Cruise lines hone hashtag marketing for new ships

“About to sail on the magnificent #regalprincess WYWH” — @mickyarison, Nov. 5, Twitter,l

FORT LAUDERDALE — The day before the Regal Princess naming ceremony, the excitement that accompanies a ship’s inaugural was starting to build. As guests of Princess Cruises stepped off the gangway and into the atrium, they began greeting friends, taking in the sights and sounds and pulling out their cellphones for a few selfies and snaps of the atrium.

Regal Princess/TwitterFor many, the resulting Instagram/Twitter/Facebook post was finished off with the hashtag #regalprincess.

At a table on the atrium’s first deck were two passengers with laptops out. One was Sara Dunaj, Princess Cruises’ social media manager. The other was Simon Duvall, also known as@simontravels and the host of #CruiseChat, a weekly Twitter chat about cruising.

“The Regal Princess hashtag,” he said, “is about to blow up tomorrow.”

A few years ago, with the advent of live Web streaming, consumers and agents could witness in real time the special events surrounding a ship launch: the entertainment, the CEO and captain making speeches, the bottle-breaking and the streamers flying.

But today, launching a new ship is a social media conversation, begun years before the vessel actually hits the open seas. A cruise line will begin using a hashtag — #regalprincess or #quantumoftheseas, to name the two most recently christened ships — and then seed social media with posts about the construction progress, itineraries and onboard innovations. Bloggers and social media influencers, not to mention the traditional news and trade media and everyday cruise fans, will pick up on the posts and rebroadcast them to their own friends and followers.

The result, cruise executives say, is a boon in terms of marketing for the ship and the brand. The resulting pins or posts, meanwhile, are marketing that will live on as cruisers contemplate a cruise on the #carnivalbreeze or #norwegiangetaway.

“I think at this point, social is … one of the most important elements of marketing a new ship launch,” said Gordon Ho, Princess’ chief marketing officer. “So in terms of magnitude, we spend so much time thinking about how our ship launch and marketing activities are going to be social.”

“Heading to NY to rejoin #norwegianbreakaway. Anything you haven’t seen yet that you’d like a picture of?” — @nclandy, May 6, 2013, Twitter

Norwegian Breakaway/InstagramSocial media “has become a critical aspect of telling a story of a new ship to consumers, to trade,” said Andy Stuart, Norwegian Cruise Line’s executive vice president of global sales and passenger services. “It’s expected. And it’s an opportunity to engage with a much broader audience in different ways and across different platforms.”

Norwegian took advantage of the siren call of social media in a big way when it debuted the Norwegian Breakaway in New York in May 2013. The line opened up the WiFi networks so they were complimentary to guests, and it invited nontraditional media to the ceremony — “people only telling the story through social media,” Stuart said.

A week after the ceremony, Norwegian and its communications partner, MTN, said that the line had set a “new record” for social media usage at sea during the inaugural events in New York from May 8 to 12.

“The result generated more than 429,755 Facebook visits over the five-day period, and Instagram registered more than 56,862 visits and 1,715 pictures uploaded with the hashtag #NorwegianBreakaway,” the companies said. “Guests utilized Twitter onboard, and as a result, Norwegian received a record number of mentions and retweets about the content shared from Norwegian Breakaway.”

Duvall said he considered the Breakaway to have been the first big-ship launch to embrace the social media and blogger community by inviting social media influencers onboard and promoting the #norwegianbreakaway hashtag.

“Oasis and Allure of the Seas were the beginning,” he said. “It wasn’t such a critical piece of it back then. It was the beginning of the trend.”

A suddenly dominant tool

MSC Divina/TwitterIf the Oasis of the Seas and Allure of the Seas, in 2009 and 2010 respectively, were the beginning of the trend, there were several subsequent ship launches, such as from Celebrity or Disney, that showed up on major platforms like Twitter, Facebook, Instagram, YouTube and Pinterest. On the rivers, attendees at the multiship inaugural for Viking Cruises tapped out observations on their phones using the term #vikingchristening.

In June 2012 for the Carnival Breeze launch, Carnival Cruise Lines teamed up with cruise newbie and former “American Idol” contestant Janell Wheeler, who documented a trip to see the ship fresh from the yard on Facebook, Twitter, Pinterest and YouTube.

Flash forward to November 2014: Media interested in attending the Quantum of the Seas’ inaugural cruises in New York last weekend were asked to provide their Twitter handles as part of the preregistration process.

“Our #FiatAtSea campaign is one way we generated buzz to launch #MSCDivina”–@KenMuskat #CSM2014 #cruisemkt” — MSCCruisesUSA, March 11, Twitter

For its introduction of the MSC Divina to the U.S. market last fall, the MSC Cruises team saw big results from a social media campaign: It loaded a bright red Fiat 500 onto the Divina and tracked the car and the ship as they made their way from Italy to Florida.

Every day, the ship’s photographer took a picture of the port — Malta, St. Thomas — then sent the pictures out on MSC’s Facebook page and on Twitter with the hashtag #fiatatsea. When the Divina entered Miami, it was escorted by a fleet of specially equipped Fiat 500 watercraft cars, with the hashtag emblazoned on the side, that appeared to drive on the water’s surface — a photo perfect for sharing.

“We got so many people talking about us,” said Ken Muskat, executive vice president of sales, public relations and guest services for MSC in the U.S.

Five bloggers were invited the day before the Divina’s arrival. The day of the inaugural there was a social media meet-up onboard with a stream of live tweets that ended in fireworks (the fireworks photos went viral, Muskat said). Free WiFi was provided for agents and other guests onboard to share their thoughts and photos.

Royal Caribbean Dashboard Quantum of the SeasFrom Nov. 12 through 23, 2013, the period surrounding the ship’s arrival, MSC said the hashtag #mscdivina generated 5,585 tweets and 1.5 million impressions on Twitter. Overall that month, the likes and followers of the line’s Facebook and Twitter pages grew 10%.

With an inaugural cruise a brand can only carry as many press, agents and guests as the berths can hold. But Muskat said social outreach is a way to build buzz and reach a global audience in real time. Muskat, a self-proclaimed Twitter addict, said the platform enables him to have a personal relationship with agents.

“And then there’s the crew,” he added. “They were the first ones tweeting.”

“The Love Boat cast is naming #RegalPrincess today! RT if you’re dreaming of ‘love, exciting and new!'” — @princesscruises, Nov. 6, Twitter

Last week, as the Regal Princess was counting down to its naming ceremony with the cast of “The Love Boat” and VIP celebrities from the show, the tweets and Instagram posts started flying fast and furious, right down to the posts about getting ready to board and pictures of the ship in Port Everglades.

Selfies with “The Love Boat” cast. Photos of the cabins. The atrium. The spa. The ceremony itself, followed by the fireworks.

Once the ship left port on a short preview cruise, the tweets and photos switched to the sail-away and a day trip to Princess Cays. More food, onboard entertainment, then regretful goodbyes — an entire cruise to be lived vicariously through social media.

One of Princess’ social media goals, Ho said, was to create “stories that are sharable;” for example, the cast of “The Love Boat,” who together named the Regal Princess, or the line’s new Chocolate Journeys program with chocolatier Norman Love.

“Inherently, chocolate is something that can be shared abundantly,” he said.

(I recalled my brief trip to the Regal Princess: Crew had passed out a complimentary cabernet-and-chocolate pairing, and I had instantly — automatically? — snapped a picture of my wine glass and chocolate and shared it via Twitter.)

A versatile social toolbox

Carnival Breeze/YouTubeEach platform offers a slightly different tool.

“On Facebook, we’ve been focusing on imagery, because it’s such an image-driven thing these days,” Princess’ Dunaj said. “On Twitter, we’re able to do a lot more live activity, so that’s where we’re doing the live tweeting of the event.” Instagram, of course, is “entirely visual,” and the line created a series of videos to drive buzz for the Regal on YouTube.

A hashtag’s activity can be measured by several metrics, including impressions, which means, roughly, the number of times a tweet with a hashtag could have been seen by a person with a Twitter account. Princess Cruises, for example, has 73,300 followers on Twitter, so each time @princesscruises tweets something, that tweet garners 73,300 impressions. On a busy hashtag, it doesn’t take long for the impressions number to reach into the millions.

Princess said last week that using analytics that enabled it to search for “#regalprincess,” “Regal Princess” or “The Love Boat,” from Nov. 4 through Nov. 11 it recorded more than 83 million Twitter impressions. More than 850 photos were hashtagged #regalprincess.

Companies are measuring social media returns on a more long-term basis — not just one hashtag but several iterations, and not just the hashtags but also what the tweets say.

This enables them not only to respond quickly to a problem or “like” a compliment but also to tailor and refine content to what users want to see.

“I’ll be on it on the 18th! YAY!” — Chris Voegele, Nov. 7, Facebook

“Only a few more days of anticipation, Chris! How excited are you to join us onboard?” — Royal Caribbean International

The Quantum of the Seas has been billed as the most highly anticipated new ship of the year, so it’s not surprising to see a flood of information showing up as a constant stream on the social media “dashboard” on Royal’s public relations site.

“It’s been four years since we launched a new ship, and the whole online landscape has changed,” said Tracy Quan, Royal Caribbean’s associate vice president of global corporate communications.

“Right from the very beginning, we knew we had to do it differently than just doing traditional launches; we knew we had to leverage all the social channels out there.”

Royal, which has also refined the art of the “reveal” — i.e., producing a splashy event to draw attention to new facilities or programs onboard — incorporated social media. For example, company President Adam Goldstein co-hosted a Google Hangout to coincide with the reveal of its Dynamic Dining program (aka #dynamicdining on #quantumoftheseas).

Quantum of the Seas/FacebookFor travel agents, in addition to being able to repost, repin or retweet Royal’s public posts, Royal said there have been daily Quantum-related posts on the Facebook page of Vicki Freed, the senior vice president of sales and trade support and service, and Freed conducted a Facebook chat with travel partners earlier this month.

It also houses social media sample copy and images on its LoyalToYouAlways.com trade site for agents to share with clients. A Facebook campaign for the trade is forthcoming.

The line has refined some of its early strategies from the Oasis and Allure debut. For example, on the Quantum debut it’s partnering with “experience advisors” outside of the travel industry to extend its reach, such as Michael Schwartz of the Michael’s Genuine gastropub on culinary (4,000-plus Instagram followers, to use one statistic), former NFL linebacker Dhani Jones on sports and fitness (75,000 followers on Twitter) and HGTV personality Genevieve Gorder on cabin decor (70,000 likes on Facebook).

“It’s not about who we know; it’s about who they know, who they reach,” Quan said. “So they can just amplify. … In our bid to always try to expand our audience reach, we want to be able to speak to new-to-cruisers.”

It has also continued to post making-the-ship videos to YouTube, but the company has been publishing shorter videos, which Quan said was more in line with viewer preferences today.

On Royal Caribbean International’s YouTube channel, a video about the robotic bartender in the Quantum’s Bionic Bar had been viewed nearly 10,000 times as of last week; a video titled “All New Technology Onboard Smartship Quantum of the Seas” posted in August has been viewed more than 42,000 times.

Quan said the videos serve two purposes: to satisfy media and consumers who are hungry for new content and also to serve as story ideas.

Viking Cruises/Pinterest“If we talk about the behind-the-scenes on the making of the Bionic Bar, we get media who wouldn’t typically cover us, like the tech media, approaching it,” she said. “How did we come up with the concept? How did we come up with the development?”

And of course, during the ship launch this weekend the line threw down the barriers to the wireless network to enable all who sailed onboard to Facebook, Instagram, tweet, Vine and pin to their hearts’ content.

Halo effect

Stewart Chiron, aka the Cruise Guy (@cruiseguy) and the owner of Leisure Pros, was one of the social media aficionados fresh off the #regalprincess who last week was readying for #quantumoftheseas.

“Social media is so vitally important to businesses today to get your messages out and communicate with people,” he said. The Quantum, he said, “is going to have a halo effect. It is going to be able to showcase what cruising is all about.”

J.D. Andrews, a travel videographer and photographer who goes by @earthxplorer, said that when he’s onboard, he “constantly” posts on Twitter, Instagram and Facebook with his phone (and shares more “professional” photography on his website, earthxplorer.com, when he gets home). He doesn’t have a minimum or maximum number of posts or a concrete plan. “The only ‘plan’ I’ve ever had is to share my adventure, the things that I find fun and interesting,” he wrote in an email.

Andrews, who said he had been using social media since 2007, said he loved the interaction with followers: “they can ask me questions in the moment, and if I don’t know it’s easy enough to find them the answer.”

He said he thought that change has come to the cruise industry. “It seems that, finally, each cruise line has come to their own ‘tipping point,’ either by necessity or trying to keep up with their competition, and it’s about time. It’s the only way to post what your company is doing, assist in customer service and share the exciting world of travel directly to your consumer.

“And it’s free.”

Oasis of the Seas vs. Quantum of the Seas: a Cruise Ship Comparison

quantum-top oasis-bottomSince its debut in 2009, Oasis of the Seas has continued to turn the cruise world upside down. With first-in-cruising innovations like a zip line, a carousel, a levitating bar and real, live trees, it commands respect — even from those who argue its massive size doesn’t appeal. In addition to being the largest ship at sea, it’s arguably the most well-known. So where does that leave Royal Caribbean’s newest ship, Quantum of the Seas, and how can it possibly step out of the shadow of its behemoth fleetmate?

Below we’ve compiled a list of offerings on both ships to show you exactly what you’ll find onboard. Although these two vessels share some of the same venues and amenities, there’s a lot that sets them apart, and each provides an experience all its own. Read on to figure out which of these ground breaking ships is the right fit for you.

To the right: Quantum of the Seas (top) and Oasis of the Seas. Photo appears courtesy of RCI.


Oasis of the Seas Quantum of the Seas Both
Photos
oasis aquatheater image

quantum north star image

american icon grill image
American Icon will be featured on both ships
Size Tonnage: 225,282
Passengers: 5,400
Decks: 18
Tonnage: 167,800
Passengers: 4,180
Decks: 16
N/A
Cabins If you’d rather wake up to trees than ocean views, try a balcony cabin that overlooks Oasis’ Central Park or Boardwalk “neighborhood.”
Quantum’s cabins are, on average, nine percent larger than those on Oasis. Solo cruisers don’t have to worry about dreaded single supplements, either. Twenty-eight studio cabins(12 with balconies) are available for anyone cruising alone. Meanwhile, “virtual balcony”interior cabins offer real-time ocean views via floor-to-ceiling LED screens, and family connected suites combine three cabin types to accommodate larger groups. Royal Caribbean ships offer several similar stateroom categories across the fleet, but Oasis and Quantum have a couple notable stateroom standouts.
Restaurants Following its recent dry dock, Oasis received Mexican restaurant Sabor, as well as the Boardwalk Dog House, which originally debuted on sister ship Allure of the Seas. Oasis also offers for-fee options at Giovanni’s Table, featuring Italian fare, and upscale 150 Central Park, which boasts a rotating six-course menu. If you’re looking for a quick bite, the Cafe @ Two70 offers gratis picnic-type fare with 270-degree views. Another quick option is the SeaPlex Dog House, the first food truck at sea, featuring free gourmet hotdogs and sausages. An interesting extra-charge offering includesDevinly Decadence, where all meals are fewer than 500 calories. Both ships will offer Royal Caribbean’s new“Dynamic Dining” concept, which does away with traditional dining and, instead, allows passengers to choose from a number of eateries at their leisure, some of which are free and some of which incur extra charges. Dynamic Dining will roll out on Oasis in spring 2015. You’ll also find Sorrento’s Pizzeria on both ships, as well as the Windjammer Cafe buffet; Izumi, which offers Japanese cuisine; Johnny Rockets for burgers and shakes; Wonderland, molecular gastronomy featuring dishes like disappearing noodles, and wasabi and apple crisps prepared with liquid nitrogen; American Icon Grill for comfort food; Coastal Kitchen, which showcases California-Mediterranean fare for suite passengers only; The Grande, a fancy affair, which focuses on dishes served aboard the ocean liners of yore; Silk, Royal Caribbean’s pan-Asian restaurant; and Chops Grille, the line’s steakhouse.
Bars The Rising Tide Bar, which debuted on Oasis of the Seas, is set on hydraulics and travels between the Royal Promenade and Central Park. In its Bionic Bar, Quantum will feature robotic bartenders. Passengers order drinks via tablets and can then watch as the robots (more like mechanical arms, really) prepare them. Vintages, a swanky wine bar where passengers can try new or favorite beverages, is featured on both ships.
Activities & Entertainment For breathtaking entertainment that combines aerial and aquatic feats with the ship’s wake as the backdrop, you won’t want to miss performances at the AquaTheatre on the ship’s Boardwalk, where you’ll also find a carousel. Look up in the sky, and you’ll see fellow passengers whizzing by on the sports deck’s zip
Try any number of at-sea firsts on Quantum, including a visit to North Star. Best for those without a fear of heights, the glass pod, positioned on a mechanical arm, will raise passengers 300 feet above sea level for 360-degree views. Meanwhile, SeaPlex ttriples as a venue for basketball, roller skating and bumper cars. Adrenaline junkies will appreciate trapeze classes and a RipCord by iFly skydiving simulator. A handful of RCI ships offer Broadway productions as part of their theatre entertainment. Oasis, where cruisers can catch performances of CATS, and Quantum, featuring Mamma Mia!, are no exception. Both ships also feature rock climbing walls and the line’s signature FlowRider surf simulators.
Itineraries Based in Fort Lauderdale at Port Everglades, Oasis sails Western Caribbean itineraries. Homeporting in Bayonne’s Cape Liberty through spring 2015, Quantum sails Southern Caribbean voyages. It will then permanently relocate to Shanghai for Asia sailings. Until Quantum relocates to Asia, both ships sail a mix of BahamasEastern Caribbean and Europe itineraries from the U.S. East Coast.
Family Oasis’ Adventure Ocean is housed in one giant expanse on the same deck. In addition to exclusive areas separated by age group, there’s a science lab, a workshop and even a theater, where participants rehearse before performing for their parents at the end of each sailing. Quantum’s Adventure Ocean spans two decks, and it features a science lab as well as a cool teen space will provide a similar experience to that found on Oasis. Both ships showcase Royal Caribbean’s stellar kids offerings, each boasting extensive Adventure Ocean facilities. The line also has a partnership with DreamWorks, and cruisers can enjoy parades and meet-and-greets that feature Shrek, Fiona and other characters. These two vessels also include the H2O Zone, where young cruisers will find splash pools and colourful sculptures that spray water.

Value trumps price

By Tom Stieghorst

When all-inclusive drinks packages were introduced two years ago, cruise lines hoped to earn some extra revenue, figuring some people wouldn’t drink as much as they expected to.

But the drinks packages are also being used as a kind of loss leader for several cruise lines. They’re dangled for free to help induce passengers to book a particular line or sailing.

Such promotions have reshaped cruise marketing in the past few years. Be it a reduced deposit, free gratuities or onboard spending credits, it’s a rare guest who sails today without something extra in his or her pocket.

For cruise lines, value-add items have been the ladder out of the deep-discount pit they fell into after the economy tanked in 2008. Prices on some seven-night cruises fell as low as $113 per person as financial gridlock made a cruise seem like an extravagance.

Prices have improved, in part because value-add has augmented discounting as a ship-filling strategy.

“We’re really working hard to create more promotions,” said Royal Caribbean Cruises Ltd. Chairman and CEO Richard Fain. “I think we can do a better job offering more for the same money rather than just discounting.”

Value trumps priceDiscounts do more than harm revenue, said Adam Snitzer, president of Peak Revenue Performance, a Miami Beach consulting firm that specializes in revenue management.

“You see a cruise for $499, it creates this perception that, OK, a seven-day cruise is worth $499,” Snitzer said. “And then if you try to raise prices, there’s still that lingering reference price in consumers’ minds, that this is what one should pay for a seven-day cruise.”

When demand is not filling ships to the 100% level that the industry’s business model calls for, cruise lines have to do something to get balky consumers off the sidelines.

“So it’s very smart to go into the value-add position for a few reasons,” Snitzer said. “One is you offer a higher price, so you raise that reference price. And what you bundle in often has a higher perceived value in the customer’s mind than the cost for the cruise line.”

Cost vs. perception of value

Take the example of the drinks package. Snitzer said the profit margin at cruise ship bars can be up to 90% of the drink price. If a guest gets a $100 onboard credit and spends it at the bar, the value in the customer’s mind is $100, but it only costs the cruise line $10, he said.

Other promotions cost even less. The promise of a reduced deposit may ease the decision for prospective buyers, and it has immediate value in managing their budgets, but in the end it costs the cruise line nothing.

“They’re going to collect that money,” Snitzer said. “They’re just going to collect it later.”

Royal Princess' SeaWalk and balcony cabins.A two-category upgrade, a popular value-add in Carnival Cruise Lines promotions, has a perceived value of whatever the difference in brochure cost is between the two cabins.

“But if those cabins aren’t full, then there’s no lost revenue,” Snitzer said.

Some value-adds, such as onboard spending credit, can actually drive incremental revenue by making things affordable that might otherwise seem out of reach.

For example, a family that can’t afford the whole price of a swim-with-the-dolphins tour, one of the more expensive excursions in the Caribbean, might reconsider if they have a spending credit to soak up part of the cost.

For travel agents, the focus on promotions has several benefits.

First and most important, it buoys ticket prices, which keeps commissions higher than they might otherwise be.

“A price drop obviously affects our earnings potential,” said David Crooks, senior vice president of product and operations at World Travel Holdings. “A value-add has more impact on the cruise line’s economics than it does on the trade.”

Second, value-adds make shopping a little more challenging for the consumer. No longer can they simply type dates and locations into a search engine to find the best deal.

A $599 price at one line might not be as good as a $699 price at another if the second offer also includes a night in a specialty restaurant, or a reduced deposit or a money-back guarantee.

“It helps us keep the client rather than having them go direct,” Crooks said. “We can navigate them through the different offers, tell them what they mean.”

Stephanie Turner, president of Brentwood Travel, in St. Louis, agreed that value-add promotions can enhance the agent’s role as a knowledgeable adviser to clients.

“I’ve always said that if our suppliers make it complicated enough, we do become valuable,” Turner said.

Lotus Spa on Royal Princess.However, Crooks said it’s important that the offers not become too complex. He said promotions that are not combinable with other offers are especially frustrating to agents and consumers.

“There’s a perception of a bait-and-switch. Those that allow it to be combined with the best price tend to be most successful,” he said.

Another attribute of a good value-add promotion is that it be fairly broad. Joni Rein, Carnival Cruise Lines’ vice president of worldwide sales, cites the line’s Great Vacation Guarantee as one example.

Vicki Freed, Royal Caribbean International’s senior vice president of sales, trade support and service, said prepaid gratuities and shipboard credits are among the most popular value-adds with consumers.

“They tend to favor shipboard credits over things we pick,” Freed said. A free beverage package only appeals to a certain audience, she said: “If you’re not a big drinker, that beverage package isn’t a value to you.”

Some cruise lines have attacked that problem by offering a suite of value-adds from which to choose. Celebrity Cruises has its 123Go! and Pick Your Perk promotions, in which passengers can choose among free gratuities, a beverage package, a $300 onboard credit or airfare savings of up to $600, depending on which is most meaningful.

Other premium lines have followed suit. Princess Cruises has 3 for Free, and Holland America Line calls its version Explore 4.

Norwegian Cruise Line has even experimented with a kind of package of packages, which offers virtually every value-add item in its inventory.

Norwegian Breakaway's Shanghai Noodle BarCalled the All-Inclusive, the product bundles Norwegian’s Ultimate Dining and Ultimate Beverage packages with Internet minutes, plus a bevy of other items not included in the cruise fare.

The package, priced at $899 for a seven-night cruise, was offered in August and September for 2015 cruises.

MSC Cruises recently introduced its own take on packages and value called “Inclusive Experiences,” which essentially does away with cabin categories and instead offers consumers four amenity levels from which to choose.

Although big globally, MSC has been a small player in North America until this year, when it positioned the 3,959-passenger MSC Divina in Miami. The Genoa-based line has historically offered value-adds such as a standard “kids sail free” policy that other lines have avoided.

In the new structure, the most price-conscious travelers can choose the entry-level “Bella” experience, in which most amenities are a la carte. The levels progress through “Fantastica,” which costs $30 to $60 more per person, and “Aurea,” which costs an extra $400 per person, to the top “Yacht Club” experience, MSC’s ship-within-a-ship enclave.

Ken Muskat, MSC’s executive vice president for sales, said the Bella experience satisfies MSC’s bargain customer who will give up choice of cabin location and dinner seating for a “bottom of the barrel” price.

He said the Fantastica level adds another $250 of hard value. “So it’s very easy for the travel agent to upsell you for another 50 bucks, give you a better location stateroom choice, give you a priority confirmation on dining room time preference, and you get $250 value in drink vouchers, the free room service, the 50% off fitness classes, etc.,” Muskat said.

“And then it goes up from there,” he said.

Breaking free of the discount trap

Of all cruise lines, none has a greater interest in shifting the conversation from price to value than MSC. The brand’s unfamiliarity to most North Americans has consigned it in some cases to filling ships with price.

But price is what most cruise lines had to resort to in the 2008-09 period when the financial panic, a foreclosure crisis and high unemployment left few people game to cruise without a discount fare.

One of the first cruise lines to break out of that trap was Regent Seven Seas Cruises, which in early 2009 introduced “ultra-inclusive” pricing. Regent was already hailed for including things like drinks and gratuities in the overall ticket price.

The Celsus Library in Ephesus, Turkey.To hold the line on rate, Regent added a selection of free shore excursions to prime the demand pump. Regent and sister line Oceania Cruises have continued to refine the model since then.

Snitzer said the two Prestige Cruise Holdings brands start with a “truly high” brochure price, then add back free air, free Internet, free gratuities and, in the case of Regent, free shore excursions.

The kicker is an offer of two-for-one fares, “the strongest offer that’s ever been invented,” Snitzer said. “They’ve added so much value, so many things to the cruise, that the price becomes impossible for anyone to understand, what is this really worth?”

Snitzer said a cynic or a sophisticated buyer would say that many of the free items are really built into the cruise price.

“But at the same time, a lot of consumers don’t go through that arithmetic,” he said. “That’s just not the way they approach things. They say, ‘It looks like a great deal, so I think I’ll do it.'”

Some cruise lines say that enhanced product is just as important as tactical promotions in transmitting value signals to consumers.

Several luxury lines such as Azamara Club Cruises and Crystal Cruises have recently added dedicated shore events as a value component. At Windstar Cruises, they are called Private Events.

Examples include a fire dancer performance and dinner in Tahiti or a two-day tour of Luxor in Egypt. Windstar also takes every opportunity to tout its small size, high service and intimate port lineup.

“The whole value discussion always starts with us explaining what a small-ship luxury experience on Windstar is all about,” said CEO Hans Birkholz.

Enhanced product value goes to the heart of each brand. At Royal Caribbean, it means innovation, Freed said.

“Nobody has the bells and whistles that we do,” Freed said, citing the AquaTheater on the Oasis of the Seas or atrium aerial shows on multiple ships as examples.

Seuss at Sea on the Carnival FreedomAt Carnival, upgrades such as Seuss at Sea or the Carnival Live concert series have added value that helped its business recovery from negative publicity surrounding the Carnival Triumph engine room fire in 2013, Rein said.

While the emphasis on value is enabling cruise lines to raise fares, cross currents have kept ticket prices from rising to the level that prevailed before the 2008-09 recession.

“What we’ve seen, as the economy has rebounded, cruise line net ticket revenue yields are still running probably 8% to 12% below where they were at peak,” Snitzer said. “That of course is a concern.”

Several safety and service incidents have contributed to that, starting with the Costa Concordia capsizing in 2012, and continuing with fire episodes on the Carnival Triumph and Grandeur of the Seas last year.

A second factor has been a glut of berths in the Caribbean starting last fall, which led to both price discounting and an avalanche of promotions.

“I think this year we’ve sort of undone some of the good, if you will, because we needed to,” Rein said. “I think consumers now are more inclined to look at the value-add and the price.

“We’ve seen the most creative promotional season I’ve ever seen since I’ve been in the business for 30 years,” she said. “It almost became the price couldn’t be low enough and the value-adds couldn’t be rich enough. Those two concepts collided this year.”

Rein said she hoped that will change in 2015 as some of the excess Caribbean capacity begins to clear.

“For 2015, we’re going to continue down that path of being creative and trying to maintain pricing, which I think we’re all very concerned about,” Rein said. “I think we’re open to being more creative because 2014 taught us that creativity is not necessarily bad.”