Cruise Perks Are Nice, But Beverage Packages Rule
by Donna Tunney /When Linda Allen learned that Oceania Cruises was expanding its O Life Advantage program, she was pretty pleased.
O Life Advantage, originally offered only to guests in balcony and higher-category cabins, now is being offered on all spring, summer, and fall 2016 cruises to Europe, Alaska, and New England/Canada when bookings are made by Dec. 31. It provides three free excursions per person on sailings up to nine days, four excursions on journeys between 10 and 13 days, and five on itineraries 14 days or more, plus free internet access and prepaid gratuities—a value-added deal for an upscale line that rarely offers such promotions.
Still, though, Allen is not sure how much of a draw the program will be for her clients. With Oceania's price point being higher than its competitor premium lines, the cruiser demographic it attracts is unlikely to be strongly influenced by such perks.
“It helps to some degree, of course, but I’ve found that the biggest driver is a free beverage package, which I think would have more sway than these other items,” says Allen, an independent agent affiliated with the Virtuoso agency Brownell Travel of Birmingham, AL.
“And it is not about the money. When people aren't having to sign for every drink, it changes the whole way the ship feels. It's one of the smartest moves a cruise company can make. It gets people out into the public areas of the ship and the ship becomes more vibrant.”
The kind of amenities provided by O Life Advantage get people to start looking at Oceania, “but if you can afford Oceania, these other things aren't big deals,” she says. “These [clients] can really buy anything they want.”
Tom Kleefisch, who operates Cruise Planners/American Express in Dallas, agrees. “Free excursions or gratuities might not bridge a gap. People say, 'Well, I just got that on a Princess Cruise, what's the big deal?' It doesn't really move the needle.”
With Oceania's affluent demographic, “it's not about the money; it's the experience. They want a country-club lifestyle with less nickel-and-diming.” He noted that Oceania's basic beverage package, which clients can purchase, is valid on drinks up to $10 or $12, “but there aren't that many choices on the line's wine list that meet that criteria.”
He says that takes “a little bit of the fun out of it” for customers. “Sometimes the perceived value is much greater than the reality.”
Ross Spalding, president of Princeton, NJ-based Crown Cruise Vacations, does think the expansion of O Life Advantage provides a greater incentive for clients to book Oceania, but notes that Oceania's ships are limited in the number of inside and oceanview cabins.
“If there is space available it makes sense to do an offer like this rather than lowering prices, which Oceania doesn't like to do,” Spalding says. The best thing about the modified promotion, he adds, is that it can be combined with value-added amenities provided for groups.
“That that does help a lot; now we're able to combine them and really give some great value,” he says. “We're coming into prime season now for next summer's bookings, and with this expanded O Life we should see an increase over what we’ve seen in previous years.”
Oceania operates five ships—Insignia, Regatta, Nautica, Marina and Riviera. Next April it will debut its new 684-guest Sirena, which will cruise a series of 10- to 14-day Mediterranean voyages. Specific itineraries haven't yet been disclosed. Norwegian Cruise Line Holdings is the parent company of Oceania, Regent and Norwegian Cruise Line.