Where do you think that the cruiseline makes the most money

[stuNYC]

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

[trishalee]

I think it's probably a toss-up between bar service and tours.:rolleyes:

[Tromler]

I would gather the alchohol sales and onboard purchases along with the Shore Excursions are probally fairly profitable for them.

[Fritz265]

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.

[Kababs]

I would vote on the casino, I know I donate too much money in there!:D

[Happy ks]

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.

[xpcdoojk]

Didn't we just do this silly topic, like last week?

:rolleyes:

[flagger]

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.

[Ocean Boy]

Didn't we just do this silly topic, like last week?

:rolleyes:

Spreading some sunshine around today, JC?? :)

[emilygrace]

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!!!

[springtxbill]

Per their annual eport on board charges account for 30% of the revenue.:)

[xpcdoojk]

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

[flagger]

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.

[terri23]

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 $$$

[xpcdoojk]

Ahh. Flagger, I didn't know you cared! Thanks for sharing! That is just so sweet. :D

 

jc

[awm]

Getting back to the original topic....

Alcohol, definetly the alcohol.

(Or maybe that's just me):D

[JodiBB]

Cruise fare excluded, I would probably split between the alcohol and the photo purchases...especially now that they take digital photos...

[Host Kewlguy]

Casino and alcohol sales, without a doubt.

[VCLvr]

Alcohol-Bingo-Pictures - my onboard spending is about 1/2 the price of the cruise itself.

[Host Kewlguy]

I gave up gambling years ago and I don't drink much. My on board charges are never more than a couple hundred dollars.

[HB Cruiser]

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

[madforcruising]

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.

[Murphy]

They definitely make the most money on our alcohol bill!!! :)

[bosteph]

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.

[terri23]

the soda cards are a serious cash factory for RCI