
Far be it for me to say that I’m an expert in the realm of cruise vacations, but I have been on a couple of trips and there are some commonalities between the different cruise companies. If you look at much of their advertising, you’ll find the prices that “start” at a relatively low number.
Considering that these prices include all the food you can eat and many of the on-board activities, a cruise vacation is a great deal compared to a more conventional fly-in, fly-out type vacation. However, the business model goes well beyond that and you can see how a cruise company can quickly rake in some additional revenue.
The port charges are outside of their control, but each time that the boat docks in to a new town, it offers a range of “excursion activities” that come at a nominal charge. Want to take a tour of the city? That’ll cost you. Want to go to the local zoo, including transportation to and from the location? That’ll cost you.
Many of these excursions, when purchased directly from the cruise company, will cost you more than if you were to book a similar activity on your own. Speaking from my own experience, I remember docking in San Diego and wanting to go to the zoo. It worked out a lot cheaper to take a taxi and to use a discount coupon I found online (I think it was 2-for-1) for the admission than take the chartered bus with the cruise company.
Part of it is an upsell. Part of it is a suggestive sell. In addition to the excursions, other activities and amenities come at a premium cost: alcohol, Internet access, spa services, and so on. The core cruise price may be relatively low, but that’s how they get you “on board.” And this business model works.
Have you considered implementing similar tactics in your own business? Is there a way that you can “hook” a new customer and then convince them to pay for additional products and services?




