How Royal Caribbean gets customers to spend more money

Courtesy of Conde Nast Traveler

  • Royal Caribbean increased revenues by allowing customers to purchase more goods and services they would use during the cruise while they were booking it.
  • Doing so makes onboard expenses seem smaller at the time of purchase and changes the way customers think about their spending habits once they’re on the cruise.
  • The phenomenon is explained by an economic theory that businesses use all the time.

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