How Cruises Make More Profits Than Airlines

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In the world of travel, the destination matters far more than the journey. The travel industry has adjusted to this as resorts, tour guides, agencies, hotels, and airlines now compete on how fast they can get you to where you want to go. Yet there remains one business who insists that the journey is just as important as the destination. That is the cruise ship. By the numbers, cruises are very much an American phenomenon.
Cruises boast restaurants, bars, bowling alleys, water parks, Broadway musicals, basketball courts, golf, comedy, waterfalls, pools, rock climbing, ice skating, casinos, theaters, go-karts, spas, nightclubs, and arcades. Throw in unlimited alcohol, bottomless French fries, and endless pizza, it makes sense why cruises lean on spectacle and excess for appeal. Industry insiders push every year that cruises are a fast-developing, under-penetrated market with significant growth potential. Cruises are an oligopoly run by three players - Royal Caribbean, Carnival, and Norwegian Cruise Line. In this episode, we’ll cover the business of cruises and dive into these 3 companies who each have their own strategy and go after travelers at very different price points.
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0:00 The Sea is Calling
6:01 The Fun Ships
15:07 Feel Free
22:25 Where Extraordinary Happens

[@ModernMBA]

🔒Visit our sponsor aura.com/mba to get a 14-day free trial and see if your personal information has been leaked online. 🤔In a three-headed race between value / simple fun (Carnival), premium elegance (Norweigan), and flashy entertainment (Royal Caribbean), which strategy do you think will win out over the long term? 0:00 The Sea is Calling 6:01 The Fun Ships 15:07 Feel Free 22:25 Where Extraordinary Happens

[@jake9764]

Judging by their historical stock prices, Royal Caribbean.

[@Dangic23]

NCL is not Premium. NCL is at same class as Royal. Premium are Princess, Celebrity, Holland American,Virgin. Disney is super-premium. Then you go into the luxury brands.

[@Dangic23]

Each sector has their share of customers, so they are all needed.

[@TheMysteryDriver]

I don't think any will really die. That's like asking will motel six or Hilton win.

[@MIKAEL212345]

Cruises seems like it has the prototypical industry split that you can find in seemingly every industry: a value offering for budget conscious customers, a higher end option for those willing to spend and a middle market option for everything in between.

[@NobodyInTraining]

Making the ship's destination an island THAT THEY ALSO OWN was a genius move by Royal Caribbean.

[@FlightX101]

Yep Disney does the same and many of their ships go there. Its genius

[@InvestmentJoy]

At this point all of the major cruise lines have a private island

[@whatever5922]

All major cruise lines have their own island

[@deeznutz32108]

Jeffrey Epstien should have opened a cruise line then

[@visittavee7773]

I been there , they all own the island ,, they join put money together, nothing special, very small and employee live there. Too many people, it so clown.

[@foobarFR]

The way you're able to dissect and explain entire buisnesses in less than 30 minutes is amazing.

[@Inspectorzinn2]

He oversimplified and missed though, Carnival Corp whose financials he is looking at includes Carnival Cruise Line, Princess Cruises, Holland America Line, and Cunard (and a few others). Each is a step up in quality and price. Cunard is significantly more upscale and expensive than Norwegian cruise line. Norwegian is on par with Princess. Likewise Norwegian Cruise line holdings (as shows in the financials) isn't just Norwegian Cruise Line but Oceania Cruises, and Regent Seven Seas Cruises, each of which are more upscale than Norwegian's base line. All of the cruise lines offer different levels of quality within their brand. Most of the cruise lines use the same strategies, for example all have specialty dining, run sales, ect, it's not unique to one line.

[@ModernMBA]

@@Inspectorzinn2 The other brands that you mention are so small in fleet size (number of ships) and berths (passenger capacity) compared to their main mass-market brands that the numbers are insignificant and not worth covering. For example, Cunard has 3 ships compared to Carnival's 24 ships. All of the Cunard ships combined have ~6,800 berths whereas all the Carnival ships combined carry 12X the amount of passengers. The same is true with Regent (3 ships) and Holland (9 ships). As you can tell with the passenger spend statistics, the business is primarily represented is through the main mass-market brands in Carnival, Norwegian, and Royal Caribbean and not the niche sister brands which all have significantly less mainstream awareness, promotion, and volume. You might disagree from the standpoint of a passenger, but you are welcome to look at the financials yourself and see that each company harps on very different strategies.

[@Inspectorzinn2]

@@ModernMBA Sure, lets go by fleet size, Carnival Corp has 67 ships (breakdown below). Only 24 are Carnival. Carnival has the lowest profitability and margins compared to any other brand in it's portfolio. Princess, Holland America and Cunard alone are 29 ships that offer the same high or better quality than Norwegian's base line and outnumber Carnivals 24 ships. Princess has 15 ships AIDA has 12 Costa Cruises has 11 Holland America has 11 P&O cruises has 6 Seabourn has 6 P&O has 3 Cunard has 3

[@Brurgh]

@@Inspectorzinn2 i dont understand youre point.... of course he oversimplified, its a 30min video on cruiseships and the cruiseship industry, it would be a weeklong video if he were to go into the specifics of each company. As you quite rightly state "All of the cruise lines offer different levels of quality within their brand. Most of the cruise lines use the same strategies...." therefore from a business analysis perspective you can group them all under the same roof. They are all using the same business stratgegies just marketing each of their different cruise lines towards different groups of people. Fundamentally all cruise lines are the same, they operate and make money in the same way but they market differently.

[@Inspectorzinn2]

​@@Brurgh The video is implying Carnival is a budget line, Royal is mid tier, and Norwegian is a luxury line. The fact is each these cruise corporation is thoroughly diversified to capture each of these market segments with a variety of brands. While the cruise corporations as a whole are very similar, the lines within them do have material differences. For example: Carnival's Princess line, Royal's Celebrity line and Norwegian's Norwegian line all target the same demographic and are very very similar. Each cruise line has it's differences for sure, not just in marketing but the video was way to broad with the differences. Specialty dining was brought up as a differentiating factor, it's not. The real differences are far more niche. Holland America is more formal, traditional targeting an older demographic, Royal Caribbean has unique water parks on most ships, more young family orientated. Carnival marginally beats Royal on price and offers better food, ect. (To be fair he did touch on some of these elements) I understand the video needing to be simple, but the differences were oversimplified into giving an incorrect impression of the cruise corporations. If he had just disclosed he was focusing on a subset within each corporation, that would of been fine.

[@phasorthunder1157]

Titanic was not a cruise, it was an oceanliner, which like an airliner, main purpose is to take people from point A to point B.

[@VNeto94]

Yes. It was like today's top airliners that have first-class perks, but let's say with a lot more class and some entertainment like live music.

[@thewonderfulwizardoftheweb1053]

@@VNeto94I’d say the same amount of class but different cultures.

[@stereo-soulsoundsystem5070]

And it can still hit a fucking iceberg

[@lzh4950]

I guess among the cruises today Cunard is the most similar to Titanic

[@conorburns-up7hi]

also i don't see how it represents what cruises were like since it happened over a century ago

[@asdfghjkl7557]

Been to about 10 cruises since I was 13. All carnival. I can 100% agree that Carnival is the party boat, you can just tell when everyone docs off. With that said, the whole experience leaves you with a time where you’re very far away from reality, and letting go of daily stress is so much easier. Also there’s so much to do and new friends to make. Very worth.

[@NazriB]

Lies again? Gain Profits Cheap Athletes

[@sunder739]

​@@NazriB touch some grass, bozo

[@Joostmhw]

The three largest cruiseships emit as much as EU vehicle emissions. Not worth.

[@asdfghjkl7557]

@@Joostmhw yeah I think emissions are a problem, but I also think there’s nothing I can do about it so ima have fun 🤣

[@Joostmhw]

@@asdfghjkl7557 guess what you can do about it....not go... It's not that difficult a concept to grasp

[@thechickenmaster6543]

The titanic wasn't a cruise ship. It was an oceanliner who's main purpose was moving people between countries. Not just for vacation trips

[@m.hankins2210]

Accurate

[@JENNerationX]

😌 of course

[@laurahuynh8333]

Before planes became the standard, boats were the main method of transportation between nations.

[@S.F.Sorrow]

Thank goodness someone said this before me! I was about to say this after hearing the reference to Titanic as a cruise ship multiple times

[@joshalbert5904]

Crazy when this came out, I just got back from a cruise last week and was curious about how they even made money with how much "free" food I ate. My ticket was almost the price of just a hotel and I got transportation, food, and entertainment included. Wish you talked a bit more about margins and how cruises have handled post covid times.

[@pv2639]

Never underestimate wholesale 😂

[@nayryillis3278]

​@@pv2639fz

[@brentshuffler1234]

@joshalbert5904, I can offer some simple observations to answer those questions. [1] The cruiselines have capitalised on unexpectedly strong rebounds in the industry since the pandemic. E.g., Icon of the Seas has broken every record for the pace of reservations for a new ship and also for pricing even for Inside Cabins. . . [2] The major cruiselines are rapidly repaying their pandemic-driven debts, thanks to this rapidly escalating positive cashflow . . . . [3] High pricing per person/night on the new mega-ships has created record-high profits per passenger for the new classes of ships . . . . [4] There are also trends of passengers' making reservations further and further in advance of sailing dates. This gives cruiselines free cashflow up to 1 to 2 years in advance of cruises.

[@bumponlog]

Probably simply more people are spending and impulse buying on shit while aboard than those that aren't.

[@MiauMichigan]

They're also quite abusive with their employees

[@omeysalvi]

I realize that the line towards the end "people who are so hooked on consumption that they are not satisfied with doing things on land and want to do it on a large boat at sea in the middle of nowhere" is a dig at cruise passengers but helped me realize that it is EXACTLY why I want to go on one. 😂

[@barmybarmecide5390]

Lmao but fr why do you want to go on one?

[@omeysalvi]

@@barmybarmecide5390 I like the sea, all you can eat food, and water slides.

[@barmybarmecide5390]

@@omeysalvi fair doos mate, hope you get your cruise soon!

[@aalokjoshi6839]

@@barmybarmecide5390 it’s fun bro

[@adamsaldana5462]

​​@@barmybarmecide5390 because I get to party like a rockstar for a week straight while getting treated like royalty. That's why. I'm about to book my second one

[@EmmaCruises]

Oh hey, that’s me at 15:10! It was pretty bonkers to race go karts on the top 3 decks of a cruise ship. 🤣🏎️

[@henryzx900ruly2]

Awesome!

[@seanpruitt6801]

I love your videos!!?

[@jordan6302]

Definitely missing out on some info in this video by (1) not mentioning DCL (Disney Cruise Lines) at all, as they are becoming a major player in the higher-end, kid-friendly area, (2) Princess which is owned by Carnival, which competes on the higher end with Norweigan, and (3) MSC which is now focusing on North American cruising, compared to its historical non-north-american centric business model Also, the amount of margin that these cruise companies take while paying their workers diddly-squat is an absolute travesty. The workers are usually pretty thankful to be working on the ships, but still it very much rubs you the wrong way (from personal experience) when you're on one of these cruises and know that the people around you working are making what is essentially an indentured servitude wage where they share a room with 3+ other workers for months on end.

[@barmybarmecide5390]

Mind you it depends on the workers. Engine and deck officers are paid handsomely, even relative to land jobs - it's the ratings that are paid peanuts

[@AndrewBowling]

Pay attention to if a vessel is foreign flag too. Any USA ship will compete with other licensed positions and pay well, in part, thanks to Jones Act. “Indentured servitude” is also X months on and X off, Hours regulated by CFR and some union positions. I’d argue working at Walmart is worse.

[@pwnmax2498]

Lmao what do you expect buddy Not everyone on planet earth can earn and live like an American, maybe the aberration and travesty isn't how little they make but rather how much the passengers make and spend?

[@wanderingdoc5075]

Workers are often from the Philippines and are payed 5-7X what they would in their home country. Believe me, these workers are VERY HAPPY. No one held a gun to their head and told them to accept (the generous salary if we are honest) offer. Take your Bernie Sanders socialism somewhere else lol

[@wanderingdoc5075]

Its called WORK, they are getting paid. Its not servitude genius. Would you prefer they make $8 a day in the Philippines?

[@methos-ey9nf]

I've never been on a cruise. At first looking at the activities on the ship I was thinking "yeah that does look like fun". Then comes the description of how the cruise makes money and I remembered "And that's why I don't want to go on a cruise!".

[@garydevries5961]

Yeah, I was thinking the same thing.

[@minimalistvlogger3467]

well considering they provide food you really don't have to buy any extra food and drinks on board and you can choose their cheapest excursion or just do what you want on the islands

[@donotreply8979]

@@minimalistvlogger3467 have you even been on one??

[@minimalistvlogger3467]

@@donotreply8979 yes, quite a few, but all on carnival, where they provide free food

[@TheSuperBoyProject]

​@@minimalistvlogger3467it's not free, it's baked into the price of the ticket. You're likely overpaying for the food actually if you're a moderate consumer since the 40% obesity rate is likely included in the price.

[@sasham.3411]

I don’t like cruises but they have been one way for my elderly mom (who hates the hassle of travel) and myself to see a little bit of the world together without a lot of the stress of separate hotels, cars, and meals. Last year she got to see some of Europe for the first time. We spent most of our time offship on shore excursions and the detailed pre-planned itineraries and inclusive transportation was perfect for her. So many great memories!

[@nikkiwikki73]

2:58 oh no, hugeeee misconception. The Titanic/ocean liners *weren’t* cruise ships, they were ocean liners. Think giant ferry’s or ocean trains. They were simply to transport people from one destination to the other. 99% of the time people weren’t on ocean liners for leisure, but for relocating themselves or their families for new job opportunities or to be closer to family/friends. They actually *hated* being on ships. The ship designers knew that and designed for it as well (trying to make you forget you’re on a ship, because you’re terrified of sailing on one- and for good reason too). Cruise ships/cruising is a relatively new phenomena and shares little to no similarities with Titanic/ocean liners, besides both being big boats that carried passengers and crew. Gotta remember the past is a different world and we can’t apply our logic/things to them ie just because it was a big boat on the ocean, doesn’t mean it was for funsies.

[@treatylinephotography]

Thank you!

[@mrjakeisnumber2]

I appreciate that this episode had a clear boundary between the video and sponsored segment, rather than trying to sneak it in

[@dustyramsey34]

Yep, be aware of their Pay Now Pay Later video. The sponsorship in was deceiving to say the least.

[@krysten4544]

Wonderful breakdown of each! I will say, I've ridden all of them and would say to take either a Norwegian or Royal Carribean. You could not PAY me to get on another Carnival. The food is inedible, it's filthy, and so overcrowded. My family went on one recently and when they all got COVID onboard, there not only were 0 doctors on the ship, but they couldn't even purchase Ibuprofen til they got off the ship in the Bahamas. I've never had a good experience on Carnival. I'd say you get what you pay for, but no one deserves that. Norwegian is my personal favorite. It is slightly more expensive and filled with an audience that's 70+ but it's clean, has great destinations, amazing food, and a really wonderful vibe. When we went with them to Alaska, they even turned the boat off near a pod of whales for hours so passengers could watch them and listen to their calls. A truly unforgettable experience.

[@chrisd6736]

No Dr on the ship is nuts. I just went on a Royal Caribbean cruise and I believe they had 3.

[@2bitnerd]

Disney blows Norwegian out of the water in every way.

[@ElaishaJade]

Newer cruise line Virgin Voyages created a USP of adult only and all inclusive eating and drinks paid for one at a time instead of a package. This removes the three things many potential and current cruisers hate about the industry right now.

[@KristinaNorman]

I went on Virgin Cruise last year and you have to pay for an alcohol package, all or nothing

[@ElaishaJade]

@@KristinaNorman It’s a bar tab vs having everyone in your room needing to pay for a drinks package. IMO It’s better to spend whatever you want upfront than $80-$100 a day on alcohol you may not even drink because everyone in your room needs it.

[@Hades112012]

Some feedback: if someone has the subtitles on, the subtitles hide the chart legends that you’ve added. I suggest moving the chart legend to the right of the screen.

[@thatonepossum5766]

While watching this video I thought to myself “going on a cruise might be neat”, so I looked at Carnival’s prices for where I would like most to go. Then I realized that for that price I could spend more time at the places I want to go, for the same price, and have far more freedom to do what I want. So, maybe not for me. 😅

[@hurgcat]

yeah if you are true boots on the ground, huff it out and get lost and confused traveler, cruises just ain't for you.

[@judeffr]

That's what I thought too 😂

[@cheef825]

yeah i have been doing my due diligence since ive never hopped on a cruise before and didn't understand the appeal. I get it now from a family perspective, but i think ill stick with my red eyes, hostels, and holes in the wall 😂

[@MrBashem]

Comparing two different things. Airlines are just a bus service and cruises are a vacation.

[@malcomgrant8596]

Facts 🎉🎉😊

[@FanThemePark]

I've been on two cruises and I have loved them. One on a Carnival ship and the other on a Royal Caribbean ship. I think cruising is a fantastic value for what you get with them and I will definitely be doing more in my lifetime.

[@CliffordCruiser]

I have very mixed feelings about this video. I think some aspects were done great like all the stats, explanations, and some descriptions. However, this video lacked to mention a major major fact Carnival isn't just Carnival Cruise Line. When he said Carnival, he was talking about Carnival Corporation, not just Carnival Cruise Line. Carnival Corporation has so many brands combined. They have Princess, Holland America, Cunard, Costa, Aida, P&O UK, P&O Australia, Seabourn, Adora Cruises, and of course Carnival Cruise Line. They are a very diverse group of companies and it isn't just Carnival Cruise Line. The same can be said about Norwegian and Royal Caribbean. For example, the Royal Caribbean Group also owns Celebrity Cruises and Silversea Cruises. Each Corporation is much more diverse than what was described in the video. I feel like if this simple fact was mentioned in the video, it would be better.

[@ElGrandoCaymano]

I'm not sure this is really relevant. Focusing on the 3 companies seems sufficient and concise, else the video would be hours longs to address every subsidiary.

[@superkd7030]

They meant that although Carnival have a theme, the whole company, which the numbers came from, don't. So not all 12 million people went to the specific Carnival Cruise. So unless the other brands use the same strategy, which I doubt, I think it's a good nuance detail to have been pointed out too.

[@toxictransgender5920]

Honey make up, new Modern MBA video dropped

[@JoeDontKnowTho]

This is the top comment when I’m viewing on mobile, and I know it may be a typo, but I really like the idea that you’re asking your partner to go grab your make up so you can start getting ready to watch this vid

[@l.french560]

I was so frugal on my first cruise. I probably spent about $200 on board. While others in my cabin spent well above 500

[@judeffr]

Did you still have fun or did you feel like you missed out?

[@seany2754]

I'm only 22 and will be taking my fourth self paid cruise this November. My first one was last Oct on Royal's Explorer OTS to the ABC Islands. The second one was in January, when I took my mom with me on the NCL Breakaway to Mexico. Then came May where I went on the NCL Sky to visit the Greater Antilles. My fourth one is this November on the breakaway again to visit the ABC Islands over to different parts of Mexico. The places I've seen are so picturesque and will be etched in my mind forever. The crew and passengers alike helped make my solo cruises so awesome.

[@PaperboyPrincee]

How’d u afford so young ?

[@discocycle]

You're so young. Don't you want to have some real adventure in your life? Don't waste your time while you have ir

[@jamesbailey6257]

to reiterate, you're 22 and can afford FOUR solo cruises in just over a year, please go actually explore like you're able to

[@kathryncashner3294]

I realize that you can only focus on a small number of lines, but there are several that are left out, likely because of size/number of ships. For instance, DCL has the high end family market. Virgin Voyages is a newcomer to the arena, but has a very different "almost all inclusive" strategy where in addition to the normal inclusions in the ticket price, basic beverages (juices, coffee, tea, soda), tips, fitness classes, tips, and ALL dining rooms are included. That means ALL tips (spa, bars, etc.) and All dining rooms, 6 of which would be specialty dining on any other line. While some of the base fares are high, there are bargains available if you have flexibility and shop carefully. I've booked/sailed several on VV and done my best to price similar cruises on other lines--the other lines are typically twice as much.....but then, I do shop carefully. The pools on VV are very sub-optimal, but they do have the huge advantage of no kids! NCL is getting a bad rep among frequent cruisers for their "always have their hand out" approach. Whether that's because we are used to having things included or because we don't want to have to decide whether or not to pay for each thing while on vacation, I don't know.

[@rkmath4905]

I’ve only been on one cruise in my life, and we had to save up for a long time to be able to afford it. I was 12-13 at the time and I remember having a good time for the most part, except that all the other kids on the ship were either rich kids or kids desperately pretending to be rich kids lolll.

[@VanuOfMILF]

I've enjoyed the handful of Canival ships I've been on, and the one RC trip was even better. My mother is a Disney nut, so since childhood they have been her vacation company of choice, including the cruises. It would be interesting if you could do a follow-up video contrasting the niche/smaller cruise companies with the big 3.

[@MisterGoodDad]

Question: Do you HAVE to book excursions thru their website or can you just arrive at the port and travel to the excursion location yourself and book the excursion w/the vendor for a cheaper price?

[@JulsJewel]

@@MisterGoodDad You can book excursion however you want. Either with the cruise line or a third party. You can also not do an excursion and go exploring on your own. The main advantages of booking with the cruise line is a guarantee that the ship will wait for you if the excursion is late for any reason (do it pretty much never happens with 3rd party either since they know if they don't get you on the ship they are in trouble), the guarantee on quality (All excursions are vetted by the cruise line) and that you don't need to figure out where to go to find the excursions since you meet up on the ship.

[@VereenigdeOostindischCompanie]

Absolutely loved your previous Greece series you did a year or so ago. Looking forward to this one too. Keep up the good work.

[@trevor-heron]

Don't forget that thease 3 companies are parent companies that have other companies they own. Carnival owns Coasta Cruises (italian based cruise line), Royal owns Celebrity (luxury cruise line) so they earn more money from that too!

[@welling1]

I took one back in the early 2000's and said NEVER AGAIN. Trapped on board where basically it's just a giant mall surrounded by people that only want to drink and sit on their asses. When we finally got to the island destination, the cruise tried to scare the tourists into buying one of their island tour packages, claiming it wasn't safe to go out on our own. Well, we told the guides to F-off and explored on our own and actually had some fun without anyone holding our hands. But getting back on that boat sucked.

[@maskedmarvel]

A LOT has changed since the early 2000s in cruising. Such as different experience, especially on larger ships, I wonder if you'd at all feel different today 🤷‍♂️

[@fuksoup]

I'm sure your opinion isn't opinion won't be swayed, but cruise now vs. then is entirely different. Especially on larger ships. That said, those island destinations are actually hazardous, even more so now, so I'd say you were just fortunate

[@welpppppppppppppp]

I'm super interested in cruises, I think their evolution from ocean liners is a fascinating one-- reminds me of classic films like gentleman prefer blondes ! Business and aesthetic wise they seem very analogous to theme parks since they're this liminal hyper-real entertainment experience. That being said I hate theme parks but think one day I'd really like to take a cruise because of the highly structured and traditional nature of the itinerary. They somehow feel less patronizing for adults (well some companies anyway) Cruises have their reviewers but don't have many analysts in the vein of defunctland so thanks for this video!! The highlight on labour costs is super important. I've seen a lot of "behind the scenes" videos from cruise workers and learned a bit about how they exploit migrant workers and flags of convenience to get away from legal issues. It's a flawed industry but some people in it seem to really love that world.

[@rebm7505]

I'm amazed at the amount of stock pictures and videos that were into this single video. Not to mention the whole amount of information, thank you so much!

[@MGX93dot]

thanks for solidifying me never going on a cruise. genuinely appreciate it

[@Kidynamo123]

Same here! I really don’t understand the appeal

[@tjparrish5639]

@@Kidynamo123 Its a resort where you wake up in a new place every morning. One day you in the Bahamas, then St Marteen, then Puerto Rico etc...

[@clobberelladoesntreadcomme9920]

@@tjparrish5639 But essentially you are in the Potemkin village version of those places. All the ports have the same bars, restaurants, gift shops etc.

[@fuksoup]

@@Kidynamo123 The way I see it is: you're going to visit places that you wouldn't necessarily want to spend a weeklong trip at, but are still entirely worth visiting. Canada, Norway, and Alaska cruises are all popular because they visit places people wouldn't ordinarily go but still would be worth the trip.

[@PrezVeto]

​@@tjparrish5639But every hour you spend exploring the destination (having to constantly watch your watch) is an hour you're not able to use all the amenities of the ship that you're paying through the nose for.

[@Toweleee]

as former Carnival employee, i can tell you that you are missing one major point atm. After covid, Carni bought their own Casino. Before that, it was concessionaire, which was making major profits. Now Carnival ownes it, which made em biggest gambling industry in the US. They refurbished their ships to enlarge casinos, casino guests get a loth of benefits, from free steakhouse meals, free drinks in casino and even on entire ship, to free cruises, but this people are spending 10.000$++ in casino per cruise. Almost every cruise is Premium or Ultra which means at least 1000 casino guests, so go figure. On the other hand, service is suffering cause of that, but who cares. 😁

[@kristjanwashere]

I think you should have included Disney as it's a pretty big up-and-coming player in this space. Especially that it's interesting how it's not just a cruise company so it can leverage other parts of its company to give them the upper edge.

[@shanamin3861]

Disney cruises SUCK! 😂

[@AR-ix8fq]

Their ships are small and lame.

[@dinnolinno]

Not big

[@seanneumann6868]

They also were one of, if not the first cruise lines to buy a private island.

[@dallin4992]

Disney is too busy shooting themself in the foot in the "imagination" department for them to capitalize profits in their other categories of vacation and travel. Good riddance. Grow up in reality and not a fairytale.

[@jcmphreek]

I always thought cruising was a stupid vacation exactly what you described poking fun at from afar until 2020 right before Covid hit when my girlfriend and I were looking to take a trip somewhere warm and we saw an insane deal on a carnival cruise so we did it and man, it really is great. Gotta try it before you knock it I guess

[@williamford9564]

9:17: " The goal is to get you to keep spending money". My next thought was "sounds like casino". Their goal is to keep you at the tables or the slots so you keep gambling. In both cases, the house ( or the ship ) always wins.

[@SpencerKelly93]

I've personally cruised with NCL 5 times now but haven't cruised with any other line...and frankly, I don't know if I need to. I have had nothing but awesome experiences cruising with NCL. Yeah, you have an occasional "bad" meal or a mix up with some reservation or something like that. Generally speaking though, it's a very well run operation and the crew is always great. Also, I put "bad" meal in quotes because even the worst experience I've had on an NCL ship was just a below average experience (For those wondering, it was the "American Diner". It's a specialty restaurant that costs extra and it isn't that great. Pretty bland and mediocre). Additionally, I've only ever once had a bad crew on a cruise. It was in 2019 and we're pretty sure the crew was at the end of their contract and just totally burnt out. Even with that being the case, it was just a few bartenders and waiters that seemed pretty "over it". The rest of the crew was pretty good just not as chipper as they usually appear to be. What I can say is that NCL's food is what seems to set them apart from other lines, and that's based on the conversations I've had with other cruisers over the years. O'Sheehan's is their take on an Irish Pub/Sports bar that's open 24/7 that's complementary. It's a go-to for me and my group when we're just looking for a quick bite. The food's pretty damn good for an included option and they always have a different special running every day. Typically, during a 7 day cruise, one of the specials is a generous cut of Prime Rib that's really good and not too fatty. Their buffet is solid. It wont blow you away but it won't be terrible either. Some things are good and some aren't. It's a good option for wanting a little snack here and there but generally I avoid it since theirs better options that are included. Their 3 main dining rooms are some of the best value IMO. All 3 are included and you can eat there as many times as you want. "Taste" and "Savor" are directly across from one another and are generally the same restaurant. They might have slightly different menu options but almost everything else is the same. The main dining room (I think it's called the "Grand Ballroom") feels very upscale, but in NCL form, you can be in there in shorts and a casual short sleeve button up and feel dressed perfectly. I believe their only "dress code" is that you have to wear a collared shirt and you can't be dripping wet from the pool. Haha. These 3 dining rooms offer outstanding service and 3 course meal with unlimited options. You could get 2 appetizers, a main course and two deserts and it would all still be included. The food in these dining rooms is VERY good from a quality standpoint and the portions are fair or better. NCL's specialty options are what really stand out. Every time I've cruised we've done the Teppanyaki and it's always a great time and the food is great. The sushi bar has really interesting options that, as a sushi fanatic, I really enjoyed. I haven't personally been, but everyone I've talked to that's sailed other cruises has said that "Le Bistro" (NCL's French restaurant) is one of the best meals they've ever had at sea. "Moderno", NCL's take on a Brazilian steakhouse, is really good for the price point and it's fun too. The big winner, in my opinion, is Cagney's. NCL's premium steakhouse dining option. I've eaten at A LOT of really nice and high end steakhouses...Cagney's is in my top 5 easily. The service, the sides, the quality of the cut, the cook...everything was comically phenomenal. I've only had it once but, regardless of the higher cost, it will be a lock for all my future NCL cruises. The biggest concern for most people would be the cost and it really isn't that bad. If you figure that to eat at a nice quality steakhouse, on land, it would cost you about $200-$250 for a meal for two (2 entrees's, a shared appetizer, 2 alcoholic drinks + tip), then Cagney's is on par with that experience. It may be a bit more expensive if you add in wine, multiple drinks, or deserts...but the cost of this option is comparable to what a couple would spend a steakhouse on land. So, when that is considered along with the quality of the food and the experience, Cagney's is a MUST in my opinion. Sorry for the short essay. Lol. I saw people talking about the different cruise lines below and wanted to share my two cents...or in this case 20 cents. Lol

[@KhokoKitty]

thanks this was a fun informative read !

[@playgamepark]

I took my first cruise last year (Yes, I am American) (Also, this is when I found out that I get seasick), I realized how much Carnival throws SO much at you to make you feel like you got a great deal. Getting on the boat I promised to not spend one more cent. Getting off, I got myself with a 200 dollar bill mostly on the Arcade (because I was trying to stay away from the Casino) and the Deal or No Deal thing (Because... well you gotta gamble some at least). But even the free food was SO much better than what I was expecting (very very bad). I honestly think that Carnival has really good staying power here and it will be hard for the other competitors to dislodge them.

[@GappyV]

I will literally never end up investing for the foreseeable future, idk why I watch these videos but they're so interesting and insightful on these random industries. Keep up the great content!

[@MenkoDany]

So what I gather from this is solidfying my belief that you should never go on one of these oligopoly cruise ships, and instead watch videos from cruise ships, which gives you 60% of the experience and 0% of the downsides

[@maskedmarvel]

0% of the experience and 0% of the upside

[@shaunsensei6948]

Just because someone makes a lot of money doesn't mean it's not worth it. The value they provide is totally worth it ofc you should be able to afford it.

[@dylangreen8018]

This is currently the best channel for high quality business videos, no one even comes close.

[@m2kay42]

I'm 33 and Ive become a cruiser. I started with a Music Cruise in 2017, Disney Cruise in 2018, Music Cruise 2022 and a Caribbean Cruise that same year, Wrestling Cruise in 2023 and another Music Cruise coming early 2024 😂😂😂 I love em.

[@chrisd6736]

What’s a music cruise?

[@nerd26373]

We aporeciate how well made these videos are. We hope to see more of these from this channel.

[@cruz5327]

Amazing video. Never realized this side of cruises.

[@TN-xx4ih]

Well timed. I'm about to go study an officer cadetship to work with a cruise company so this is quite helpful although maybe their business model differs.

[@KPHVAC]

Cruising is such a good vacation! I'm in my 30's and have been on 2 cruises. Royal Caribbean to Alaska was fantastic.

[@OfficialBost]

As someone who’s on a cruise right now (Quantum of the Seas) if you pay for excursions through the cruise you will get some extra value a lot of the time.

[@user-fj5yq6vk2k]

Great video! Thank you so mutch!

[@KPHVAC]

The cruise and ship are just as fun as the destination! I just did a 7 day Alaskan cruise on Royal Caribbean. There are so many fun things to do on the ship! We had a group of 8 people from 28 to 75 years old, and we all loved the cruise.

[@vrlchebolu]

NCL is the best. Worth noting that NCL does offer free food for the entire trip. The garden cafe (a whole deck for buffet) is free. But they charge extra for specialty dining at specialty restaurants.

[@sashamoore9691]

All cruise lines r like that

[@johnyskrskr]

Love your videos, way better than any of the business class ive ever taken

[@jackthomas8985]

When we were kids we used to always sneak into the haven to go in the pool and just look around , it was always a good time

[@OscarPlays1]

Bloody brilliant video as always. Super underrated channel.

[@shcusmc]

This was a great informative video on a very interesting industry. I cannot think of a type of vacation I would want to go on *less* than a cruise though, absolutely not for me.

[@Harrison.13]

Already know this is gonna be a banger

[@wnhulsey3]

AWESOME!!! Thanks so much for adding this perspective. Perhaps we can go in the direction of intellectual honesty.

[@sumnerevans]

All of these companies own other cruise line brands to help them cover more diverse sets of consumers.

[@XalphaWalpha]

Another banger video, keep em coming

[@tacrewgirl]

Great video. Thanks.

[@alvaroga1n]

Owning the destination is sooo smart! good for them

[@weston.weston]

This is such a great presentation.

[@OskarVanBruce]

At the rate global inequality is growing, even inside western countries, the cruise industry will dry out thanks to a lack of customers. No matter how much innovation you pour if there is no middle class to buy your tickets there is no sales. Furthermore the Cruise industry is living on borrowed time as the boomers, who are the majority of their customers, will die and their considerably poorer sons and grandsons will never board a cruise or will do so much less.

[@johnl.7754]

But cruises offer more value bang for the dollar during international vacations so I don’t think they will ever go away completely. Maybe more Carnival business and less Royal Caribbean business.

[@sam510938764]

Many boomers will pass inheritance to their children so with the wealth transfer and aging it's not certain the cruise industry will be deprived of customers. This is a gradual process too so if demand softens, these companies will simply adjust their fleet sizes to adapt.

[@collinanderson1303]

Would love to see a similar breakdown for Visa and Mastercard. Thank you!

[@44godson]

This is truly fascinating. Although these different companies operate in the same industry, they all offer different amenities that are branded to a particular guest. Whether you pay in upfront cost all inclusive or pay more during excursions they all seem relatively functional. SPP and volume is very meticulous and forecasting for such a strategy it seems profitable. Thank you for this video

[@ccbill2852]

Great topic, thanks

[@user-jk8fw6in5g]

The level of data detail is outstanding. How do you access this sort of company information? For instance the amount spent on cruises for extra amenities. I doubt they publish this data on their public balance sheets.

[@oo-zk6mr]

I wonder if there's much difference in cruise length in days and the various price points. My guess would be Carnival probably a lower average cruise duration and Norwegian longer in days. These short cruises are the highest value segment I think, as a 3 night cruise from say Miami to the Caribbean at about $3-500 is much cheaper than a flight plus hotel and dining.

[@ninjaft]

Always wondered about this topic.

[@JohnSmith-me4ik]

Great video. You deserve way more views

[@2023snow]

those waterslides look amazing!

[@glockman9c]

You are missing the point that each line has different companies for different clients. Carnival has Princess. Royal has Celebrity. etc. What about Disney?

[@hedgeugug]

Fantastic video. 👊🏼

[@ilmarsaar5485]

I fail to see NCL as "High end". My 10-day Iceland and Greenland cruise on NCL cost less than $600 after all discounts, offers, and mandatory $20-a-day gratuities. I drank complimentary milk the whole time as Diel Coke wasn't free and even managed to get free cocktails now and then. Unfortunately, my one free shore excursion to Nuuk never happened as it was cancelled due to ice, and the boat was too chicken to dock. I would consider "high-end" to be cruise lines such as Silversea, Ponant, Seabourn, Windstar, Scenic, and National Geographic, just to name a few.

[@leopoldakaleopoldalsoknown5050]

Going on a cruise, locked in a boat with hundreds of other people and being damned to consumption sounds like an awful nightmare to me.

[@ckennylin717]

They are more like the Detroit Big 3 automakers, each having sub-brands and models within each sub-brands (with options!) catering to varying levels of income and wealth. Like buying a car at a dealership, you get constant upsell as soon as you step your foot on the ship. Some companies like CCL have a hold on the value chain at exotic destinations like Alaska where they also own the hotels, restaurants, and buses for their packaged land tours, and those hotels and restaurants also serve the general public as there are little or no alternatives where those CCL-owned resorts are located.

[@its_jawsh6145]

From someone who was on the Symphony of the Seas twice (Royal Carribean) when I was in high school it was a really cool experience but today I’d just put that money to cheaper more nature oriented vacations. Cruises are very loud, very crampt, and pretty expensive for a 3-5 day vacation. Amazing experience when someone else pays for it, srry mom and dad lol

[@form76]

I have been on all 3 major cruise lines besides Greek ones too, but the family deal is best with NCL and would always recommend them

[@Rajbadshah09]

Plzz bring every week this types of amazing video🎉

[@David-sWorldTour]

Amazing video once again. Love this channel. Unfortunate you don't get more views. Keep it up c:

[@RTD3]

I've cruised on all three and I didn't get the "upscale' vibe from Norwegian any more than from RCCL. But I'm also using Holland America (owned by Carnival) as a reference for these.

[@kailaleebabineau3962]

Yeah definitely agree. But this guy also mispronounced coco cay and made errors on pricing info, so I think this is strictly a book report moreso than based on experience

[@paradonym]

do it the other way around. Make the journey the more exciting thing. Not only with ships... You could probably take a sleeper train for two days, where you usually took a plane for like an hour...

[@travelswithatwist307]

Retitle to add "Ocean" before "Cruises" as they are separate profit centers and many who actively compete with the Ocean companies esp in Europe, Asia and even the United States esp for the "older crowd" you cite.. Including all "subs" of each of these cruise lines leaves the travel non professional interpreting the three "names" without realizing there are several name brands within the ownership segments.

[@JS-mu5vj]

Not a mention of Celebrity, which is part of RCI or Disney.

[@bigirwantegeka8962]

I've been on 3 cruises, all Norwegian! The first cruise was the most amazing, aboard the Escape in 2017, Unlimited Beverage Package, Excursions, great venues and delectable dining, it was all to live for. However, around the 3rd cruise(Prima in Jan 2023), I noticed a shift in that the ticket price was simply for your room and almost all onboard activities were to be paid extra for e.g the Go-Karts were at a cost not included in the ticket which made the whole cruise feel like a prolonged extortion as opposed to the first time when most activities were included in the ticket. It's a disturbing trend that i see getting worse and unfortunately, may be picked up by other players as a sneaky way to get more out of travellers 😒

[@HumanAction76]

The rewards programs of the cruise lines are very interesting as well. As a Royal Caribbean Crown and Anchor Diamond member, the rewards I get each cruise adds a cost benefit to keep me from looking at other cruise lines, and incentives me to chose cruising as a vacation choice.

[@flipsolo]

Yeah no! Its like staying in a overpriced 2-star hotel and then going to a brand-new mall in the middle of the sea, while paying for goods and basic services at a very high premium. When you do get ashore, its a super touristy location and only have few hours to "enjoy." Nah!

[@sallyjune4109]

Yeah, I did that, it was called the 80s.

[@Theogenerang]

Looked at a Carnival cruise from Australia to Seattle. Seven day stretches at sea and only nine hours in ports such as Ketchikan and Seward. Add the 50% non refundable deposit months in advance and no thanks, I'll fly and rent a car. Ive already seen the ocean. As for being "heavily encouraged" to tip, I would change that to "harassed". One cruise was enough for my parents who felt like they were being drained by constant electronic and paper demands for tips.

[@Inspectorzinn2]

Too oversimplified. Carnival Corp includes Carnival Cruise Line, Princess Cruises, Holland America Line, and Cunard (and a few others). Each is a step up in quality and price. Cunard is significantly more upscale and expensive than Norwegian cruise line. Norwegian is on par with Princess. Likewise Norwegian Cruise line holdings (as shows in the financials) isn't just Norwegian Cruise Line but Oceania Cruises, and Regent Seven Seas Cruises, each of which are more upscale than Norwegian's base line. All of the cruise lines offer different levels of quality within their brand. Most of the cruise lines use the same strategies and have the same quality tiers, for example all have specialty dining, run sales, ect, it's not unique to one line. Carnival is unique in offering the cheapest cruise option but it also has Cunard which competes with the top tier luxury lines.

[@yaadang]

Not their bread and butter tho, look at the number of cunnard lines they have, they are taking a piece of the market but im not sure if its significant enough to be a major contributer to their bottom line. I couldnt find proper breakdowns for each of their cruise lines but it would make sense if we go by fleet numbers as in this case...

[@Inspectorzinn2]

​@@yaadang Sure, lets go by fleet size, Carnival Corp has 67 ships. Only 24 are Carnival. Carnival has the lowest profitability and margins compared to any other brand in it's portfolio. And lets not forget a luxury ship like Cunard charges like 300%+ and probably generates 200% more profit than a Carnival ship.

[@robbroere1384]

⁠@@Inspectorzinn2 Agree that the assessment of this video is not completely correct as the product comparison is about Carnival Cruise line, while the size statistics etc are about Carnival Corporation that includes all the cruise lines that are mentioned. Cunard and P&O might be small but Princess, Holland America, Costa are all mid-size and together are sizable and offer more traditional upmarket cruises. Add onto that AIDA which is a pure German cruise line, totally unknown by the American market as they are only focusing on German speaking guests. Last but not least MSC cruises is also a separate Cruise company with many ships and way bigger than Virgin but not mentioned.

[@CliffordCruiser]

I said the same exact thing!

[@ElliotShayle]

I just don't understand who wants to go on a cruise... it's like living in a shopping mall but with higher prices! Yeah, it's touted as being a relaxing break from reality, but how can you relax when every single thing like WiFi is costing you so much money?

[@bounceenergydrink]

It's a different experience, the socialization, the various sports, the options when it comes to onboarding dining and entertainment. It's not for everyone, but for thouse who enjoy variety, cruising is a great vacation choice.

[@Modern_Gypsy]

I would feel horrible as a cow. Super informative, thanks. Would like to know more about actual costs on the island.

[@Dangic23]

I go on cruises specifically for the destinations on the itinerary. It allows you to experience multiple countries in one trip. Onboard amenities are secondary.

[@danielesemezie4436]

Modern Mba you are genuinely so good at explaining these concepts. I wonder how you're able to understand and present with such through understanding, are there any books you might recommend? or other learning platforms that would improve one's business acumen in relation to the way you present your videos? concepts like company strategy etc?

[@pixelpoppyproductions]

I love cruising. Especially on Carnival! I have also been on all three major cruise lines, and a couple smaller ones. We don’t drink alcohol, and we can skip soft drinks and fancy coffee. We don’t gamble, and the shops are generic stuff you could get anywhere. The only thing we ever bought on-board was motion sickness drugs. The “art” is exactly the same on every ship I’ve been on. We walk right past the photographers, we can do better on our phones. Basically I get a week without having to cook or clean, no laundry, no traffic, no worrying about anything. If you plan ahead and you’re adventurous, you can find deals on excursions. Usually they are better than what the cruise offers anyway. We do as many of the free shows and activities as possible, only eat what is already included (it helps if you’re not picky). I’m probably the customer that the cruises hate though, lol. Don’t think we’ve ever spent more than $100 on on-board purchases, which is usually an excursion, or a special on-board activity.

[@2bitnerd]

For all the things you talked about in here, I'm really surprised you didn't bring up Disney cruises. For example, they also have their own private island called Castaway Cay.

[@bradmyst1339]

There is some difference within companies too. Cunard is owned by Carnival I believe but is very different from this company description.

[@matthewlivingstone8270]

Great video! Although I think contrasting resorts with the cruise model would have been insightful.

[@bananagranny]

A video on the business of theme parks would be really interesting!

[@chrisanderson2797]

Entertaining education, amazing content.

[@paulspratt362]

For me, this seems quite an involved analysis some very good points being made. I think I will have to watch this KZbin video a few times to really understand this. I am glad I bought 400 shares in Canival now. 😊