Free All Inclusive drinks packages – Who really pays the price?

The All Inclusive drinks package used to be the mainstay of the premium/luxury brands such as Regent Seven Seas and Silversea who have been offering this kind of product for years. And, as you’d expect with premium cruise lines, came premium pricing but it seems the majority of the more mainstream/mass market cruise operators are now going down this route.

Over recent years Royal Caribbean International, Celebrity Cruises, Norwegian Cruise Line and Fred Olsen have all offered ‘free’ All Inclusive drinks packages as part of their promotional campaigns, and while these offers always seem to get extended, they are available for a ‘limited time only’. With the ever increasing list of operators offering All Inclusive drinks it seems that out of the major players only P&O Cruises are yet to follow suit.

As the cruise buying public get ever more savvy when it comes to offers such as these, and with a large percentage of customers spending their money when these promotions are on, I believe the major/mass market cruise lines are forcing themselves down a route which will inevitably lead to them eventually offering All Inclusive drinks packages all of the time. We all know not many things actually come ‘free’ in real terms so it begs the obvious question – who do you think will be paying the price for the ‘free’ drinks?

It’s a well-known fact that cruise lines make most of their money from passengers on board spend, and I’m sure you’ll agree some are more aggressive than others at trying to part your money from your wallet, but if they are heavily reducing the amount of cash spent on board – ie reducing customers bar bill (which can sometimes be eye watering!), where do you think the cruise lines will be making their money back?

Think about it, if cruise companies are reducing fares and reducing the amount of revenue generated on board something will have to give. The only other non-optional revenue stream they have to make their money back on will of course be – The PRICE YOU PAY. Don’t think for a second All Inclusive drinks package promotions have been introduced to make the company less money!

So I believe the inevitable result of all the free drinks promotions which have been so heavily demanded by the cruising public will ultimately be higher priced cruising for everyone! – Be careful what you wish for right?

I’d love to hear your thoughts on the whole All Inclusive cruising scenario, let me know what you think.

Bye for now.