Cruise prices have gone up. That can't be argued since demand has returned and cruise lines use demand-based pricing.
Passengers have definitely noticed the change, and higher cruise fares have made some people more conscious of the price they pay for extras like Internet access, beverage packages, excursions, special meals and other onboard purchases.
Royal Caribbean CEO Jason Liberty has said prices are higher across all aspects of cruising, but there is one important factor.
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“Consumers are booking their vacations further in advance; 70% are booking at least one of their onboard activities before the cruise at higher prices (average daily prices), and onboard spending continues at record levels and at higher rates” Liberty said during the company's conference. fourth quarter results call. “This positions us very well to outperform the broader travel industry and close the price gap to shore holidays.”
Liberty talks a lot about the “price gap,” referring to the fact that even at higher prices, cruises cost less than land vacations. This is because purchasing a cabin on Royal Caribbean or Carnival Cruise Line (CCL) The boat comes with all your meals and snacks, as well as entertainment included.
Of course, there are plenty of ways to spend extra money on a cruise, and Carnival brand ambassador John Heald recently addressed a pricing issue that bothers many passengers.
Image source: Carnival Cruise Line.
Carnival addresses onboard pricing
Heald spends most of his workday answering questions on his Facebook page. In responding to one of them, he clarified a common misconception about onboard pricing.
“Among the 600 comments and questions I answered yesterday was a complaint about in-flight store prices for toiletries,” he wrote. “We now do not own, manage or operate our ship stores, nor do we set prices.”
Cruise stores are essentially like stores in a shopping center. They are rented spaces where the store operator controls prices and inventory.
“And I guess, like hotel gift shops, those who have forgotten basic items like toothpaste, shaving cream, deodorant, etc. will have to pay more than at Cvsgreens. But the convenience of having these essential items on board, in the middle of the “The ocean is a good thing just in case, but maybe a packing list is a good way to make sure you don't need to buy any forgotten items,” Heald added.
The brand ambassador also noted that the cruise line offers some basic toiletries.
“And remember, we provide soap, shampoo and shower gel to every guest,” he added.
The carnival sees a high demand
Carnival, like Royal Caribbean, has seen increased demand, leading to higher prices.
“The position reserved for our North American brands remains further out than ever and well ahead of last year at significantly higher prices,” CEO Josh Weinstein said during the cruise line's fourth-quarter earnings conference call. “Our European brands have just generated record booking volumes in the fourth quarter at significantly higher prices and with a booking window that is now fully back to historical norms.”
Carnival has seen increased demand around the world and passengers are spending more in all areas.
“As expected, our European brands are poised to further contribute to our operational improvement in 2024. At the same time, we continue to drive onboard revenue through packages and pre-cruise sales,” he added.
The cruise line has also benefited from its newer ships, which offer more upsell opportunities.
“This strategy, along with even more onboard features on our newest ships for our guests to enjoy, positions us well for further onboard revenue growth next year,” he said.
“In total, we expect full-year occupancy to return to historic levels with 5% more capacity while providing much higher per diem, building on this year's record results.”
