I wrote about a related topic recently, and some people thought it a little odd or rambling, I’ve no doubt this will have the same effect. But since a big part of the reason behind this blog is to explore thoughts, while helping friends and family travel for free, while hawking credit cards, let’s go!
Here’s the problem:
We’ve been offered another ‘trip of a lifetime’ and after procrastinating on it for several months, pulled the trigger. The trip has a sticker price of around $13,000 (cheapest I’ve seen) and we get it for $2,100. The problem is that it’s a cruise (I know…), and the class of cabin is a bit below what I’d like. The next level up is sold out, which leaves us with upgrading to a Penthouse, for $5,200 extra. This would mean $7,300 all in, for a retail value of about $28,000, (discounted, not brochure pricing) which is a chunk of change.
In terms of value, I know that some might be put off by the $2,100 price, but for now let’s assume ‘it is worth it’. The problem I yet again battle with is that technically I can afford the $5,200 also. But that’s where it all starts crumbling into madness.
What does it mean to afford something?
If you look around, you’ll see countless people driving a fancy car, fancy for you might be $50K, $100K, or more. Can they afford it? One answer is that if they aren’t homeless, and can pay the bills, then “I guess so”. I address that by trying to focus not only on debts, but ‘obligations’. Debt wise, we’re debt free, so it’s easy enough to make an argument that $5,200 is just a couple of month’s mortgage payment for another person in our situation, and therefore, perhaps we deserve to spend?
Obligations is a harder one, because we haven’t saved enough to be able to retire, or for long term care or other such expenses. We’re on trajectory for this, but we aren’t there yet. Therefore, spending does divert from the obligations funding. The final issue here, is that, $5,200 probably wouldn’t matter to that sort of big picture thinking. It’s likely that by the time we die, we will have more than $5,200 remaining, even if you compound everything using magic.
For these reasons, I almost pulled the trigger. The thing that I held back was simply that I’m not sure about the consequences of the decision, the butterfly effect if you will. To draw an analogy, I like to look at people who would rather fly Business Class for 70K miles than Economy for say, 40K miles.
Most people who make such decisions do ‘value’ their miles. If we were to attribute value at say, 1.5cents, then we’re talking about being willing to spend $450 for the fancier class of service. Quite often, it is worth it, in terms of getting to destination rested, and the free booze is a nice bonus. The jump from Business to First is a different topic though, here we might see another $450 on top of Business, and perhaps less value from the seat, and more from fancier booze, and bragging rights.
It’s these Business>First jumps that I ponder. If a person truly values $450, would they consider saving that $450 and instead buying a $450 michelin starred meal for an experience? I feel most will not, because of these same behavioral factors that are pushing me on the cruise.
What to do with $5,200?
Our Business> First jump is valued at $5,200. In some ways, it has elements of the Economy>Business jump, because the cabin goes from 200 sqft to 360 sqft (50 or so being a balcony) so there is some value to the ‘comfort’. The flip side is that horrible 200 sqft cabin is on a 6 star ship with all inclusive food and drink. In short, I’m sure we will be able to tough it out, even if we come back looking like we’ve been in the jungle for a month without food or water.
By cheaping out on that upgrade, we could say that we have a pool of $5,200 to spend on experiences, and at the same time, if we did upgrade, I think our ‘baseline’ would be higher. Since we’re comfortable spending an extra $5,200 on the cabin, we probably deserve to spend that much more on excursions, because we wouldn’t want to feel house poor. Suddenly, the decision to spend $5,200 in isolation is becoming $10-$15K for a vacation.
Crikey! We’re bumbling our way into a budget
I’ve never been a strong proponent of budgeting, I’ve always preferred to get strong income, low expenses, and manage taxes effectively. This might be a tipping point for us though, since a budget for a trip like this could be a powerful tool. Not so much a ‘how much can we afford’ vs a spotlight on ‘how much are we spending’. Getting insights like this are the useful side of budgeting.
We’re now turning the planning into a series of ‘needs and wants’. No different from a lifestyle budget or plan. Technically you could argue everything here is a ‘want’, but I would say that I need to do something fun everywhere, and I also want to: stay in a safari lodge so we wake up to Lions and Elephants (and a nice cup of Tea) and when I do a bit more research we might find that we want to do a few more, once in a lifetime things too.
However, I’m also taking that $5,200 and looking everywhere for where to spend it, so once we’re done looking around the house for things that I’ve neglected, or at improvements to businesses or or elements of other vacations we have planned, I’m sure there will be less to play with.
What I’m starting to realize (or remember) from all this pondering is that there is an order to things. Basic needs, and luxuries. The issue that is nagging at me is that I’m starting to put the need for a Veranda into basic needs, because it does make a difference to me, but the danger here is how much impact that single shift has on all the related other basic and luxury needs, and until I figure that out, perhaps via looking at a proper budget of the vacation, I’m holding off spending.
Make no mistake, this is lifestyle inflation we’re talking about, but unlike many people who are familiar with the term, I think lifestyle inflation is a great thing, we don’t work hard, become educated and cultured to live on baked beans. My only hesitation is what does turn me into in the big picture, if I’m OK with that answer, I’m all for a little inflation.
So where is the trip of a lifetime? Can I carry your bags?
I always enjoy your insightful articles. You provide an analysis on this subject that I think many people fail to do. Upselling by the travel industry is now ubiquitous. Their marketing is tailored to make an individual feel like they deserve an upgrade. And many succumb to that marketing ploy and in fact purchase the upgrade without taking time to think through whether it is a wise expenditure of funds or whether in fact those funds would be better deployed elsewhere.
I absolutely agree that there is nothing wrong with purchasing an upgrade, as long as it doesn’t negatively impact your debt level, basic needs, financial obligations or saving goals.
And I also agree that folks should always evaluate spending on an upgrade with those factors in mind.
Thanks for another good article!
Glad to hear it, now I just need to be careful not to talk myself into this upgrade 🙂
From Mauritius around the Cape of Good Hope.
I find that without a budget (loosely) that my expenses have always crept higher. Kudos if youve found a way to keep expenses low while your income skyrockets. A budget is the only thing Ive found that can keep my expenses in check. And I say spend it. Im not a big Cruise fan but I bet it would be an awesome experience. Just hope it doesnt ruin you from future cruises.
Frankly, my income hasn’t skyrocketed. It’s highest was back in 2007 or so, and since then it has declined. This might have helped me stay on track. What has changed is my ability to retain income, and potential to make more – IE I’ve been actively working on the infrastructure side of income.
Yes I see your point on the income. When I went from unemployed just out of college to now. Without a budget / cap on my yearly expenses I would see them creep higher for a myriad of reasons. Other wise you could make 500k but if you have no cap on your expenses you could easily watch your spending rise to a number that saps most excess funds once the Gubmint gets their dirty hands on “their share” of your money.
Good piece, thanks. I write to comment that budgets can work the other way too.
Growing up in a household with parents who well remembered the depression years, frugality is well ingrained – too well ingrained. I’ve never made a budget but rather relied on my basic habits to stay within my means. And it’s worked perfectly well. The fact that I married someone who has similar habits only reinforced this approach.
Reading your post, and thinking back on the last few years of mile/point collecting as well as the financial planning we’ve done as we approach retirement, I am starting to think it is time to seriously implement a travel budget – because for me it might function as a way to go ahead and spend on upgrades and business class tickets.
I am currently debating whether to pay $79 to upgrade to an economy plus seat for an upcoming flight, or to pay a few hundred more to change the fare class, to enable a potential upgrade to business should those seats open up. Maybe if I looked at the extra cost as a small percent of an annual travel budget, rather than an extra $20 or more per hour in the air, I’d be more inclined to go for it! Time to do a travel budget so I can test this.
Thanks for helping me think this through in another way.
That’s a good idea. I come from a similar situation, and am lucky that the base line decision for both Allison and I is to be frugal, therefore to spend feels alien.
Maybe you need a ‘required minimum distribution’ into a travel account each year that you have to spend?
I like that idea. But I probably will need a fierce enforcer too 😉 !
Thank you for a thought provoking article. As a relatively financially comfortable single parent who is a points/miles traveler with teenage sons, I often face similar questions – upgrades and travel enhancements which are incredibly discounted, exceptionally appealing and affordable. The decision is often made more challenging by virtue of being a single mom w kids – not only will I want the experience for myself, I’ll also want it for them, because I know they would often enjoy it.
My rational nature is conservative, and the lens through which I try to view it is that 1) We are incredibly fortunate to have the ‘vanilla’ travel opportunities, and there is always “more” – whether it’s another upgrade, side trip, attraction, etc. 2) Does the additional expense rationally justify the cost beyond the “wow” factor?
For example, personally, I can justify flying business/first class for flights over 7 hours; so Europe would be a “no”, Asia would be a “yes”. In your example, if I really needed the benefits associated with the upgrade (e.g. I’m traveling with my kids for a few days, and 1) we really really could use the extra space, or 2) the economics of feeding my kids justified the extra expense (e.g. I often spend more for executive lounge access at hotels so my kids can enjoy the buffet there) I would go for it. Otherwise, I’d (wistfully) let it go.
Hope that helps, and again thank you for insights.
An incredibly interesting topic that I’ve struggled with over the last 10 years. The only winning answer is to not play the game. Right now you’re in a lose lose situation: take the upgrade and feel bad about spending the cash, or enjoy your trip less because you’re “slumming” in the lower cabin. Oh and enjoy weeks of decision fatigue while making that choice, instead of looking forward to your incredible vacation.
So going forward avoid putting yourself in situations where you can be upsold, and generally de-emphasize materialism (much easier to do outside the states).
The business to first upgrade vs triple Michelin star meal is also a great comparison and question to raise. My approach to get around it is simply blanket statement (again to avoid decision fatigue) – if it’s there and I’m traveling with someone who would really enjoy it I’m booking it. Being aggressively minimalist and frugal only truly works if you can occasionally duck in on the other side to see “oh, ha, I’m really not missing anything”.
Plus by treating other people to the first class experience they’ve never had their enthusiasm rubs off on you, instead of “just another time” in LH CX etc F.
Good thoughts Hank, thanks.
Don’t think twice – discard the upgrade!
How much time would you spend inside your cabin anyway? With upgrade – may be 1-2 hours EXTRA per day?
Typically you can get much better views from the decks vs. balcony; and you going there for the scenery and sights, not for hotel indulgence (that you can do closer to home, and cheaper).
Rather spend a bit more on excursions and local exploration – doubt it will cost you 1/3 of the upgrade total. Enjoy the surroundings!
If you factor in sleeping, 1-2hrs added to waking hours is quite a high ratio of quality improvement 🙂
I’ll preface this by saying that I am a spender. I am also a confirmed cruiser. I haven’t had the opportunity to go on Crystal, but have been on about 20 cruises. Get the damned balcony. The opportunity to take your morning tea in quiet and in private on your balcony whilst watching the ocean and the sun and clouds is priceless IMO. I also highly value the ability to go to quiet seclusion occasionally, provided by my balcony. Love it.
I agree with Cate. I prefer the privacy and quite, watching the ocean waves wash hypnotically past my balcony. But, if you spend all day at the pool, or on port excursions, then no. The cost of the upgrade is fixed. The value is a function of individual preferences.
I agree with Cate. I prefer the privacy and quite, watching the ocean waves wash hypnotically past my balcony. But, if you spend all day at the pool, or on port excursions, then no. The cost of the upgrade is fixed. The value is a function of individual preferences.
Been on over 100 cruises. Having sailed Crystal 15x I can tell you the PH and PS are not worth it. We have had both. You get a butler, which we never used except dinner one night from Prego. This cruise is NOT selling and is available for travel agent rates. They broke the cruise into smaller segments in an effort to sell it and its still not working. They are oversold in the lower categories as that’s all that has been selling and will be comp upgrading past guests. Don’t get me wrong, I love Crystal, but the best things about Crystal are outside of the stateroom. Enrichment, entertainment, food, lectures, etc. be sure to sign up for Magic Castle at Sea as soon as you get onboard. Tickets are free and first come, first served. They usually perform 3 shows on sea days. So much fun. The Vintage Room 250.00pp is great also.
If you are a high roller with Genting get your host to do something. I have sailed with a lot of comped high rollers and they always got what they want without any extra costs.
Crystal does allow you to charge 300.00 per person per day to your stateroom and they give you cash. You can use a points earning card (I use CSR) to pay for the cruise and carry the cash off the ship.
Thanks for the tip on Magic Castle at Sea, never heard of it so I’ll make a note! This cruise seems pretty busy to me, but I’ve no real insight there… apparently it is one of their Food and Wine events too, so I’m excited to try it out.
I did consider things like the Vintage room, and might struggle to justify the $250 fee.. which I thought indicative of paying the $5200 in the first place.
I’d have to kinda argue about the suite value… I think there is value to having the PS level separate room, since we have a toddler. It would make it a lot easier for him to get naps, while one of us then could sit in the other room and read/work etc on the balcony, listening out for any issues. There’s value there… but the question is how much would you pay for that?
That’s part of the value we were looking at. I feel that as it is, the cruise will mean no naps… this means that there better be a great kids club, and that isn’t certain!
Are you talking about getting the Crystal Penhouse? That is the only one with an actual separate room for sleeping. The PS and PH do not have a separate room as I don’t count a curtain that separates the bed from the living area (couch/table/chair as a separate room. Yes, there are two TVs IIRC, but when I watched one in bed and my husband watched one on the sofa we heard each other’s. Or maybe my husband was watching a movie on his iPad? In any case there is no wall, just a curtain. The ship comes out of a refit in October but they are just making larger staterooms/suites in the same style as they have now, so curtain only for separating. Why not get two connecting cabins? Then you have a completely separate room. That’s what we use to do.
My experience is telling me that I really don’t think there will be a kids club. How old is your little one? At this point have your host call guest services or email them. They can tell if the entertainment department plans for a kids counselor. They will have one on the following cruise as every Xmas cruise has one.
You can arrange for babysitting once onboard with the concierge if you need a break. Also, unless they changed the rules you cannot leave your child on the ship with a babysitter and go ashore. They also only have the kids club on days at sea.
Food and wine theme is a few more lectures and possible tastings. They may have someone on from SA to discuss the SA wine industry.
Does your price include the 741.00 in Port taxes/fees?
I’m so glad to see you are moving up to luxury. The one bad thing is you will be spoiled. You will never look at NCL the same way again. You will also probably be the youngest people onboard. Don’t worry, the Crystal guests are well traveled, intellectually curious, can discuss lots of topics and are people I have always enjoyed meeting. You will find lots of MDs, lawyers, and high level professionals. I have never met anyone I did not enjoy whilst cruising with Crystal and have made friends in the US and Europe that I still visit with.
So what did you decide?
Haven’t decided yet. Almost set on not doing it, but then still flicker back to the option at times.
To answer your other reply, the Penthouse I was looking at is the SH class, it is new, but floorplan is likely the same as what you’ve experienced. I think that the even more expensive option I mentioned (circa 500sqft) would work, even with a curtain, as the kiddo is OK with noise more than visual, so if we were in the other room, it would work.
Here’s the new layout.. http://www.crystalcruises.com/cruises/cruise-guidebook/our-ships/crystal-symphony/seabreeze-penthouse-suite-with-verandah
That said, it might still be too expensive as I haven’t priced that.
They do have a kids club, and they said it was staffed (we will see..)
My cost for the current cabin is the port fees, I think it is $715×3.
I am on the other end of the spectrum: two kids in college. Last year, I took my mourning trip of a lifetime on Crystal after sending the baby off. While I suppose I could have rationalized an upgraded cabin, I had read tons of trip reports, and what the previous poster stated is true: Crystal has some of the largest public spaces of any cruise ship. There are tons of quiet places to go to read or work. My favorite was the lounge at the top of the ship overlooking the bow. That’s where I would be while my husband took a nap everyday. Crystal is wonderful, and at no time did I regret my window cabin, indeed I was glad of my choice because we enjoyed the cruise so much without it. I had made a rule for myself: no balconies until after the kids are launched. What I do not know, I will not miss. Notice two important ideas there: I still travel, and launched is different than “out of college”. Children require a lot more support these days, and it doesn’t generally end with college graduation. Finally, Crystal does everything in an excellent manner, so if they say there’s a kids club, there will be, the only worry is if there will be any other kids in it.
Take the $5200 and put it into your toddler’s college fund. You’ll find that you will be so grateful when the time comes.
Yeah, I’m leaning towards the window more right now, but not really for the college fund reason. It does sound like a great ship/line to be on, and the public space access sounds like it might be the decider. We’ve also made a reservation for the Vintage Room that looks great too.
Forgot to add. You will be much younger (as am I) then the usual Crystal demographic. But since there are a interliners and TAs the age may skew younger.
Vintage Room can be hit or miss. If you have 10 people that you have nothing in common with and it’s like pulling teeth to get them to talk it’s a lonnnnnng evening. I’ve had that and I’ve also had another time where everybody got along great and the conversation flowed. That was really fun. The food in the MDR, now Waterside is just as good as in the Vintage Room but the wines in the VR are very very good,
We decided to not upgrade in the end, and instead just enjoy the open spaces. Will see if we regret it!
We’re bummed about Madagascar, but were already aware of the issues there, so may have elected to not disembark, or do something ‘very’ safe and mundane.
What did you decide? You know they dropped Madagascar due to the terrible plaque. I have a bunch of travel agents friends on this one as the TA rates were very good. I was going to go with one of them but I’ve been too busy with other travel and have been to most of the ports, Even with reduced prices/Genting comps/TA and Interline rates it still isn’t full so they broke it into segments.
The open seating dining is having some issues, tables too close together, lines of people at 6:00pm but the maitre’d, Remi, is a real pro and seems to be getting it to work.
I have another friend who gets comps on Crystal all the time. Her Resorts Worlds host knew her from Foxwoods and called her when he moved to Resorts World. She drops 10k a night at Blackjack so she really gets VIP treatment. I think she gets 4 comp cruises a year, IIRC