© Copyright Milan Korcok 2025. All rights reserved. Milan has been writing about cruise ship health and safety issues since the 1980s. A dual Canadian/American citizen, he lives in Fort Lauderdale, Florida. He can be reached at mkorcok@aol.com. So, what are small or mid-size vessels? And what’s a really big ship? Royal Caribbean’s new “Star of the Seas,” sailing out of Port Canaveral, Florida at 225,000 gross tonnes, could accommodate up to five Titanics, (46,329 GT) which was the star-crossed “behemoth” of 1912 history. And there’s no indication that the “bigger is better” thesis will subside. It just makes economic sense. All ships have a basic cost of operation – whether they sail full or half-full. And that’s the difference between profit and loss. Given the space and potential amenities which can be offered on a ship built for 7,600 happy holidayers – more bars, casinos, restaurants, spas, souvenir sellers, clothiers, gymnasia, stores, etc., etc., it only makes sense (even to a non-economist like me) that the more passengers which a ship carries, the more money it makes for its owners. And the ticket price alone isn’t going to make it. “Star” is reported to have 28 eating locations (restaurants). As for costs of sailing, they’re as variable as are the bankrolls (or not) of the cruisers. According to the trade publication Port Economic Management, the average expenses and revenues for a seven-day cruise in 2023 tallied ship revenue from each cruiser at US$2,202…and expenses at US$1,862. And that’s consistent with other sources. J.P. Morgan Research, which estimates that the cruise industry will capture approximately 3.8% of the US$1.9 trillion global vacation market by 2028, also calculates that the average revenue per cruiser in 2018 was about US$1,791, with associated expenses of US$1,562, implying a profit margin in the range of 12-13%. Royal Caribbean Cruises Ltd. calculations reveal the same pattern – overall revenues-per-passenger per average seven-day cruise (including ticket, on-board spending for self-pay items such as casino and alcohol, spa, shore excursions, exercise rooms, etc.) coming to US$1,629.28. Meanwhile, expenses (including food services, fuel, corporate operating costs, agent commissions, staff payroll and other costs of operations) totalled $1,261.25 per passenger – leaving a profit margin of US$368.02, also in the range of 12%-13%. Big ships. Modest margins. So, to keep cruising healthy no matter what size the vessel, the message is “fill those berths.” Following are the generalized industry metrics for ship sizes in the world’s growing fleet: Mega ships 3,500+ passengers Large ships 2,500-3,499 passengers Mid-sized 1,500-2,499 passengers Small ships 799 passengers or fewer CSANews | FALL 2025 | 25 Travel
RkJQdWJsaXNoZXIy MzMzNzMx