loubetti Posted January 20, 2016 #1 Share Posted January 20, 2016 So, you want to to know why oil prices go down, yet cruise fares go up, here's some reading for you- 12 pages of analysis. This article is from a year ago, and at the time the latest data available was from 2013. However one can extrapolate the data perhaps. It comes as no surprise that RCI's largest operating expense is NOT fuel, not even in 3rd place. Adam Goldstein doesn't make the money he does by picking out the colors in the Diamond lounge. He is strictly a finance guy. http://marketrealist.com/2015/01/overview-royal-caribbean-cruises-2nd-largest-cruise-operator/ Have fun, and read at your own risk!:D Link to comment Share on other sites More sharing options...
Wildcatfish Posted January 20, 2016 #2 Share Posted January 20, 2016 Thanks Lou! Interesting reading for those who like number crunching. It really is quite a business. Link to comment Share on other sites More sharing options...
caseymorgan Posted January 20, 2016 #3 Share Posted January 20, 2016 (edited) This is just one firm's research and pretty much a prohibited Cruise Critic marketing piece-- "Please contact me. I work at ML UBS MS etc and can make you lots of money." At least Trip Advisor has an inappropriate button... Edited January 20, 2016 by caseymorgan Link to comment Share on other sites More sharing options...
Rare John&LaLa Posted January 20, 2016 #4 Share Posted January 20, 2016 So, you want to to know why oil prices go down, yet cruise fares go up, here's some reading for you- 12 pages of analysis. This article is from a year ago, and at the time the latest data available was from 2013. However one can extrapolate the data perhaps. It comes as no surprise that RCI's largest operating expense is NOT fuel, not even in 3rd place. Adam Goldstein doesn't make the money he does by picking out the colors in the Diamond lounge. He is strictly a finance guy. http://marketrealist.com/2015/01/overview-royal-caribbean-cruises-2nd-largest-cruise-operator/ Have fun, and read at your own risk!:D I don't know, Lou. Other is hardly a category, they combined sales and marketing with admin expenses and they combined commission with transportation expenses. Fuel is the highest singular expense. Maybe you should read the chart a little closer. ;) Link to comment Share on other sites More sharing options...
caseymorgan Posted January 20, 2016 #5 Share Posted January 20, 2016 Of course even if fuel is listed high on expenses they regularly hedge fuel costs. To the point that drastic oil crashes like we have seen can actually work against their short term profitability. Link to comment Share on other sites More sharing options...
Rare mcatmcat Posted January 20, 2016 #6 Share Posted January 20, 2016 6.6% only -operation cost for food-:eek: I was expecting a higher percent on this Link to comment Share on other sites More sharing options...
Biker19 Posted January 20, 2016 #7 Share Posted January 20, 2016 6.6% only -operation cost for food-:eek: I was expecting a higher percent on this An AI hotel restaurant's food bill is probably about the same and they don't have as much in capital expense as on a ship. Link to comment Share on other sites More sharing options...
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