How Are Cruise Ships Cheaper Than Hotels?
ฝัง
- เผยแพร่เมื่อ 22 พ.ค. 2024
- It's possible to get a Carnival cruise for $33 per night with unlimited food included. How is this possible?
Free and premium investor resources, check out our website: www.differentiatedanalytics.com/
For inquires related to Differentiated Analytics email us at: founder@woodandwoodenterprises.com
Check out our second channel Broken Business Models where we discuss unusual or otherwise suspect businesses that may be unviable: / @brokenbusinessmodels
For business inquires: Mary@creatormanager.co
For other inquiries: Wallstreetmillennial@gmail.com
Check out our new podcast on Spotify: open.spotify.com/show/4UZL13d...
All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please send me an email, wallstreetmillennial.com, and we can sort it out.
#Wallstreetmillennial #cruise #cruiseship
------------------------------
Buddha by Kontekst / kontekstmusic
Creative Commons - Attribution-ShareAlike 3.0 Unported - CC BY-SA 3.0
Free Download / Stream: bit.ly/2Pe7mBN
Music promoted by Audio Library • Buddha - Kontekst (No ...
------------------------------
0:00 - 1:03 Intro
1:04 - 8:53 Cruise line economics
8:54 - 12:45 Hotel comparison
12:46 The $33 cruise - ภาพยนตร์และแอนิเมชัน
If you don't drink or gamble it's a deal!
For me the experience always sounded like booking in a big hotel surrounded by sea but rarely leaving it. How's that enjoyable?
@@tomlxyzthe experience of the ship itself is valuable
well fuck....that's a no go for me. back to Vegas, baby!!!!
There free show and nightclub , plus they have pool and water slide. It a great deal if you thi k it like that
Before starlink was a thing, internet was also soooo expensive and slow. Couldn’t even stream music consistently
The key is inexpensive labor from countries with low wages. Customers will receive great service because the wages are still higher than what they can normally receive.
That's been going on for a long time in the shipping business. Since the 1980's a fair percentage were from Bangladesh or philippines etc. The captains, engineers were usually European
Reminds me of Triangle of Sadness
That is the key to much of the modern world and frankly the entire history of civilization
Do adjust for purchasing power because those meager wages might support a family back home.
SLAVES. Cruise ships are cheaper because they have literal slaves working on board.
Because they have a captive market and can charge a premium for extras.
That, and the "land" they operate on is free from taxation/ongoing maintenance costs...like hotels are.
Lol you think a ship has no maintenance costs ? 😂😂😂😂😂😂
Definitely mistaken on maintenance. @hillbilly4895
@@hillbilly4895taxes for sure
Shouldn't that mean that people are willing to pay _more_ ?
So far these are good:
1. Cheap labor
2. Low to no taxation where they operate
3. Subsidies from big governement
Add to 1. that there are worse labor laws that allow them to squeeze more out of the workers
Add to 2. that the laws to operate are more lax, so they can save on having to follow fewer rules
Conclusion: It's a great business to be in for the owner once you make it to the top, not so much for everyone else.
What subsidies??
The video doesn't mention subsidies
@@hiimjustin8826 I was taking from the comments, not the video.
Awesome video, thank you for the interesting insights. I just recently saw a post on X about some pensioners who are better off taking back-to-back cruises than a retirement home. Now I know why :)
Saw the same too. This video came at the perfect time and answered all my questions.
Twitter*
All they can eat buffet 😋 😂😂😅
😮😮
@@mangoenjoyer256 I propose merging the names: Xitter. Pronounced "Shi-ter."
Ships usually use Bunker C fuel while underway and only Diesel #2 while in air controlled ports.
I've heard this as well apparently it's pretty rank stuff
@@showusyaguppysaustralia1515 Right above road tar. Has to be heated up in order to flow and combust.
@@showusyaguppysaustralia1515 It is - high sulfer content, and poor combustion process leading to particulate-rich exhaust. It puts out giant clouds of black smoke that darkens everything it touches, and when rain passes through it becomes an acid strong enough to corrode stone. The stuff is so nasty that you can't burn it in port, and most countries forbid using it entirely because of the environmental and health impact. Which means it's available dirt cheap, and ideal for use at sea where there is no-one around to be bothered by it.
You are missing the point that the land the hotels are built on appreciates in value. The cruise ship just depreciates.
The hotel operator usually doesn't own the property. So appreciating property value translates to rising rent, which is a negative for the operator.
Lame try smart guy wanna be, apart from the comment mentioned above about rising rents, which is spot on.
Even IF, thats a big IF, hotels companies' own the land they are on, Appreciation of property values only fall in line with inflation rates overall if you didnt know. thats less than 2% p.a. long term.
So cost of capital wise, there is no return to be had.
It’s worth loading that the prices you were talking about for the transatlantic cruise was per person assuming that two people booked one room
The cap expenditure for real estate is recoverable (the land may even increase in value over time). Not the ship : once it's too old, you just have tons of steel to recycle.
Its only for the inside rooms at the lower levels for an old ship, usually 20 years old. The remaining rooms are much more expensive. Port, taxes, and gratuities add up. Any extras.
If you think going on a cruise ship will let you see the world; then you are definitely the kind of person who likes to go on a cruise
Sun Tzu levels of wisdom in this sentence
It's a more convenient way to view multiple countries without paying the cost of flight & hotel/airbnb +food fees in each individual country you visit.
You don't get to see the world in depth, but its a great way to have a small taste of different regions. It's especially good for getting people who are conservative with travel out of their shell to think "i'd like to stay in this country for longer"
Just admit you’re scared of water buddy
You are quite literally seeing the world
We have done both land and sea based and continue to do so. Cruising is and will continue to be a great way just to get around and see other parts for a short time in a lot of countries. To get a real feel you need to visit and ideally live there for at least a year but most people can’t afford to do that or physically do that. You always get this from non-cruisers and people who actually haven’t really travelled that much at all but lots of people we have meet on those ships are well seasoned adventurers who are just too old or have kids to keep doing the year out or 3 months in Vietnam/Egypt/Japan/Baltics thing anymore.
1:15 You must’ve never paid for a cruise. Notice it says $399 per passenger. Even if you travel solo, you’re charged 2x
Plus they hide extra charges in your “taxes, port fees & *other charges*”
This $33 a night cruise is closer to $90
Considering the costs of airfares currently, even going solo and paying double might be worth it....
@@telluwide5553 that's if you have nothing better to do with your time. Air travel will take up to 1 day, while traveling by cruise will take at least 7 days.
@@templarknight7 But no TSA cavity search before boarding, and the ship isn't build by Boeing, so it still sounds better than flying.
@@desertdude540 actually you do go through security before boarding, they won’t allow you to bring your own alcohol on board beyond 1 bottle of wine.
It's been a while but at the end of the cruise isn't it like an extra $150-200 for tips or fees for a $399 cruise.
You forgot to mention this is after covid the cruise industry did not recover it yet, so they need to offer cheap deal so people get into the habit of going to cruise ship. Man the movie and cruise almost got destroy by covid
Don't forget the gratuity they charge you, 20-25 USD/Person/Day on Norwegian cruise ships (just back from a cruise AUS/NZ) , The nickel & diming is incredible, water? 5USD/bottle, BYO? not allowed. Excursions, 3 times the markup compared to if you make your own arrangements.
RCL lets you bring your own nonalcoholic drinks (including water) on board with you - 12 bottles 17 oz. or smaller per person. And 1 bottle of wine or champagne 750mL or smaller.
The last two cruises my family went on I budgeted 50 USD/person/port for excursions. We’d check out the port and see who had a ready tour, then take it.
Excellent video, very insightful!
Thank you for the analysis
Budget whatever it costs you to get on the ship, as the additional cost to get off. Lots of onboard up-charges available.
I've never been on a cruiseship so any cruiseship fan may rightfully call me ignorant.
When I spent holidays in Tasmania a few years ago, I was staying in a lovely house with a view over Hobart harbour, including the cruiseship terminal.
We soon learned that when a cruiseship was in port, it was no use going downtown as the cruiseship poured most of its thousands of passengers into the small town, most of them were too lazy or footsore to move further than 2 kms away from the ship, so you could barely move on the market square.
So I guess that a cruise means being confined to a ship with the same people for most of the time - and crowding smaller ports with the same folks once you're on land.
Those days, we picked the car and went in land without having to be home at a certain time lest our house sails away...
Cruising is my favorite way to vacation. I just got back from an 8 day to the Bahamas. I generally do 1 cruise a year. This past cruise total for 2 people was about $1300 total for whole thing and what we spent on off ship. I did get an interior room and don’t drink much alcohol.
How much do they charge for alcohol? Like say for a double jsck daniels and cola. Or a pint of beer.
@@blablablabla542 most drinks range $8-14. The rum drink i got a few times was $11.
Can you buy drinks from the places you dock and bring it on ship?
@@Entertainment- Cant bring back on ship.
excellent analysis!
You made slight mistake in calculation. U assume the 82 non ticket revenue doesnt come with any cost at all. It is true it may not always have extra operating cost (like renting space to retailers). But some items like liquor or satelite internet definitely have cost of goods/service sold
El dud, great video, great info
All this and free Noro Virus!
so is the herpes, if you like to swing.
I saw a cruise CEO (Carnival I believe) who said that the primary revenue/profit generator, by far, is beverage sales. Not only is alcohol expensive but soda and bottled water is as well.
What makes a cruise expensive is the travel to the port ( and back home) which for the majority of people will result in paying for flights and hotel to arrive at the port of departure
Per person, per day. So, you have to, at least, double all of those prices.
Am I that fat?
Here is a cruise I am taking in Jun this year. 11 nights for 423$, Princess, from NYC, along the east coast (with one port in Canada, so it will international). The port taxes are pretty high, at 400/pp, bringing the total to 1650$. Add gratuity, and you end up with 2000$ for a nice all included vacation. And that's it (except anything done on shore), since I live in NJ.
It is a good deal, and i have taken >10 cruises over the years.
I took a Hawaiian cruise with my parents in 2005, I took an Alaskan cruise in 2008, then my dad died in 2013. After mom had two rounds of chemo, I did four cruises from January 2017 to December 2019. So six cruises in my lifetime, and I have not been on a cruise since the pandemic hit. Especially since they also mentioned the value of cruising went down (lower quality of service for higher price).
I'm a little confused as to the pricing per "seat" breakdown for a cruise... do you mean per person?
Good video
You missed a major point, cruise ship is a depreciating asset, hotel has land and generally appreciates in value
Only if it's in a growing city. Land in the most expensive places in America has been losing value due to the internet removing the demand for centralized office space. Buildings are a depreciating asset that can be repaired and upcycled, land is a commodity that never expires
Most hotels lease their land, and the structure itself depreciates.
They charge a ton load if you want anything else such as watching movies in the dedicated theaters, alcohol, “premium” food menu, photos, and excursions.
Cruises are honestly great. You see a lot of the same people throughout your journey so it feels like you're travelling with a thousand of your closest friends
Very compicated expained and not to the point. It is very simple. Criuseships have one world price, no matter where in the world you are criusing. Hotels have different prices depending on the location. While Florida or California is very expensive, Thailand or Vietnam is very cheap. And the criuseship price is somewhere in between.
The power of modern society is economies of scale. Technology, communication and financing has made it possible.
Misleading. The $399 price quote is per person based on double occupancy. The price of the room is actually double that. Plus, Carnival also tacks on automatic gratuities at $16 per day, per person. You also want to get travel insurance in case anything goes wrong. At the end of it, you can expect to pay roughly the same amount as a 12 night stay at a mid-level hotel.
Make sure you also include port fees and rate based on off-season.
Easy! Supply and demand. If you're traveling and need to stop for the night, motels pretty much have you by the short hairs. Plus, motels need to pay their staff American wages.
OTOH, nobody needs to stay in a cruise ship. It's purely optional. Plus, cruise lines can use cheap overseas labor with no labor laws.
Now i want to try a cruise 😮💨
WSM content is first class
4:07 the single largest point is "other" and the fifth largest expense point is "other". "onboard" contains shore excursion. Sure, that makes sense! So most expenses are not broken down and expenses hide in categories named in misleading way.
What about SG&A? Who is paying for the HQ salaries?
That was so damn interesting
Great video! Thanks
the prices on that website a misleading, like resort fees in vegas. the price looks low until you go to book then there a $600 service and taxes fee and other stuff
Its very frustrating how expansive hotels are. Makes it impossible to travel domestically because you cant afford to stay at anyone of them for even a night without massively inflating cost. Compared this to hostels in other countrys where a tiny space only cost to $10-20 a night. I dont need anyplace fancy, but just a bed and roof to sleep at for the night.
not with a family of 5.. also, I stayed in hostels in europe and it was vastly 20-30 year olds who got absolutely hammered every night. homeboy threw up in the upper bunk one night and the whole room stunk and i felt so bad for the indian guy sleeping underneath him in fear that the vomit would drip down on him. Also.. the snoring was intense.
we joked that it was sleeping at the poooo house.
@@ryanshaw4250 Eh, for a family of that size a hotel is probably a much better deal tbh. And while I cant speak for Europe My stays in Columbia were amzing.
It's a matter of purchasing power parity. If you adjust for average income, you will see those hotels are unaffordable for common people in the turdworld even if cheap for you. It's all a matter of relative wages and land values. CIA men said they took advantage of this since Washington gives fixed per diem, they'd share cheap hotel rooms together to supplement their income
It's called a cardboard box. & a blanket & pillow mate.👍
Just make sure you're not staying anywhere for a week😊
Also the average length of stay is longer in cruises compared to hotels
Lmao, did no one check the math before this video was uploaded??
You should take it down out of embarrassment 🤷♂️😂
Why?
One of your best videos!
it's a trap
To be fair this isn’t a totally fair analysis. That is $399/person and a cruise sales their cabins at double occupancy. So if a single traveler went it would be $798 and then there’s automatic gratuity, which with carnival is $14.50/night or an extra $174 bringing it up to which is $972. Port fees an taxes will run about an extra $250 estimated so really you’re looking at about $1200 total or $100/night
If California had a cruise line, all the workers would get a minimum of $20/hr.
Incorporated in another world
10:00 Interesting graph.
You're comparing a hotel cost which can have up to four people in one room for the same price, to a cruise ship cost which charges per passenger plus port fees. As a general rule of thumb whatever the advertised price of a cruise is, you must triple it to get the real price.
I think he forgot to mention, how short a typical trip on a cruise is and the longest a typical trip on a cruise ship is. That will be nice to know.
Hotel Hazbin season 2 confirmed to be on a cruise?!
$15/day for food is still more than if you buy it from the store.
I love TA cruises
Honestly, for the 24% of Americans who will never get the chance to get on a cruise line, a lot of those retired cruise ships should be converted into hotel rooms, so that everyone can have a fair share on getting on a active cruise line or a retired one.
Everyone deserves a chance. I don't care who you are, what you look like, what walk of life your from. I'm just saying.
I'm sorry if you disagree.
Wow. I've never spent more than a couple of dollars extra on top of the room price at a hotel.
Have I been doing this wrong?
Have you gone to a hotel in the same context you would be on a cruise ship? There is a huge difference between getting a room on a trip to a NYC to visit the whole city vs going to a "destination vacation" hotel. The destination ones are very similar to cruises in that they offer a lot of extra amenities while you are there.
aka a ferry.
More like ocean liner.
It's not a ferry. The purpose of a ferry is to get to a location. The purpose of a cruise is to stay on the ship most of the time.
I'm surprised there is no mention of the taxpayer-funded government subsidies and bailouts that the cruise industry has received that the hotel industry has not.
One time bailouts aren't really relevant to a discussion of the typical economics of a business model.
@@ReflexVEnot long term but short and middle term they would have needed to increase prices to not get bankrupt
@@tomlxyz Regardless a once in a generation event is irrelevant to the typical economics of the business model. Which was the topic of the video.
In Poland we had COVID-19 bail out to our hotel industry.
My wallet Friday at 2am, "I'm tired chief 😔"
When it sees me book a weeklong trip on the floating bar: 💀🥀⚰️
Cruises. When you want ALL the Noroviruses at once.
Old news
Me thinks being a captive consumer on a cruise ship probably means they make a couple bucks more off of you than a hotel does
hotels in america and Europe are no longer for everyone.... its only for the upper class....
Hotels always seemed to expensive to me for what they offer
labor tax is insane in the US, everything is vastly overpriced because of income taxes and then payroll taxes. on top of property taxes and then more and more and more taxes.. Leaving the US has made life liveable again. I spend about 15% what i used to spend in the states for my family.
Because everyone purchases nights in bulk.
scale and captive audiences
I'm wondering what you mean by "scale"? It seems like hotels are operating at "scale" by this point.
@@rburk121 i realize how this could be confusing. I meant scale as in the standardization of everything aboard a cruise ship. Obviously, that is not really the usual meaning of scale, but alas. The production facilities for building ships, the amount of patrons per ship, and the assembly line cooking systems are all examples of this scale.
@@goblinnnn thanks for replying and the information.
Make your luxury sevice cheap with this one simple trick! (Don't pay your workers)
Who said anything about luxury, like global wages (ugh) luxury super subjective.
@@shhewp8472 another rich westerner who only sees things in their little box. 18k/yr in SE asia is family of 7 lvl of money while having a cruise shit to travel the world on and eat great food with a gym, port calls, and fun.. i have a port in the city i live in and meet tons of the cruise workers, theyre more fun than the cruise guests. its ideal for 20-30 year olds.
The atmosphere in this video just feels absolutely right. I am happy to follow your journeys. Thank you!
They have outsourced labor; chef, room steward, sailing crew, entertainer. These staff are from cheaper countries and the wage they receive are a godsend for them
It's just double the minimum wage and it's very hard work. Women get painful varicose vein standing up so many hours cleaning rooms etc. Varicose is for life. Sometimes you need surgery for that. So no, it's not a godsend. It's a better salary. That is it
@@carlahaiduk1878 Some people will ignore/ rationalize the shortfalls of globalism till the day it's current incarnation falls apart. Idealism and a flag make a great vanity curtain
Unsurprising. TLDR they have a captive consumer they can soak for extra revenue, and they pay their staff almost nothing.
Ocean liners, cruise ships very interesting in an engineering/ operational sense- but you could never get me on one of those things for a multitude of reasons! Super scared of open bodies of water with no land in sight for one, flying over it is bad enough. Oceanliner Designs is a super interesting channel on this industry too- this is like horror genre to me but that's why I Iove it 🤣 You're my favorite found channel of 2024 so far keep it up! Reading up all the negative comments about this field concerning labor laws, pollution... 100% yea all that is the other reason you'll never get me on one of these things. Top comment: "If you think going on a cruise ship will let you see the world; then you are definitely the kind of person who likes to go on a cruise"
(4:30) why would you lump repairs, insurance and entertainment? What do they have to do with each other? And what the heck is other? You can lump repairs and insurance but entertainment should be its own thing. Cruises are the biggest waste of money. Get fatter with that nasty buffet food and come back home with covid if you’re not stranded at sea.
The answer is essentially cheap foreign labor
less government controls and rules to follow.
That is the #1 reason by a pile.
No min wage, no BS extra rules, the rules are created by the passengers (like we demand emergency floatation devices, or emergency boats. No taxes,. no sin tax, no property tax, no extra safety rules, like helmets, or GPS trackers on us lol
I wonder how hard it would be to convert a cruise ship to a battle ship. Not saying I would do that, just curious
There was the Satoshi - an attempt by some idealists to convert a cruise ship into a libertarian paradise, free from the tyranny of government oversight. It didn't go well.
Land is the most expensive part of a hotel.
Once you pay for taxes, tip...which is paying for their employees it's expensive. I don't like it anymore.
Jokes on them. As someone who lives in the Oceanics, everything is the other side of the world. :-P
Petri dish
Land costs a lot. Hotels are paying rent
TAXES and payrolls..... It is not that hard to understand.
Hotels are PER ROOM, NOT PER GUEST!!!
heck, that's cheaper then flying to Europe, if you have the time, why not just cruise to Europe instead of flying there.
Would be nice but the lack of one-way passenger demand makes it an infrequent opportunity.
Because there are no laws in international waters.
there are just no tax laws.
A ship still operates under the law of some country, although they can choose which one
Youre forgetting harbor fees
Too many hidden fees. Wi-Fi is very expensive too. In reality it is minimum $100+ per day.
Scale economics.... A hotel has a lot less rooms
I was at one hotel while I was a truck driver straddling the Nevada/Utah border (only hotel in town that was not also a casino). I get in and immediately notice the manager is "an immigrant" and the license on the wall is fake. He told me only two bed rooms were available and I took it as I had already been up 20 hours. The guest density of the hotel everywhere I looked proved that was a lie, and I google reviewed accordingly. That idiot must think he's making fast money scamming chumps when he gets zero returning customers and I honestly fear for that lone hispanic cleaning lady I saw.
Which city or hotel was this?
@@pedalesmexicaliprobably Wendover, UT
Cruise ships are a hell. Was forced on one for a wedding. The worst.
Hey!
Its a boomer thing i doubt the industry will grow past that generation.
So don’t pay workers = make a profit
Interesting video, but the voice over is terrible. I’ve been saying this for the past few years, cruise lines can charge less because of economies of scale and lower labor costs.
One word: Alcohol.
Looking for a really boring vacation? Get on a cruise ship.
But cruise ships are not at all less expensive for pollution, garbage, energy consumption. That newest ship, Icon, is a Mordor economy nightmare. The cost is dispensed into the air and ocean. The ocean should charge rent!
cheap costs??? low costs!!!
In America its legally faster, cheaper and easier to form your own private hate militia than your own small business.
Go figure that one out.
feels