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How else can cruise lines make more money than airlines?

  • May 31, 2024
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Traveling by cruise ship may seem like a budget-friendly vacation option. However, what they offer Price of additional services and packagesIt may blow your mind. To understand this

How else can cruise lines make more money than airlines?

Traveling by cruise ship may seem like a budget-friendly vacation option. However, what they offer Price of additional services and packagesIt may blow your mind.

To understand this situation, cruise ships What kind of business model has it adopted over the last ten to fifteen years? You have to take a look.

Cruise lines offer low base fares and operate a similar model to budget airlines.

Cruise ship

At first glance it may seem like a very affordable holiday. Then several additional services and packages They increase their profits by bidding

Transportation, accommodation, meals and pool access Although included in the base rate, costs increase quickly with additional packages and services.

For example, drinks packages, tours, on-board facilities, Additional services such as special meals and WiFi quickly increase the holiday budget. Cruise ships; He tells his investors that the extra costs are accepted by the passengers and that they thereby increase their income.

Cruise ships generally last 20 to 25 years.

virtual reality game

While on older ships it can be difficult to create space for high-quality additional services There are more options on new ships.

Brands such as Norwegian Cruise Line and MSC Cruises, introduces new ships that offer family-friendly activities. Activities include options such as onboard go-karts, virtual reality arcades and robot tours.

The amenities offered come at an additional cost to passengers. $10 for MSC’s Robotron robot cruise and Norwegian’s virtual reality arcade charges $29 for an hour.

Passengers typically book cruise vacations and add-on packages 6 to 9 months in advance of their trip.

meals on cruise ships

Advance payments are made to passengers when vacation time arrives. It’s like you haven’t spent anything It could lead to them boarding the ship. So yes, that is part of the strategy.

WiFi and food costs should also be taken into account. Wi-Fi access, Although it can range between $10 and $20 per day; The meal cost can be between $20 and $30 depending on the type.

For customers who want to feel special A “Chef’s table” service is also offeredBoth people are burning money by asking $100-$150.

Sources: Business Insider, Modern MBA

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