RCL Daily Food Budget Per Passenger?

[EvelynAlexa]

How much is on RCL budget per passenger per day.

I read $6, can it be?

 

Alex

[uksimonusa]

How much is on RCL budget per passenger per day.

I read $6, can it be?

 

Alex

The last I heard it was like $13.50, just check out the reports on the RCI investor website.

[Ken at the beach]

That $6 was from a number of years ago.

[Daghis]

From the 2013 Annual Report from the rclinvestor.com web site, food expenses represent about 5.9% of their revenue (about $8 billion), or about $470 million.

 

They carried about 4.9 million passengers who sailed a total of 35.6 million days total.

 

Thus, on average, Royal Caribbean spent about $13.21 per person per day for food.

 

($7,959,894,000 revenue * 5.9% food-expenses / 35,561,772 person-days)

Edited June 22, 2014 by Daghis

[cb at sea]

It ain't much...that's the truth in this day and age.

[Paulette3028]

From the 2013 Annual Report from the rclinvestor.com web site, food expenses represent about 5.9% of their revenue (about $8 billion), or about $470 million.

 

They carried about 4.9 million passengers who sailed a total of 35.6 million days total.

 

Thus, on average, Royal Caribbean spent about $13.21 per person per day for food.

 

($7,959,894,000 revenue * 5.9% food-expenses / 35,561,772 person-days)

 

I actually believe it is much higher than that....if you subtract the number of meals eaten in Specialty restaurants, which the cruiser is paying additional to do. Therefore the money spent on that cruiser in the main dining room become proportionally distributed over the remaining passengers. It surely seems the Specialty Dining Venues have been well received, a great success and revenue generator.

[Iluvcruising2]

Not sure if RCI would want all their competitors would know their true spend. All the figures derived from the reports are at best approximations as we don't really know the detailed breakdowns.

[Iluvcruising2]

It ain't much...that's the truth in this day and age.

 

True. I am just wondering how much economies of scale a company like RCI can enjoy given that they standardize so much.

[LMaxwell]

I actually believe it is much higher than that....if you subtract the number of meals eaten in Specialty restaurants, which the cruiser is paying additional to do. Therefore the money spent on that cruiser in the main dining room become proportionally distributed over the remaining passengers. It surely seems the Specialty Dining Venues have been well received, a great success and revenue generator.

 

But isn't that food cost factored into all food expenses? The revenue from the specialty dining is just part of the overall revenue. I have read figures in the $13 pp/pd range as well, not saying they are all correct, but regardless of if there is an extra charge for the food or not, if we're averaging it all together isn't that what it would come out to?

[Paulette3028]

But isn't that food cost factored into all food expenses? The revenue from the specialty dining is just part of the overall revenue. I have read figures in the $13 pp/pd range as well, not saying they are all correct, but regardless of if there is an extra charge for the food or not, if we're averaging it all together isn't that what it would come out to?

 

I would expect that the specialty dining venues operate separately, so they can determine the profit line for each venue....therefore keeping separate the cost factors.

 

I know if I was the bean counter (CFO) I would do it that way.

[LMaxwell]

I would expect that the specialty dining venues operate separately, so they can determine the profit line for each venue....therefore keeping separate the cost factors.

 

I know if I was the bean counter (CFO) I would do it that way.

 

That sounds pretty reasonable to me; treat each specialty like it's own business and make it pull it's weight; especially in calculating which venues should get more or less space (how much revenue is generated per square footage for that space), but I was thinking they may lump it all together since it all kind of falls under the domain of a singular Food and Beverage manager.

 

I think it would be interesting to know more about Operations. I know this isn't really the message board for that, I'm not sure what is. I find that stuff interesting. Maybe we will cross paths on day on the Majesty!

[Ken at the beach]

I actually believe it is much higher than that....if you subtract the number of meals eaten in Specialty restaurants, which the cruiser is paying additional to do. Therefore the money spent on that cruiser in the main dining room become proportionally distributed over the remaining passengers. It surely seems the Specialty Dining Venues have been well received, a great success and revenue generator.

 

The specialty restaurants actually drive that average cost up and not down. Without the specialty restaurants the cost per person per day would be lower. Not by a lot but it would be lower.

 

Currently RCCL spends 5.9% of its total revenue on food. In the specialty restaurants they would probably be spending 25% to 40% of the revenue that the restaurant produced.

 

Also do not forget that this $13.21 per day is for the larger corporate entity of RCCL and includes Celebrity, Azamara, Pullmanteur and TUI. My feeling is that the costs for Celebrity and Azamara are a bit higher than this average and RCI is a bit lower than the $13.21.

[Ken at the beach]

But isn't that food cost factored into all food expenses? The revenue from the specialty dining is just part of the overall revenue. I have read figures in the $13 pp/pd range as well, not saying they are all correct, but regardless of if there is an extra charge for the food or not, if we're averaging it all together isn't that what it would come out to?

 

Correct.

[Ken at the beach]

I would expect that the specialty dining venues operate separately, so they can determine the profit line for each venue....therefore keeping separate the cost factors.

 

I know if I was the bean counter (CFO) I would do it that way.

 

I'm sure that RCCL has these numbers and absolutely keeps track of each and every different profit centre on the ship, however they amalgamate all the numbers into one general line for food expenses when making their public filings.

[The_Big_M]

I actually believe it is much higher than that....if you subtract the number of meals eaten in Specialty restaurants, which the cruiser is paying additional to do. Therefore the money spent on that cruiser in the main dining room become proportionally distributed over the remaining passengers. It surely seems the Specialty Dining Venues have been well received, a great success and revenue generator.

 

Actually, it may well be lower than that.

 

The cost, of "food expenses" would apply to all food consumed. However, the figures above only counted passengers. With crew would add another third on.

 

The crew don't have quite so much choice, and average cost for theirs may be a little lower, but still would take away probably another quarter from the cost above.

[ehfl]

From the 2013 Annual Report from the rclinvestor.com web site, food expenses represent about 5.9% of their revenue (about $8 billion), or about $470 million.

 

They carried about 4.9 million passengers who sailed a total of 35.6 million days total.

 

Thus, on average, Royal Caribbean spent about $13.21 per person per day for food.

 

($7,959,894,000 revenue * 5.9% food-expenses / 35,561,772 person-days)

 

But don't they feed the crew too?

[John&LaLa]

actual cruise revenue is much lower, total revenue also includes things like choice air, onboard purchases and concessions

[Merion_Mom]

TIME OUT, PEOPLE!

 

The line in the annual report about "food" in the "revenue" section isn't about SPENDING on food by the cruise line. It is about REVENUE. What PASSENGERS spend on food. Specialty restaurants, extra-cost items.

 

What the cruise line spends on food is not going to be in the REVENUE section.

 

Think about it.

[LindaO]

We took the exclusive D+ galley tour on the Freedom and the Executive Chef had all his Sous Chefs present the dishes for dinner and discuss costs. One of the Sous Chefs was over budget. There was a discussion on cost per passenger per cruise, or what is budgeted, and I honestly do not remember what numbers he through out. But, if you take the tour, I'm sure the Chef will answer your question.

[Merion_Mom]

We took the exclusive D+ galley tour on the Freedom and the Executive Chef had all his Sous Chefs present the dishes for dinner and discuss costs. One of the Sous Chefs was over budget. There was a discussion on cost per passenger per cruise, or what is budgeted, and I honestly do not remember what numbers he through out. But, if you take the tour, I'm sure the Chef will answer your question.

 

I have asked chefs this question on several different ships. While the facial expressions vary, the answer is always along the lines of "that is proprietary information and I could be fired for telling you."

 

;)

[Ken at the beach]

TIME OUT, PEOPLE!

 

The line in the annual report about "food" in the "revenue" section isn't about SPENDING on food by the cruise line. It is about REVENUE. What PASSENGERS spend on food. Specialty restaurants, extra-cost items.

 

What the cruise line spends on food is not going to be in the REVENUE section.

 

Think about it.

 

Actually the 5.9% that Daghis quoted is food cost. It is right between payroll and fuel costs.

 

This 5.9% of revenue spent on food is in line with the 2014 industry average of 6%.

[LindaO]

I have asked chefs this question on several different ships. While the facial expressions vary, the answer is always along the lines of "that is proprietary information and I could be fired for telling you."

 

;)

 

Sometimes it is how you approach a conversation, who you are speaking with and the context of the question as to how it is answered.

[Rufferto]

Food costs are going to be a lot higher for those passengers who are not leaving from or returning to a US port, since most of the food is flown in from Miami.

[EvelynAlexa]

I copied this from the thread we initiated on the Celebrity board:

My thanks to Voyager1964

 

 

Quote:

Originally Posted by voyager1964 View Post

Here is a general break-down, per passenger, per day:

 

Seabourn, Silver Sea - $24 - 26 per day

Oceania, Regent - $18 - 20 per day

Celebrity, Princess - $12 - 15 per day

RCCL, HAL - $12 - 13 per day

Carnival - $8 - 10 per day

NCL - $7.50 - 8.50 per day"

 

Source: http://cruiseforums.cruisecritic.co....80&postcount=4

Estimates as of 2009

Read the referenced post for additional info

 

 

--------------------------------------------

 

We appreciate the information.

Now I wonder about the cost per person for a specialty restaurant vs the value.

 

Eve

[Clarea]

I copied this from the thread we initiated on the Celebrity board:

My thanks to Voyager1964

 

 

Quote:

Originally Posted by voyager1964 View Post

Here is a general break-down, per passenger, per day:

 

Seabourn, Silver Sea - $24 - 26 per day

Oceania, Regent - $18 - 20 per day

Celebrity, Princess - $12 - 15 per day

RCCL, HAL - $12 - 13 per day

Carnival - $8 - 10 per day

NCL - $7.50 - 8.50 per day"

 

Source: http://cruiseforums.cruisecritic.co....80&postcount=4

Estimates as of 2009

Read the referenced post for additional info

 

 

--------------------------------------------

 

We appreciate the information.

Now I wonder about the cost per person for a specialty restaurant vs the value.

 

Eve

Thanks for the info, however the link you posted is truncated.