Earlier this week I had the opportunity, and pleasure, to visit Seabourn's offices in Miami. I had the opportunity to visit with everyone: reservations, marketing, sales, tours and hotels, guest relations, the Seabourn Odyssey "command center", etc. and, of course, the President, Pamela Conover.
It was great putting faces to those voices in Reservations who have so wonderfully assisted me over the years. As many of you know from when you speak with them, we have a great relationship. What I truly enjoyed was seeing that they not only sound like nice people, they are nice people. And they seem to really enjoy each other. Great photos of their fun moments are proudly posted by many desks. So, if you call Seabourn, I can assure you that the pleasant voice you are hearing is not fake. They really do smile...a lot. (In fact, the only complaining I heard at all was about a certain someone - who will deny it - hoarding the brownies I had sent over earlier in the day!)
I was able to get a quick peak at some new things...Seabourn is always looking at ways to improve. So for those few misinformed complainers and doomsayers (and you know who you are posting away on Cruise Critic), I can assure you that you are very wrong. I never heard or saw anything about cutting back or modifying anything. All I heard about, and saw, were improvements. Sometimes improvements require change, but change can be good.
An example: I was, with some arm-twisting, able to see the new Pre-Cruise Documents that are going to be used shortly. They are so well designed and good looking. While they will not be leather-bound editions, I can assure you that many people will consider then keepsakes of their cruise before they even board. They have great style and, more importantly, much more useful information then the present ones, in an easy to read and use format.
Another example: Being nosy, I asked to see the new place settings for the Seabourn Odyssey. Each venue has its own style and, though I was not able to see the exact colors of the final pieces, the samples clearly reflect Seabourn's concern with the details right down to the differences in presentation of the cuisine in each restaurant. (Restaurant 2's menus have a far different need than the Main Restaurant, for example.)
I caught wind of some other things to come, but suffice it to say, if I tell you I won't ever be told anything again! Trust me, it is all good.
Barry Hopkins, the Seabourn Odyssey's Cruise Director, was hard at work with Hotel Manger, Guenter Steinbrunner. They were so intense I felt like I was intruding...but, of course, I was. In typical Seabourn style, they stopped what they were doing (with a smile) and enthusiastically answered my questions. They are feeling the pressure of the new ship, but they are very excited.
One place where there is what I will call "New York intensity" is on the hotel/tour/private excursion front. If you ever thought Seabourn was sitting back or placing less emphasis on these items you are well mistaken. Seabourn is really working hard to not only assure truly excellent experiences, but is pushing its vendors and hotel partners to provide better pricing. I should point out something that many probably do not consider when comparing Seabourn's hotel pricing versus doing it privately. Seabourn's pricing includes all taxes (which can be very significant) and gratuities plus private sedan transfers. So, while Seabourn works on getting the prices down, be sure you do the math correctly when choosing your pre- or post- cruise hotel. (Also, many hotel packages include tours...so keep that in mind too.)
My day was completed with a wonderful private dinner with Pamela Conover. The best part of it was that it was really just friends having dinner. Of course we talked about Seabourn, its plans, my goals, etc., but it also was just a nice evening spent in a little, local, Italian restaurant. It was, as Seabourn is really all about, the people.
Showing posts with label tours. Show all posts
Showing posts with label tours. Show all posts
Saturday, February 28, 2009
Monday, February 23, 2009
Luxury Cruise Product and Pricing - Close In vs. One Year and Longer...Homogeny Is No Longer Present
There has been much discussion on the internet, newspapers and magazines about the prices of cruises. There are so many factors that affect pricing that, dependent on how you look at them different strategies can been seen as the "right" one or the "best guess" as to how to proceed; keeping in mind that these are truly "uncharted waters".
I am starting the discussion of this issue from the luxury consumer side (and there is a general difference, as there always has been, from the mass market consumer side). Luxury consumers are...and should be...selfish. Essentially it is, "I am not worth near what I was six months ago and my income is down as well, so there better be really good prices for any line to keep my loyalty or attract my business." Some people in the market add the caveat, "If the price is not low enough I just can no longer afford to enjoy the luxury product."
This approach clearly has its upsides (like putting serious downward pressure on prices), but it also has its downsides (such as focusing too much on price).What do I mean by focusing too much on price? I have seen, in some, a phenomenon recently that, while understandable, has sort of perverted the cruise experience from one of entitlement and enjoyment to one of hostility (overtly blaming the cruise lines for the situation) and irrational "business" acumen. If Line X does not give my cruise at $A, then I am not cruising with them, I am going to give my business to Line Y" even though there is no association between $A and the cost of providing the cruise experience desired and, dare I say based on the vitriol, needed.
The fact is that a cruise ship cannot, and will not, operate at a continuing loss just to be in operation. We have all seen cruise lines go out of business because of this. Post 9/11 was a very difficult time and, as an example, Renaissance Cruise Line folded. Don't think lessons were not learned from that recent history. Silversea has an extreme situation: It is mothballing the Prince Albert II for a few months (end of February 2009 through mid-May 2009) because of a serious lack of demand. (While this may not only be an economic thing, it is a telling example of a cruise line weighing the economics rather than possibly overvaluing the negative perception.) In other words, no matter how loudly the luxury cruise passenger shouts, there is only so much the cruise line can do about it before the ships stop sailing.
Before moving on, I do want to mention that it is not the cruise lines' faults that the passengers are in the the financial situation they are in. Blaming the cruise lines for not being sensitive to their plight might sound like a feasible argument, but it really makes no sense at all. Of course the cruise lines are aware of, and sensitive to, your financial and emotional situation. And just as there are infinite opinions, there are infinite ways the passengers believe their predicament should be handled by the cruise lines.
Regent Seven Seas has decided it would address the situation by increases prices and packing that higher price with what it perceives as more value. Regent has decided to include tours (a subject I, not so fondly, previously wrote about Regent Announces Plan For Big Changes) and push their free air (which I think we all know is not really free...on any cruise line). The more inclusive product is somewhat inconsistently applied in 2009 (based upon demand), but is omnipresent in 2010. Regent is also making an effort to actually provide the product it promises with improved service, higher quality cuisine, better dining venues, etc. This is a process which is underway, but remains - at least for now - inconsistent. Also on Regent's plans is enticing travel agents to shift their clients because of slightly increasing their commissions; a point I find most disappointing. (Regent Gives Commissions on NCFs).
Seabourn is taking the approach of significantly discounting its prices on cruises inside 6-8 months, but insisting the product is consistent - with no reductions in service or product. (Seabourn had eliminated most of the once-per-cruise complimentary Seabourn Experience due to a reduction in guest participation resulting in many cruise passengers paying for someone else's experience. This is nonetheless seen as a singular reduction by some.) While some have protested that Seabourn's pricing in 2010 is too high, I believe same is based upon the mistaken theory that there must a direct relationship between what someone believes they will have as disposable income in 2010 and what Seabourn must price its cruises at. Seabourn is not a discount cruise line and if those who protest cannot understand that just as Tiffany, Louis Vuitton, etc. do not normally market discounts, Seabourn must be willing to forego some sales in 2009 for 2010-2011 sailings at near or below-cost pricing or it will cheapen its product forever...causing greater damage.
Silversea has taken a mixed approach. It has tired inflated commissions and significant discounts. It has also tried high onboard credits to be used to pay for tours, etc. (Obviously it is a more luxury approach to tours, as true luxury guests tend to prefer private excursions and an onboard credit allows them to use their funds for that purpose, while Regent's does not. Seabourn has not gone with onboard credits or tours, but has expanded its private tour operation significantly.) Silversea has - in contrast - also taken to some serious cost cutting measures. While Seabourn still had complimentary caviar, Silversea eliminated that some time ago. And while Seabourn and Regent have complimentary alternative dining venues, Silversea is now charging for same. (So some of that new onboard credit is being eaten away by that which used to be included.) I am a bit uncomfortable with the variety and changing of approach with Silversea. To me it seems all a bit unfocused and desperate. (I am not saying it is, and I have no basis to know same to be true other than ships generally sailing less than half full, it just seems like that to me.)
So what does this all mean? It means that the luxury cruise customer needs to really look at the alternatives, rather than say "Cruise line X is not getting my business because of Y." Why? Because there is a new world out there and homogeny is not part of it. As shown above, Seabourn, Regent and Silversea have all taken markedly different approaches to pricing and marketing.
If you are looking at a cruise in the next 6-8 months, you really need to look at the specific cruise because what you get may be significantly different from one cruise to another, no less from one cruise line to another. If you are looking at a cruise which may be about a year away or longer, I would suggest you book now and if the product changes you can reassess your decision...but you have your desired cruise and suite.
But, and I mean "but", I would suggest that consistency of product is going to be far more important to the luxury cruiser than the next gimmick in pricing. Most luxury clients want to know first and foremost what it is they are buying and then determine if the price affords them the value they require. Put another way, "If it sounds to good to be true, it probably is." So with the homogeny of product no longer there...and no indication that it is going to be returning soon...
I am starting the discussion of this issue from the luxury consumer side (and there is a general difference, as there always has been, from the mass market consumer side). Luxury consumers are...and should be...selfish. Essentially it is, "I am not worth near what I was six months ago and my income is down as well, so there better be really good prices for any line to keep my loyalty or attract my business." Some people in the market add the caveat, "If the price is not low enough I just can no longer afford to enjoy the luxury product."
This approach clearly has its upsides (like putting serious downward pressure on prices), but it also has its downsides (such as focusing too much on price).What do I mean by focusing too much on price? I have seen, in some, a phenomenon recently that, while understandable, has sort of perverted the cruise experience from one of entitlement and enjoyment to one of hostility (overtly blaming the cruise lines for the situation) and irrational "business" acumen. If Line X does not give my cruise at $A, then I am not cruising with them, I am going to give my business to Line Y" even though there is no association between $A and the cost of providing the cruise experience desired and, dare I say based on the vitriol, needed.
The fact is that a cruise ship cannot, and will not, operate at a continuing loss just to be in operation. We have all seen cruise lines go out of business because of this. Post 9/11 was a very difficult time and, as an example, Renaissance Cruise Line folded. Don't think lessons were not learned from that recent history. Silversea has an extreme situation: It is mothballing the Prince Albert II for a few months (end of February 2009 through mid-May 2009) because of a serious lack of demand. (While this may not only be an economic thing, it is a telling example of a cruise line weighing the economics rather than possibly overvaluing the negative perception.) In other words, no matter how loudly the luxury cruise passenger shouts, there is only so much the cruise line can do about it before the ships stop sailing.
Before moving on, I do want to mention that it is not the cruise lines' faults that the passengers are in the the financial situation they are in. Blaming the cruise lines for not being sensitive to their plight might sound like a feasible argument, but it really makes no sense at all. Of course the cruise lines are aware of, and sensitive to, your financial and emotional situation. And just as there are infinite opinions, there are infinite ways the passengers believe their predicament should be handled by the cruise lines.
Regent Seven Seas has decided it would address the situation by increases prices and packing that higher price with what it perceives as more value. Regent has decided to include tours (a subject I, not so fondly, previously wrote about Regent Announces Plan For Big Changes) and push their free air (which I think we all know is not really free...on any cruise line). The more inclusive product is somewhat inconsistently applied in 2009 (based upon demand), but is omnipresent in 2010. Regent is also making an effort to actually provide the product it promises with improved service, higher quality cuisine, better dining venues, etc. This is a process which is underway, but remains - at least for now - inconsistent. Also on Regent's plans is enticing travel agents to shift their clients because of slightly increasing their commissions; a point I find most disappointing. (Regent Gives Commissions on NCFs).
Seabourn is taking the approach of significantly discounting its prices on cruises inside 6-8 months, but insisting the product is consistent - with no reductions in service or product. (Seabourn had eliminated most of the once-per-cruise complimentary Seabourn Experience due to a reduction in guest participation resulting in many cruise passengers paying for someone else's experience. This is nonetheless seen as a singular reduction by some.) While some have protested that Seabourn's pricing in 2010 is too high, I believe same is based upon the mistaken theory that there must a direct relationship between what someone believes they will have as disposable income in 2010 and what Seabourn must price its cruises at. Seabourn is not a discount cruise line and if those who protest cannot understand that just as Tiffany, Louis Vuitton, etc. do not normally market discounts, Seabourn must be willing to forego some sales in 2009 for 2010-2011 sailings at near or below-cost pricing or it will cheapen its product forever...causing greater damage.
Silversea has taken a mixed approach. It has tired inflated commissions and significant discounts. It has also tried high onboard credits to be used to pay for tours, etc. (Obviously it is a more luxury approach to tours, as true luxury guests tend to prefer private excursions and an onboard credit allows them to use their funds for that purpose, while Regent's does not. Seabourn has not gone with onboard credits or tours, but has expanded its private tour operation significantly.) Silversea has - in contrast - also taken to some serious cost cutting measures. While Seabourn still had complimentary caviar, Silversea eliminated that some time ago. And while Seabourn and Regent have complimentary alternative dining venues, Silversea is now charging for same. (So some of that new onboard credit is being eaten away by that which used to be included.) I am a bit uncomfortable with the variety and changing of approach with Silversea. To me it seems all a bit unfocused and desperate. (I am not saying it is, and I have no basis to know same to be true other than ships generally sailing less than half full, it just seems like that to me.)
So what does this all mean? It means that the luxury cruise customer needs to really look at the alternatives, rather than say "Cruise line X is not getting my business because of Y." Why? Because there is a new world out there and homogeny is not part of it. As shown above, Seabourn, Regent and Silversea have all taken markedly different approaches to pricing and marketing.
If you are looking at a cruise in the next 6-8 months, you really need to look at the specific cruise because what you get may be significantly different from one cruise to another, no less from one cruise line to another. If you are looking at a cruise which may be about a year away or longer, I would suggest you book now and if the product changes you can reassess your decision...but you have your desired cruise and suite.
But, and I mean "but", I would suggest that consistency of product is going to be far more important to the luxury cruiser than the next gimmick in pricing. Most luxury clients want to know first and foremost what it is they are buying and then determine if the price affords them the value they require. Put another way, "If it sounds to good to be true, it probably is." So with the homogeny of product no longer there...and no indication that it is going to be returning soon...
Monday, December 29, 2008
Seabourn and Regent - Experiencing Shore Experiences
I was going to wait until I got all the information, but I figured "What the heck. Let's start the discussion now."
Seabourn decided a few months ago to end most of its complimentary Seabourn Experiences (http://goldringtravel.blogspot.com/2008/09/seabourn-is-discontinuing-complimentary.html) and, obviously, it was not met with great joy. While I know many of my clients did not attend most of them, there are others that loyally did and feel cheated. I was not in favor of their demise and offered my clients some compensation if they took an alternative tour.
Seabourn, as noted in its blog, is now emphasizing private tours...not paid for "get on the bus" tours, but truly luxury private tours. Seabourn has a staff of eight devoted to this. As noted recently on the Seabourn blog:
Helen Panagos, Seabourn’s VP of Shoreside Operations, came up with a plan to totally revamp the company’s destination services resources. “We learned a lot from talking with our guests about what they really wanted to do during their cruises,” says Helen. “Some of them are still interested in the more general interest types of tours that we have been offering. But more and more of them wanted truly unique, customized arrangements for themselves and the small group of people they travel with-maybe family or friends. So we designed a whole new department to provide the sort of attention and expertise that can create very special experiences that aren’t off-the-shelf sightseeing tours, but rather unique, personalized arrangements that make for a perfect, memorable day in a port.”
Now that may not be what people looking for the lowest price cruise wants to hear, but possibly considering the previously unexpected drop in base cruise fares, Seabourn may have decided to provide the best "onboard" cruise experience and leave the shore experiences (with a few notable exceptions) to each guest's personal interests and budgets.
With a different approach, just before the holidays began, I received an email from Regent announcing it is going to be announcing certain specific 2009 cruises that will have complimentary tours included. I do not have any more information, but it may work for those disappointed with Seabourn's decision. (On the other hand, I know that I and many others have, in the past, been very disappointed with some of Regent's tours and its tour desk.). Until I know more I really can't comment, so stay tuned.
My question to ponder is, for now, "Would you be willing to cancel your Seabourn cruise so that you can take advantage of complimentary tours on a Regent cruise." If you answer Yes, then you can stop complaining about Seabourn eliminating its single Seabourn Experience on most cruises...for you have found your solution. If you answer No, then you believe the Seabourn cruise experience is what matters more to you.
When I have more information as to the cruises involved and the tours being offered by Regent I will let you know.
Seabourn decided a few months ago to end most of its complimentary Seabourn Experiences (http://goldringtravel.blogspot.com/2008/09/seabourn-is-discontinuing-complimentary.html) and, obviously, it was not met with great joy. While I know many of my clients did not attend most of them, there are others that loyally did and feel cheated. I was not in favor of their demise and offered my clients some compensation if they took an alternative tour.
Seabourn, as noted in its blog, is now emphasizing private tours...not paid for "get on the bus" tours, but truly luxury private tours. Seabourn has a staff of eight devoted to this. As noted recently on the Seabourn blog:
Helen Panagos, Seabourn’s VP of Shoreside Operations, came up with a plan to totally revamp the company’s destination services resources. “We learned a lot from talking with our guests about what they really wanted to do during their cruises,” says Helen. “Some of them are still interested in the more general interest types of tours that we have been offering. But more and more of them wanted truly unique, customized arrangements for themselves and the small group of people they travel with-maybe family or friends. So we designed a whole new department to provide the sort of attention and expertise that can create very special experiences that aren’t off-the-shelf sightseeing tours, but rather unique, personalized arrangements that make for a perfect, memorable day in a port.”
Now that may not be what people looking for the lowest price cruise wants to hear, but possibly considering the previously unexpected drop in base cruise fares, Seabourn may have decided to provide the best "onboard" cruise experience and leave the shore experiences (with a few notable exceptions) to each guest's personal interests and budgets.
With a different approach, just before the holidays began, I received an email from Regent announcing it is going to be announcing certain specific 2009 cruises that will have complimentary tours included. I do not have any more information, but it may work for those disappointed with Seabourn's decision. (On the other hand, I know that I and many others have, in the past, been very disappointed with some of Regent's tours and its tour desk.). Until I know more I really can't comment, so stay tuned.
My question to ponder is, for now, "Would you be willing to cancel your Seabourn cruise so that you can take advantage of complimentary tours on a Regent cruise." If you answer Yes, then you can stop complaining about Seabourn eliminating its single Seabourn Experience on most cruises...for you have found your solution. If you answer No, then you believe the Seabourn cruise experience is what matters more to you.
When I have more information as to the cruises involved and the tours being offered by Regent I will let you know.
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