Posted February 13th, 2018, 03:32 PM
I think you meant exponential.
Thanks, Bob. Yes, exponential relationships generate a parabolic curve in graphical form. I was still recovering from an all nighter taking the ship down from Philly to the sea. Getting a bit old for this.
Smaller lines like Marella and Pullmantur are some of the typical lines that buy older ships. They operate on a much narrower profit margin than the mainstream lines, absorbing some of the cost in this way. They may also tend to place the ships in different countries of registry (flag state), choosing ones that allow some of the "less stringent" class societies to underwrite the ship. These registries and class societies charge less for their services, and will tolerate more degradation in maintenance standards than the other countries or societies, saving money on operating (maintenance) costs. They will also tend to join less "top tier" P&I insurance clubs (P&I insurance is liability insurance for virtually all risks associated with ship operation). These P&I "clubs" are mutual insurance groups of shipowners. Each group chooses their own membership, based on the past record of insurance claims the shipping line has had. Lines with fewer claims get into the "better clubs", and since the risk is shared between the members, a group that has a better claim record will pay less in premiums.
Some lines work on different business models, either by going "all inclusive" or knowing their target demographic's taste in service and amenities, and can tailor crew size and food and beverage budgets to match.