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Concession rate?


BoaterMax

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I'm doing some research on how cruises manage revenues from the perspective of the concessions aboard.

 

How much would a restaurant or other service provider or retailer pay to be on a medium-sized ship? Google hasn't been too helpful. Thanks!

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I'm doing some research on how cruises manage revenues from the perspective of the concessions aboard.

 

How much would a restaurant or other service provider or retailer pay to be on a medium-sized ship? Google hasn't been too helpful. Thanks!

 

I think for the most part, the concessions are a fleet-wide deal, so that the line does not have to negotiate over and over for the same service.

 

Having said that, the cruise lines financial reports may be able to shed some light on how much they pay, but that would be consolidated for all concessions.

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This information is a very closely guarded industrial trade secret.

If you contact the cruise lines, we definitely wil not tell you.

You might be able to convince one of the concessions to give you some numbers, but I wouldn't count on it.

Even if you do receive some numbers, they probably will not be accurate.

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I can't imagine any reason a cruise line would have any interest in such a conversation with someone 'researching'. I also would be reluctant to accept info garnered from some who 'supposedly' knows with the concessionaire as the source. :rolleyes: Why would they be forthcoming with honest, truthful numbers?

 

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I can't imagine any reason a cruise line would have any interest in such a conversation with someone 'researching'. I also would be reluctant to accept info garnered from some who 'supposedly' knows with the concessionaire as the source. :rolleyes: Why would they be forthcoming with honest, truthful numbers?

 

 

Well, it's certainly a better approach than asking here.

 

You never know till you try.

 

Keith

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Well, it's certainly a better approach than asking here.

 

You never know till you try.

 

Keith

 

 

Oh, I dunno......

 

I suspect we all know what response OP will get if he cold calls a cruise line and asks. No? :D

 

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Oh, I dunno......

 

I suspect we all know what response OP will get if he cold calls a cruise line and asks. No? :D

 

 

I'm guessing if he even got past 30 seconds on the phone........a transfer to the legal department might end that conversation quickly:D Just that type of world we live in these days...

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Bruce I figured as much..........I think contacting the cruise lines would be a waste of time........

 

I agree. Perhaps a letter to Johnny Rockets or Starbucks or Ben & Jerry's would get you information if you explain the nature of your research and why you need to know, but I sure wouldn't count on it. A call to the cruiseline would be a big waste of time all around.

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Just want to note when I say contact the cruise line I am talking about their headquarters. Again, you might not turn up anything but you are not going to turn up anything here. I would not give up though. When I did research projects in school I would not give up and you will find that companies might be helpful.

 

You never know until you try.

 

Keith

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I don't think that cruise lines operate "concessions" as far as their restaurants go. Spa's yes. For example Steiner operates spa's on many ship lines, and employs the workers. But restaurants are run by the cruiseline itself, and in the cases where they have 'chains' such as Johnny Rockets, or Ben and Jerry's, or Todd English, or Starbucks, etc.....they probably collaborate on menu's and design, and then the cruiseline just pays a flat licensing fee to use the name and other trademarks.

Another true concession on board is usually the shops, and also the photo department. While these employees also work for the concessions, they all must comply with all shipline rules and policies, as their performance reflects on the line as far as the passenger's are concerned.

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Thank you all for your replies. I was embarking on a business model study on the feasibility of ocean platforms (seasteads), and the concession rate seemed like an important piece of information to refer to. Interesting to find out it's so closely guarded; that makes sense. We're a 501(3)© non-profit, would that help? :)

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Thank you all for your replies. I was embarking on a business model study on the feasibility of ocean platforms (seasteads), and the concession rate seemed like an important piece of information to refer to. Interesting to find out it's so closely guarded; that makes sense. We're a 501(3)© non-profit, would that help? :)

 

 

Call and ask. :)

Good luck.

 

 

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Thank you all for your replies. I was embarking on a business model study on the feasibility of ocean platforms (seasteads), and the concession rate seemed like an important piece of information to refer to. Interesting to find out it's so closely guarded; that makes sense. We're a 501(3)© non-profit, would that help? :)

calling won't get you anything. no phone answering employee will know the answer and if they did they won't respond to some person on the phone. sit down and on your 501c3 letterhead write a letter explaining what you want and why to the head of a couple of cruise lines. you might also write a letter to CLIA- the cruise line trade association located in Florida.

I was a vp at a large retailer and can tell you how we handled leased departments. we charged a flat amount for the use of the space and collected a percentage of the sales as well. most of the restaurants that are brand names are treated like franchises. they pay a fixed monthly fee for the use of the name, must buy their goods from an authorized source and pay a percentage of sales as well. since the cost of the food on most cruise lines in the restaurants are reduced from full costs outside that has to be considered and they probably pay either a fix fee per passenger or some other similar payment.

 

btw on most cruise lines the duty free store is a leased department.

expect an answer that gives you ranges from $10-1000 per sq foot as a lease and from 5-20% as a percentage of sales. it varies from type of goods etc...with a start fee to buy in

the spas pay a flat fee roughly based on sq ft or available stations plus a percetage of sales with guaranteed minimums.

 

also google how much does it cost to buy a franchise..

 

as an example mc donalds charges 4% per month for sales and other fees including startup fees in the million range

 

http://www.bizquest.com/McDonalds-Restaurants-franchise-for-sale/?utm_source=msn&utm_medium=cpc&utm_term=how%2Bto%2Bfranchise%2Bmcdonalds&utm_campaign=franchise-brands%2Bunpaid

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