SweetPea Posted July 8, 2023 Report Share Posted July 8, 2023 When i saw the OTW cabana at $1799 for our Sept cruise, I knew that was (sadly) a decent price. I also knew it would probably be a one time thing with the way prices are going so i said, screw it, YOLO, book it, who cares. (That $1799 during hurricane season is now $2199, btw). Anyway, fast forward to our 5/31/24 cruise and that cabana is $4099. Fine, not sure who is paying THAT (we won't), but we are "need a decent location with sand out of our nether region peoples" so we rent something (it's the only way i get Batman off the ship). I began looking at other options for PDCC. Here's a breakdown of what else if offered: Beach bed rentals: $329 Cabanas, including Thrill Water Park (but not in Beach Club): $1699 Beach Club Cabana (not OTW): $3499 Beach Club Day Pass pp: $302.99 Thrill Water Park Day pass pp: $188.99 I know to look for a Black Friday deal, but honestly, these would have to be on a 55-60% sale or so for us to book anything. We booked near opening day, and the prices haven't budged. All this to say ... Would Royal rather these add-ons go unused than to find the presiding sweet spot? Quote Link to comment Share on other sites More sharing options...
Ryan79 Posted July 8, 2023 Report Share Posted July 8, 2023 Sometimes there are nice price drops 10-15 days prior to sailing, but I haven’t seen good OTW cabana deals on Black Friday for a while. Last time I was at PDCC, the OTW cabanas never got below $3k and over half of them were empty. SweetPea 1 Quote Link to comment Share on other sites More sharing options...
SweetPea Posted July 8, 2023 Author Report Share Posted July 8, 2023 Yeah, my point. If half of them are empty, has Royal found their sweet spot in pricing? Ryan79 1 Quote Link to comment Share on other sites More sharing options...
Xaa Posted July 8, 2023 Report Share Posted July 8, 2023 Their sweet spot is maximum revenue. In Econ 101, it's the price where the supply and demand lines intersect. But for this example, if they sell all 20 of them at 1799 they get $35,980 in revenue and have to serve up to 160 guests meals etc. They can exceed that revenue by selling only 9 at 4099 ($36981) and serve a maximum of 72 guests. As long as they sell 9 they are better off at the new price than the old. I think they want to sell as many as they can at 4099 and then will intersperse some on sales at lower price to fill empty slots. Let's now imagine that nobody paid the higher price for anything beach club related and they didn't decrease the prices and the beach club was completely empty, nobody there(I know it's unrealistic and imaginary). Well those people would be somewhere which would create more crowding at the free locations which in itself would create more perceived value in an exclusive experience. As they bring Icon online and start to increase daily capacity on the island, there is more value in an exclusive experience because crowding or perceived crowding may become a factor. People are going to pay it. I'm not one of them. Quote Link to comment Share on other sites More sharing options...
twangster Posted July 8, 2023 Report Share Posted July 8, 2023 Royal will always try to find the optimal price they can charge for everything. From the cruise fare, drink and dining packages to shore excursions. In their quest to find the highest rate consumers are willing to pay there may be times when some things don't sell as well. However as far as 2024 prices it has long been a trend that prices for things further into the future tend to run higher. That's a safety mechanism for Royal. PPPJJ-GCVAB 1 Quote Link to comment Share on other sites More sharing options...
OCSC Mike Posted July 8, 2023 Report Share Posted July 8, 2023 6 hours ago, SweetPea said: Yeah, my point. If half of them are empty, has Royal found their sweet spot in pricing? We had a Beach Club cabana last month on the far left of the Beach Club if facing the ocean. My family was shocked at all the empty OTW cabanas we could see on our side. Didn’t feel like having an economic discussion while there but the above posts sum it up. Doesn’t matter a ton to me or my wife, we enjoy the free version of CocoCay, but my extended family really liked those cabanas and that will be our last one given current prices. (Don’t get me wrong, we enjoyed them too, just not nearly as important to us). Quote Link to comment Share on other sites More sharing options...
PPPJJ-GCVAB Posted July 8, 2023 Report Share Posted July 8, 2023 I did the Beach Club thing once and that was enough for me. I now choose the South Beach Cabana and am very happy with it. For my cruise coming up in 3 weeks…I have 2 rented and each one was $1099. They have been sold out for quite some time but the price went as high as $1399. South Beach is nice because it is near the “sports area”…a decent bathroom…a bar on land and one in the water…and a snack shack! Sadly pricing is so crazy lately and I don’t think it’s going to change much. Quote Link to comment Share on other sites More sharing options...
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