What's Happening?
Virgin Voyages is set to implement a new three-tier fare structure starting October 7 for all new bookings across its fleet of four ships. This change comes after the launch of its fourth ship, Brilliant Lady, and aims to provide passengers with more choice, transparency, and flexibility. The new fare system, called VoyageFair Choices, will apply to Sea Terrace Cabins and below, offering different cancellation options, Wi-Fi packages, and dining reservation windows. The Base Fare includes basic Wi-Fi for one device per passenger, a 15-day pre-voyage dining reservation window, and no changes to names, cabins, or dates. The Essential Fare offers a Wi-Fi package for one device with additional features like audio calling, a 45-day dining reservation window, and flexibility to adjust voyage dates. The Premium Fare, priced $45 more per person per night than the Essential Fare, includes Wi-Fi for two devices with streaming capabilities, a bar tab, and priority support line access. Virgin Voyages has also revised its gratuities charge, now shown as a separate line item at booking.
Why It's Important?
The introduction of a three-tier fare structure by Virgin Voyages marks a significant shift in the cruise industry, aligning more closely with pricing models seen in hotels and airlines. This move is expected to attract new-to-cruise passengers by offering more tailored options and transparency in pricing. By providing different levels of service and flexibility, Virgin Voyages aims to cater to a broader range of customer preferences, potentially increasing its market share. The change in gratuities presentation also enhances transparency, allowing passengers to better understand and manage their expenses. This strategic evolution could set a precedent for other cruise lines to follow, potentially reshaping industry standards and customer expectations.
What's Next?
Virgin Voyages plans to support travel agents with training sessions and materials to help them understand the new fare structure. The company emphasizes that the changes are designed to accelerate sales rather than complicate the booking process for agents. Virgin Voyages anticipates that the majority of passengers, particularly those who have sailed with them before, will opt for the Essential Fare. However, there is also support for agents who wish to expand their sales into the Base and Premium Fares. The company will continue to offer promotional 'lock-it-in rates' for non-refundable cabin bookings, ensuring that passengers have a variety of options to choose from.
Beyond the Headlines
The introduction of a hotel-like pricing architecture in the cruise industry by Virgin Voyages could lead to long-term shifts in how cruises are marketed and sold. This approach may encourage other cruise lines to adopt similar strategies, potentially leading to increased competition and innovation in fare structures. The emphasis on flexibility and transparency aligns with broader consumer trends demanding more personalized and clear pricing in travel services. As Virgin Voyages continues to grow, its influence on industry standards could expand, prompting further changes in how cruises are packaged and perceived by travelers.
