Are Cruise deals over?

In article k.net,
Peter Berlin wrote:

I don't really see this policy causing you to cruise less.
Rates are very competitive with land based vacations, and
certainly offer a variety of ports that can't be matched at
an all inclusive land resort.

I have been cruising two or three times a year because the rates have
been low compared to a land vacation or all inclusive. If the rates go
up to be only "competitive", then instead of three cruises I will
cruise once or once every two or three years. I like land vacations,
lots of places left to see, I have only neglected land vacations
because of the good cruise deals. I like a week at a Caribbean beach or
all inclusive too. So I might very well be cruising less with this
policy---that remains to be seen---I will have to see what actualy
happens to prices. So while the policy might not cause me to cruise
less---I might choose to cruise less.

--
Charles

In article k.net,
Peter Berlin wrote:

I don't really see this policy causing you to cruise less.
Rates are very competitive with land based vacations, and
certainly offer a variety of ports that can't be matched at
an all inclusive land resort.

I have been cruising two or three times a year because the rates have
been low compared to a land vacation or all inclusive. If the rates go
up to be only "competitive", then instead of three cruises I will
cruise once or once every two or three years. I like land vacations,
lots of places left to see, I have only neglected land vacations
because of the good cruise deals. I like a week at a Caribbean beach or
all inclusive too. So I might very well be cruising less with this
policy---that remains to be seen---I will have to see what actualy
happens to prices. So while the policy might not cause me to cruise
less---I might choose to cruise less.

--
Charles

First of all - this DOES mean no rebating at all by anyone anymore for
RCI or Celebrity products, - beginning on Monday. This is a huge
development, and I don't think enough consumers have really thought it
through yet to understand what the ramifications are going to be. I
personally don't see how this benefits anyone unless you get a thrill
from injecting a little chaos into your life once in awhile. All this
policy is going to do is make life more complicated for many people in
this industry.

At first, many of the small agents applauded this and thought it would
level the playing field. Then they realized the mandate goes beyond
just advertising, it says everyone will sell at the same price and
cannot offer any incentives of any dollar value. That means they are
no longer allowed to offer free transfers, onboard credit, or other
such gifts that they used to give their special clients.

The big agencies who regularly rebated but made it up on volume are
going to find other ways to "discount" Royal Caribbean by bundling the
cruise with "free airfare" or a hotel. They can afford to do this
because RCI will be paying them the full commission.

RCI is going to have to pay those huge commissions so they are not
making any more money than before. If anything, because they have
ended rebating, they will be forced to lower prices to keep their
cruises competitive in the marketplace. Why would they want to put
themselves in that position?

The consumer is going to be hurt the most - always paying full retail
for every RCI or Celebrity cruise - discounts are now a thing of the
past.

I am sure RCI's first incentive to do this was the hope that it would
lead to more direct booking, because now people who call the cruise
line directly won't discover they can get the same cruise cheaper from
a travel agent. However, since the discounters are going to find other
ways to offer incentives, this "level playing field" RCI may have been
hoping for is not going to materialize as quickly as they hoped.

And here is another possible reason why...

When Bob Dickinsen created a similar rule for Carnival Cruise Line
cruises (except that their rule begins in January and is restricted
only to advertising, discounting is still allowed on the telephone),
he said he was doing it because "the agents have created a gray market
with Carnival's product, and that isn't fair to his company." OK -
true enough.

However, I foresee a possible black market of small agencies being
rebaters for RCI. For the first time they have the upper hand because
they can give a wink and handshake to their customers and they are
small enough that RCI will rarely catch ANY of them in the act.

Anyway - these are possibilities I see happening. Correct me if any of
my logic is wrong.

In article , Paul
Motter wrote:

Anyway - these are possibilities I see happening. Correct me if any of
my logic is wrong.

Thank you for posting your comments Paul. Very interesting. Lot's to
think about in your post.

--
Charles

In article , Paul
Motter wrote:

Anyway - these are possibilities I see happening. Correct me if any of
my logic is wrong.

Thank you for posting your comments Paul. Very interesting. Lot's to
think about in your post.

--
Charles

A Thu, 12 Aug 2004 16:58:32 GMT, "John & Beverly"
escribió:
1. illegal price fixing
2. lots of lost business and empty ships.
I doubt the cruise lines can afford either.

Which is as good an indication as any that assumptions along
those lines are incorrect.


--
bicker®
http://abcnews.go.com/sections/GMA/D...ry_040602.html

A Thu, 12 Aug 2004 16:58:32 GMT, "John & Beverly"
escribió:
1. illegal price fixing
2. lots of lost business and empty ships.
I doubt the cruise lines can afford either.

Which is as good an indication as any that assumptions along
those lines are incorrect.


--
bicker®
http://abcnews.go.com/sections/GMA/D...ry_040602.html

A Fri, 13 Aug 2004 00:01:00 GMT, "Bill"
escribió:
Seems to me that, in the final analysis, supply and demand will ultimately
rule.

Wisdom rears its ugly head in r.t.c!

At least this much truth has gotten out.


--
bicker®
http://abcnews.go.com/sections/GMA/D...ry_040602.html

A Fri, 13 Aug 2004 00:01:00 GMT, "Bill"
escribió:
Seems to me that, in the final analysis, supply and demand will ultimately
rule.

Wisdom rears its ugly head in r.t.c!

At least this much truth has gotten out.


--
bicker®
http://abcnews.go.com/sections/GMA/D...ry_040602.html

On Thu, 12 Aug 2004 13:47:04 GMT, Peter Berlin wrote:

Negotiated group rates will rule the "best deals" column.

There will be some businesses changing their business model.

Which is why I got ahead of that curve six months ago.