Interesting info on fares

From the Carnival lawsuit,

The average total fare of each “lead passenger” on the list was $2,126.49 and they ranged between $964.20 and $5,641.00. Of the 1045 persons on the list, 39 persons opted out. According to Carnival in respect of the remaining 1006 the total fares paid was $2,135,449.59

So 2500 passengers, the number the judgement says were on board total fare approx $5m

Only paid over $100 a night once with Carnival & Had balcony each time. 9 cruises inc Trans pacific i am Platnium. The time we paid over $100 was Melbourne Cup cruise $699 for 6 nights did include entry to Cup.Supposedly they are the cheapest. How much are RCL & Princess making then.

The average total fare of each “lead passenger” on the list was $2,126.49 and they ranged between $964.20 and $5,641.00. Of the 1045 persons on the list, 39 persons opted out. According to Carnival in respect of the remaining 1006 the total fares paid was $2,135,449.59

So 2500 passengers, the number the judgement says were on board total fare approx $5m

I wonder how much of that is profit. They have to pay for food, fuel, crew cost, etc out of that $5M. Of course they get "a little" more than $5M due to on board sales of alcohol,excursions, etc but considering a cruise ship costs about $1B, it would take a while to start making money.

I wonder how much of that is profit. They have to pay for food, fuel, crew cost, etc out of that $5M. Of course they get "a little" more than $5M due to on board sales of alcohol,excursions, etc but considering a cruise ship costs about $1B, it would take a while to start making money.

I've been told that the Fares basically are break even, the profit is in the on board spending.

That is interesting, cheers Gut.

I've been told that the Fares basically are break even, the profit is in the on board spending.

I am not sure abut that but on board spending is really where a lot of the profit comes.

That is interesting, cheers Gut.

You might guess I'm following the case as closely as I can, but have good reason to believe it's over.

I've been told that the Fares basically are break even, the profit is in the on board spending.

I have also read and been told this many times.

Part of the reason there are discounts late when cabins are unsold.

I am not sure abut that but on board spending is really where a lot of the profit comes.

It's what I was told by someone who has done some work for Carnival that would make them privy to the figures.

You might guess I'm following the case as closely as I can, but have good reason to believe it's over.

Right, keep us informed.

It's what I was told by someone who has done some work for Carnival that would make them privy to the figures.

Okay, I still cannot believe it breaks even without any on board spend.

The cruise industry mustn't be not a very good business then, half the on board spending is sub contracted out, spa, shops, paintings, etc. Really only leaves the drinks, the casino, bingo and specialty restaurants.

I must wonder how they can all afford to expand their business with new ships.

Okay, I still cannot believe it breaks even without any on board spend.

The cruise industry mustn't be not a very good business then, half the on board spending is sub contracted out, spa, shops, paintings, etc. Really only leaves the drinks, the casino, bingo and specialty restaurants.

 

I must wonder how they can all afford to expand their business with new ships.

And shore tours.

And I understand most concessions (spas, shops, art, even some casinos) are to a large degree commission based.

I still think the larger cruise lines are raking it in.

If there's demand & there filling the ship's. They would be making monies. Even my fav cruise line. Hasn't sailed out of Bris-vages yet & only sailing out of Melbourne this year. Looking for more business & change. The shore excursions we all see the mark-up. The only strange thing is the variences in pricing of Alcohal & Shore excursions between the lines. Spa's & photos seem the same...

If there's demand & there filling the ship's. They would be making monies. Even my fav cruise line. Hasn't sailed out of Bris-vages yet & only sailing out of Melbourne this year. Looking for more business & change. The shore excursions we all see the mark-up. The only strange thing is the variences in pricing of Alcohal & Shore excursions between the lines. Spa's & photos seem the same...

That is due to the same contractors operating these services on board.

They would be making a fortune on alcohol.

I thought CCL owns there shops. Duty free & Day spa's etc. On P&O, Carnival & Princess. I know they pay commisions to the people in the Spa's if they sell more.

I thought CCL owns there shops. Duty free & Day spa's etc. On P&O, Carnival & Princess. I know they pay commisions to the people in the Spa's if they sell more.

I wouldn't think so, not with some of the brand name shops in any case.

I still think the larger cruise lines are raking it in.

Of course they are mate.

While they more than cover costs for all the cattle in steerage, where they really rake in the rivers of gold are in all the Suites, minis, balconies, ocean views any of the premium accoms and when they can convince those poor bastards to jam an extra two or so in a can't swing-a-cat cabins. :eek:

Cheers r, :cool:

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Plus all the profits from the Casinos on board.

Some people get to cruise for free, or at a substantial discount, because they are known gamblers.

I thought CCL owns there shops. Duty free & Day spa's etc. On P&O, Carnival & Princess. I know they pay commisions to the people in the Spa's if they sell more.

I think you will find that the cruise lines own very little....

they are more like a landlord who leases out the space.

Eg..heres a link to one of the biggest companies who run spas on cruise ships..Steiner.

http://www.steinerleisure.com/main/Page.aspx?PageID=3011

I think you will find that the cruise lines own very little....

they are more like a landlord who leases out the space.

Eg..heres a link to one of the biggest companies who run spas on cruise ships..Steiner.

http://www.steinerleisure.com/main/Page.aspx?PageID=3011

Correct, I recently read an article on Park West - the art dealers aboard most ships. Shocking.

What I don't understand is if they need to fill cabins to break even why don't the big lines like RCI discount their cabins to any great degree just prior to sailing? I've sailed on a few light to moderately sold Voyager and Explorer cruises.

I've seen RCI discount their fares, almost booked Hawaii to Sydney on Radiance in 2015 at $298 per person, 3 weeks to sailing. They don't have 5 ships here and are not here year round either so that would make a difference.

What I don't understand is if they need to fill cabins to break even why don't the big lines like RCI discount their cabins to any great degree just prior to sailing? I've sailed on a few light to moderately sold Voyager and Explorer cruises.

No, they don't need to fill cabins to break even, but if they sail full, they are at break even and then the profit comes from sales (excursions, shops, casino, spa, art, bingo, drinks, specialty restaurants etc). If they are less than full, some of the onboard income isn't profit.

I understand the fare alogarithim is based on hitting that break even Point.

I also understand that their version of full may not be ours.

Using hypothetical figures.

A ship needs $500,000 to break even (cost of ship, fuel, crew, food and drink that is included in the fare etc)

That ship carries 2,500 PAX

Thus average fare needs to be $200 a day. Sure they will try to get more if it sells well, but then based on sales they will adjust fares to try and fill at, or above that average.

Then they know the average on board spend and the profit margin.

Let's say the average is $100 a day and profit is 50% or $50 per PAX.

SO they sail with 2,400 PAX at that $200 Ave, they only generate $480,000 (out of the $500,000 needed to break even) thus the first $20,000 of what would normally be profit is eaten up AND that "Profit" is already $5,000 down because they have 100 less passengers.

2,400@$200=480,000

2400@$50=120,000

Total income $600,000 - $500,000 = $100,000

Versus

2,500 @$195 = $487,500

2,500@ $50 = $125,000

Total income $612,500 - $500,000 = $112.500

Hence they'd rather give a small discount on the fare and get the extra bodies in beds.

Also why they don't give bigger discounts to solos.