stuNYC Posted June 24, 2005 #1 Share Posted June 24, 2005 I believe the cost of the stateroom is only a fraction of the profits that the ship makes off a given cruise. The cost of your cruise probably cover the ships overhead (fuel, food, crew, cost of building ship). I think that the majority of the ship's profits come from 1. The casino, including tournaments 2. Sale of pictures taken on cruise 3. Sale of drinks 4. Excursions 5. Shop purchase 6. Portion of Bingo 7. Portion of Art Gallery sales 8. Portion of Spa proceeds 9. Specialty restaurant surcharge I may not be a typical passenger, but my onbboard charges were almost equal to my cruise fare. What about you Link to comment Share on other sites More sharing options...
trishalee Posted June 24, 2005 #2 Share Posted June 24, 2005 I think it's probably a toss-up between bar service and tours.:rolleyes: Link to comment Share on other sites More sharing options...
Tromler Posted June 24, 2005 #3 Share Posted June 24, 2005 I would gather the alchohol sales and onboard purchases along with the Shore Excursions are probally fairly profitable for them. Link to comment Share on other sites More sharing options...
Fritz265 Posted June 24, 2005 #4 Share Posted June 24, 2005 I think that their stateroom fares compromise most of their profit margins. According to the Wall Street Journal in a recent article, the cruise lines are currently operating at well over 20% profit margins which are increasing due to the renewed popularity of cruising and the general lack of new ships coming online that will keep the number of available staterooms relatively constant thus increasing demand and thus pricing. It went on to state that although oil prices certainly affect their costs, but oil is less than 6% of the costs associated with operating a cruise ship thus it doesn't have anywhere near the affect it would have on, say, the airlines, where fuel costs are the bulk of their operating budgets. Food/beverages are a huge cost to the cruiselines as well as port fees and taxes but with Carnival and Royal Carribbean owning over 70% of the cruise market, they're doing quite well. I was surprised to learn that Carnival is three times larger than RCCI when you include Carnival's acquisition of Princess and HAL. Link to comment Share on other sites More sharing options...
Kababs Posted June 24, 2005 #5 Share Posted June 24, 2005 I would vote on the casino, I know I donate too much money in there!:D Link to comment Share on other sites More sharing options...
Happy ks Posted June 24, 2005 #6 Share Posted June 24, 2005 They must not like pax like us. With the exception of 7 and 8 and maybe one photo, we spend very little on a cruise. That's why we like it so much, it's nearly all paid for before you go. We may have a bill of $200-500 at the end of a 7 night cruise. Link to comment Share on other sites More sharing options...
Rare xpcdoojk Posted June 24, 2005 #7 Share Posted June 24, 2005 Didn't we just do this silly topic, like last week? :rolleyes: Link to comment Share on other sites More sharing options...
flagger Posted June 24, 2005 #8 Share Posted June 24, 2005 Most cruise ships make far more revenue and profit in Duty Free Shops, Art Auctions, Casino, Spa, and Shore Excursions than they do in the Bars. On a typical cruise ship, gross Bar revenues are only about 15% of the total onboard revenue for the cruise. Link to comment Share on other sites More sharing options...
Ocean Boy Posted June 24, 2005 #9 Share Posted June 24, 2005 Didn't we just do this silly topic, like last week? :rolleyes: Spreading some sunshine around today, JC?? :) Link to comment Share on other sites More sharing options...
emilygrace Posted June 24, 2005 #10 Share Posted June 24, 2005 I don't know that they make all that much on the shore excursions. On the cruises we've been on I've priced the excursions on my own and the cruise line isn't that much higher. They are contracting with these tour companies and paying them, so it's not like the whole amount you pay for an excursion goes right into the cruise line's pocket. I would think the casino is probably the biggest money maker. And drinks maybe coming in second. They're certainly not making any money off of me there!!! Link to comment Share on other sites More sharing options...
springtxbill Posted June 24, 2005 #11 Share Posted June 24, 2005 Per their annual eport on board charges account for 30% of the revenue.:) Link to comment Share on other sites More sharing options...
Rare xpcdoojk Posted June 24, 2005 #12 Share Posted June 24, 2005 No, OB, economic reality. Profit equal Revenue minus costs. Therefore, no single revenue stream exceeds the costs of operating a cruiseline. For this topic to even make sense, the correct question; is from what activity do the cruiselines make the most revenue from? All revenue streams combine to determine total revenue without anyone one stream the company might not make any profit. So all are very important to the management of any company. Still didn't we have this discussion just last week? Why do we feel the need to recycle the same topics? Enquiring minds, and all. jc Link to comment Share on other sites More sharing options...
flagger Posted June 24, 2005 #13 Share Posted June 24, 2005 Why do we feel the need to recycle the same topics? Enquiring minds, and all. The bigger and burning question needed to be answered is why do YOU feel the need to enter threads to not answer the question but only make the OP feel bad about asking it? If you do not like the topic, move along. There are hundreds a day on which you can spread your wisdom. I guess you just like the attention and feel it necessary to troll threads instead of answering them. Unlike some people, others were not reading the boards LAST WEEK. Don't bothering answering as it won't be read. The ignore feature of these boards is a wonderful thing. Link to comment Share on other sites More sharing options...
terri23 Posted June 24, 2005 #14 Share Posted June 24, 2005 I don't know that they make all that much on the shore excursions. On the cruises we've been on I've priced the excursions on my own and the cruise line isn't that much higher. They are contracting with these tour companies and paying them, so it's not like the whole amount you pay for an excursion goes right into the cruise line's pocket. I would think the casino is probably the biggest money maker. And drinks maybe coming in second. They're certainly not making any money off of me there!!! I must say I paid a fortune for one RCI excursion that just ...blew... I know they had to pocket at LEAST 50% of the cost...had to be...and there were a coupla hundred people in my same "boat"...this was my only complaint about my RCI cruise...that was bad value for my $$$ Link to comment Share on other sites More sharing options...
Rare xpcdoojk Posted June 24, 2005 #15 Share Posted June 24, 2005 Ahh. Flagger, I didn't know you cared! Thanks for sharing! That is just so sweet. :D jc Link to comment Share on other sites More sharing options...
awm Posted June 24, 2005 #16 Share Posted June 24, 2005 Getting back to the original topic.... Alcohol, definetly the alcohol. (Or maybe that's just me):D Link to comment Share on other sites More sharing options...
JodiBB Posted June 24, 2005 #17 Share Posted June 24, 2005 Cruise fare excluded, I would probably split between the alcohol and the photo purchases...especially now that they take digital photos... Link to comment Share on other sites More sharing options...
Host Kewlguy Posted June 24, 2005 #18 Share Posted June 24, 2005 Casino and alcohol sales, without a doubt. Link to comment Share on other sites More sharing options...
VCLvr Posted June 24, 2005 #19 Share Posted June 24, 2005 Alcohol-Bingo-Pictures - my onboard spending is about 1/2 the price of the cruise itself. Link to comment Share on other sites More sharing options...
Host Kewlguy Posted June 24, 2005 #20 Share Posted June 24, 2005 I gave up gambling years ago and I don't drink much. My on board charges are never more than a couple hundred dollars. Link to comment Share on other sites More sharing options...
HB Cruiser Posted June 24, 2005 #21 Share Posted June 24, 2005 All I know is I am glad they make it where they can as long as they keep my stateroom and port fees at a cost that I can afford to cruise every year. Tim Link to comment Share on other sites More sharing options...
madforcruising Posted June 24, 2005 #22 Share Posted June 24, 2005 I´m not so sure about the revenue they get out of the photos as the ships photographers work for a different company, not the cruise line. Of course the cruise line will get money from "Image". Same for the art auctions. They are operated by Park West. Regarding shore excursions as far as I know it works like this that tour operators offer their tours to RCCL at a specific per person price. RCCL then makes the decision what excursions they want to offer and at what price. So this will definitely be a money maker. Link to comment Share on other sites More sharing options...
Murphy Posted June 25, 2005 #23 Share Posted June 25, 2005 They definitely make the most money on our alcohol bill!!! :) Link to comment Share on other sites More sharing options...
bosteph Posted June 25, 2005 #24 Share Posted June 25, 2005 Cruise fare excluded, I would probably split between the alcohol and the photo purchases...especially now that they take digital photos... I'm not sure that they do take digital photos. On our Rhapsody cruise in March the photographers were all using Nikon N80's. The reason that I remember is because I have the same camera. Of course, I was a little impressed with myself on my choice being that professionals also use the N80. :p I still believe that they must make a significant profit margin on the pictures though. Why else would they take so many pictures? I also agree that alcohol must be a money maker. Link to comment Share on other sites More sharing options...
terri23 Posted June 25, 2005 #25 Share Posted June 25, 2005 the soda cards are a serious cash factory for RCI Link to comment Share on other sites More sharing options...
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