4 ms·

back of envelope: 450k man hours = 225 people full time, 1 year @ ~ 70k a year = 15m They added 34 more suites * 2 people * $1000 per person per cruise week =

back of envelope: 450k man hours = 225 people full time, 1 year @ ~ 70k a year = 15m They added 34 more suites * 2 people * $1000 per person per cruise week = 78000 more per trip ~200 trips to pay back the cost - not sure what the utilization of cruise ships is usually, but if they do 40 packed cruises a year, they're at a ~5 year ROI. I guess I forgot the cost of the new section itself, but I'm going to guess all in, < 10 years ROI?

CoastalCoder 5y ago
Don't forget the opportunity cost of the ship being out of commission during that work.
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- ansible 5y ago
  Though it is quite possible the ship was due for refit anyway.
alexpotato 5y ago
They key thing here would be to factor in all of the costs for a new ship e.g. - Design time - building time - "fit and finish" time etc - cost for all of the above It's very possible the cost (or even ROI) would be larger(longer) than your calculations.
- resonantjacket5 5y ago
  I think it was more of they were already going to refurbish the ship. I doubt extending a brand new ship would make any sense.
khc 5y ago
if you have more passengers, you will also have more cost to service these passengers per trip.
throwaway201606 5y ago
The ship is a luxury cruise liner: the article, somewhere close to the bottom, says "Pricing for the 7-day cruise starts at $5,600 per person" that 'starts" in the last part is kinda-important ... I took a look and they have 1 week cruises for $22,000 So, its really more like 34 more suites * 2 people * $5600 per person per cruise week = $380,000 more per trip at the low end 34 more suites * 2 people * $22000 per person per cruise week which is just over $1.4M more per trip at the high end Assuming $15M from the 450k man-hours and $23M in materials for the retro-fit, (seriously over-estimating materials because I want the nice easy math that goes with a $38M total), it would be: - 100 cruise-weeks or about 2 years to re-coup at the low end - ~30 cruises (not cruise weeks, literally cruises ) to re-coup at the high end
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CoastalCoder 5y ago

Don't forget the opportunity cost of the ship being out of commission during that work.

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ansible 5y ago
Though it is quite possible the ship was due for refit anyway.

alexpotato 5y ago

They key thing here would be to factor in all of the costs for a new ship e.g. - Design time - building time - "fit and finish" time etc - cost for all of the above It's very possible the cost (or even ROI) would be larger(longer) than your calculations.

resonantjacket5 5y ago
I think it was more of they were already going to refurbish the ship. I doubt extending a brand new ship would make any sense.

khc 5y ago

if you have more passengers, you will also have more cost to service these passengers per trip.

throwaway201606 5y ago

The ship is a luxury cruise liner: the article, somewhere close to the bottom, says "Pricing for the 7-day cruise starts at $5,600 per person" that 'starts" in the last part is kinda-important ... I took a look and they have 1 week cruises for $22,000 So, its really more like 34 more suites * 2 people * $5600 per person per cruise week = $380,000 more per trip at the low end 34 more suites * 2 people * $22000 per person per cruise week which is just over $1.4M more per trip at the high end Assuming $15M from the 450k man-hours and $23M in materials for the retro-fit, (seriously over-estimating materials because I want the nice easy math that goes with a $38M total), it would be: - 100 cruise-weeks or about 2 years to re-coup at the low end - ~30 cruises (not cruise weeks, literally cruises ) to re-coup at the high end

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