From Travel Market Report:
by Andrew Sheivachman
December 17, 2012
For years, cruise fares that cover alcoholic beverages have been a staple of luxury and river cruises. Now the largest cruise lines in the world are answering with their own inclusive pricing.
In 2012, mainstream cruise lines including Carnival, Royal Caribbean and Norwegian experimented with all-you can-drink beverage packages. The trend accelerated last week when Royal Caribbean announced that it will begin selling drinks packages on its 22 ships early in 2013.
The move followed Carnival’s expansion to six ships of a similar program that it has been testing this year. Norwegian Cruise Lines is also testing out the formula.
Not commissionable
Priced between $42 and $55 per guest, per day, depending on the cruise line (see sidebar), the plans are seen as a pitch to attract more price-conscious cruisers.
Royal Caribbean has positioned its drinks packages as one component of a fleet-wide revitalization program that includes enhanced dining and beverage options.
For the most part, drinks packages are not commissionable. One exception is a smaller line, Windstar Cruises, pays 10% commission on an all-you-can drink packages purchased in advance of sailing.
Price-sensitive shoppers
Agents deduced that the new deals are being used to stimulate demand from hesitant potential cruisers.
“Part of the problem is people are not cruising because of the economy,” said Jennifer Binish, an agent at Travelex International in Hoffman Estates, Ill.
When money is tight, consumers feel more comfortable knowing the final price tag in advance.
“Nothing’s worse than going on a cruise and knowing at the end of the day you have a $2,000 bar tab. Then everyone isn’t relaxed – they have to budget,” Binish said.
Inclusive strategy
The moves also suggest that the major cruise lines are emulating the inclusive pricing of luxury lines, but without having to increase rates.
“People have always had that image of cruising as being all-inclusive,” said Michelle Fee, CEO of Cruise Planners in Coral Springs, Fla. “The more these cruise lines can make themselves like the luxury lines, the better.”
“People don’t mind spending the money upfront. What people do mind is feeling nickeled and dimed,” she added.
Competing with land?
Nancy Yoffe, owner of Cruise Planners in Spartanburg, S.C., also sees the mainstream cruise lines attempting to position their product favorably relative to land vacations.
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