Showing posts with label 123Go. Show all posts
Showing posts with label 123Go. Show all posts

Wednesday, 6 March 2019

Cruise line promotions increase in number -- and complexity

Cruise line promotions increase in number -- and complexity

Image result for Take Six Free norwegian cruise offers
Norwegian Cruise latest offering

One of the virtues of "123Go!," which was rolled out by Celebrity Cruises for Wave season six years ago, was its simplicity.

The promotion was as breezy as it sounded. Passengers could pick one of three free promotions when they booked a cruise. If they were going to Europe, they could pick two. That was it.

Whether it was the simplicity of the concept, or the value locked into the choices, or the idea of choice itself, the promotion struck a nerve. Agents cited it as the most successful offer of the Wave season in 2013, and Celebrity extended it until it became part of the line's standard offering.

Six years later, the promotions of the sort started by "123Go!" are ubiquitous. Nearly every sizeable line has its version.

It started when Celebrity decided to evolve "123Go!" into its 2015 successor campaign "Go Big, Go Better, Go Best." With this one there were four amenities, not three. And the number of amenities that could be chosen depended on the fare. And third and fourth passengers in the cabin could get a limited amount of internet minutes for free.

Image result for 123Go! celebrity cruise advert

Today, there are a bewildering number of promotional packages for agents to keep track of, all with different terms, expiration dates, geographic applications, exceptions and combinability options.

"The promotions are very complex," observed veteran agency executive Dwain Wall. "Agents find the consumers are very confused."

Wall said some cruise lines have taken to spelling out the value of the various terms in their promotion as a result.

Norwegian Cruise Line, for example, has its "Take Six Free" offer, which dangles not three but six different amenities. More choice, more value, right? To be sure. But also more complexity.

In many of its ads, Norwegian puts price tags on the various options as a consumer service. An open bar is valued at $1,400. Free shore excursions: $200. A speciality dining package: $160 in savings; free Internet, $130.

The biggest and latest amenity to be added to the package is airfare, which Norwegian says is worth $600 to $1,900 in savings, depending. Depending on what? Well, you have to dig into the fine print to find out.

In many ways, an advisor's job is better with these promotions. Free add-ons make closing easier, more amenities broaden the appeal, and preserving or even boosting the fare helps increase commissions. Not to mention that the complexity helps reinforce the concept of an advisor as an indispensable consultant: Who better to comb through the various deals and amenities, walk the client through the options and find them the best combination?

But it should not be lost that in the process the promotions are no longer as simple as "123Go!."

Monday, 2 June 2014

Celebrity Cruises to eliminate NCFs on some June bookings

Celebrity Cruises to eliminate NCFs on some June bookings

By Tom Stieghorst
Celebrity EquinoxCelebrity Cruises will pay commission on what is typically invoiced as noncommissionable cruise fare (NCF) on some cruises sold in June by travel agents in North America.

The extra commission applies to 2015 sailings, if agents book veranda cabins and above. NCFs can account to 10-15% of the total cruise price.

Celebrity’s offer to agents coincides with a renewal of its 123Go! promotion to consumers. The offer to agents is being styled as "123 Thank You."

Payments on the NCF portion of the sale are on bookings of all duration and every geographic area, said Dondra Ritzenthaler, Celebrity’s senior vice president of sales.
Dondra Ritzenthaler“We have never done anything like this before,” Ritzenthaler said.

Ritzenthaler said that 2015 bookings were not notably behind or in need of a boost.

“It’s a 30 day way to say thank you to all of our travel partners who have really supported us through all of our promotions,” she said.

Friday, 25 April 2014

Royal Outlook Improves

Post-Wave bookings on a tear, says Royal Caribbean chairman

By Tom Stieghorst
Allure of the SeasRoyal Caribbean Cruises Ltd. reported an unusual surge in bookings in from mid-February to mid-April, a stretch when the booking pace typically decelerates.

Company chairman Richard Fain said that while the Wave season had been merely “typical,” which was slightly concerning, bookings in the past eight weeks were up more than 20%, driven by promotions.

“The volumes have just been unprecedented,” for a period in which the booking pace usually slackens, Fain said in a conference call with Wall Street analysts on Thursday.

He said promotions such as Royal Caribbean International’s Kids Sail Free and Celebrity Cruises’ 123Go had allowed RCCL to make up most of the booking deficit it had going into the last week of February.

Although occupancy levels are surging, pricing remains lower than a year ago. Fain also said “quality demand” in regions outside the Caribbean is contributing to the surge.

RCCL profit falls 65%, but outlook improves

By Tom Stieghorst
Royal Caribbean Cruises Ltd. raised its 2014 earnings guidance by a nickel a share despite reporting lower earnings for the first quarter.

Net income was $26.5 million, or 12 cents a share, in the quarter ended March 31, down from $76.2 million, or 35 cents per share, in 2013.

But Royal Caribbean said booking volume for the past three months have risen 16% year-over-year, with bookings for the past 8 weeks up by more than 20%, stronger than typical post-Wave periods.

The company raised its profit forecast by 5 cents a share, or about $11 million, to between $719.2 million and $763.5 million.

"Despite pressures in the Caribbean, the diversity provided by our global footprint is proving its value," CFO Jason Liberty said.

In 2013, Royal Caribbean earned $473.7 million.