reserves will survive. Lines who depend on cash flow only probably won’t. Lines who drop prices and fill ships will just be losing money slower than they normally would unless the passengers who get on the ships at $499 don’t spend at least that much again on board at the shops, etc. In a way I kind of like what is happening. I love big ships with lots of things going on (but then I like small intimate ships, too, <g>). Nowadays I can afford to go on 2-3 7 day cruises a year. Its easy. I just don’t drink a lot, don’t buy over priced photos, don’t buy inches of gold or art work, and don’t take overpriced and unimaginative excursions. Take advantage of what IS free. Great food, free entertainment, interesting people, warm Caribbean breezes or awe inspiring glaciers. Window shopping in exotic ports doesn’t cost anything! Researching the ports and going it on your own is always cheaper. Spend your money wisely and it will go a long way. After the shake out, cruise lines will recognize that the real competition are land based resorts. Like at a land based resort, I like being able to cruise often, without having to pay for many of the services I don’t use. Provide me with the important stuff at a low price and don’t make me pay for something I won’t use anyway. As long as the really important stuff I go on cruises for – the exceptional service, the excellent food, the clean rooms, the attractive pool areas, the atmosphere of enjoyment are not altered, who cares if they don’t have a midnight buffet every night, that they make me carry my towel from my room to the pool, that they won’t let me carry three gallons of booze on board with me, or that I have to pay for soft drinks at dinner. I don’t drink soft drinks anyway, so why should I pay for you to have them? If you paid $499 for a cruise don’t complain that they want $1.00 for a soft drink with your dinner. Ten years ago when you went cruising, soft drinks were free, but the cruise was $999! Go to have fun and you will. MrTractor
– Hide quoted text — Show quoted text -> This is just another line gone bad. Just as cheapo as RCI and Carnival > with their "Liquor Police". > All the mass market lines follow one anothers policies. In spite of the > industries labeling some as premium these lines have always been more > similiar to each other than different. In the present pricing situation > they are all driven to cost cutting. > The longer the prices are lower the more cost cutting is going to take > place. They could have lower prices for a short term period and hope to > make it up with more customers in the long term. But if the lower > prices continue and the cabins are still hard to fill, then they are > going to get squeezed and they will have to make more cuts. Any > differention will become less and less. > What I predicted a few years ago is taking place. The greed to win > market share would result in overbuilding of the capacity. Sooner or > later there had to be a downturn in the business cycle. And > unfortunatly that downturn in the cycle coincided with the terrorist > attacks. It only takes a small amount of people changing their vacation > plans to have a huge effect on a leisure industry like the cruise > industry. Don’t be surprised if one or more of the big three, Carnival, > RCI or Princess goes under or merged. > Just as sooner or later there had to be downturn in the business cycle, > there will someday be a recovery, but the old days of cruising are > probably gone forever. > — > Charles