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How long does it take for a cruise ship to break even?
Posted on 9/23/20 at 10:18 am
Posted on 9/23/20 at 10:18 am
Seeing the news of carnival having to sell 18+ of their ships it got me thinking how long does it take a ship to break even from manufacturing cost? For example the newest ship in the fleet that has not set sail yet is the Carnival Mardi Gras (estimated cost 950 million). How long does it take to make 950 million on the ship with normal sailing conditions?
Inb4 trashy
Inb4 trashy
Posted on 9/23/20 at 10:20 am to LoneStar23
quote:
Seeing the news of carnival having to sell 18+ of their ships
If Carnival is selling...who's buying?
Posted on 9/23/20 at 10:21 am to LoneStar23
quote:
The scrap yards
That's a lot of iron!
Posted on 9/23/20 at 10:21 am to Sasquatch Smash
quote:
If Carnival is selling...who's buying?
OT Ballers, of course.
Posted on 9/23/20 at 10:22 am to LoneStar23
To pay itself off? Not sure but several years.
Many of Carnival's and their children company ships are already paid off so profits are significant and allow for almost billion $ new ships
Many of Carnival's and their children company ships are already paid off so profits are significant and allow for almost billion $ new ships
This post was edited on 9/23/20 at 10:23 am
Posted on 9/23/20 at 10:24 am to RIPMachoMan
quote:
Many of Carnival's and their children company ships are already paid off so profits are significant and allow for almost billion $ new ships
I'm sure operating ships under different flags based on that country's tax rates helps.
Posted on 9/23/20 at 10:25 am to Sasquatch Smash
quote:
I'm sure operating ships under different flags based on that country's tax rates helps.
Absolutely.
Posted on 9/23/20 at 10:28 am to LoneStar23
quote:
How long does it take for a cruise ship to break even?
350 years?
Posted on 9/23/20 at 10:29 am to LoneStar23
$950,000,000 ship
Let's say its capacity is 1,500 passengers. Carnival is cheaper than the average cruise so let's say, average of off-season and in-season trips, is about a $450 per person charge for a week long cruise (it's probably more).
450x1,500 = $675,000
Each one of those passengers purchases an average of $400 in shore excursions.
1,500 x $400 = $600,000
Let's say Carnival makes 40% on excursions.
$600,000 x .40 = $240,000
So now we're at $915,000 profit per week-long cruise. Not including additional meals that aren't included, shopping, etc..
That leads me to believe it would take approximately 1,038 weeks or 19.96 years to pay off the ship. That math makes me believe they're making a shite ton more money than I indicated because no way they're going to have a ship that will take them 20 years to break even on. Chances are the number is closer to 5-10 years due to my average cost per person being on the low end and not including the additional ways cruises make money.
Let's say its capacity is 1,500 passengers. Carnival is cheaper than the average cruise so let's say, average of off-season and in-season trips, is about a $450 per person charge for a week long cruise (it's probably more).
450x1,500 = $675,000
Each one of those passengers purchases an average of $400 in shore excursions.
1,500 x $400 = $600,000
Let's say Carnival makes 40% on excursions.
$600,000 x .40 = $240,000
So now we're at $915,000 profit per week-long cruise. Not including additional meals that aren't included, shopping, etc..
That leads me to believe it would take approximately 1,038 weeks or 19.96 years to pay off the ship. That math makes me believe they're making a shite ton more money than I indicated because no way they're going to have a ship that will take them 20 years to break even on. Chances are the number is closer to 5-10 years due to my average cost per person being on the low end and not including the additional ways cruises make money.
Posted on 9/23/20 at 10:30 am to LoneStar23
casino boat is the answer you seek
Posted on 9/23/20 at 10:32 am to TDsngumbo
quote:
Let's say its capacity is 1,500 passengers.
The capacity of that ship specifically is more like 6500.
Posted on 9/23/20 at 10:33 am to TDsngumbo
quote:
So now we're at $915,000 profit per week-long cruise.
No, you’re not
Fuel, labor, insurance, etc., etc.
Posted on 9/23/20 at 10:33 am to LoneStar23
wonder how many of those were ported in nola? our cruise scheduled for january already got cancelled. while mobile,galveston and ft lauderdale are all cruising in january
Posted on 9/23/20 at 10:33 am to TDsngumbo
Your passenger capacity and fare rates are extremely under estimated
Posted on 9/23/20 at 10:36 am to TDsngumbo
quote:
So now we're at $915,000 profit per week-long cruise
I don't like how you got there but you are the only one to try
You should factor in booze. People spend as much on booze as how much they charge for the passenger
Posted on 9/23/20 at 10:39 am to TDsngumbo
quote:
$950,000,000 ship
Let's say its capacity is 1,500 passengers. Carnival is cheaper than the average cruise so let's say, average of off-season and in-season trips, is about a $450 per person charge for a week long cruise (it's probably more).
450x1,500 = $675,000
Each one of those passengers purchases an average of $400 in shore excursions.
1,500 x $400 = $600,000
Let's say Carnival makes 40% on excursions.
$600,000 x .40 = $240,000
So now we're at $915,000 profit per week-long cruise. Not including additional meals that aren't included, shopping, etc..
That leads me to believe it would take approximately 1,038 weeks or 19.96 years to pay off the ship. That math makes me believe they're making a shite ton more money than I indicated because no way they're going to have a ship that will take them 20 years to break even on. Chances are the number is closer to 5-10 years due to my average cost per person being on the low end and not including the additional ways cruises make money
My gosh. I've never seen another person on this board pretend to know so much about everything, yet be as clueless about all of it as you are.
You just literally threw shite at the wall, and hoped people would think you knew what you were talking about.
This post was edited on 9/23/20 at 10:41 am
Posted on 9/23/20 at 10:40 am to LoneStar23
Also, remember the ship is an asset on the Balance Sheet. So, there are operating expenses and Capital expenses. It is a depreciating expense. But, when ascertaining "break even" on something like that, it must be factored in that the ship is still valuable along its useful life.
Posted on 9/23/20 at 10:40 am to RIPMachoMan
Those huge ships burn 50,000-70,000 gallons of fuel per day.
The only money they are making is whatever they’re getting from casino and alcohol sales.
The only money they are making is whatever they’re getting from casino and alcohol sales.
Posted on 9/23/20 at 10:55 am to Tyga Woods
I would assume the break even point is somewhere around 10-15 years +/- a few years.
Their oldest ship, the Ecstasy has been sailing since 1991, and her sister Fantasy just retired after 30 years of service.
Their oldest ship, the Ecstasy has been sailing since 1991, and her sister Fantasy just retired after 30 years of service.
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