Disney Cruise Prices - ARE YOU KIDDING ME?!?!?

[wannab@dis]

I said before that Americans like a good deal. Well Americans can also be very impatient but if you want a good deal, you have to be patient. 2006 and 2007 will probably be lousy years to take a Disney Cruise if you want a deal. Oh well. I'll just sail on another cruise line. But think about this. You can now buy a plasma T.V. for less than $1500.00. You couldn't do that in 2001. You can buy a VCR for less than $40.00. Remember what the prices were like in 1980? Think about computers, cell phones, camcorders, cd players and microwaves.

Everything you mentioned above doesn't really apply here. The costs of technology is dropping, not primarily because of saturation, but because of costs of doing business and true competition. Basically, the supply and demand rule working in tandem with the costs of manufacturing. Even if DCL adds ships (supply) but the guests wanting to cruise (demand) continues to outpace the number of cabins, then the price will remain high. At some point, saturation occurs, but I don't think one, even two, more ships will bring us to that point. In other words, my statements about the costs will remain valid.

Nowaday's everyone is cruising and DCL is going to want everyone to cruise with them. Those who are sailing with DCL nowadays may feel some exclusivity. My prediction - enjoy the feeling - your days are numbered.

Why would you think the exclusive feeling of a Disney Cruise may change? That feeling is not really tied to the number of cabins, but to the customer service and offererings of DCL. As long as they can attain the levels they have today, they will be able to offer their cruises at a higher than average price. I would hope that would be their goal.

 

[ClemsonTigger]

I think that there's a third option that eventually will happen. DCL will expand. DCL will build more ships and possibly sail to other destinations. When this happens, the supply of cabins will increase and they'll be doing some wheeling and dealing to fill those cabins and prices will come down. It's inevitable. Some say the reason that they're waiting to build new ships is because of the high price of oil and steel or a poor exchange rate on the Euro. I think that there's also another big reason - a company has to establish themselves before they can expand.

In a previous post I wrote that since 1999 when Disney's last ship set sail, Celebrity has added 5 ships to its fleet, NCL 7, HAL 8, both Carnival and Princess have added 10, while RCL has added 11. DCL has just added higher prices. Well, upon further reflection I realized that with the exception of Celebrity - the new kid on the block - all of the other cruise lines were started in the 60's or 70's. Those companies had already established their product. In less then six years, the Disney Cruise Line has become a remarkable success story. But we all have to concede that they are mass market. Disney is not attempting to make its cruise line into a luxury brand with fewer cabins, more personalized service, 4 star cuisine and smaller boats. When they build more boats the prices are going to come down.

I said before that Americans like a good deal. Well Americans can also be very impatient but if you want a good deal, you have to be patient. 2006 and 2007 will probably be lousy years to take a Disney Cruise if you want a deal. Oh well. I'll just sail on another cruise line. But think about this. You can now buy a plasma T.V. for less than $1500.00. You couldn't do that in 2001. You can buy a VCR for less than $40.00. Remember what the prices were like in 1980? Think about computers, cell phones, camcorders, cd players and microwaves. Nowaday's everyone is cruising and DCL is going to want everyone to cruise with them. Those who are sailing with DCL nowadays may feel some exclusivity. My prediction - enjoy the feeling - your days are numbered.

You raise some good points, and I don't doubt that Disney will in fact add additional ships in the not too distant future.

I would say that the major difference Disney has in the scenario you described is that for the other Cruise lines....that is their business and they have to move to optimize capacity and marketshare. Disney however being diversified doesn't rely on it nearly as much.

While you are correct about Plasma TV prices...they are still in a different category, commodity, as compared to Disney vacations, diamond rings and fur coats which are luxury items where the same cost dynamics don't apply.
My best example is why are so many people spending extra thousands of dollars on Lexus and Acura when they are nothing more than fancy Toyota's and Honda's. There is still plenty of demand for both...and Lexus/Acura are not going to drop their prices to Toyota/Honda, right?

 

[CMALOVESDISNEY]

Well I normally don't post but I saw this thread and thought why not!

My husband and I took the disney cruise for our honeymoon, yes its very pricey, but we thought it was worth it.
They have tons of things to do as all cruises do but with the disney flair that we love.

If it fits the budget, go for it, otherwise I would say any other cruise ship is just as good.

We thought about taking our kids on the cruise but again with children you tack on alot more money.

Whatever you decide have a wonderful trip

 

[Christi22222]

Wow, I thought this was a discussion board.

I realize this is Disney, and we all wouldn't come here to post if it wasn't something near and dear to our hearts, but this topic has gotten crazy with folks taking/directing things far too personally. If the poster wants to express that she is frustrated at having to choose another option for cruising because DCL capacity is still low and allows the prices to remain very high, isn't that exactly appropriate for these boards? And if other folks want to maintain they LIKE the prices high, while I am surprised, that's an okay point. It is a bit snobby to imply you like the riff raff kept out, but okay. Why the anger here? The prices ARE high. That appears to be an indisputable fact. If you think the quality is well worth it, definitely continue to enjoy fabulous vacations. If you don't find the prices worth it, this should be the right board and right place to share what you've found to be good alternative options, right? And this would seem the appropriate place to discuss WHY the prices are high and if it would ever change. But the superior attitudes and judgementalness have really gone rampant on this thread. Wow.

 

[William Marsden]

I realize this is Disney, and we all wouldn't come here to post if it wasn't something near and dear to our hearts, but this topic has gotten crazy with folks taking/directing things far too personally. If the poster wants to express that she is frustrated at having to choose another option for cruising because DCL capacity is still low and allows the prices to remain very high, isn't that exactly appropriate for these boards? And if other folks want to maintain they LIKE the prices high, while I am surprised, that's an okay point. It is a bit snobby to imply you like the riff raff kept out, but okay. Why the anger here? The prices ARE high. That appears to be an indisputable fact. If you think the quality is well worth it, definitely continue to enjoy fabulous vacations. If you don't find the prices worth it, this should be the right board and right place to share what you've found to be good alternative options, right? And this would seem the appropriate place to discuss WHY the prices are high and if it would ever change. But the superior attitudes and judgementalness have really gone rampant on this thread. Wow.

I couldn't agree more. Thankyou!

 

[GoofyGuySouthFl]

I realize this is Disney, and we all wouldn't come here to post if it wasn't something near and dear to our hearts, but this topic has gotten crazy with folks taking/directing things far too personally. If the poster wants to express that she is frustrated at having to choose another option for cruising because DCL capacity is still low and allows the prices to remain very high, isn't that exactly appropriate for these boards? And if other folks want to maintain they LIKE the prices high, while I am surprised, that's an okay point. It is a bit snobby to imply you like the riff raff kept out, but okay. Why the anger here? The prices ARE high. That appears to be an indisputable fact. If you think the quality is well worth it, definitely continue to enjoy fabulous vacations. If you don't find the prices worth it, this should be the right board and right place to share what you've found to be good alternative options, right? And this would seem the appropriate place to discuss WHY the prices are high and if it would ever change. But the superior attitudes and judgementalness have really gone rampant on this thread. Wow.

I totally agree. Some people on here just take this stuff way to personal, they act like if you don't agree with disney 100% and suggest something else that you are not a true disney person.

 

[William Marsden]

You raise some good points, and I don't doubt that Disney will in fact add additional ships in the not too distant future.

I would say that the major difference Disney has in the scenario you described is that for the other Cruise lines....that is their business and they have to move to optimize capacity and marketshare. Disney however being diversified doesn't rely on it nearly as much.

While you are correct about Plasma TV prices...they are still in a different category, commodity, as compared to Disney vacations, diamond rings and fur coats which are luxury items where the same cost dynamics don't apply.
My best example is why are so many people spending extra thousands of dollars on Lexus and Acura when they are nothing more than fancy Toyota's and Honda's. There is still plenty of demand for both...and Lexus/Acura are not going to drop their prices to Toyota/Honda, right?

Sure. But Toyota and Honda created the Lexus and Acura lines to appeal to a particular portion of the market place. They're trying to appeal to everyone from Tercel buyers to Lexus 400 purchasers. Cruise companies have merged in an effort to do the same thing. That's why Carnival bought out Seabourne. The vast amount of cruisers may be quite happy with Carnival. But if they want to step up a bit, they can go on Holland America. If they want even more luxury they can sail on Seabourne. If they want a more adventurous experience they might try Windstar. My point is that all of these cruise lines are owned by the same big company that wants to satisfy everyone. Disney has done the same thing with the resorts at WDW.

Maybe Disney will eventually offer different cruises for different folk. Maybe they'll have a standard, premium and luxury line along with some expedition ships. Who knows? But I think that they first are going to try to grab the lions share of the market place and that's in the standard/premium catagory. Today Disney has only two ships. The current demand meets or exceeds the supply so prices can remain high. I think this will eventually change. I hate bringing up Wal*Mart again but I think that it's a great example of how there are better profits to be made through lowering the price of an item and selling more of it then by keeping a high price on a commodity and selling less. A lot of people feel that if this happens, the quality of the product is going to go down. I don't think it has to. Toyotas and Hondas are great cars that happen to appeal to a big portion of the market place. They're also competitively priced. Disney is all about the mass market. They're going to follow Wal*Marts example. They just won't be able to help themselves.

 

[ClemsonTigger]

Your comments are right, this thread is not a great example, there are far worse, like the WWWD :http://forums.wdwmagic.com/showpost.php?p=1509075&postcount=1

Some subjects do not do well here, which is why Steve has a list of inappropriate topics, like politics and religion.

When these topics start to melt down, the best thing is to walk away and go to something more pleasant.

But most are far better.

 

[ClemsonTigger]

Sure. But Toyota and Honda created the Lexus and Acura lines to appeal to a particular portion of the market place. They're trying to appeal to everyone from Tercel buyers to Lexus 400 purchasers. Cruise companies have merged in an effort to do the same thing. That's why Carnival bought out Seabourne. The vast amount of cruisers may be quite happy with Carnival. But if they want to step up a bit, they can go on Holland America. If they want even more luxury they can sail on Seabourne. If they want a more adventurous experience they might try Windstar. My point is that all of these cruise lines are owned by the same big company that wants to satisfy everyone. Disney has done the same thing with the resorts at WDW.

Maybe Disney will eventually offer different cruises for different folk. Maybe they'll have a standard, premium and luxury line along with some expedition ships. Who knows? But I think that they first are going to try to grab the lions share of the market place and that's in the standard/premium catagory. Today Disney has only two ships. The current demand meets or exceeds the supply so prices can remain high. I think this will eventually change. I hate bringing up Wal*Mart again but I think that it's a great example of how there are better profits to be made through lowering the price of an item and selling more of it then by keeping a high price on a commodity and selling less. A lot of people feel that if this happens, the quality of the product is going to go down. I don't think it has to. Toyotas and Hondas are great cars that happen to appeal to a big portion of the market place. They're also competitively priced. Disney is all about the mass market. They're going to follow Wal*Marts example. They just won't be able to help themselves.

I understand what you are saying and don't disagree. The one area that we look at this differently is highlighted above. The two approaches you have identified are both viable proven cost models. You indicate that your preference is to the low markup/high volume, which is, as you say proven to be a good approach. The other approach however can be equally profitable, you just need to find the proper balance. That is my approach.

value price x high volume = X profit

premium price x volume = Y profit

These two can be equal, one could be better than the other in certain cases.
That is what I am suggesting, that for now, the premium model is more profitable.

 

[William Marsden]

I understand what you are saying and don't disagree. The one area that we look at this differently is highlighted above. The two approaches you have identified are both viable proven cost models. You indicate that your preference is to the low markup/high volume, which is, as you say proven to be a good approach. The other approach however can be equally profitable, you just need to find the proper balance. That is my approach.

value price x high volume = X profit

premium price x volume = Y profit

These two can be equal, one could be better than the other in certain cases.
That is what I am suggesting, that for now, the premium model is more profitable.

I think eventually Disney will probably strike a happy medium. I don't think that prices will remain as high as they are currently but I also don't think that they'll become a cruise line for bottom feeders. I think that as Disney builds more ships, there will be a day when you'll be able to get on a Disney Ship for about the same price as Celebrity, HAL, and Princess. Royal Caribbean and NCL will usually be cheaper and Carnival will almost always be less. I think that's a fair comparison between the cruise lines and I think that is where Disney should be placed. Now, where Disney does have an advantage over the competition is with their family style cruises. They really have struck a bullseye in that market. All of the other cruise companies have childrens programs but Disney's are probably a step above. Their no smoking and no gambling policies are another advantage in making them top notch for families with kids.

Something that I can see happening in the forseeable future is that other cruise lines may sit up and take notice. I think that would be great. I could see other cruise lines offering "no smoking, no gambling" cruises, expanded childrens areas and programs, better family entertainment. While other cruise ships couldn't bring Disney Characters aboard, we may soon be able to sail with Fred and Wilma or Snoopy and Charlie Brown. One thing everyone can agree on is that competition in the market place is great. Universal Studios has made Walt Disney World a better theme park. Toyota has made Ford and GM come out with a better product then they were producing 25 years ago. And yes, even Target has put Wal*Mart on its toes.

 

[ClemsonTigger]

Something that I can see happening in the forseeable future is that other cruise lines may sit up and take notice. I think that would be great. I could see other cruise lines offering "no smoking, no gambling" cruises, expanded childrens areas and programs, better family entertainment. While other cruise ships couldn't bring Disney Characters aboard, we may soon be able to sail with Fred and Wilma or Snoopy and Charlie Brown. One thing everyone can agree on is that competition in the market place is great. Universal Studios has made Walt Disney World a better theme park. Toyota has made Ford and GM come out with a better product then they were producing 25 years ago. And yes, even Target has put Wal*Mart on its toes.

That I think is the key to impacting a change in Disney business strategy. When one of the other lines is able to brand a successful "family" cruise...that will drive costs down.

As for Toyota's impact on Ford and GM....GM will probably declare bankruptcy this year, and Ford is not far behind, so they haven't learned well or soon enough.

 

[William Marsden]

As for Toyota's impact on Ford and GM....GM will probably declare bankruptcy this year, and Ford is not far behind, so they haven't learned well or soon enough.[/quote]

That's a good point and a sad one. I really like my Buick.

 

[TomorrowlandTyler]

I just got a price quote for a 7 day Disney Cruise - Western Caribbean - departing 5/5/07 - catagory 9 outside cabin (cheapest outside catagory) - 2 adults, one child - $3,775.40. That's with a supposed early booking discount. That's about $1500.00 more than any of the other big six cruise lines (Carnival, Royal Caribbean, Holland America, Princess, Celebrity, Norwegian). I know that Disney is a bit more expensive BUT $1,500.00!!!!! Now technically Celebrity and HAL aren't sailing the Caribbean in May. Most of their ships will be in Europe or Alaska during that time, but still, you can get a far better deal on any other cruiseline when you book early. So my question is quite simple. WHY DOESN'T DISNEY BUILD MORE FRICKIN' SHIPS?!?!?

Who is the idiot in charge of DCL. I want a name. I want a reply. I want him or her to be taken out and beaten senseless.:lookaroun OK I may be going a little too far but tell me why are we expected to pay an extra $1500.00 for "Disney Magic"? The cuisine is comparable if not better on other cruiselines. The entertainment is about the same. The ports are the same. What's goin' on here?:hammer:

I Agree, Cruises are very expensive, we would have to skip wdw for a couple of years to save for a cruse, and we're not ready to do that...

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