How should cruiselines be cutting their costs?

coloradocruisers · May 18, 2009

I've been monitoring some of the discussion in the Daily Dock and in reviews about the annoying changes cruiselines are making to cut costs; for example, eliminating mints on pillows. Cost cutting is never pleasant, but I'm also mindful that these companies are currently losing millions of dollars every quarter. I don't know how much is saved in chocolate mints, fewer wine samples or how much is gained by charging for extras, but they have to do something or some of them may not stay in business. Companies, big and small, are failing everyday.

As far as the cruiselines are concerned, what does everyone suggest?

(I'll refrain, for now, because I've not got nearly as much experience cruising as many of you.)

JoeyandDavid · May 18, 2009

Interesting question Kevin..I don't have the answer either.

sailingrose · May 18, 2009

They could stop by not building more ships! RCI is paying for 2 huge ships and that is making them cash poor.

cruisetarp · May 18, 2009

I wish I had the answer but building bigger and bigger ships and alienating their most loyal customers by cutting back on benefits is definately not the way to make a profit.

JoeyandDavid · May 19, 2009

They could stop by not building more ships! RCI is paying for 2 huge ships and that is making them cash poor.

Rose in the case of RCL i must disagree...they need to acquire more ships just to enable them to meet demand.. currently they have to make decisions like Jacksonville or Galveston..instead of both.. they had to pull the 3 and 4 nighters out of LAX because they didnt have enough ships.... no I don't think incurring debt is a bad thing here..jmo

sailingrose · May 19, 2009

True Joey however they are only building bigger ships.........the current fleet is not sailing full and they are cutting fares to fill the ships. Don't they think eventually they will size out many......I'm not interested in Oasis or Freedom for that matter. I also think the Voyager class is too big. MHO of course but bigger is not always better! Also the bigger ships can't get into many of the ports so they become tender ports making it more expensive to get passengers to port.

I think part of the problem is putting too many ships in a certain area......seems like a glut of ships in Europe this year, not by just RCI but all the lines.

JoeyandDavid · May 19, 2009

True Joey however they are only building bigger ships.........the current fleet is not sailing full and they are cutting fares to fill the ships. Don't they think eventually they will size out many......I'm not interested in Oasis or Freedom for that matter. I also think the Voyager class is too big. MHO of course but bigger is not always better! Also the bigger ships can't get into many of the ports so they become tender ports making it more expensive to get passengers to port.
I think part of the problem is putting too many ships in a certain area......seems like a glut of ships in Europe this year, not by just RCI but all the lines.

you could be right...

jacketwatch · May 19, 2009

Tough to say as I don't have a business background but I will say that Princess cut back on the entertainment. They had more shows from their own troupe and fewer contract entertainers. For me the best way to keep customers is with great, knock out CS. Do that and $$ comes is if your customer base expands and is content with the product you provide so is critical to set this tone for excellent CS from top to bottom.

DebbieandJerry · May 19, 2009

We had mints everynight on the Mercury. By day 7, Jerry told the room steward, please no more chocolate mints. The room steward was surprised by the request.

Carnival had a very nice note in our bathroom reminding us that the linens would not be changed on the bed on a daily service unless requested. They also said that if we hung our towels up after using them, that was a "reminder" that we didn't need new towels.

Sure, these are small cost saving/energy saving techniques. But they work in the hotel industry. Why should the cruising industry be different?

I find myself comparing cruises, amenities, (lack of amenities), food, service, entertainment, etc. The more I cruise, the more I compare. When I look back, I realize that I had a blast on every one of those cruises (even the ones that I didn't think were so 5-star at the time).

JoeyandDavid · May 19, 2009

Tough to say as I don't have a business background but I will say that Princess cut back on the entertainment. They had more shows from their own troupe and fewer contract entertainers. For me the best way to keep customers is with great, knock out CS. Do that and $$ comes is if your customer base expands and is content with the product you provide so is critical to set this tone for excellent CS from top to bottom.

I am formulating my thoughts before I call RCI most likely Thursday to comment on my last cruise and the cut backs.. from a guest and from a shareholders point of view... I hope they listen..