Article on how much $ ships make on passengers

[akcruz]

https://www.cruzely.com/heres-how-much-money-cruise-ships-make-off-every-passenger-infographic/

 

Can't verify what's in this article but if true interesting.  Uses Royal as example showing where they make $298 profit on average from each passenger.  This number is includes cabin, average $1116, and onboard spend, average $444.  So if onboard spend is down, easy to not make that profit.

 

Looked and didn't this posted before if it was sorry.

Edited March 15, 2019 by akcruz
Added info

[chengkp75]

When I worked for the cruise lines, the statistic was that the cruise fare just about covered the operating costs, and the onboard spending was the "corporate costs" (the ship's share of corporate headquarters expenses) and profit.

[ShillyShally]

I know we all broke even on our DBP (4 of us) on Indy last week but overall the drink costs already have huge profit margins so I wonder what their true profit was on that even if we drank as much or more than needed to exceed the pp cost per day?  Otherwise on our cruise we didn't spend much overall that would be considered pure profit I wouldn't think other than bingo!

[jrljel]

What does DBP mean?

[ShillyShally]

1 minute ago, jrljel said:

What does DBP mean?

Sorry, Deluxe Beverage Package 🙂

[Merion_Mom]

6 minutes ago, ShillyShally said:

I know we all broke even on our DBP (4 of us) on Indy last week but overall the drink costs already have huge profit margins so I wonder what their true profit was on that even if we drank as much or more than needed to exceed the pp cost per day?  Otherwise on our cruise we didn't spend much overall that would be considered pure profit I wouldn't think other than bingo!

 

Bingo is a HUUUUUGE profit source for RC! 😳

[ShillyShally]

Just now, Merion_Mom said:

 

Bingo is a HUUUUUGE profit source for RC! 😳

LOL I believe it, on us they made money as we had no winners 🙂  I usually play more but didn't care as much this cruise but realized I was bummed I hadn't bought the package with the bingo t-shirt I thought was cute.  Went back to another game to ask about it and they said I could just buy the shirt by itself so I did that and didn't play again 🙂

[Tapi]

Cruise lines must not like me. Our onboard spending on our last cruise (5 nights) for my family of 4 was $57. 😂

[time4u2go]

Just now, Tapi said:

Cruise lines must not like me. Our onboard spending on our last cruise (5 nights) for my family of 4 was $57. 😂

Same here.  We spend almost nothing onboard.

[bilyclub]

If you’re a shareholder, that’s great. The company has raised its dividend from $1.10 per share to $2.60 per share (136%) during the last five years.

 

 

Last time I checked it was .70 a share.

[Merion_Mom]

6 minutes ago, ShillyShally said:

LOL I believe it, on us they made money as we had no winners 🙂  I usually play more but didn't care as much this cruise but realized I was bummed I hadn't bought the package with the bingo t-shirt I thought was cute.  Went back to another game to ask about it and they said I could just buy the shirt by itself so I did that and didn't play again 🙂

 

On my first cruise, in 2002, the big jackpot on the final day, was over $10,000. 

 

Now you are lucky to see $300. 

[ShillyShally]

5 minutes ago, time4u2go said:

Same here.  We spend almost nothing onboard.

My on board tab goes down the more I cruise, and the more I can prepay so again I'm sure there is built in profit on the beverage package even if we break even, but I am no longer swayed by the shops or extras though it's always amusing to watch the t-shirt sale on the last day!

[ShillyShally]

2 minutes ago, Merion_Mom said:

 

On my first cruise, in 2002, the big jackpot on the final day, was over $10,000. 

 

Now you are lucky to see $300. 

I thought this too when I was playing, none of the prizes seemed as fun to risk spending so much, and the packages aren't cheap!  

[twangster]

1 minute ago, ShillyShally said:

My on board tab goes down the more I cruise, and the more I can prepay so again I'm sure there is built in profit on the beverage package even if we break even, but I am no longer swayed by the shops or extras though it's always amusing to watch the t-shirt sale on the last day!

 

That's why new cruisers are more profitable.  Old cruisers get free happy hours, bottles of wine, etc. and spend less on board.

[ShillyShally]

7 minutes ago, twangster said:

 

That's why new cruisers are more profitable.  Old cruisers get free happy hours, bottles of wine, etc. and spend less on board.

And likely why we see perks being cut or harder to attain.  I don't blame the cruise line, they have simply found through something like the Key that they may get people to buy that every cruise for those perks especially if they sail multiple lines.  We're within reach of Diamond, and I want to get there, but I can't say that will have full impact over my next choice of vacation or cruise line either.

[CruisinCrow]

17 minutes ago, twangster said:

 

That's why new cruisers are more profitable.  Old cruisers get free happy hours, bottles of wine, etc. and spend less on board.

 

And don't buy as many photos.  

[lv2cruisgrl]

We have been told booze is what they want to sell as that is where the $$ is. 

[theotherchad]

I'm so happy to see that (so far) this thread hasn't devolved into the "they chisel and nickel and dime you to death" rants that we've seen on CC so many times. 

 

I do think that, all things considered, we find cruising the cheapest way to vacation, given our tastes. What I mean is, we enjoy good food, beautiful views, nice accommodations, good wine, etc. To get the same level of service and the same level of food, drink, accommodations, views, etc  on a land vacation costs us probably twice as much per day as cruising. That may not be the same for everyone, because we cruise out of a port that's within driving distance, so we don't have to pay for flights. In any event, RCCL probably makes more than average off of us. The only thing we don't do much of is shopping on board. 

[twangster]

It's a business, for profit.  No secrets about that.  Any stock holder has known dividends have increased.  No shame in that.  

 

Still a good product in the cruise industry.  

[ShillyShally]

12 minutes ago, CruisinCrow said:

 

And don't buy as many photos.  

We didn't even go to the photo place this cruise to check the only photo we took - getting on board.  I had actually intended to as it was my son's GF's first cruise but never did and don't regret it!

[ShillyShally]

4 minutes ago, twangster said:

It's a business, for profit.  No secrets about that.  Any stock holder has known dividends have increased.  No shame in that.  

 

Still a good product in the cruise industry.  

Agreed, we also like that we can fully pre-pay, even add OBC in advance if we want and no crazy surprises at the end - well except when you get off the ship and need to start paying for life again 🙂

[nelblu]

38 minutes ago, Merion_Mom said:

 

On my first cruise, in 2002, the big jackpot on the final day, was over $10,000. 

 

Now you are lucky to see $300. 

 

A lot of the action has been replaced by the Casino.

[Robo1098]

I always get the drink package and drink enough to be worth it but I think you would have to drink an awful lot for them to actually lose money. Not complaining about the cost, just stating what is likely.

 

[OCruisers]

1 hour ago, akcruz said:

https://www.cruzely.com/heres-how-much-money-cruise-ships-make-off-every-passenger-infographic/

 

Can't verify what's in this article but if true interesting.  Uses Royal as example showing where they make $298 profit on average from each passenger.  This number is includes cabin, average $1116, and onboard spend, average $444.  So if onboard spend is down, easy to not make that profit.

 

 

 

Thanks for posting this!  Interesting article!

They are averages -- while some spend less, others spend more.  

 

[ShillyShally]

2 minutes ago, Robo1098 said:

I always get the drink package and drink enough to be worth it but I think you would have to drink an awful lot for them to actually lose money. Not complaining about the cost, just stating what is likely.

 

That's what I figure too, and for me it's a win/win - we like not having to worry about it and pay in advance and they make something extra off us too.