Monday, March 17, 2008

Guarantee vs. Assigned Cabin

Guarantee Cabins

Guarantee simply means that your are “guaranteed” to receive a cabin equal to or at a higher category than you purchased anywhere on the ship.

The cruise lines make an effort to provide upgrades to“guarantee” bookings, however, it does not guarantee that if you booked an inside cabin you will receive a ocean view or balcony cabin. It means that you may simply be upgraded within the category you booked, such as Category 4A to 4C. The bottom line it is the luck of the draw and if there is space available it makes since for the cruise line to upgrade a “guarantee” cabin as a marketing tool in an effort to get repeat business from the delighted cruiser who feels that he/she has received special attention. Your cabin assignment may be made prior to going to the pier.

Check online a week or so prior to departure and you may learn your cabin assignment, however, you may not get assigned your cabin until you get to the pier, especially if you booked your cruise within 30 days of sailing.If you book a guarantee in a certain category and that category is full, you might get upgraded. On the other hand, someone else (perhaps a member of the past-passenger program with higher status) might get upgraded and you might get their cabin in your category. There's no way to tell.

Thus, the cardinal rule of booking guarantees:

Don't book a guarantee in any given category unless you would be happy with a cabin in that category! In other words, if you will not be happy with anything less than a suite, don't book an inside guarantee.

If you do not care where you are assigned a cabin I think the “guarantee” option is a good one.

However, if you have issues with sea sickness, noise, and are traveling with other family members or friends that want to be in cabins within close proximity I do not recommend this option. I believe “guarantee” is a poor choice of words to use for this option because people wrongly believe they are “guaranteed” an upgrade and they are not. Here are the general guarantee policies of some of the cruise lines:

Carnival Cruise Line passengers may either book a generic cabin type (e.g. Inside, Outside, Balcony) at a lower fare than for the lowest specific category within that type, or book a guarantee within a specific category at the normal fare for that category. Carnival begins assigning guaranteed cabins about eight weeks prior to sailing and the majority of passengers are notified of their cabin assignment when they receive their cruise documents.

Royal Caribbean and Celebrity Cruises passengers may either book a generic cabin type at a lower fare than for the lowest specific category within that type, or opt to choose a guarantee rather than an assigned cabin within a specific category at the normal fare for that category. Guarantee cabins are typically assigned six weeks prior to departure.

Costa Cruises guarantee passengers are offered a generic cabin type at a lower fare than the lowest specific category within that type. Cabin assignments are generally made around 30 days prior to departure.

Crystal Cruises offers guarantees in all categories, except Crystal Penthouse. Passengers book guarantees at the same fare as an assigned cabin in that same category. Cabin assignments may be made as early as one month prior to departure, or as late as the day prior to departure. Most cabins are usually assigned one week before sailing.

Cunard Line offers guarantees both for generic cabin types at special lower fares and for specific categories at the normal fare within that category. Cabin assignments may be made at least 30 days prior to departure.

Disney Cruise Line offers guarantees in any given category at the normal fare for that category, depending on availability. Cabin assignments generally take place within 30 days of departure.

Holland America Line guarantees are offered in specific cabin categories on an as-needed basis, at the normal fare for that category. Assignments are made between 30 days and one week before sailing.

MSC Cruises offers guarantee cabins selectively based on inventory management restrictions. Guarantees are not available for all categories on all sailings. Guarantees are offered by category and type (single, double, triple or quad). The time frame for assignment of guarantees can vary according to the sailing, category and type of guarantee. In general, guarantees are assigned within two weeks of sailing and in some instances may not be assigned until embarkation.

Norwegian Cruise Line guarantees may be offered for a generic cabin type at a lower fare than for a specific category, or within categories at the normal fare for that category. Assignments are typically made no later than 60 days before sailing, assuming passengers have booked more than 60 days before sailing.

Princess Cruise Line offers guarantees within specific categories as an alternative to an assigned cabin. Cabin assignments may be made at any time between the time of booking and several days before departure.Remember, the cruise line has no obligation to give you a cabin in a higher category than you booked! When booking a guarantee, do exactly what you would do when booking an assigned cabin -- book the least expensive category that you will be happy with. An upgrade is a nice surprise, but not something you should count on.


Assigned Cabins

If you are assigned a cabin (not a “guarantee") there is a remote possibility you may be offered an upgrade by the cruise line. This is a great marketing tool for the cruise lines and it makes no difference to them who occupies which category of cabin once the ship sails. There goal is to get you to return to there cruise lines in the future. Prior to sailing, if you have been selected for an “upgrade” the cruise line will notify your travel agent that you have been selected for an upgrade and request the travel agent contact you to confirm that you would accept the upgrade.

There are cases where many cruisers turn down an upgrade because they are happy with the location and category of cabin they were assigned, there reservation may not be cross referenced with other friends that may be in a cabin nearby, or if returning to that ship from a previous sailing, sentimental reasons. I have learned there are different policies dictated by the cruise lines for selection of upgrades.

Those policies include:

1. Cabin/Category availability
2. Account status of travel agency that booked your cruise (key accounts)
3. Past sailing history with the cruise line (frequent or past guest)
4. Operational necessity (ship maintenance)
5. Customer good will - marketing opportunity/convenience
6. Cabin allocations made by the cruise line revenue department



IMPORTANT!

ALL cabin assignments are at the discretion of the cruise line and they have the right to change cabin assignments at any time for both assigned and guarantee cabins based upon the terms and conditions of the cruise contract.

Wednesday, March 12, 2008

Royal Caribbean Revises Fuel Surcharges

One of the issues raised in yesterdays blog "Cruise Prices 2008" concerned fuel surcharges implemented for 2008 by the cruise lines.

Yesterday, Royal Caribbean issued a press release stating the following revision to the policy due to numerous complaints filed with the Florida Attorney General. The release read as follows:


For Immediate Release

ROYAL CARIBBEAN CRUISES LTD. VOLUNTARILY
REVISES FUEL SUPPLEMENT


MIAMI – March 10, 2008 – After working closely with the Florida Attorney General’s office, Royal Caribbean Cruises Ltd. today announced it has voluntarily agreed to eliminate its fuelsupplement on any bookings made prior to the announcement of the fuel supplement on November 16, 2007.

Royal Caribbean will eliminate the fuel supplement for any guests who had a booking made priorto November 16. Guests booked before November 16 who paid the fuel supplement and have taken their cruise will receive a refund through the form of payment used to purchase their sailing. Guests booked before November 16 who paid the fuel supplement and have not taken their cruise will receive their refund as an onboard credit during their sailing.

As originally announced, the company did not charge the fuel supplement to guests with bookings made and paid in full before November 16. It will now eliminate the fuel supplement for guests with bookings made but not paid in full before that date. These latter guests were also provided with a three-week period in which to cancel their sailing without penalty.

The company has been in discussions with the Florida Attorney General’s office to ensure the fuel supplement was implemented in a fair and reasonable manner.

The fuel supplement, which remains in place for North American bookings made on or after November 16, 2007, involves three Royal Caribbean Cruises Ltd. brands: Royal Caribbean International, Celebrity Cruises and Azamara Cruises. The fuel supplement consists of a $5 per-guest, per-day charge for sailings that depart on or after February 1, 2008. The fuel supplement applies only to the first and second guests in each stateroom and does not exceed $70 per person per sailing.

Today’s announcement will have no impact on the company’s revenue projections and the company reaffirms its previous yield guidance.

The Florida Attorney General’s office is expected to issue a press release regarding this matter Tuesday morning.

Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisières de France. The company has a combined total of 37 ships in service and seven under construction. It also offers unique land-tour vacations in Alaska, Asia, Australia, Canada, Europe, Latin and South America and New Zealand. Additional information can be found on www.royalcaribbean.com, http://www.celebrity.com.www.pullmantur.es/, www.azamaracruises.com, or http://www.rclinvestor.com/.

COMMENT: Lets hope the other cruise lines follow RCIs lead.

Tuesday, March 11, 2008

Cruise Pricing 2008

Cruise pricing for 2008 has risen significantly, although some bargains can still be found if you are flexible with mid-week sailings and don't mind cruising on older ships that are less port intensive.

Cruise rates this year average from (*per passenger/per day) $95-115 for an inside cabin, $115-135 per day for an ocean view cabin, and $135-175 per day for a balcony cabin.

*based upon double occupancy, 1st & 2nd passenger, includes port charges, government fees & taxes, and fuel surcharges (implemented in 2008).

Also, 3rd/4th/5th passenger rates have also risen.

Cruise lines have also raised the prices of shore excursions, souvenirs, specialty dining, and other goods and services purchased onboard ship to increase their onboard revenues. The higher oil prices have increased the cost of goods (food, paper products, supplies) the cruise lines must pay in addition to the added cost of fuel.

A recent article published at Kiplinger.com outlines the financial burdens that cruise lines are facing that has affected cruise line stock prices.

http://www.kiplinger.com/columns/picks/archive/2008/pick0307.htm

Also, because of the increase in pricing, online travel agencies are becoming much more competitive with pricing.

BUYER BEWARE: Be sure to get the total price (cruise fare/port charges, government fees and taxes/fuel surcharges) for the cruise quoted by an agent. Also, ask if there are any booking "fees" being charges, which can vary from $15 to $75 per booking.

Cruising is still a great bargain, especially for families. Just remember to shop, shop, shop to get the best pricing and if possible be flexible to get the best deal.