Profits per passenger

[actuarian]

Doing this simply:

 

• Net income was $764,146,000
  
• subtract out On Board revenues of $2,180,008,000
  
• Add back in expenses relative to Onboard Revenues $582,750,000
  
• Get's a net loss of ($833,112,000) or a loss of ($161.77) per passenger, or ($22.69) per passenger per day.
  

 

Cabin fares make up 73% of revenue, and onboard accounts for 27% of revenue. Net profit was 9.5% of revenue.

 

The interesting takeaway from this exercise to me, is anyone who says "stop nickel and diming me, just make it all inclusive and keep it in the fare" we need to see fares increase by 27% to cover the lost On Board Revenues.

 

I doubt those same people would tolerate a 27% fare increase.

 

A 27% fare increase would not be enough to maintain profits at 9.5% of revenue with zero on-board revenue. That would require fares to increase by a factor of 1/.73 or 37%. On the other hand, on-board revenues could never really go to zero. Even so called all-inclusive cruise lines like Seabourn and Silversea have on-board revenues from shore excursions, shopping, and casinos.

[orville99]

:D:D disembowel :D I love that phrase. Can I steal it?

 

 

 

I have had to disembowel quite a few EBITDA's in my day, and a few managements too.;)

 

 

Sure. Disemboweling management for a living was a great career;)

[DirtyDawg]

Sure. Disemboweling management for a living was a great career;)

 

The Best! And I still get to do some form time to time. Hey if George Foreman could box into his late forties I can still Disembowel a few more before I'm done.;)

[shipshape sam]

I didn't say that RCL just broke even (accounting wise) only that their cruise fares barely cover all their expenses (accounting break even) and all the other ship board revenue provide most if not all of their accounting profit.

 

BTW while businesses go into business to do better than break even, many do not. And if they lose cash (not just accounting profits) for too many years they go out of business.

 

 

We always said that 'cash is king'.

 

You can make tons of profits and without cash go out of business and you can lose money forever if you have enough cash.

[tahqa]

I have a hard time taking anybody seriously that really has no other retort than to make fun of someones grammar or spelling which in fact, I DO believe is a major violation of board policy here.

 

Carry on :rolleyes:

 

It's not a major violation. It's just suggested that you have better things to do with your time. :rolleyes:

 

"Do not make comments on the spelling and grammar of other users. It is simply not a productive expenditure of energies."

[cle-guy]

It's not a major violation. It's just suggested that you have better things to do with your time. :rolleyes:

 

"Do not make comments on the spelling and grammar of other users. It is simply not a productive expenditure of energies."

 

It's a violation enough to have included it in the T&C's of membership:

 

Spelling & Grammar Errors

 

It is important to remember that everyone makes mistakes at one time or another, and that there are many users who use English as a second language, especially on our Cruise Boards. There are also a number of people who suffer from learning disabilities and who have difficulty noticing their spelling mistakes. Do not make comments on the spelling and grammar of other users. It is simply not a productive expenditure of energies.

 

CC has not identified what violations are considered minor or major, so all T&C's are of equal importance.

Edited March 25, 2015 by cle-guy

[tahqa]

It's a violation enough to have included it in the T&C's of membership:

 

 

 

CC has not identified what violations are considered minor or major, so all T&C's are of equal importance.

 

Not so. See which violations will get posts removed and which won't. You'll figure out the hierarchy pretty quickly. :D

[stompy]

Just be sure to follow Wheaton's Law and you'll be fine...