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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 by LoneStar23
USA
Member since Aug 2019
5811 posts
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
Posted by Sasquatch Smash
Member since Nov 2007
25910 posts
Posted on 9/23/20 at 10:20 am to
quote:

Seeing the news of carnival having to sell 18+ of their ships


If Carnival is selling...who's buying?
Posted by LoneStar23
USA
Member since Aug 2019
5811 posts
Posted on 9/23/20 at 10:20 am to
The scrap yards
Posted by Sasquatch Smash
Member since Nov 2007
25910 posts
Posted on 9/23/20 at 10:21 am to
quote:

The scrap yards



That's a lot of iron!
Posted by LegendInMyMind
Member since Apr 2019
74943 posts
Posted on 9/23/20 at 10:21 am to
quote:

If Carnival is selling...who's buying?

OT Ballers, of course.
Posted by RIPMachoMan
Member since Jun 2011
9054 posts
Posted on 9/23/20 at 10:22 am to
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
This post was edited on 9/23/20 at 10:23 am
Posted by Sasquatch Smash
Member since Nov 2007
25910 posts
Posted on 9/23/20 at 10:24 am to
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 by RIPMachoMan
Member since Jun 2011
9054 posts
Posted on 9/23/20 at 10:25 am to
quote:

I'm sure operating ships under different flags based on that country's tax rates helps.


Absolutely.
Posted by eddieray
Lafayette
Member since Mar 2006
19439 posts
Posted on 9/23/20 at 10:28 am to
quote:

How long does it take for a cruise ship to break even?


350 years?
Posted by TDsngumbo
Member since Oct 2011
50523 posts
Posted on 9/23/20 at 10:29 am to
$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.

Posted by Winston Cup
Dallas Cowboys Fan
Member since May 2016
66902 posts
Posted on 9/23/20 at 10:30 am to
casino boat is the answer you seek
Posted by LNCHBOX
70448
Member since Jun 2009
89068 posts
Posted on 9/23/20 at 10:32 am to
quote:

Let's say its capacity is 1,500 passengers.


The capacity of that ship specifically is more like 6500.
Posted by Tyga Woods
South Central Jupiter Island, FL
Member since Sep 2016
42222 posts
Posted on 9/23/20 at 10:33 am to
quote:

So now we're at $915,000 profit per week-long cruise.


No, you’re not

Fuel, labor, insurance, etc., etc.

Posted by MorbidTheClown
Baton Rouge
Member since Jan 2015
76139 posts
Posted on 9/23/20 at 10:33 am to
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 by LoneStar23
USA
Member since Aug 2019
5811 posts
Posted on 9/23/20 at 10:33 am to
Your passenger capacity and fare rates are extremely under estimated
Posted by RIPMachoMan
Member since Jun 2011
9054 posts
Posted on 9/23/20 at 10:36 am to
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 by oOoLsUtIgErSoOo
Louisiana
Member since Aug 2006
26411 posts
Posted on 9/23/20 at 10:39 am to
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 by BlackHelicopterPilot
Top secret lab
Member since Feb 2004
52841 posts
Posted on 9/23/20 at 10:40 am to
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 by Tyga Woods
South Central Jupiter Island, FL
Member since Sep 2016
42222 posts
Posted on 9/23/20 at 10:40 am to
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.
Posted by TheDeathValley
Louisiana
Member since Sep 2010
20592 posts
Posted on 9/23/20 at 10:55 am to
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.
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