Cruise News
Cruise lines discriminate against single travelers
Seattle, WA – For years I never took a cruise because I resented being discriminated against as a single traveler. The cruise lines don’t like to hear anyone use the words “penalty” or “discrimination” so they call the overcharge a “single supplement.” This way they charge a single passenger anywhere from 125 to 200 percent more than the basic fare.
Hotels and motels do not discriminate in room rates. In fact, the basic charge is for single occupancy, and a double when two people occupy the room is generally more. Airlines do not discriminate against single travelers. While there are scores of airline fares depending on the route, stopovers, days and times of flight and the discount of the day, no penalties are assessed for individuals flying alone. Single travelers on Amtrak are not penalized. The same is true for car rentals.
One of the basics I learned in Econ 101 was the lost sale. With me, and a number of my single traveler friends, cruise lines have had scores of lost sales because of their single penalty pricing policy. Many single travelers hesitate booking ocean cruises or river boat tours depending on the size of the overcharge penalty.
I’ve sailed on ships with less than 50 percent capacity and one river boat cruise that was only 15 percent filled. However, that didn’t stop the company from assessing me the penalty.
I contacted the CEOs of many of the cruise lines and Tim Gallagher, vice president of public relations for Carnival Corporation, responded for CEO and Chairman Micky Arison. Miami-based Carnival owns and operates under its name as well as Cunard Line, Costa Cruises, Holland America, Princess Cruises and Seabourn Cruise Line. “A cruise line differs significantly from an airline seat, rental car or hotel room,” says Gallagher. “A cruise is an all-inclusive vacation, that includes not just transportation and accommodations, but all of your food and entertainment packaged together. As such, we have a much different business model than those other segments.”
Gallagher says Carnival’s business model is based on 100 percent capacity and that the public company reported fleet wide occupancy for the fiscal year ended November 2008 of 105.7 percent, up slightly 0.1 percent from the previous year. I’ve never heard of any company in any business having in excess of 100 percent occupancy, except for so-called “hot bed” motels in red light districts.
Based on the industry’s business model, if you are at or near capacity, I can understand a surcharge. However, if a ship is only at 60, 70, or 80 percent capacity, I have to question why, in today’s economy, would a company risk a lost sale by discriminating against a single traveler?
Holland American Line has a unique Single Partners Share Program that matches up single travelers who are willing to share a stateroom. “This program matches non-smoking roommates of the same sex with others who want to share and guarantees the double occupancy price even if no partner can be found,” says Erik Elvejord, HAL’s director of public relations. “We operate with one berth essentially being the commodity, and not the entire room, as the hotel business is structured,” he adds, reaffirming the industry’s business model.
I tried several times unsuccessfully to get a statement from Terry Dale, president and CEO of Cruise Line International Association, Inc. My questions obviously left the industry’s spokesperson speechless.
The only CEO who responded directly was Gregg L. Michel, president of Crystal Cruises. This probably is why Crystal is consistently rated number one in customer service and the best cruise line in its class. “The costs of our accommodations are based on double occupancy, therefore the total cost of the room equals the offered rate times two,” says Michel reiterating the industry’s philosophy.
“It is hard to apply simple logic to the single supplement premise,” says Anastasia Mann, chair and CEO of the Corniche Group, West Hollywood, California. “Even with food and beverage and all-inclusive pricing, it doesn’t work trying to use common sense. One individual may consume as much as six people while light eaters never overindulge.”
Mrs. Mann cites as an example, her pricing for Corniche’s Anastasia’s Africa division. “All prices are per person whether sharing accommodations or traveling as a single. In the bush everything has to be brought in and done on site including the rooms, food, beverages, wine, game drives, and laundry. We have no single supplements so why does a ship have to charge it?
“People are living longer today and traveling more,” she adds. “Many women and men feel very comfortable traveling alone on a cruise, as they do on our African safaris, and a per person, flat rate pricing would undoubtedly end up being a plus for the cruise business.”
Almost all cruise lines offer pre- and post-cruise packages at hotels and include taxes, airport and pier transfers, and gratuities. While I understand the business model for the ship, no one has given me any logical reason as to why the cruise lines discriminate against single travelers for such a package with a single supplement penalty.
This is when I turned to Corniche, my travel agent, to book the same hotels and make arrangements for all airport and dock transfers. I not only saved more than $1,000, but in hotels where I am a frequent traveler received a complimentary upgrade, reward points, and other perks. The cruise line wanted payment months in advance. My credit card now will not be charged until after the stay. The cruise line not only wanted the surcharge markup penalty, but a float on my money.
In fact, I’ve found it is always best to work with a good, professional travel agent like Corniche Travel. When you look at tour packages, generally someone like Corniche can get you a better room for a better price at a hotel with no pre-payments and make arrangements with the hotel’s concierge for airport pickup and local tours. The cruise line and other tour operators not only do their customers a disservice, but the hotels as well, by not letting the front desk know of frequent travelers. And there are no rewards points through the package operators.
I learned this the hard way several years ago when I booked a package with Maupintour for Rome. When I checked in the hotel, I showed my rewards card and was immediately upgraded. Later, I wrote Bill Kerby, CEO of Maupintour and asked what his company did for me that I could not do myself through my travel agent and why I should ever book another tour through his company. He never responded to several requests.
Trying to contact Torstein Hagen, CEO of Viking River Cruises was another matter. Viking’s response to me was “… at this time, and in perpetuity, he will not accept direct contact from passengers.” Perpetuity can be a long time to wait for an answer. Dale, Kerby and Hagen need to take a page out of Crystal’s Michel’s customer service book.
Package tour operators often discriminate against single travelers not only with added charges. My cousin and I took a trip several years ago to Copper Canyon, Mexico, and the travel was by bus and train, which, like hotels and motels, have no penalty surcharges for single travelers. However, even though we were paying more per person than others on the tour, at the hotels and motels where we stayed, we were given the least desirable of accommodations with preference going to those in double rooms.
Travel and tourism is one of the world’s largest industries. Last year it accounted for $3.3 trillion or more than 10 percent of the world’s Gross Domestic Product and approximately eight percent of all jobs worldwide. The industry also has examples of some of the best and worst cases of how to deal with crises and customer service.
More or more people are taking cruises, up from 11 million in 2006. Cruise ship crises are ever increasing as people fall overboard; there are outbreaks of Norwalk Virus or Norovirus and other illnesses; on-board fires; reported instances of rape, robbery and assault; engine and mechanical failures; pollution of the waterways and environment; ships running aground, hitting icebergs and even sinking in the Antarctic; and passengers killed in accidents on shore excursions.
If all single travelers united and refused to pay the discriminatory single supplement surcharge, another crisis category could be added to the list.
Comments
I have cruised 3 times and all alone. The fact that cruise lines charge more for single travelers comes down to just one thing GREED. I ahve noticed on my cruises that there are many empty cabins so I figure the line makes up for them by charging singles more.
I wish there was a group that singles could join to boycott cruise lines til they change their policies. Why can lines set aside so many cabins per cruise for single travelers????
Bet if someone important wanted to travel alone the fare would be fair.
Just curious what the cruise line industry pays BACK to the environment? Will people eventually book a cruise to Alaska to see where there USED to be icebergs and glaciers? I don't think so. Sorry, but I hope the recession cures us of this supremely wasteful way of seeing the world.
While the explanation provided soundes a lot like hype, I can understand a company needing to make a fair profit. I don't understand the companies charging me more for being single and then providing a substandard room.
If you want to charge more for a room, why do I pay more for less? My meals provided in a tour cost me 50 to 75% more than the couple sitting next to me, as well as my seat in the tour bus.
I agree with a fair price for the same service but most of the tour operators and agents see a way of gouging and it has become an industry standard. Lets charge the single more because we can get away with it. Your greed should be criminal. It is costing you millions in revenue from single travelers that are tired of being cheated.
You need to charge me the same price you charge any one else. If it costs a few dollars more for a hotel room, I don't mind paying it as long as I get the same quality room as my fellow travelers. Unfortunately, that is seldom the case.
In these days of hard money times, you are only hurting yourself by gouging. I may have to look a lot longer for a trip that is not a rip off but I enjoy the trip more knowing I am not being treated like a sucker.
A. Henry
Dear A. Henry,
Thank you for bringing attention to the "single supplement" issue.
While I strongly agree that the industry is missing the opportunity and loosing market share among the single travelers. There is a few facts that need to be clarified.
Cruise Lines, tour packages and group tours are based on "Double Occupancy". Cruise lines can achieve over 100% occupancy because they occupy many of their cabins with more than 2 guests. Families for example, with 2 or 3 kids. Tour and package costs are calculated with the room rate being divided between 2 traveling guests. In case of a single guest the full cost is applied to 1 traveler.
Many single guest neglect the fact that when they travel alone and stay in a hotel they pay the full price. Hotels charge a set room rate for single or double. When a couple reserve a hotel room the room rate per person is 50% to each. Together they pay the full 100%. A single occupancy guest pays the full 100%. Similarly a single passenger in a Taxi pays the full fare, 2 passengers traveling together pay the same price but split the cost there for pay 50% of the Taxi fare each.
Tour operators guarantee a set number of rooms in advance to guarantee availability for the entire group tour. They receive (sometimes) price brake accordingly and have to guarantee a set number of rooms, there for the advance payment.
Crystal is the only cruise lines that offers a 25% single supplement. By the way the policy applies to picture window and balcony staterooms. Suites and penthouses are calculated at 200%. Regent recently announced 0% single supplement on various cruise dates.
Regardless, the industry and especially Cruise lines, need to do more for single travelers. Many of which shy away from travel because it better to travel with company rather then traveling alone. Making single travelers more welcome will entice them to travel more. Reducing the supplements and providing special incentives will make them feel invited.
Oded Battat
General Manager
Traveland
Shelton Connecticut
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