Tuesday, June 17, 2008
How did my cruise end up costing so much?
Ever wonder how that cruise at $999 a person suddenly ends up costing you closer to 1100 dollars per person? Part of the explanation has to do with taxes of course, but a growing reason is the dreaded fuel surcharge - a relatively recent appearance on most cruises' price lists. One which Royal Caribbean and its affiliated cruise lines "enhanced" today to as much as $15 per person per day.
In November, the relatively high price of oil led the major cruise lines to start charging fuel surcharges for their cruises. The surcharges were reasonable, to start. $5.00 per passenger per day for the first and second passenger was the standard across most cruise lines. Third and Fourth passengers didn't pay the additional charge. The only major exception was the cash-strapped Norwegian Cruise Lines which started at 7 dollars, and a two dollar per day charge for the third and fourth passenger.
The cruise lines are saying that it's because of high fuel prices and there's no doubt that this is a contributing factor to rising costs. But it's also a little shameless. For many cruise lines, especially from the Carnival lines, the pricing on cruises have remained roughly the same for 20 years when you adjust for inflation. Rather than actually raising rates, they've opted to raise fees for the most part instead.
There are two main reasons for a surcharge rather than a rate increase. First, most cruises are booked through Travel Agencies who get paid commission on the reservations. A surcharge is generally not something that compensates a sales agent. This means that any money the cruise line can generate from a fuel surcharge would go directly and wholly to the bottom line.
The second reason? A fuel surcharge is a surcharge to the fare. Cruise lines are now tacking on fees that range as high as 10% of the cruise fare per person without having to advertise a higher price. Yet, the pricing is higher by a significant amount.
And today, for good measure, Royal Caribbean announced that it would be increasing its fuel surcharges again effective June 30. On Royal Caribbean and Celebrity, the per day surcharge rate increases from eight to ten dollars per passenger. Third and fourth passengers will now pay a five dollar per day surcharge, up from three dollars. Their new niche cruiseline, Azamara Cruises, doesn't charge surcharges for third and fourth passengers on their sailings, but will charge a $15 per person per day, which is a doubling of their previous eight dollar a day surcharge.
In November, the relatively high price of oil led the major cruise lines to start charging fuel surcharges for their cruises. The surcharges were reasonable, to start. $5.00 per passenger per day for the first and second passenger was the standard across most cruise lines. Third and Fourth passengers didn't pay the additional charge. The only major exception was the cash-strapped Norwegian Cruise Lines which started at 7 dollars, and a two dollar per day charge for the third and fourth passenger.
The cruise lines are saying that it's because of high fuel prices and there's no doubt that this is a contributing factor to rising costs. But it's also a little shameless. For many cruise lines, especially from the Carnival lines, the pricing on cruises have remained roughly the same for 20 years when you adjust for inflation. Rather than actually raising rates, they've opted to raise fees for the most part instead.
There are two main reasons for a surcharge rather than a rate increase. First, most cruises are booked through Travel Agencies who get paid commission on the reservations. A surcharge is generally not something that compensates a sales agent. This means that any money the cruise line can generate from a fuel surcharge would go directly and wholly to the bottom line.
The second reason? A fuel surcharge is a surcharge to the fare. Cruise lines are now tacking on fees that range as high as 10% of the cruise fare per person without having to advertise a higher price. Yet, the pricing is higher by a significant amount.
And today, for good measure, Royal Caribbean announced that it would be increasing its fuel surcharges again effective June 30. On Royal Caribbean and Celebrity, the per day surcharge rate increases from eight to ten dollars per passenger. Third and fourth passengers will now pay a five dollar per day surcharge, up from three dollars. Their new niche cruiseline, Azamara Cruises, doesn't charge surcharges for third and fourth passengers on their sailings, but will charge a $15 per person per day, which is a doubling of their previous eight dollar a day surcharge.
Labels: azamara, celebrity cruises, cruises, royal caribbean
Thursday, January 24, 2008
Sneak Peek: Celebrity Solstice
Yesterday, I had the joy of meeting with one of my friends from Celebrity Cruises. As a result I got a sneak peek of some of the things coming up on their new ship, the Celebrity Solstice which will start sailing the Caribbean in December. Last week, the cruise line revealed its new grass technology by announcing "The Lawn Club," which simply put is a half acre of actual turf on top of the new ship. But here are some more statistics on the new ship.
The Solstice will be large. 122,000 tons roughly, about 25-30% larger than the current flagships of the fleet (Millennium Class), and about 10-15% larger than the largest Carnival ships. The theme on the ship seems to be more geared towards adults than families, with a country club theme throughout.
Everything is two story, the solarium, the library, even the lido deck has a second level of deck chairs. The designs do look quite smart, and off the main pool on the lido deck, look for a waterfall ending in or near the pool.
Despite the ship's theme being very adult, there is a great new addition to their children's program which is worth mentioning. Thanks to a partnership with Leapfrog Educational Toys, they will be one of the first cruise ships to offer a children's program for kids under 3. They haven't announced a minimum age yet on that, but I'm guessing it'll be a program for 2 year old toddlers. Details of the program have yet to be announced, but it basically looks like a glorified during the day babysitting service, giving parents the option of being adults.
The other great thing with the new ship is the new class of stateroom being offered, Aqua Class. These are spa staterooms. The staterooms themselves are the same size as other balcony but offer upgraded amenities, better access to spa treatments, and in the room - an amazing five showerhead panel in the bathroom, allowing you to get an actual great shower aboard a cruise ship. Also, Aqua Class passengers get their own restaurant called Blu. The focus will be spa menu meals, but will also have traditional fare available. Access to this restaurant will be available to other passengers, but only on an availability basis, and other passengers will be charged as if they were going to be going to a specialty restaurant. No word yet on access for passengers in full suites for this restaurant.
All in all, Celebrity is putting a premium product together for the Solstice class. Their expansion plans are ambitious, putting four of these megaships out between November 2007 and the end of 2010. And for the most part, I think it captures their market well. Things like The Lawn Club, and the Glass Blowing exhibit are a bit beyond me, and I think will be beyond most guests, but the other new features are generally innovative and good. I think this ship will be a success, and hopefully the launch will go more smoothly than Celebrity had with its Azamara initiative last summer.
The Solstice will be large. 122,000 tons roughly, about 25-30% larger than the current flagships of the fleet (Millennium Class), and about 10-15% larger than the largest Carnival ships. The theme on the ship seems to be more geared towards adults than families, with a country club theme throughout.
Everything is two story, the solarium, the library, even the lido deck has a second level of deck chairs. The designs do look quite smart, and off the main pool on the lido deck, look for a waterfall ending in or near the pool.
Despite the ship's theme being very adult, there is a great new addition to their children's program which is worth mentioning. Thanks to a partnership with Leapfrog Educational Toys, they will be one of the first cruise ships to offer a children's program for kids under 3. They haven't announced a minimum age yet on that, but I'm guessing it'll be a program for 2 year old toddlers. Details of the program have yet to be announced, but it basically looks like a glorified during the day babysitting service, giving parents the option of being adults.
The other great thing with the new ship is the new class of stateroom being offered, Aqua Class. These are spa staterooms. The staterooms themselves are the same size as other balcony but offer upgraded amenities, better access to spa treatments, and in the room - an amazing five showerhead panel in the bathroom, allowing you to get an actual great shower aboard a cruise ship. Also, Aqua Class passengers get their own restaurant called Blu. The focus will be spa menu meals, but will also have traditional fare available. Access to this restaurant will be available to other passengers, but only on an availability basis, and other passengers will be charged as if they were going to be going to a specialty restaurant. No word yet on access for passengers in full suites for this restaurant.
All in all, Celebrity is putting a premium product together for the Solstice class. Their expansion plans are ambitious, putting four of these megaships out between November 2007 and the end of 2010. And for the most part, I think it captures their market well. Things like The Lawn Club, and the Glass Blowing exhibit are a bit beyond me, and I think will be beyond most guests, but the other new features are generally innovative and good. I think this ship will be a success, and hopefully the launch will go more smoothly than Celebrity had with its Azamara initiative last summer.
Labels: celebrity cruises, cruises, sneak peeks, travel
Friday, January 18, 2008
Celebrity Cruises Goes Green!
Celebrity Cruises has discovered the future of cruising, and starting with the Celebrity Solstice which will be inaugurated later this year, they'll be providing it. Amazing high tech gear will be needed to maintain and showcase this wonderful new attraction to cruisers everywhere. So the future of cruises sits just below this very sentence!
That's right, Celebrity Cruises will be introducing the grass concept to their new ship with "The Lawn Club." One of the public decks will feature about 23,000 square feet of honest to goodness grassy goodness for people to enjoy, walk on, putt golf balls and play bocce on. It's like a piece of that perfect backyard you hope to create at home, for your vacation.
Which begs the question, why would you travel thousands of miles to be reminded of your backyard? Not to be too worried though, Celebrity is making this strange thing a little weirder by offering glass blowing demonstrations and classes as well that you can take on the lawn. Seriously. Celebrity is teaming up with the Corning museum of Glass to bring this show to sea.
I don't quite know what else to say... because I don't really know how to react. Will this get a reaction? Yes. I just don't understand it to be that much of a draw. Celebrity does go for more of a country club feel, so this may work to the cruise line's advantage, but at the same time it's another one of these things I don't get. Much like an ice skating rink on the Caribbean sea, its an interesting idea but not something that would make me jump on a cruise.
I think for most people, the itinerary and service are the big draws to a cruise line like Celebrity. There's a draw to being treated well on a well appointed ship, but this kind of gimmick is more suited to Royal Caribbean or Norwegian who need to put forth these gimmicks to keep the same itineraries on otherwise ordinary ships interesting year after year.
And how interesting is this ultimately? Sail Celebrity, watch glass harden and grass grow. Sign me up!
That's right, Celebrity Cruises will be introducing the grass concept to their new ship with "The Lawn Club." One of the public decks will feature about 23,000 square feet of honest to goodness grassy goodness for people to enjoy, walk on, putt golf balls and play bocce on. It's like a piece of that perfect backyard you hope to create at home, for your vacation.
Which begs the question, why would you travel thousands of miles to be reminded of your backyard? Not to be too worried though, Celebrity is making this strange thing a little weirder by offering glass blowing demonstrations and classes as well that you can take on the lawn. Seriously. Celebrity is teaming up with the Corning museum of Glass to bring this show to sea.
I don't quite know what else to say... because I don't really know how to react. Will this get a reaction? Yes. I just don't understand it to be that much of a draw. Celebrity does go for more of a country club feel, so this may work to the cruise line's advantage, but at the same time it's another one of these things I don't get. Much like an ice skating rink on the Caribbean sea, its an interesting idea but not something that would make me jump on a cruise.
I think for most people, the itinerary and service are the big draws to a cruise line like Celebrity. There's a draw to being treated well on a well appointed ship, but this kind of gimmick is more suited to Royal Caribbean or Norwegian who need to put forth these gimmicks to keep the same itineraries on otherwise ordinary ships interesting year after year.
And how interesting is this ultimately? Sail Celebrity, watch glass harden and grass grow. Sign me up!
Labels: celebrity cruises, cruises, gimmicks, travel
