Sea ViewsFrom President and COO, Adam Goldstein

Sea Views Blog with Adam Goldstein

Royal Caribbean Clarifies Decision on Mariner of the Seas’ Deployment Change

There have been many posts from loyal guests who are unhappy about our decision to move Mariner of the Seas out of Los Angeles next January. We truly wish we could justify the ship remaining in LA, but we are unable to do so. Many of the comments have focused on how much people value the ship being there and/or the ship being routinely full. There is no question that there are tens of thousands of loyal Royal Caribbean cruisers who live in the Western U.S. and cruise on Mariner of the Seas. And yes, she does normally go out full. Unfortunately, it is possible for both of these observations to be true and yet the ship does not perform at an acceptable level to be able to remain in California. Throughout the industry, ships normally go out full. The critical question is at what price? Royal Caribbean has tried multiple ships over multiple decades at various lengths of cruises in California. We may very well try again in the future as we would love to be back on the West Coast. But for now we are unable to generate acceptable levels of performance for Mariner of the Seas. We are obligated to our shareholders to deploy her where she can earn superior returns.

36 responses to:
“Royal Caribbean Clarifies Decision on Mariner of the Seas’ Deployment Change”

  1. Heather

    This is a huge disappointment to us as agents in California. I think it’s a mistake that will impact RCCL overall in the loyalty department.

    Best wishes,

    Heather

  2. PHyllis Philp

    If the ship is full of passengers, I don’t even BEGIN to understand what the problem is. I loved being on the Mariner last November, and booked a repeat cruise on her for next March, along with a friend new to cruising. What a big disappointment! I’ve been “loyal to Royal” for almost 30 cruises, but in order to do the Mexican Riviera I had to book with another line that Ive never tried. I hope I’m not disappointment …..

    • Chris

      It sounds like he was saying that they may be going out full, but only because they slashed fares to fill the cabins and cut their losses, i.e. they weren’t being sold out at full price fares….

  3. Tina

    I didn’t read where Mariner of the seas is going to be now. I hope it’s coming back to the east coast. I was on it a couple years ago before they moved it to the west coast. I was disappointed when it left. So I am one of the happy ones if it’s coming to the east coast!

  4. Keith Sullivan

    I just formally complained about the new ships all going to the east coast and now this????? I will not be sailing with RCCL anymore due to the simple fact that I can’t afford the travel to the east coast plus the HIGH cost of airfare for my family! Thanks RCCL for your wonderful service and loyal commitment to servicing the East Coast population I’m sure they are loving it!!!

    signed,

    very unhappy!!

  5. Sally Leb

    Hey ! please bring her to New Orleans- We would love to have her! Thanks

  6. Philip m nagel

    I understand that it will be a dissapointment when the beautiful Mariner of the Seas will leave the west coast. She’s certainly one of my favourites too… But Mr. Goldstein makes perfect sense. In order for Royal Caribbean Cruises Ltd. to continue being successful like they are, these decisions have to be made.

  7. Susie

    I am very disappointed that RCI isn’t representing Western Mexico. Perhaps if they modeled Carnival who has ports to areas not usually represented in Mexico, they would have a better bottom line. They are forcing me to go Carnival. So many RCI cruises out of Florida and nothing to offer the West.

  8. karl lohnes

    How does a full ship not perform? Are the west-coast guests not spending enough onboard? Do they not tip well? It would be interesting to know.
    The cruise industry (like every other industry) seems desperate for more dollars from the guests. This will all come around to bite them if they keep up the aggressive behavior. A guest should be able to board a ship and spend a week relaxing in the sun without being pressured to drop money every 10 feet they walk. My comments are not only reflective of RC, but the industry. RC is a leader and I respect them for that; lets see them make the shift towards no-pressure spending while on board… :)

  9. mELODY dODD

    Will another ship take over the Mexican itinerary?

  10. Joanne Miles

    The 3 cruises that I have been on have all been on the Mariner when it sailed out of Port Canaveral, FL. A very beautiful and impressive ship! Didn’t even know that it had went to CA. My last cruise was just 2 years ago.

  11. Jean

    This makes sense to me. Although I’d love to have the ship here on the west coast, the ports that the Mariner visited in Mexico are just not as interesting or attractive as ports elsewhere.

    RC how about trying an itinerary some day going north from LA–San Francisco, then spend a few days hanging about Seattle, Vancouver and Victoria? Not so warm and sunny but interesting cities with a lot to do. I was on the Mariner when it was rerouted due to Swine Flu and we went under the Golden Gate bridge…biggest ship to ever sail under it!

  12. Dave Erickson

    I agree with you Adam. Some folks just don’t think about dollars and “sense” when these tough decisions are made. Someone is always going to be unhappy.
    I wonder how many of these folks would say, oh, that’s ok, just raise your prices and we will be happy now. Probably zero. Keep up the great services and value that RCCL is known for…..

  13. Michael Gonzalez

    As a Cruises Consultant with Cruises Inc. I live in Pembroke Pines florida. I understand you will be moving the Liberty of the Seas out of Miami. As my biggest seller I think it’s a big mistake for RCCL to pull a ship like the Liberty out of Miami. Is there going to be another ship similar to the Liberty that will continue to do 7 night cruises out of Miami? It just seems to me that RCCL is going to force their cruise clients to book the Oasis and Allure in order to do a 7 night cruise Eastern or Western Caribbean at a premium rate. The average cruiser will not be able to afford those ships unless the price goes down. At least with a Freedom type ship in the area you will give more choices to the average cruiser. Thank you very much.
    Michael Gonzalez

  14. Carolyn Russell

    Is that the same reason we can’t have an RC ship out of Galveston the year round?

  15. Teresa Brazier

    Does this mean it is not beneficial financially to have LA as your port———with any ship?

  16. Gloria Wong

    We are going to board the Oasis of the Seas in August. In view of the oil spill in the Gulf, we are worried that the port will be affected as some predict that the Gulf Stream would carry the spill out to the east coast. Has RC worked out an emergency plan if that happens? We are hesitant as the payment deadline is coming up fast.

    Thanks you!

  17. Katherine

    Thank you for clarifying this for us. While we appreciate the bottom line decision, I really wish you had given a few Pacific Coastal cruises a chance as well. For example, in the summer when it’s typically hot in Mexico, alternating between a Mexican Riviera itiniary and a Pacific Coastal itiniary through San Francisco would have given people a wonderful back to back option and a unique itiniary. Also, remember last year’s performance of the Mariner was likely poor due to h1n1. That’s thankfully not an issue this year. Perhaps if another year would have been explored with Mariner in LA, the ship would have been even more successful….

  18. Dave moreno

    Hi there,

    As someone who has booked a cruise on the Splendor of the Seas, sailing out of Rome in June of 2011, I am of course concerned about our cruise.

    Will we be re-booked on the Mariner of the Seas with the same port calls? Will our cost change? Will the length of the cruise change, will the length of the cruise change?

    We are booked on the Mariner the week of July 4th this year out of Los Angeles and plan to enjoy our time on her, and look forward to boarding her in Rome next year.

    • Adam

      We will be opening the new Mariner of the Seas sailings on Tuesday, May 11. Over the next few days, we will contact you to offer you to book a comparable stateroom at a lower rate than you originally booked on Splendor or the new rate on Mariner. The sailing lengths will remain the same at 12 nights as will the sail dates. However, some ports of call have been changed due to operational feasibility.

      We look forward to welcoming you onboard Mariner of the Seas this summer in Los Angeles and hope to see you again on Mariner from Rome next year.

  19. Gayle Kemper

    Where is it going ? Fla?

  20. S Pierce

    @Phyllis Philp
    There are multiple things that can happen that can keep a ship from performing at an acceptable level even if it’s full. There’s revenue from the cabin itself, various forms of on board revenue (drink sales, excursion sales, on board purchases), and other methods of revenue generation (partnering with land based shops). Then in addition to revenue is cost issues. Were there increases in port taxes (both on an absolute scale and relative to another deployment location)? Is fuel more expensive on the west coast? Were west coast passengers less likely to tip so that RCI was having to pay more out of pocket to cover a minimum wage? I’m not in the travel industry but I’m in Finance for a Fortune 50 company and understand that sometimes tough decisions have to be made in order to keep the company operating at an acceptable level.

  21. K Clar

    While I love taking a short drive to get on a ship in L.A.,and it saves me huge amounts of money for airfare, I can fully understand the need to send Mariner elsewhere. There just isn’t much here on the west coast, we don’t have the large selection of Islands that are easily accessible from the east coast ports.

    I’m sad to see that no RCCL presence will be here in L.A. though. RCCL will be my “go to” line but if we need quick break and don’t want to fly we’ll have to seek out the other cruise “royalty” the “fun ships” aren’t our style.

  22. Jamie Snyder

    It’s very simple if it is going out of LA for $700 vs. $1200 out of Florida for the same class ship and type of cabin, and you cannot fill it if your raise prices, then move it to where you can make money. In this case to Europe, BTW, Adam you ruined my vacation plans for 2011, so to get even I’m going to book one of the 20 other ships RCCL has, so take that.
    I wonder if the security issues currently south of the boarder had something to with this.

  23. Simon

    It was pretty obvious that the move was coming, when it was cheaper for our family to fly from Orlando to LA, cruise Mariner for a week and then fly home, than to cruise Freedom for a week from our own back yard,it tells you one of two things.

    Either Freedom is obscenely profitable or Mariner is not operating profitably. The latter was obvioulsy true.

    Yes the ship may have been sailing full, but sailing full with people paying half the price of cruises from the east coast, is almost as bad as sailing half empty.

    That being said, I wish you had waitied until after the cruise we had booked!! :-(

  24. Carol S

    So very sorry that the Mariner is moving from LA to Europe in 2011. We will miss you RCI. I can’t afford the airfare that that would entail, as much as I would like to go.

    I just read that Carnival is moving an additional ship to the California side in 2011. I guess they some how find that they are making money running on the Western side.

  25. Matthew

    I just returned from a 5 day cruise,San Diego,Ensenada to Cabo and back home.
    We learned that also the Radiance of the Seas was also leaving San Diego for good.

    As much as my Loyalty to RCLI runs very true,and very deep.There are things about the move,that I find both confusing,sad disheartening.

    The Radiance of the Seas is my Favorite Ship of the entire fleet,I wish they would reconsider this move.

    I can say that on a positive note,
    that in the 3 cruises I’ve taken with RCLI,there’s nothing like it!

    Everyone of the staff is so warm,loving and caring.They’ve made all 3 of my cruises aboard the Radiance the most
    MEMORABLE experiences each time.

    For the Record,each of my 3 cruises.
    I have come away with one thought..and I hope the CEO/President and higher ups take this as a compliment pure and simple.

    “We come aboard these RCLI ships as passengers and strangers,and we come away as friends for a Lifetime”.

    I am totally in agreement with whatever RCLI does.I am saddened by the loss of the West Coast not being represented.

    But,I do therefore understand alot of the reasons.And I do hope RCLI does return San Diego’s “Pride and Joy”,
    The Radiance of the Seas,home to San Diego..where “she” belongs.

    • Adam

      Matthew, we are so glad to hear that you enjoyed your recent cruise onboard Radiance of the Seas. We’re happy to hear that she is your favorite ship and that you have nothing but wonderful words to say about our staff. We appreciate your feedback and we’re sorry to hear about your disappointment, but we hope that you continue to sail with us and Radiance as she features new itineraries including some up the West Coast.

  26. KENT

    Mr. Goldstien,

    If I buy stock in your company will you explain why you are leaving the west coast? Returned saturday from a cruise on Radiance of the seas. Found out Radiance and Mariner are leaving!!! Have a cruise booked on Mariner 12th of december. Your company is in a leauge of it’s own. We love it! Always cruise with RCCL. It is disapointing to hear your departure from west coast. Your service,ships and employees help overcome your relocation of ships. I have drank the koolaid and I am a RCCLer for life…would you consider a table tennis game to twenty one to keep ships on west coast?

    Kent

  27. M. Berman

    We were in Oasis when we heard the news about Mariner.It is such a blow , we are sad, unhappy and are still hoping RCCL will change their mind.By the time Mariner will leave Los Angeles we have sailed on her 7 times in the 2 years she was here.There are many people like us that don’t like or can’t afford to fly to Florida.I wanted to tell someone for a long time , if the stores on ALL the ships had better merchandise for the mature Woman they would do a lot more business.I have been complaining about that for years.Everything in the stores is geared to the very young and small.There are a lot of ways to make it work on the west coast. If the rates go up some no one would complain as much as we are now for taking the ship away.I know the focus is on Europe, but just wait and see, they are just now starting to cruise and it will take a while before it will be good over there. We all know that people in Europe are known for being bad tippers, what is the crew going to do with smaller incomes, will RCCL make up the difference??? they also do not camble as much as Americans do, watch out Casino !! Please bring a Ship back to the west Coast.

  28. Tres

    Why doesn’t your company take the opportunity to start a transatlantic cruise? With the volcanoes preventing tourists from going across the Atlantic, you have an opportunity to provide a wonderful new service!

    Tres

  29. Anisa beeman

    It is indeed unfortunate you are leaving the west coast.
    I can’t help but wonder if the costs are greater because of the few amount of ships leaving out of LA, thus the whole supply and demand thing!

    At minimum I hope you can increase the quantity of ships leaving from Galveston – the flight to Houston is a breeze from the West Coast.

    Looking forward to our Oasis trip in December! You have a great product from every which way you look at it!

  30. Adam

    Anisa, thank you for your loyalty with Royal Caribbean and we can’t wait to have you onboard the Oasis this winter. At this time only our Voyager of the Seas ship departs from Galveston but she will be moving to New Orleans, Louisiana in Winter 2011. When Mariner of Seas returns to the U.S. in the fall of 2011, she will homeport in Galveston. We appreciate your suggestion to increase the number of ships departing from this port and we will keep it in mind for the future.

  31. Patrick

    I think most of the people who posted comments to this thread missed the original question: “The critical question is at what price?” A large portion of the ship’s revenue for a sailing probably comes from the fares paid versus revenue generated on the ship during the cruise. If the ship is full for a sailing but the rates had to be dropped to such a low level to do it, is the sailing profitable? Look at it from a business perspective. To operate that ship for x number of days will costs hundreds of thousands of dollars. The revenue to offset that cost has to come from the fares charged and the revenue generated on the ship during the sailing. I’m sure the accountants told them it wasn’t profitable to keep running the ship out of that port at the fares they were charging. It’s a corporation designed to make money; that’s the bottom line.

  32. Cheri Johnson

    i have been on several cruises and I am a royal carribean lover through and through. When Mariner left florida(shes my fav ship) I was very angry with them. I mean what would make them do such a thinggggggg…. had they lost there minds…… but LA was happy to recieve her. there is no difference here people. The family of people that run RCCL have got to do what they have to do to keep there buisness operational especially in this day and age! Any for all of you that are sad to see mariner leave wellllllll so was I but guess what??!!! she will be put somewhere within the RCCL family of ships that someone else will feel the same joy that we felt when all of us got to see her for our very first time! so instead of being mad be sympathetic and just try to understand.

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