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Princess was cheaper than Royal for years and they upgraded the whole fleet to O3b unlike Royal that only did new ships.  Plus it actually worked well on Princess.

It stands to reason that Princess finally woke up to the fact they were leaving money on the table with their internet plans.

I don't understand why bloggers (or the public) draw conclusions when one line does something.  Just because it goes up on Princess does not mean it is going up on other lines. 

In fact with SES/O3b losing Royal as a customer SES/O3b may have had to jack up their rates to compensate for the lost revenue from the new competition from Starlink.  Princess may have had to renew a contract only because the existing contract was coming to an end.  Naturally with costs going up and SES launching new satellites for greater capacity their rates are going up.  Whatever the reason for Princess to raise prices is irrelevant.  

Royal sets their pricing with a lot of market analysis and marketing intelligence regarding how to set the price to maximize revenue.  From their perspective the fact that their costs have dropped 70% is irrelevant as it relates to how they will set their pricing for Voom going forward.    They already know the price point that will ensure maximum revenue in each market, at different times of the year and across different demographics.  Who provides the service at what cost doesn't matter. 

If Royal bought their booze through one distributor two years ago and now they are using a different distributor at a different cost none of us would know or even think about it.

Their supplier of satellite services and what they pay is the same as any other supplier they purchase from. 

Royal does not use a cost plus fixed margin to determine price.  They are not Costco.  They will charge what the market will pay.   If enough people are willing to pay $35 per day for internet that is what they will charge.  There is a number that has historically been determined to maximize internet revenue.  Is that $11 per day?  $15 per day?  $18 per day?  Only Royal knows but that is how they will determine the price for Voom.  Their cost, up, down or the same is meaningless. 

Royal will charge whatever they can as long as guests continue to buy it.  Most cruisers have no idea what Starlink or SES or Speedcast or whatever are.  They just want internet and will pay a number they are comfortable with.  Royal knows exactly how to position advanced sales and on board rates to ensure they leave as little on the table as possible.  

 

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Currently costing just $9.99 per day for the single-device plan, which can be used for 24 hours of unlimited use, guests will pay $15 per day from Feb. 20.

54 minutes ago, smokeybandit said:

That's quite a leap there. Princess had their internet price points way too low to begin with compared to others.

22 minutes ago, twangster said:

It stands to reason that Princess finally woke up to the fact they were leaving money on the table with their internet plans.

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