Cruise Prices Hikes Get Mixed Reviews

 

A Turning Tide

Earlier last week, Michael Given, MCC, franchise owner, Cruise Planners/CruisePlan.net, from New Jersey, told us he was seeing: “No benefits yet to higher prices. A few [customers] have mentioned it but were skeptical as to whether it was cruise line scare tactics.”

But a few days later, he talked with us again and eagerly exclaimed: “Hold the presses! Today, I booked two NCL cruises. Clients both feared rising prices.”

Given said that “maybe there was a skeptical waiting period and then repeated messages started to get them motivated.” He also said social networking information and online media reports may have helped. Given said one client specifically cited an article about rising cruise prices that was re-Tweeted on Twitter, while the other client talked about reading an AOL article about the looming price increase.

Similarly, Sabine Harris, a Cruise Planners franchise agent from Tampa, said: “I did have some clients that were concerned from Carnival telling everyone the rates were going up.” 

“As an agency we have aggressively promoted this in order to help close sales faster,” stressed Jack Ezon, president, Ovation Vacations, New York City, which does $60 million annually in luxury leisure sales. “Many people have responded positively to this sense of urgency and confirmed faster than they ordinarily would.”

That said, Ezon still sees [consumers who are] skeptics who, pessimistic on the economy, think cruise prices will go back down once they don’t sell off at higher rates. “Hopefully for us all, they will be proven wrong,” he said.

Ezon said it’s important for cruise lines to maintain price and promotional integrity – “a critical step in getting our industry back to where it was before the crisis.”

Some agents say the pending price hike hasn’t totally wowed clients. Margie Jordan, CEO, ASAP Travel, Jacksonville, FL, put it this way: “We have definitely made every effort to notify our clients but it seems that most don't think the increase will be significant.” That said, she’s booked a group cruise prior to the increase.

When it comes to the fare hikes, “frequent cruisers have taken more notice than those new to cruising,” said Jordan. “New cruisers don't have knowledge of typical cruise pricing and many spend more time deciding if a cruise is the vacation experience they're looking for.”

In contrast, Jordan says experienced cruisers act more quickly and are eager to lock in the next cruise, sail date and best pricing.

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