Wednesday, September 30, 2009

Why don't all cruises cost the same?


We all see countless ads for cruises that proclaim almost unbelievable prices, but eventually we see the small print with disclaimers such as "Fares may vary by dates." It always makes me wonder why they included a New Year's cruise along with one in early December or mid-October. Often, the sales price applies to one specific date and is subject to availability at the time of booking.

Obviously, the ads are intentionally deceptive, but they do make phones ring, which of course is the objective of advertising. At that point, it is up to the sales representative to convince the prospect to perhaps pay twice as much as they expected. Upon being contacted, however, I personally spend as much time as necessary to find promotions or alternatives that might work for these prospects. I always do my best to get the best rates available.

Case in point: I had a prospect just last Friday give me his credit card information to pay for a cruise I had recommended. However, because I knew Royal Caribbean's Sales Event on Tuesday would save him $60, I advised him of this, and he pocketed the savings. Obviously, that cuts into my commission, but I am all about building relationships rather than making one time sales.

The more I know about my clients, the better I can serve them, both in terms of finding the ideal cruise and finding the best promotions. However, some people won't give me the opportunity to serve them or save them money, instead simply demanding a generic price on a particular cruise. Without more data, it is unlikely I will have a different price than the other ten websites or travel agents they contacted, and I've been known to say exactly that.

Prices vary according to supply and demand. That's the bottom line. Some cruise dates are obviously preferable. Holidays and summers always have dramatically more demand than weeks on either side of them, so prices are higher. That's when families with school-aged children and teachers can travel. If, however, you don't necessarily need to travel during those high demand periods, you can save a lot of money by simply cruising when school is in session.

Itineraries can make a big difference too. For example, it's not unusual for an Eastern Caribbean itinerary to cost $50 more than a Western Caribbean itinerary, because the Western Caribbean is easier to reach from more ports from Texas to Florida, increasing supply. The Southern Caribbean cruises from San Juan, on the other hand, come with longer flights for mainlanders, often resulting in some of the lowest Caribbean prices despite itineraries packed with fantastic ports.

Some itineraries are in much greater demand on a regular basis. For example, Northern Europe cruises often demand the highest price per day among cruises. The itineraries are too cold in the winter, so they are limited to traveling between spring and fall. In addition to Americans willing to fly great distances to experience the history and splendor of this wonderful area, Europeans, with their strong Euros, happily snatch up space on ships primarily geared to Americans, who after all demand the best. As such, a ten night cruise in Northern Europe will almost always cost more than a ten night cruise on the Mexican Riviera, for example, even if the cruise ships are exactly the same. An alternative land vacation in Northern Europe would cost considerably more than an equivalent cruise, which also adds to the value.

Lest I forget, there also are big differences between cruise lines and ships within those lines, also effecting prices.

The cruise lines attempt to fill ships at the highest price the market will bare, and in order to accomplish this, they often make promotions available to specific groups of people whose demographics seem likely to act on a particular promotion. Princess in particular has some convoluted promotions based on different categories of past guests that confuses people traveling with friends, some of whom qualify for better pricing despite having taken no more cruises than the less fortunate. That's why it is so important that you book your cruises through me. I will continue to look for applicable promotions to improve your overall deal after you've deposited.

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