Puzzled as to how X actually makes money....

[DYKWIA]

DYKWIA, this list is so far from reality, the 18% goes to the staff for starters.

 

My point being (particularly for those where minimum wage is mandatory) that the cruise company doesn't pay the wages of a lot of their staff from the basic cruise fare you pay.

 

Have you shopped and cooked a meal lately that compares to one served in one of the speciality venues? Forget the time and effort it takes to prep then cook. In the US the food itself cost more than the $50 pp fee.

 

But you're not in a major city paying huge rent / lease costs, maintenance fees, utility bills, local taxes etc. On land, get good reviews / a michelin star and your landlord immediately wants to double your rent. You are also serving the same menu 365 days a year with a cheap readily available workforce. You can buy your stock in huge quantities at discount. Potatoes + Veg cost pennies and skilled chefs should know how to maximise profits out of their stock - which is more difficult for you and I when we go shopping for home.

 

Just a couple of years ago the specialty restaurants were all about the $25 a head mark - now they're at the $40-50 with discounts available. Additionally, any meal taken in a specialty restaurant is one not taken elsewhere which has been paid for.

 

One thing I didn't mention in terms of profit is that with cruiseline and big ships small pennies worth of profit can make big profits in the long run. if say a cruise line has 10 ships each with 2000 passengers - and they make an extra 50p profit per day per passenger that works out at over £3.5 million extra profit per year.

Edited September 13, 2016 by DYKWIA

[Redtravel]

Every once in awhile, there is a good deal available. Luckily you booked one of the good deals. Most people want to sail the Med in the summer. Prices are higher because demand is up. If a cruise has empty cabins, it will drop prices until it sells. Once on board, you will be tempted to buy extras. Those spa people and specialty restaurant guys greet you at the elevators trying to sell you their products. It can be tempting. Also, the shops have tempting items. Many people like the casinos, excursions, art auctions, bingo, drinks, aqua spa yogurts, etc. You will constantly be shown ways to spend money. You can resist. Just say no. If indeed, you leave without spending anything on extras, you win. Good luck.

I did a 14 night on the Silhouette last October. It was great. Ship was not full. Places that we visited were not crowded. Weather was ideal. Got some great end of season bargains in Mykonos. I did spend extra on private excursions which I booked before I sailed. Look on your roll call for people who are putting together private tours. Enjoy!

[wallie5446]

My point being (particularly for those where minimum wage is mandatory) that the cruise company doesn't pay the wages of a lot of their staff from the basic cruise fare you pay.

 

Our DD worked on ship for RCCL, we know first hand how this is done. They don't starve.

 

 

 

But you're not in a major city paying huge rent / lease costs, maintenance fees, utility bills, local taxes etc. On land, get good reviews / a michelin star and your landlord immediately wants to double your rent. You are also serving the same menu 365 days a year with a cheap readily available workforce. You can buy your stock in huge quantities at discount. Potatoes + Veg cost pennies and skilled chefs should know how to maximise profits out of their stock - which is more difficult for you and I when we go shopping for home.

 

Restaurants in Dallas, Texas get fresh delivery's every 2 days or they would be gone in a matter of months.

 

Just a couple of years ago the specialty restaurants were all about the $25 a head mark - now they're at the $40-50 with discounts available. Additionally, any meal taken in a specialty restaurant is one not taken elsewhere which has been paid for.

 

And when I got my drivers lic gas was .25 cents a gallon, things go up every where, if I want my pay to do the same.

 

One thing I didn't mention in terms of profit is that with cruiseline and big ships small pennies worth of profit can make big profits in the long run. if say a cruise line has 10 ships each with 2000 passengers - and they make an extra 50p profit per day per passenger that works out at over £3.5 million extra profit per year.

 

The free enterprise system working at it's best! Gotta love it. The more profit the Co I work for makes, the more chance of a raise I have.

 

I hope they make buckets of cash year in and year out.

 

Oh, one thing I failed to mention, Sunday for the opening day of American football I went to the grocery and spent $165 for 4 people then it took me close to 5 hours to prep everything. If the wifester would have let me, I would have gladly paid more and bought take out! :D

[CapeCodCruiser]

For every cruise bargain hunter on board there are 5 who spend on the other revenue centers - Bars, Casino, Spa, Excursions, Specialty Dining...the list goes on.

[wallie5446]

For every cruise bargain hunter on board there are 5 who spend on the other revenue centers - Bars, Casino, Spa, Excursions, Specialty Dining...the list goes on.

 

And THANK YOU Mr. Neptune! :D

[Cruizen Susan]

I hope they make buckets of cash year in and year out.

 

Oh, one thing I failed to mention, Sunday for the opening day of American football I went to the grocery and spent $165 for 4 people then it took me close to 5 hours to prep everything. If the wifester would have let me, I would have gladly paid more and bought take out! :D

 

I hope they make buckets of cash too!! That way, I am assured they will stay in business and continue to bring me fun, elegant, delicious, relaxing vacations :)

[chicagopaul]

I hope they make buckets of cash too!! That way' date=' I am assured they will stay in business and continue to bring me fun, elegant, delicious, relaxing vacations :)[/quote']

 

Could not agree more! I hope they're far in the black every year. There have been a couple fun CNBC documentaries on the cruise industry, specifically Princess and NCL that discuss the bottomline of the specific vessel they're profiling.

 

We find great value in cruises. We're from Chicago but also love traveling to Manhattan so the overall pricing of our cruise is a great deal in comparison to eating out at home or in NYC. On our recent transatlantic cruise in April we bought the drink package and definitely felt like we got value out of it, but I'm sure they're still turning a nice profit on it. This upcoming Transatlantic next month, we already purchased the drink package. Celebrity offered a special of 30% off advance drink package purchases (at least for TA/TPs) so we jumped on that right away and are thrilled to get an even better deal. Again, though, they're still making money which is more than fine by me.

 

Speaking of deals, we're off to grab a happy hour drink!

 

Cheers and Happy Sailing!

[2calgarycruisers]

Every once in awhile, there is a good deal available. Luckily you booked one of the good deals. Most people want to sail the Med in the summer. Prices are higher because demand is up. If a cruise has empty cabins, it will drop prices until it sells. Once on board, you will be tempted to buy extras. Those spa people and specialty restaurant guys greet you at the elevators trying to sell you their products. It can be tempting. Also, the shops have tempting items. Many people like the casinos, excursions, art auctions, bingo, drinks, aqua spa yogurts, etc. You will constantly be shown ways to spend money. You can resist. Just say no. If indeed, you leave without spending anything on extras, you win. Good luck.

I did a 14 night on the Silhouette last October. It was great. Ship was not full. Places that we visited were not crowded. Weather was ideal. Got some great end of season bargains in Mykonos. I did spend extra on private excursions which I booked before I sailed. Look on your roll call for people who are putting together private tours. Enjoy!

 

 

Our cruise is now sold out [emoji849] - I've never been on a sold out cruise before... Not sure what to expect of crowds - were you on the same itinerary? If so any recommendations on tours? I am on the roll call but just getting started in terms of some ports. We are pretty good at resisting but not immune

 

 

Sent from my iPad using Forums

[teecee60]

 

Celebrity doesn't pay corporate income tax on ship-related revenue due to Section 883 of the IRS Code.

 

Here's a link to the annual reports just in case you want to double check: http://phx.corporate-ir.net/phoenix.zhtml?c=103045&p=irol-reportsannual

 

The annual report explains that the only income that is subject to US corporate income tax is revenue not incidental to owning the ships "including the sale of air and land transportation, shore excursions and pre- and post-cruise tours."

 

Since they do not pay tax on those things, they cannot "write them off" of their taxes.

 

THANK-YOU... for the well documented FACTUAL information... as opposed to unsupported claims/inane comments. :cool:

 

I had never bothered to search for the ACTUAL CURRENT figures and was quite surprised. I thought that Celebrity and RCCL just MIGHT be breaking even on my normal, LESS THAN $50pp/day bookings... but now I almost feel guilty... ALMOST. :D

 

I hope they make buckets of cash too!! That way' date=' I am assured they will stay in business and continue to bring me fun, elegant, delicious, relaxing vacations :)[/quote']

 

I agree completely with your very nicely stated comment! ;)

 

I REALLY enjoy the fact that the cruise lines are making all of their money off of someone else's choices and the associated free spending, while I continue get the absolutely INCREDIBLE values that I do.

Edited September 14, 2016 by teecee60

[riclop]

We paid just over $1500 CDN each for a balcony cabin for a 14 night med cruise including grats and a drink package. That is just over $100 per day each for accommodation, all meals, drinks, gratuities, entertainment etc etc - plus I get a ride from port to port! And, we could have had all of this at a cheaper price should we chosen oceanview or inside. While we could spend a lot of money onboard, we also could leave after 14 days with no onboard charges at all. There is just no way in my experience that we could this on land for anywhere near the price.

 

So I did a little digging - it appears alcohol is a huge money maker (so why give it away for free though?), casino (we never visit) and shore excursions (up to 50% of the cost as commission from the tour operator, but we book directly).

 

Although this does explain all the pushy upselling people have been complaining aboutt.

 

So... I guess we are not the demographic they are targeting - so I'll just enjoy the savings! Although I do think we will splurge and upgrade our alcohol package ;)

 

They make a ton on booze $$$$$$$$$$$$$.

[easyboy]

We paid just over $1500 CDN each for a balcony cabin for a 14 night med cruise including grats and a drink package. That is just over $100 per day each for accommodation, all meals, drinks, gratuities, entertainment etc etc - plus I get a ride from port to port! And, we could have had all of this at a cheaper price should we chosen oceanview or inside. While we could spend a lot of money onboard, we also could leave after 14 days with no onboard charges at all. There is just no way in my experience that we could this on land for anywhere near the price.

 

So I did a little digging - it appears alcohol is a huge money maker (so why give it away for free though?), casino (we never visit) and shore excursions (up to 50% of the cost as commission from the tour operator, but we book directly).

 

Although this does explain all the pushy upselling people have been complaining aboutt.

 

So... I guess we are not the demographic they are targeting - so I'll just enjoy the savings! Although I do think we will splurge and upgrade our alcohol package ;)

I share your insights.

[DirtyDawg]

I hope they make buckets of cash too!! That way' date=' I am assured they will stay in business and continue to bring me fun, elegant, delicious, relaxing vacations :)[/quote']

 

Unlike you I hope the cruise lines make OK cash but not buckets of cash. Remember those buckets of cash come from cruisers like you and me and I, for one, would rather keep my mini bucket of cash to myself and not hand it all over to the cruise line.;)

 

Don't worry, the cruise line will stay in business even generating OK levels of cash.

Edited September 15, 2016 by DirtyDawg