Conference abbott::cruise_travel

346.0. "RCCL 'Breakthrough Rates'" by SCARGO::FRANKLIN () Tue Feb 11 1992 11:48

Reprinted without permission - Tour & Travel News - Feb. 3, 1992

Royal Caribbean Sets Advance Purchase Cruise Fares
by James Santo

Miami - Hoping to break consumers of their habit of waiting longer to 
get better deals on cruises, Royal Caribbean Cruise Lines has developed
an airline-type yield management system which gives deep, capacity-
controlled discounts on brochure rates for early, cruise-only bookings.

Called "Breakthrough Rates," Royal Caribbean's yield management system
was introduced to travel agents nationwide on Jan. 19 via the line's
CruiseFax facsimile network and CruiseMatch 2000, its automated booking
system.

Discounts are available on every Royal Caribbean ship, except the new
Monarch of the Seas, and apply to a majority of the line's 1992 sailing
dates, including most cruises in the Caribbean and Mexico; early cruises
to Alaska, several departures to Bermuda and select cruises in Europe.

"We wanted a program which would encourage people to book early," said
Brian Rice, director of revenue planning and analysis for Royal Caribbean,
who developed the Breakthrough Rates program.

"One of the frustrations we've had and the trade has had is that as we've
moved closer to sailing, the cruise lines have dropped the price," said
Rice.  "This system is more like an airline system; the further out you
book, the lower the price you'll pay."

The Breakthrough program establishes a "basic inside" and a "basic outside"
rate for each cruise program, which vary according to sailing date.  Royal
Caribbean will maintain the basic rates as long as necessary to stimulate
bookings and increase them gradually as the sailing sells out.

We're trying to increase price gradually", said Rice.  "Previously, it was
either 'second person at half-price' or tariff; that really isn't fair."

The minimum category available with the basic inside rate is Category N;
all Royal Caribbean ships have three more categories below that.  The
minimum category available with the basic outside rate is Category I; the
lowest outside category on Royal Caribbean ships.

Passengers pay standard add-ons to book higher categories: $10 per person,
per category for three- and four-day cruises, $15 for seven- and eight-day
cruises and $25 per person, per category for 12-day European cruises.  Ten-
day Caribbean cruises of the Nordic Prince are not included in the 
Breakthrough program.

Breakthrough rates are cruise-only.  Passengers can buy air through Royal
Caribbean as an optional add-on: $250 from East Coast gateways, $300 from
the Midwest and $400 from West Coast cities.

The brochure, air/sea rate for the Sovereign of the Seas on this date is
$1,480 per person for a Category N cabin the minimum category to which
Breakthrough Rates are applicable.

Royal Caribbean offers a $250 per person air allowance, yielding a brochure,
cruise only fare of $1,230.  The basic inside Breakthrough Rate, cruise-only,
for this sailing is $840, which represents a savings of $385 or 31.3 percent,
off the cruise-only tariff.

Depending on the sailing date, the discounts can be deeper still.  For 
example, the basic inside Breakthrough Rate for the Sovereign of the Seas on
August 29 is $745, which is $550 off the brochure, cruise-only rate, a 42
percent discount.  At that rate, even a West Coast passenger can save 38 
percent off the published air/sea fare.

-------------------------

The following points will summarize the details of this promotion:

	-  Breakthrough Rates apply to a majority of sailings - however, 
	   they do not apply to every sailing

	-  While the listed rates are Cruise-only, air/sea add-ons are
	   available from most gateways

	-  Upgrades are available from $10 per person

	-  These prices will increase without notice

	-  All prices are double occupancy

	-  Port charges and other taxes are additional

The response to RCCL's 1992 Breakthrough Rates has already been incredible.
I have a list of starting prices & applicable dates if anyone is interested 
(no phone calls, please).