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  #31 (permalink)  
Old 02-06-2009, 09:20 AM
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Here is an excerpt of Richard Fain's comments from the transcripts of the earnings call:

"Pricing is still way lower than we would like. But the reason we are encouraged is that it seems that those prices are beginning to reach an equilibrium level. This gives us the opportunity to utilize our yield management tools on a mortal productive basis, and it gives us some feeling of comfort that there is a level of price elasticity, around which we can manage. At the same time, we are also finding that going to extreme pricing discounts in order to fill the very last cabin may not be as productive as has historically been the case. As a result, our yield projections include an assumption that we will accept slightly lower occupancy levels in order to keep pricing up and to maximize yields."

From CFO Brian Rice:

"...our customers have traditionally booked their cruise approximately five months prior to sail date. Since the economic environment began deteriorating in September, we have seen a steady contraction in the booking window. And today our average customer is booking a departure only about four months away."

Discussing the changes to their business model, Mr. Rice said "as we move closer to sailing date, the period when consumers are ready to buy, we can achieve significant improvement in booking volumes without further price deterioration."

The above quotes are used with the permission of Seeking Alpha. The entire transcript can be viewed here at the Seeking Alpha website.
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  #32 (permalink)  
Old 02-07-2009, 02:15 AM
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Dave, That's why I use the term "Generally", not meaning all. You, Penny, me, and others that post to this site know value in cruising.
"Jan", (since Penny set the precedent).

I know what you mean. For me, I spend approximately the same regardless of the cruise fare. I'm sure fare slashing does "generally" attract some "low" spenders though. Especially those that don't plan and save for their cruise and grab the last minute type bargains. I'm sure you're aware CCL has even introduced a new "Pack and Go" rate.

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I wonder if those published fares are not even what is effected by this "policy". You see we have a friend who condo is overlooking the cruise port in LA, and RCCL calls HIM when they are not full and offers this guy and his friends absolute bargain basement pricing on their rooms as they can go in 24 hours notice--or less on a weekend. Until Kevin mentioned this little tidbit I had no idea such a call list existed. Perhaps some of this very last minute private contact pricing is mostly what is on the chopping block.
spoheat, I'm not sure what the RCI guidelines are for this. It is a common practice apparently, as I know CCL does it as well. My understanding is it is mostly employees, or affiliated employees, and Travel Agents that are pre-registered. I wouldn't think it would impact the published pricing to much of a degree either, if it works the same as CCL's.

Dwayne
  #33 (permalink)  
Old 02-07-2009, 08:44 AM
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Even at a bump in prices, cruising is by far and away, the best deal in travel....convenience, hospitality, meet and greet a wide array of people, relaxation, and on and on...My wife waits and buys her Christmas, Birthday, Anniversary presents on the cruise...usually on the ship, and since our liquor bill is usually zero, she has lots of extra money to spend in the jewelry department. I just can't imagine not tipping the crew..there must be a place in Hell for those who don't....Happy Cruising and spending money on the cruise.....

Bob E
  #34 (permalink)  
Old 02-07-2009, 09:43 AM
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Bob E - We will be going to Hell, Grand Cayman in February 2010 on the CCL Freedom. Last time we were there I'm sure some of our shipmates were non-tippers!
Although I got a tip myself...to bet on Fleet Foot in the 7th at Belmont!

BillyBuzzy
 
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