NH Cruisers Posted April 1, 2015 #1 Share Posted April 1, 2015 A very large cruise ship like the Breakaway has close to 2500 staterooms. At an average of $1500 per person (I feel is a bit high), a week long cruise cost the passengers without extras $3,750,000. That is a giant newer ship costing upwards of almost 3/4 of a billion dollars. Thousands of barrels of fuel, and many thousands in complimentary food and drinks. Insurances to pay for. Ships management. Salaried workers and hotel workers and their everyday living expences. Port facilities etc.. Money spent by NCL could just go on and on. I really feel that with out charging for the over and above extras a cruise line could not survive. We all want to have the cheapest cruise possible, I know I do. But how cheap can it get before it loses all the glam and luster? Do we all really want to pay (adjusted for inflation) the high prices of cruising in the past? I do not. I like the idea of paying for what I use and can get more or less depending on how I feel. As far as the DSC goes? The folks working deserve a raise for what they do as much as I feel I do. $3,750,000 for a weeklong 1,900 mile long trip in a fancy resort. I don't know how they could do that without many folks paying for extras. Link to comment Share on other sites More sharing options...
anniegb Posted April 1, 2015 #2 Share Posted April 1, 2015 A very large cruise ship like the Breakaway has close to 2500 staterooms. At an average of $1500 per person (I feel is a bit high), a week long cruise cost the passengers without extras $3,750,000. That is a giant newer ship costing upwards of almost 3/4 of a billion dollars. Thousands of barrels of fuel, and many thousands in complimentary food and drinks. Insurances to pay for. Ships management. Salaried workers and hotel workers and their everyday living expences. Port facilities etc.. Money spent by NCL could just go on and on. I really feel that with out charging for the over and above extras a cruise line could not survive. We all want to have the cheapest cruise possible, I know I do. But how cheap can it get before it loses all the glam and luster? Do we all really want to pay (adjusted for inflation) the high prices of cruising in the past? I do not. I like the idea of paying for what I use and can get more or less depending on how I feel. As far as the DSC goes? The folks working deserve a raise for what they do as much as I feel I do. $3,750,000 for a weeklong 1,900 mile long trip in a fancy resort. I don't know how they could do that without many folks paying for extras. Just asking USD 1500 pp or per cabin?? $1500x2x2500 cabins = $7,500,000 Apologies if I have missed something. Annie Link to comment Share on other sites More sharing options...
Kingofwylietx Posted April 1, 2015 #3 Share Posted April 1, 2015 2014 Sales for NCLH were approx. $3.1B. 2014 Net Income for NCLH was approx. $340M That works out to around 11%. Source: http://www.marketwatch.com/investing/stock/NCLH/financials NCLH is a publicly traded company. If you want to see more detail, you'll need to read the statements and reports. Link to comment Share on other sites More sharing options...
NH Cruisers Posted April 1, 2015 Author #4 Share Posted April 1, 2015 Just asking USD 1500 pp or per cabin?? $1500x2x2500 cabins = $7,500,000 Apologies if I have missed something. Annie You are correct. I missed that. Link to comment Share on other sites More sharing options...
NH Cruisers Posted April 1, 2015 Author #5 Share Posted April 1, 2015 2014 Sales for NCLH were approx. $3.1B.2014 Net Income for NCLH was approx. $340M That works out to around 11%. Source: http://www.marketwatch.com/investing/stock/NCLH/financials NCLH is a publicly traded company. If you want to see more detail, you'll need to read the statements and reports. 11% profit margin seems fair. Link to comment Share on other sites More sharing options...
runner15km Posted April 1, 2015 #6 Share Posted April 1, 2015 Net income of 340M but NCL's newer ships cost 800K-1B to build along with yearly maintenance costs of a couple hundred thousand per ship. I can see why they need the extra 50.00 p/p. :) Link to comment Share on other sites More sharing options...
KateQ22003 Posted April 1, 2015 #7 Share Posted April 1, 2015 Net income of 340M but NCL's newer ships cost 800K-1B to build along with yearly maintenance costs of a couple hundred thousand per ship. I can see why they need the extra 50.00 p/p. :) Net income is after all expenses have been paid. Link to comment Share on other sites More sharing options...
Kingofwylietx Posted April 1, 2015 #8 Share Posted April 1, 2015 (edited) Runner, there is more to it. Their cash flow was over $600M, they have depreciation calculated into Net Income. To get a clear picture, you have to look at more than Net Income. I just selected that metric to give an idea of their profit margins. I'm not an accountant. The new ships are new sources of revenue. They will (or certainly NCL hopes) pay for themselves and earn a tidy profit for the company. Think of each ship as a profit center. If the company earns $30M per ship, per year....adding 2 new ships should be an additional $60M. Now, factor in the size of the new ships and maybe they bring $40M each.... I'll stop typing before it gets too technical and complicated.. Again, I'm not an accountant. Edited April 1, 2015 by Kingofwylietx Link to comment Share on other sites More sharing options...
sfaaa Posted April 2, 2015 #9 Share Posted April 2, 2015 11% profit margin seems fair. Shareholders always want more. Cruise ships are very capital intensive like hotels on land. The wear and tear on the ship from millions of passengers is enormous and they need to set aside a sizable cash reserve every year to fund capital replacement program every 5 years or so. There are easier way to make money. Link to comment Share on other sites More sharing options...
Kingofwylietx Posted April 2, 2015 #10 Share Posted April 2, 2015 Yes, that is true. It's probably the major reason (aside from depreciating capital expenses) cash flow is twice net profit. Also, while there are easier ways to make money, I'm glad there are many companies that have decided that offering cruises is a good way to make theirs. Otherwise, there would be no cruises. :) Link to comment Share on other sites More sharing options...
Rare sparks1093 Posted April 2, 2015 #11 Share Posted April 2, 2015 According to the documentary "Cruise, Inc." NCL turns a profit on an individual cruise if the cruise sails at 110% capacity, all departments hit their revenue goals and bar sales equal roughly $6 per person per day (can't remember the exact amount since I haven't watched it lately). Link to comment Share on other sites More sharing options...
sfaaa Posted April 2, 2015 #12 Share Posted April 2, 2015 According to the documentary "Cruise, Inc." NCL turns a profit on an individual cruise if the cruise sails at 110% capacity, all departments hit their revenue goals and bar sales equal roughly $6 per person per day (can't remember the exact amount since I haven't watched it lately). That's the challenge, isn't it? We know holidays and summer are a gimme but low season can be touch and go. Throw in the unpredictables like crude oil price, terrorism threat, bad weather, infectious disease epidemic etc and it becomes a constant juggling act to try and fill the ships. It's probably why cruise ship industry players are big boys with deep pocket. Link to comment Share on other sites More sharing options...
sixesandeights Posted April 2, 2015 #13 Share Posted April 2, 2015 A very large cruise ship like the Breakaway has close to 2500 staterooms. At an average of $1500 per person (I feel is a bit high), a week long cruise cost the passengers without extras $3,750,000. That is a giant newer ship costing upwards of almost 3/4 of a billion dollars. Thousands of barrels of fuel, and many thousands in complimentary food and drinks. Insurances to pay for. Ships management. Salaried workers and hotel workers and their everyday living expences. Port facilities etc.. Money spent by NCL could just go on and on. I really feel that with out charging for the over and above extras a cruise line could not survive. We all want to have the cheapest cruise possible, I know I do. But how cheap can it get before it loses all the glam and luster? Do we all really want to pay (adjusted for inflation) the high prices of cruising in the past? I do not. I like the idea of paying for what I use and can get more or less depending on how I feel. As far as the DSC goes? The folks working deserve a raise for what they do as much as I feel I do. $3,750,000 for a weeklong 1,900 mile long trip in a fancy resort. I don't know how they could do that without many folks paying for extras. Yet another post by you pushing the DSC and acceptability of the new fees.....clearly you are a shill for NCL. You used radically incorrect numbers, made many assumptions in your calculations that are way off from reality, and have no proof at all that anything you said was true. WE GET IT. NCL can do no wrong in your eyes. Please stop creating new posts pushing the acceptability of these new fees and costs. There are countless open threads you can post inaccurate information to without flooding the board with more of this crap... 6&8 Link to comment Share on other sites More sharing options...
newmexicoNita Posted April 2, 2015 #14 Share Posted April 2, 2015 Let's just say, the overall profit has improved from about 5 years ago and the stock continues to rise.Obviously the share holders are happy,but to continue a profit, extra charges have to be add or the base cost of the cruise has to rise. Either way, we, the consumer will foot the bill so to say. I would rather the added costs and allow me to decide what I want to spend my budgeted money on, rather than a rise in the cabin costs. No one forces us to eat in speicalty dining rooms, choose to room service inslead of using the buffet or one of the available options, and certainly no one forces us to buy booze or visit the casino or even book shore excursions using the cruise line vendors. Link to comment Share on other sites More sharing options...
sfaaa Posted April 2, 2015 #15 Share Posted April 2, 2015 NCL's business model is to go after the 3 star mass market with an affordable price sticker. I am not getting the feeling it is straying away from this approach. Keep the base price low, get the customers on the ship and work their pockets with extra paid services to boost revenue. It's a good and proven business strategy despite its latest room service charge slip up. Link to comment Share on other sites More sharing options...
clarkspond75 Posted April 2, 2015 #16 Share Posted April 2, 2015 (edited) I'm looking at two brochures for two cruises I took over 39 years ago. 4/17/1976 Los Angeles to Mexico, 7 nites on the Sitmar Fairsea. It was my First cruise and to this day the best ever. Great memories. The cost for an inside room Was $495.00. plus port taxes of $11.50 for each passenger. The Second cruise was on the Song of Norway(RCCL) out of Miami on 6/17/1977. We had an inside room on A deck and had a ball. The cost for this trip was $500.00 plus port taxes of $9.50. for each passenger. Tell me anything you can do today that cost the same as it did 40 years ago? You can still take a cruise for $500.00 per person. Enjoy it while you can.... Edited April 2, 2015 by clarkspond75 Link to comment Share on other sites More sharing options...
sfaaa Posted April 2, 2015 #17 Share Posted April 2, 2015 Just booked a NCL 7-day Mex cruise in 2016 for $449 + tax with $25 OBC. Not a Guarantee and you get to pick your own room. Boycotting NCL? Not me as long as it rolls out good deals like this. Link to comment Share on other sites More sharing options...
Kingofwylietx Posted April 2, 2015 #18 Share Posted April 2, 2015 (edited) Tell me anything you can do today that cost the same as it did 40 years ago? You can still take a cruise for $500.00 per person. Enjoy it while you can.... Holy cow, that was expensive for an inside room!! Adjusted for inflation, that is OVER $2000 today! http://www.usinflationcalculator.com/ Don't forget inflation...... The same goes for flying. Taking a plane trip used to be a true luxury experience. It was also so expensive that most of us couldn't afford it. Edited April 2, 2015 by Kingofwylietx Link to comment Share on other sites More sharing options...
jackson bernard Posted April 2, 2015 #19 Share Posted April 2, 2015 Just booked a NCL 7-day Mex cruise in 2016 for $449 + tax with $25 OBC. Not a Guarantee and you get to pick your own room. Boycotting NCL? Not me as long as it rolls out good deals like this. Great deal especially since they let you remove the dsc on top of that. Link to comment Share on other sites More sharing options...
Rare insidecabin Posted April 2, 2015 #20 Share Posted April 2, 2015 25%+ of the cruise fares goes on selling the cruises(commissions and head office costs advertising etc) (need to check the latest numbers) Food is <$15pppd and that feed the crew and pays for all the speciality food. My last cruise with NCL was <$65pppd and that included the UBP and UDP and taxes. There is a lot od subsidizing going on between cabins and cruises some must be running at very low margins/loss Link to comment Share on other sites More sharing options...
sfaaa Posted April 3, 2015 #21 Share Posted April 3, 2015 Great deal especially since they let you remove the dsc on top of that. Smuggle booze on board using Rum Runner and the deal keeps getting better and better.:D Link to comment Share on other sites More sharing options...
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