In an interview with Bloomberg Businessweek, Royal Caribbean CEO Richard Fain indicated that the party may soon be over when it comes to last-minute cruise deals.
Fain told Bloomberg the reasons will be:
• More ships moving to Asia, reducing the capacity in the Caribbean, where most last-minute deals surface
• Attempts by cruise lines, notably his, to stabilize pricing that alienates cruisers who book early and wind up paying more
He agreed that cruise lines risk having fewer passengers on ships to, as he put it: “…raise the satisfaction level of our guests and strengthen the perception of our brand superiority.”
Hmm, interesting.
Three thoughts come to mind:
One, cruises are like most businesses, with pricing dictated by supply and demand. If fewer ships in the Caribbean create more of a demand, prices will surely go up and there won’t be as many last-minute deals. That’s just business.
Two, why do the “early bookers” complain? If they don’t like the fact that “late bookers” may get a better deal by waiting, all they have to do is change their tactics and take a chance on booking a cruise at the last minute. Certainty comes with a price.
Three, the whole empty-cabin issue is problematic. There aren’t fewer cabins when a ship departs, and having nobody in them at least looks like lost revenue, since the savings from fewer bed changes, or less cleaning and electricity, or even less food on the ship is minimal.
Will cruise lines be able to resist sailing with more empty cabins?
And if they do, will the segment of the population that “bargain shops” — be it for almost-expired yogurt or last-minute cruises — be alienated by a change in cruise policy?
Today at portsandbows.com: The latest in cruise news
Holland America Amsterdam
14 nights
December 8, 2014
San Diego, Puerto Vallarta, Huatulco, Puerto Quetzal, Corinto, Puerto Caldera, Panama Canal, Cartagena, Fort Lauderdale
Inside: $1,199
Cost per day: $85
www.hollandamerica.com