How do they do it?

[timbuk]

I've been on a couple of Carnival cruises and had a great time on both. Just booked on the Crown Princess 4/28/07 after doing the usual rounds of research.

How do the cruise lines offer all that they do for the price?

Some might think it's a stupid question, believing that cruises are expensive, but even compared to a resort in the Bahamas (not even an all inclusive) the cost per day is really low on a cruise. At least that's my opinion.

 

So what's the story?

[katier825]

On board spending! They make a ton of money from the bars, casino, stores, excursions, etc.

 

I agree that a cruise is an excellent value. It's always my first choice for a vacation! :)

 

Hope you have a great cruise!

[barbarah33]

I agree with Katie. They buy in bulk so food and alcohol isn’t as much but they really rely on those onboard spending accounts.

[Jim Gallup]

Cruise lines are international, so most pay no corporate taxes.

Many items (alcohol for example) on cruise ships are purchased duty and tax free.

Service staff on most cruise ships are paid US$1 per day, plus tips. The payroll stays very low that way.

Profits from onboard spending assist in keeping ticket prices low.

The overall quality of food purchased for cruise ships is in the same range as wedding reception food; not the best quality.

[cruisinbuddy]

I've wondered this myself until you realize, you still have to pay for your drinks, specialty restaurants, photos $20.00, excursions, etc. Most crew work just for a share of the tips, so low labor costs. But yeah, all the food, entertainment, fuel for the ship. My 1st cruise the port charges were included in the price, $1,200 a person, we got a good deal. Lots of other people paid more for same category. Funny, on this ship my DW heard some of the wait staff getting in s$%t for not selling enough drinks. But i don't like pushy waitors. Also buying in bulk helps too, being a chef I know how that works.

[timbuk]

Before I actually went on one, my perception was that they were out of my league. (watched too many Love Boat episodes growing up I guess)

Thanks for the info everyone.

[cruzincurt]

By selling a $4 bottle of wine for $24.

[Happy ks]

Another thing is, the food allowance is actually much lower than one would think. The cost allowed (last time I read about it) was around $12 per person, per day.

 

The revenues generated by other venues are a great source of profit. So much so that we would like to thank all the people who spend, spend, spend on a cruise. Our final tab is so much lower than most, if everyone had our habits, I'm sure the cruise fare would have to go up!

 

We do buy one photo and several bottles of wine throughout the week, but we don't gamble, shop for souvenirs, play bingo, go to the spa (although I would love to!) , take expensive ship sponsored excursions (learned not to the hard way) or buy drinks at the pool.

[dforeigner]

By selling a $4 bottle of wine for $24.

 

Hotels also mark up their prices. I payed 40 dollars for a bottle that costs 6 dollars in the super market.

[98Charlie]

Don't forget that the prices for cabins vary on each cruise. An inside may have a per diem cost of less than $100. Earlier this year there was a transatlantic 10 or 11 night on Costa (I believe) with insides available for $650!

 

OTOH balconies can run 2x the price of the inside. Is it any wonder that the newer ships have more balconies?

 

In addition to that, the price for the week that you select can vary greatly.

 

For example, right now on the Caribbean Princess, you can book an inside for Dec 10 ($499), Dec 24 ($999), Dec 31 ($899) or Jan 7 ($599). Balconies range from $699 to $1297 for those same cruises.

 

No doubt though that a major source of profit are the onboard accounts.

 

Charlie

[jcanino]

Hotels also mark up their prices. I payed 40 dollars for a bottle that costs 6 dollars in the super market.

 

It is no different from any restaurant on land either.

[timbuk]

On my last trip (Carnival Victory) in May, I was shocked to see Sonoma Cutrer Chardonnay on the menu (one of my favorites) for $34. I was even more surprised when I learned that they would hold the unfinished bottle and make it available at the next dinner or for room service. I figured we'd just schlep it back to the cabin and keep it on ice ourselves.

I live in Atlanta and that's the price we normally pay for the same bottle at most restaurants. Plus, we found that mixed drinks were priced just about the same as we would pay at a club here, even with the 15% grat added in.

I know the liquor costs them less to begin with, but I just thought that the mark-up seemed pretty fair all in all. Maybe I'm just accustomed to overpaying! Just kidding.

[Happy ks]

On my last trip (Carnival Victory) in May, I was shocked to see Sonoma Cutrer Chardonnay on the menu (one of my favorites) for $34. I was even more surprised when I learned that they would hold the unfinished bottle and make it available at the next dinner or for room service. I figured we'd just schlep it back to the cabin and keep it on ice ourselves.

I live in Atlanta and that's the price we normally pay for the same bottle at most restaurants. Plus, we found that mixed drinks were priced just about the same as we would pay at a club here, even with the 15% grat added in.

I know the liquor costs them less to begin with, but I just thought that the mark-up seemed pretty fair all in all. Maybe I'm just accustomed to overpaying! Just kidding.

 

I think it is a regional thing. I know when we go out to a nice restaurant, it is typical to pay anywhere from $6-10 for a drink, so $5-8 on a ship is a bargain for us (although we don't drink a lot). In another area of the country, a smaller town perhaps, mixed drinks may only be $3-5, so the onboard prices seem exhorbitant.

 

We did enjoy, at one time, bringing our own wine aboard when it was still allowed and never minded paying the corkage fee. It would still be far less than purchasing wine onboard.

 

But, we've gone through the wine list for our next cruise and have decided that there are some fairly decent prices onboard RCI. We'll not bother to "smuggle" because we like wine with dinner. When we go out, it's not unusual for us to buy a $25-40 bottle of wine in a restaurant.

[Las Vegas Non Rev]

Las Vegas is moving away from its old model of offering cheap rooms and cheap food to atract more people into the casinos. Cruiselines arnt much diferent from the old vegas. Pay the bills with the rooms and make the big bucks elseware. I was born in Vegas and enjoy the food offerd in the hotels but stay away from the casino.

 

On my cruises i stay out of casino and DW makes us buy a photo. We do bring back booze and smokes. But i can say that a cruise is a much better bargan than a land vacation if you keep to your budget.

[cruzincurt]

There is a certain price to pay for someone handing me a frosty Coco Loco at 10:00 in the morning as I'm laying in that chaise lounge hundereds of miles out at sea.

 

I think most places like Friday's, Olive Garden, Ruby Tuesday's, etc., make their real profit on the booze. The ship is no different. They leave a large gap under the cabin door so that the Sail'n sign printout can fit through on that last night.