Grumpy
03-31-2009, 06:05 AM
http://www.msnbc.msn.com/id/29921431/
By Christopher Elliott
Travel columnist
msnbc.com contributor
updated 10:04 a.m. ET, Mon., March. 30, 2009
Here are five ways their customers are channeling the Captain and getting even with the cruise industry:
Waiting until the last minute to book
Cruises used to be bought a month or more in advance, and often far longer. If this were a normal year, for example, then most of the 2009 cruises would already be booked by now (they’re bought during a time in January, February and early March called “wave” period). It’s not a normal year. “I’m seeing them wait two weeks or less,” says Jenny Reed, a travel agent for Atlanta-based Cruise Planners. It’s a waiting game, with cruise lines keeping prices as high as possible until it looks as if they’ll sail with a lot of empty cabins. Then they slash rates. They’re trying to reverse the trend. In January, Carnival introduced what it called an “early saver” fare that guaranteed the lowest price on a cruise if you booked three months early. If you later find a lower fare for the same sailing and accommodations, Carnival will issue the difference in the form of an onboard credit.
Smuggling alcohol on board
Sales of beer and wine are big business to cruise lines. At sea, where there’s no lawful drinking age or legal limit for alcohol consumption, sales of alcoholic beverages are believed to be the single largest source of onboard revenue. For a cruise line, selling a lot of booze can mean the difference between a profitable and unprofitable trip. So when passengers bring their own alcoholic beverages, there’s a problem. Andi Fisher, a marketing manager from Berkeley, Calif., watched several passengers get busted on her last cruise. “One got caught because when the bottle went through the X-ray and came out the other side someone knocked it over and there was Kahlua everywhere,” she says. “Someone else brought vodka in a water bottle.”
Not taking official shore excursions
Another big moneymaker for cruise lines is a shore excursion, such as an island sightseeing tour or a dive trip to a coral reef. Many cruise lines reportedly split the take from these excursions on a 50/50 basis. But those trips are no longer a sure thing. Passengers I spoke with said their shore excursions were half-full, or worse. “We did not take an excursion on our last cruise,” says Jamie Floer, who recently sailed on the Seven Seas Mariner. “It was canceled due to lack of interest.” Does that mean people aren’t coming ashore? Hardly. Instead of buying one of the higher-priced shore excursions offered by the cruise line, they’re opting for a less expensive one you can book online or in person at the port.
Avoiding the ‘upsell’
Like Roberts, a lot of passengers are simply saying “no” to the extras, including the premium restaurants, photos and drinks. Jean Farmer, owner of the Greenwood, Ind.-based cruise agency Elegant Cruises by Jean, has overheard some passengers grumble about the surcharges. “They chose not to go to the specialty restaurants and were very happy with the food in the main dining room,” she says. Cruise lines are so concerned about the lack of guests to these premium restaurants that they’ve begun offering incentives designed to lure them back. One of Farmer’s clients was offered a coupon book on a recent Royal Caribbean cruise for a free meal at Johnny Rockets. “They were thrilled,” she added.
Staying home
The absolute worst-case scenario? That passengers don’t fall for the last-minute deals at all, and skip their vacations entirely. As the economy slides further into recession, that’s a distinct possibility. But it’s not the only reason people would forfeit their cruise, to hear passengers like Tom Sullivan, a Web developer from Middletown, N.J., who cruised on Royal Caribbean last fall, talk about it. “I think many people can overlook being nickel and dimed by surcharges and fees as long as there is still value and a good experience,” he told me. “But that, too, is declining. No amount of fees or surcharges will compensate for a negative vacation experience or lack of value — and will drive people away.”
While it may be something of a stretch to call any these actions “revenge,” they are undoubtedly hurting the cruise industry. Profits are plummeting and new ship construction projects are in danger of being canceled, arguably as a direct result of this new consumer behavior. Captain Sparrow is on the loose.
Maybe now would be a good time to rethink the way floating vacations are marketed. The cruise lines could start by ending the use of the word “all inclusive” to describe their product.
By Christopher Elliott
Travel columnist
msnbc.com contributor
updated 10:04 a.m. ET, Mon., March. 30, 2009
Here are five ways their customers are channeling the Captain and getting even with the cruise industry:
Waiting until the last minute to book
Cruises used to be bought a month or more in advance, and often far longer. If this were a normal year, for example, then most of the 2009 cruises would already be booked by now (they’re bought during a time in January, February and early March called “wave” period). It’s not a normal year. “I’m seeing them wait two weeks or less,” says Jenny Reed, a travel agent for Atlanta-based Cruise Planners. It’s a waiting game, with cruise lines keeping prices as high as possible until it looks as if they’ll sail with a lot of empty cabins. Then they slash rates. They’re trying to reverse the trend. In January, Carnival introduced what it called an “early saver” fare that guaranteed the lowest price on a cruise if you booked three months early. If you later find a lower fare for the same sailing and accommodations, Carnival will issue the difference in the form of an onboard credit.
Smuggling alcohol on board
Sales of beer and wine are big business to cruise lines. At sea, where there’s no lawful drinking age or legal limit for alcohol consumption, sales of alcoholic beverages are believed to be the single largest source of onboard revenue. For a cruise line, selling a lot of booze can mean the difference between a profitable and unprofitable trip. So when passengers bring their own alcoholic beverages, there’s a problem. Andi Fisher, a marketing manager from Berkeley, Calif., watched several passengers get busted on her last cruise. “One got caught because when the bottle went through the X-ray and came out the other side someone knocked it over and there was Kahlua everywhere,” she says. “Someone else brought vodka in a water bottle.”
Not taking official shore excursions
Another big moneymaker for cruise lines is a shore excursion, such as an island sightseeing tour or a dive trip to a coral reef. Many cruise lines reportedly split the take from these excursions on a 50/50 basis. But those trips are no longer a sure thing. Passengers I spoke with said their shore excursions were half-full, or worse. “We did not take an excursion on our last cruise,” says Jamie Floer, who recently sailed on the Seven Seas Mariner. “It was canceled due to lack of interest.” Does that mean people aren’t coming ashore? Hardly. Instead of buying one of the higher-priced shore excursions offered by the cruise line, they’re opting for a less expensive one you can book online or in person at the port.
Avoiding the ‘upsell’
Like Roberts, a lot of passengers are simply saying “no” to the extras, including the premium restaurants, photos and drinks. Jean Farmer, owner of the Greenwood, Ind.-based cruise agency Elegant Cruises by Jean, has overheard some passengers grumble about the surcharges. “They chose not to go to the specialty restaurants and were very happy with the food in the main dining room,” she says. Cruise lines are so concerned about the lack of guests to these premium restaurants that they’ve begun offering incentives designed to lure them back. One of Farmer’s clients was offered a coupon book on a recent Royal Caribbean cruise for a free meal at Johnny Rockets. “They were thrilled,” she added.
Staying home
The absolute worst-case scenario? That passengers don’t fall for the last-minute deals at all, and skip their vacations entirely. As the economy slides further into recession, that’s a distinct possibility. But it’s not the only reason people would forfeit their cruise, to hear passengers like Tom Sullivan, a Web developer from Middletown, N.J., who cruised on Royal Caribbean last fall, talk about it. “I think many people can overlook being nickel and dimed by surcharges and fees as long as there is still value and a good experience,” he told me. “But that, too, is declining. No amount of fees or surcharges will compensate for a negative vacation experience or lack of value — and will drive people away.”
While it may be something of a stretch to call any these actions “revenge,” they are undoubtedly hurting the cruise industry. Profits are plummeting and new ship construction projects are in danger of being canceled, arguably as a direct result of this new consumer behavior. Captain Sparrow is on the loose.
Maybe now would be a good time to rethink the way floating vacations are marketed. The cruise lines could start by ending the use of the word “all inclusive” to describe their product.