Wednesday, September 7, 2011

EARLY REVIEW OF HOLLAND AMERICA

SO HOW IS HOLLAND AMERICA DOING SO FAR? I am going into this with all the enthusiasm in the world and expect to take from it an experience like none other. The jury is still out on whether I would recommend Holland America Line (“HAL”), of course. It is simply too soon to tell three (3) months into this process. Like people, businesses have strengths and weaknesses. To be fair, I’ve included the areas where I have been impressed, and those where my enthusiasm has waned thus far.
Summary:  Booking the Cruise: A
                  Business ethics: C
                  Web site: A+
                  Free-bees: A-

Booking the Cruise
          HAL was accommodating in allowing me to receive the 3% discount for early full payment of the cruise fare, in spite of a minor “hiccup” in that process.

Business Ethics/Money Matters!
          • Part 1: Exploitative Pricing for Daily Consummables
          When you pay $66,148 for a cruise, you would expect it to include food, sodas, water and other non-alcoholic beverages. On prior cruises, it was always the wine and alcoholic beverages that cost extra; everything else was included. Not so on HAL. They charge - and charge handsomely - for sodas, bottled waters and eating in their best restaurant, called the Pinnacle Grill.  It’s $25 per person, per night, to eat at the Pinnacle Grill ($69 per person for special events like "murder mystery" nights). Only the other restaurants are included.
          My interest was piqued one day when I watched a video on HAL’s web site, expressing their mission statement. They say they provide excellent service by anticipating their guests’ needs. This got me to thinking - Bill doesn’t drink much alcohol, but he can’t go from “here” to “there” without a Dr. Pepper or Mtn. Dew. What would happen if we got out there on this 4-month trip and couldn’t find these things? A sudden panic ran through my brain. So I shot off a “shopping list” to my travel agent, to ask that someone go to Costco and get 4 months worth of our drinks and deliver them to the ship for us.
          The response from HAL’s “Ship Services” was that they would deliver them, at these prices:
          Arrowhead Water Liter - $1.95 per bottle - plus 15% “service charge”
          Dr. Pepper - $2.95 per can - plus 15% “service charge”
          Mountain Dew - $2.95 per can - plus 15% “service charge”
          Pepsi - $2.45 per can - plus 15% “service charge”
          Corona - $4.95 per bottle - plus 15% “service charge”
          Bacardi Rum - $23 per bottle (size unk.) - plus 15% “service charge”
          Seriously? At Costco, a Corona (with tax) costs $1.16/bottle - so they’re marking it up by 467% + the 15% “service charge”. A Pepsi costs .35/can. They’re marking those up 700% + the 15% “service charge”.
          I don’t begrudge any person their livelihood or any business its (reasonable) profits, but these prices are ridiculous.  They know you’ll be “stuck” out there for 4 months, and so hike up the prices as much as possible. It’s highway robbery! I’ll go buy my own sodas, thank you!
          • Part 2: Inflated Excursion Costs in General
          As I was going through the shore excursions, I discovered that many of the prices appeared to be inflated, sometimes to an extreme degree. For example, in Sydney, Australia, you can book the best Climb of Sydney Harbor Bridge available for $238/person. HAL charges $349 for this same excursion – they added $111 apparently to cover the short ride from the pier to the bridge (and a walk to a local pub “for a glass of beer.”) Their overland trips to see The Taj Mahal cost $3,999 to $4,399 per person. I booked my own 3 day, 2 night trip - including a 5-star hotel, flights and English-speaking guide the entire time - for $834 per person!
                                           * * *
          On its web site, HAL states that “[i]ntegrity, honesty and ethics guide Holland America Line on all levels, . . . We not only do things right, we do the right things.” Because I question the "rightness" of these financial policies, I give HAL a grade of only C (average) for business ethics.  For me, a top-grade business would ask not just whether it "can", but also whether it "should". 

Web Site
          HAL has an extremely “user friendly” web site, which makes it easy to do online check-in, obtain detailed information about the cruise, and book (and cancel) shore excursions, spa treatments, etc. They even provide a custom itinerary, showing the particular services, excursions and dinners at Pinnacle Grill that we have booked.
          For their web site, I give HAL an A+

Free-bees
          With our verandah suite, we get not only (i) one complimentary shore excursion (unfortunately, from a very short list of 8 options out of the 37 ports), but also (ii) unlimited luggage delivery, (iii) $750/person in shipboard credit, (iv) prepaid tips (worth $1,200), (v) initial in-suite liquor set-up (4 bottles of Bacardi), and (vi) a welcome bottle of champagne.
          On the other hand, we have to pay extra not only for soda and water (mentioned above), but also laundry and dry cleaning, access to the internet and who knows what else ...
          Yet, for these amenities, I give HAL an A-, because they are a classy touch!

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