The cumulative effect is what pushed it over the top.

I think it naive to believe that any of this will push RCI to bankruptcy. Though I do think that Mr. Goldstein’s letter proves it put a significant dent in their bookings, I don’t believe it any way would be terminal for the company.

As far as the actualy theories explained in implementing the new new D benefits, it’s really pretty simple. If overcrowding was the total issue, they could have simply opened the newly designated lounges for Diamond members, and offerred the same free drinks they do in the Concierge Lounges. Instead they are offering a 25% discount. So the reality is they are giving back 1/4 of what they took away.

And all the other changes they made adding additional fees, and making discounts non-combinable still exist. Yet many folks seem to be pleased that RCI “listened” to them. Pretty funny really.

I prefer a higher end, more intimate cruise atmosphere than the RCI product, but I think the Oasis is going to be the ship that raises the bar once again and will have the other cruise lines who serve the same demographic scrambling to copy or create similar product. Just Central Park alone is enough for me to want to cruise on the Oasis. I love the idea of sitting in a park at sea. It’s as googy to me as removing that pickle! =)

Exactly what I think. To me, RCI’s latest cutbacks and extra fees are akin to Burger King putting one less pickle slice and a smaller patty on a whopper and thinking they are superior enough to Wendy’s to get away with it. They aren’t.

And suggesting they “pretend” they’re special would be one of them. I’m thinking it might be the tact that General Motors and Chrysler took

RCI does build special ships, but beyond the hardware I think they are a mass market line.

That’s the point I was making in my first blog on the topic (The Nation of Why Not Charge More). I think they think they are really overconfident in their product. And that’s been further demonstrated with the lates moves I wrote about.

Now.. whether they are right, or I am, I suppose only their financial reports at the end of ’09 will tell.

Look at Disney. You don’t see them doing too much discounting, do you? Disney has a unique product and yes, there are many people who either can’t or won’t spend the amount required for a Disney cruise, but there are a lot who will … and for them Disney needs to keep the experience unique and special, and it costs money to do that. If I discount all over the place, now I’m not making the kind of money I need to make in order to keep my cruises special.

Now, of course, this opinion isn’t really just for RCI … but for any cruise line … and it pre-supposes that the cruise is special and will be kept that way. For example, if a cruise line routinely starts discounting seven-day Caribbean cruises, I would imagine the effect of that discounting is gonna show up in the finished product … less of the personal touches that made the cruise line special to begin with. So, I am assuming that RCI is planning to also keep their standards high along with their refusal to discount.

Maybe I’m in the minority here believing that these economic conditions are not permanent. We are just going through a very bad time right now, but things will surely improve. If I’ve discounted my cruises deeply, and also cut a lot of the special touches out in order to accommodate that deep discounting, when the economic climate changes, my cruise line is no longer going to be known as something special. Now I’m gonna be lumped in with everybody else … because I am delivering exactly what everyone else is. So, I’d rather sail some of my ships at less that full capacity now, but keep my prices and standards up … which will stand me in good stead later, when the economy is much better and all those former customers want to come back to what they remember as my unique and special onboard experience.

Just my opinion.

Blue skies …

–rita