Interesting article on what happens on turnaround day

Today's New York Times has an article about what happens on the Oasis on turnaround day. http://www.nytimes.com/2015/03/22/business/a-luxury-liner-docks-and-the-countdowns-on.html?&hp&action=click&pgtype=Homepage&module=photo-spot-region&region=top-news&WT.nav=top-news&_r=0 It also has some statistics on profitability of the industry.

Today's New York Times has an article about what happens on the Oasis on turnaround day. http://www.nytimes.com/2015/03/22/business/a-luxury-liner-docks-and-the-countdowns-on.html?&hp&action=click&pgtype=Homepage&module=photo-spot-region&region=top-news&WT.nav=top-news&_r=0 It also has some statistics on profitability of the industry.

There's a cool documentary called "Extreme Cruise Ships" that you can watch on YouTube. You have to watch it in a 6 part series for some reason, but it all flows as one hour long documentary. I think it's about the Oasis, or the Allure.

There's a cool documentary called "Extreme Cruise Ships" that you can watch on YouTube. You have to watch it in a 6 part series for some reason, but it all flows as one hour long documentary. I think it's about the Oasis, or the Allure.

It's the Oasis. Its actually coming on Discovery Family Channel this Wed. 3/25 at 10 pm if you wanna set DVR or watch it live.

It's the Oasis. Its actually coming on Discovery Family Channel this Wed. 3/25 at 10 pm if you wanna set DVR or watch it live.

Oh sweet, thanks for the heads up!

Great article!

The main thing I took from that is that if I have time I'm going to strip my bed on leaving morning :)

Always enjoy articals like this

Some of the facts presented in the article were extremely interesting.

"Prices for a seven-night cruise in March vary from $1,109 a person for an interior room (without windows) to $2,999 a person for a suite."

"And profit per passenger has risen as well, to $148 last year from $136 10 years ago"

"The Oasis and the Allure have proved so popular that Royal Caribbean has ordered two more of them, at a cost of about $1.5 billion each."

Seems like a lot money spent for such a fragile and small return.

Some of the facts presented in the article were extremely interesting.

 

"Prices for a seven-night cruise in March vary from $1,109 a person for an interior room (without windows) to $2,999 a person for a suite."

 

"And profit per passenger has risen as well, to $148 last year from $136 10 years ago"

 

"The Oasis and the Allure have proved so popular that Royal Caribbean has ordered two more of them, at a cost of about $1.5 billion each."

 

Seems like a lot money spent for such a fragile and small return.

It likely depends on their definition of profit. If Profit = Net Income then $148 per pax true profit after all expenses (including paying for the ship and all maintenance) and all corporate taxes is that bad at all. $148/passenger for a week on Oasis with 6,000 passengers is almost $900,000 of true profit a week or $46 million per year... Of course, I'm betting the larger, newer, more efficient ships are actually generating much higher profit per passenger than the older small ships... I guess I could dig into RCIs annual report for some clarity...

It likely depends on their definition of profit. If Profit = Net Income then $148 per pax true profit after all expenses (including paying for the ship and all maintenance) and all corporate taxes is that bad at all. $148/passenger for a week on Oasis with 6,000 passengers is almost $900,000 of true profit a week or $46 million per year... Of course, I'm betting the larger, newer, more efficient ships are actually generating much higher profit per passenger than the older small ships... I guess I could dig into RCIs annual report for some clarity...

Does the $46 million cover the debt needed to purchase a ship that costs $1.5 billion? Just curious.

The main thing I took from that is that if I have time I'm going to strip my bed on leaving morning :)

I always strip our bed on disembarkation day. I also do this this when we checkout of an hotel. I just figure it's a nice thing to do to for the staff.

Thank you for sharing. I still can't believe how much we all eat in a week...

Cindy

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I guess I could dig into RCIs annual report for some clarity...

I read the 2014 SEC filing and there's no detail like that - the only thing I saw was that they are paying about 3.75% interest on the loan to finance the Oasis. There are lots of interesting things in the SEC filing (if you don't mind wading through 100+ pages of real dry Wall Street lingo) - like RCI got an exemption on 19 of its ships from the much higher cost fuel requirement that started with the new emission rules Jan 1 of this year. And that they bought the Brilliance for $275M (they were leasing it from a UK based co). Also interesting to read that their occupancy rate was 105% last year.

The video posted on YouTube mentioned in post 2 of this thread is certainly interesting - it's about the Oasis turnaround day. The issue about the mattress replacement was fun to see. The video is a reminder to folks to be considerate and get off the ship before 10 so as to not hold up boarding of the next guests.

Some of the facts presented in the article were extremely interesting.

 

"Prices for a seven-night cruise in March vary from $1,109 a person for an interior room (without windows) to $2,999 a person for a suite."

 

"And profit per passenger has risen as well, to $148 last year from $136 10 years ago"

 

"The Oasis and the Allure have proved so popular that Royal Caribbean has ordered two more of them, at a cost of about $1.5 billion each."

 

Seems like a lot money spent for such a fragile and small return.

Terms like "profit per passenger", "net profit", " gross profit", get thrown around in all kinds of industries. Until you know what other expenses are also then added or subtracted, it means almost nothing.

A company could have $148 profit per passenger and still be broke.

Numbers only mean something in their FULL CONTEXT.

Very interesting article. Lots of planning to ensure embarkation day is goes smooth.

Cool. Thanks.

The main thing I took from that is that if I have time I'm going to strip my bed on leaving morning :)

I believe I"ll begin doing the same, if time allows. [emoji106]

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