Get on board now! SINCE 9/11 and the consequent fall of cruise pricing, fares have generally been based on an industry model of sailing at 100% occupancy – meaning that to make a profit, cruise lines staked their bets on onboard spend. The result, along with the apprehension of increasing...
Get on board now!
SINCE 9/11 and the consequent
fall of cruise pricing, fares have
generally been based on an industry
model of sailing at 100% occupancy
– meaning that to make a profit,
cruise lines staked their bets on
onboard spend.
The result, along with the
apprehension of increasing prices
against an extremely competitive
market, has resulted in current day
cruise rates being undervalued and
disproportionate to what clients
receive. They are getting a bargain
that historically is at its best!
Top cruise executives have
transparently declared that to
survive, we as an industry need to
gain a more parallel price margin to
what the client is actually getting.
Many lines have now
implemented a ‘stop cutting prices
on close-in sailing dates’ policy.
This new model of ridding
last-minute pricing has become
increasingly important because
cruise lines admit late discounting
undermines their previous 9/11
marketing assertions that only by
booking early will passengers get
the best fares.
3-4 day cruises will be the last to
change which ironically depend on
this staggered approach, but the
pledge is coming into vogue with
the commercial decision makers.
This model is not an option, it IS
happening. It’s time to get your
client on a cruise NOW before
prices increase to something that
is a little fairer on the product that
is providing the ultimate holiday
service for your patrons.
with Peter Kollar
CLIA Australasia
