We are all a few quid lighter in our purses than we were just a few short years ago.
In the United Kingdom according to the Telegraph the average annual spend on Food shopping is £5000 per household. They also predict this is due to rise to £5850 annually in the next 5 years which is a huge 20% increase.
The same with our Gas and Electricity prices. The Guardian reports that according to findings by the Citizens Advice Bureau, gas and electricity prices are rising at up to eight times higher than increases in average weekly earnings. The charity states that the big six suppliers will have raised their prices by a staggering total of 37% since October 2010. Gas and electricity prices have gone up at three times the rate of inflation.
So it is no wonder we are all feeling the pinch. It has meant that people have to tighten their belts to make sure they can pay the mortgage, feed the family and keep them safe and warm. It also means holidays have become a luxury item but people are not putting them on the back burner as you may expect. With an increase in the stress of modern living, people need their holidays even more but what they do want is value for money.
This has meant that competition in this already fiercely competitive market has spiralled out of control. Customers are comparing prices and quite rightly so but will go with any company even if they have not heard of them to save a few pounds. Companies are cutting deals to such low margins that they cannot possible sustain the momentum which means watch this space as there will be lots more companies going under this year, mark my words!
Often what looks on the surface like the same deal is not. Companies will cut back on hotel standards, remove transfers etc. to make the price look like a bargain, but as the consumer you need to dig deep and get to the bare bones of what you are getting for your money.
Then there are the holiday providers themselves. I call my customers as they return from their cruises to see if they have had a good time and one thing is being brought up time and time again. The standards on-board are slipping with people complaining that the food is not a nice, the entertainment is poor and in most cases I get that this is in comparison to the last time they went with them. People who have cruised for years are saying that the clientele is not the same since prices have been cut. I am not a snob but I do know what they mean for as cruisers, people expect a certain standard of decorum.
The cruise companies are stuck between a rock and a hard place really, like everyone they need to cut costs to remain in business. They also need to stay competitive in a market which despite trends is growing year on year. They need to fill their ships which sometimes means dropping prices at certain peak booking times to make the most of their sales opportunities.
Also how do we as agents balance out the need for an excellent service and an excellent overall experience against the cost to the customer?
Are the cruise companies taking the cost cutting too far. Are food and hygiene standards slipping.
A recent review posted on cruise critic.co.uk said the following:
“Having cruised for over 25 years, several with P& O, we returned from this Christmas/New Year cruise exceedingly disappointed with the level that standards had dropped to. The hygiene levels were very poor indeed. We lost count of the number of times we had to ask for the tables to be wiped down in the Belvedere Restaurant (Buffet), because of food or drink spills still on the tables. Toilets were repeatedly out of order – on 1 day we visited 6 sets of toilets between promenade deck and the pool deck before we found any working. Some individual toilets never worked for the entire cruise. At other times it was wash basins or hand driers not working – the knock on effect being empty paper towel holders. Other than in the Meridian restaurant there was no effort made by staff to encourage people to use the hand gels. There were also some very strange, garbage type, smells in several places on the ship.One of the days returning from the Caribbean, the water in the Neptune Pool continued to overflow for several hours. This made this important main area impossible to use – water was swimming around the tables and chairs, normally used for eating, reading, playing cards or having a coffee. A very dangerous situation for some of the less mobile passengers. The water travelled as far as the lift areas and up to the Belvedere restaurant. The carpets took days to dry out. Why did it take so long to make the decision to empty the pool? – Bad management!!!!The entertainment listed in the Horizon seemed to be mainly seminars by spa and gym staff – very little else. This seemed to prove our opinion of the ship being very understaffed. It is no wonder so many people on the ship were ill with chest infections, including us. First time we have ever been ill on a cruise. We are in agreement with many that we spoke to on the ship, we will not be cruising with P& O again. We will be returning to Royal Caribbean and Celebrity Cruises, who still care about the passengers.”
Some of the comments mentioned here are cropping up time and time again.
So what do the cruise companies do? How far do they cut the costs?
I think they need to take a step back and ensure they are providing the service we have come to expect above all else and if this means an increase of a few pounds here and there then so be it. No-one will pay half the price if the end product is no good.
People would rather pay more and get the experience and product they deserve.
This is my opinion anyway. I would love to hear yours!