How Much Does It Really Cost to Build and Run a Cruise Ship? And How Do They Make Money?

Cruise ships are seriously impressive. Even the smaller ones are packed with cabins, restaurants, entertainment venues, and all kinds of facilities; they’re basically floating resorts.

But unlike a hotel, cruise ships also need to move. That means huge engines, tons of fuel, and the ability to generate enough electricity to power everything onboard without being plugged into the grid.

So, how much does it all actually cost? Let’s dive into what it takes to build and operate a cruise ship and how they manage to turn a profit.

How Much Does It Cost to Build a Cruise Ship?

Let’s not sugar-coat it, cruise ships are expensive. The average ocean-going cruise ship sailing today costs around $496 million (£380 million) to build. But the largest and most complex ships? They can break the $1 billion mark with ease.

Some, like Royal Caribbean’s Icon of the Seas, are rumoured to cost closer to $2 billion – although the exact figure hasn’t been confirmed.

At the other end of the scale are ships like SeaDream I and SeaDream II. Built in the mid-1980s for just $35 million each, they show just how much cruise ship costs have skyrocketed over the years.

Another way to look at it is the cost per berth, or per passenger. Most cruise ships fall in the range of $100,000 to $350,000 per guest, though some fall well outside that.

If you measure by cost per passenger, the title of most expensive cruise ship ever built goes to Hanseatic Nature, a luxury expedition vessel from Hapag Lloyd Cruises. The ship cost $155 million to build, not outrageous by cruise ship standards, but with room for just 199 guests, that works out at a staggering $779,000 per person.

That’s a lot of cruises needed just to break even!

Among larger ships with over 1,000 passengers, the most expensive per berth are Oceania’s Marina and Riviera. Each carries 1,258 guests, with a build cost of $380,000 per person, still far above the industry average.

So, what does a cruise ship cost on average? Here’s a look at some of the most expensive cruise ships ever built, ranked by total cost:

Cruise Line	Ship	Cost to Build	Year Built	Volume (GT tons)	Guest Capacity
Royal Caribbean	Icon of the Seas	$2 billion (rumoured)	2024	250,800	7,600
Royal Caribbean	Allure of the Seas	$1.43 billion	2010	225,280	5,412
Royal Caribbean	Wonder of the Seas	$1.35 billion	2022	228,080	5,518
Royal Caribbean	Harmony Of The Seas	$1.35 billion	2016	227,000	6,780
Royal Caribbean	Symphony Of The Seas	$1.35 billion	2018	230,000	6,870
Royal Caribbean	Oasis of the Seas	$1.3 billion	2009	225,280	5,412
MSC	MSC Europa	$1.255 billion	2022	205,700	5,264
MSC	MSC World Europa	$1.255 billion	2022	205,700	5,264
NCL	Norwegian Epic	$1.2 billion	2010	155,900	4,228
Royal Caribbean	Ovation Of The Seas	$1.1 billion	2016	167,800	4,820
MSC	MSC Seascape	$1 billion	2022	169,500	4,540
MSC	MSC Seashore	$1 billion	2021	169,500	4,540
Royal Caribbean	Quantum of the Seas	$0.95 billion	2014	158,000	4,100
Royal Caribbean	Anthem of the Seas	$0.95 billion	2015	167,000	4,180
P&O	Arvia	$0.95 billion	2022	184,700	5,206
P&O	Iona	$0.95 billion	2021	184,000	5,206
Carnival	Mardi Gras	$0.95 billion	2020	180,800	5,282
Costa	Costa Toscana	$0.95 billion	2021	183,900	5,322
Carnival	Carnival Celebration	$0.95 billion	2022	183,900	5,374
MSC	MSC Bellissima	$0.95 billion	2019	171,600	5,700
MSC	MSC Meraviglia	$0.95 billion	2017	171,600	5,700
Costa	Costa Smeralda	$0.95 billion	2019	183,900	6,520
Disney	Disney Fantasy	$0.94 billion	2012	128,000	2,500
Royal Caribbean	Spectrum of the Seas	$0.94 billion	2019	168,670	4,246
NCL	Norwegian Bliss	$0.92 billion	2018	164,600	4,200
NCL	Norwegian Encore	$0.92 billion	2019	167,800	4,200
NCL	Norwegian Escape	$0.92 billion	2015	163,000	4,200
NCL	Norwegian Joy	$0.92 billion	2017	167,400	4,400
Celebrity	Celebrity Apex	$0.9 billion	2021	129,500	3,260
Celebrity	Celebrity Beyond	$0.9 billion	2022	129,500	3,276
Celebrity	Celebrity Edge	$0.9 billion	2018	129,500	3,370
Disney	Disney Dream	$0.9 billion	2011	128,000	2,500
Virgin Voyages	Scarlet Lady	$0.85 billion	2020	110,000	2,800
NCL	Norwegian Prima	$0.85 billion	2022	142,500	3,215
MSC	MSC Virtuosa	$0.85 billion	2021	181,541	4,810
MSC	MSC Euribia	$0.85 billion	2023	181,541	4,828
MSC	MSC Grandiosa	$0.85 billion	2019	181,541	4,888
NCL	Norwegian Breakaway	$0.84 billion	2013	144,000	4,000
Royal Caribbean	Independence of the Seas	$0.83 billion	2008	154,400	3,634
Cunard	Queen Mary 2	$0.8 billion	2004	151,400	2,592
Royal Caribbean	Freedom of the Seas	$0.8 billion	2006	154,400	3,634
Royal Caribbean	Liberty of the Seas	$0.8 billion	2007	154,400	3,634
Carnival	Carnival Horizon	$0.8 billion	2018	133,500	4,700
Carnival	Carnival Vista	$0.8 billion	2016	133,500	4,716
NCL	Norwegian Getaway	$0.78 billion	2014	143,500	4,000
Costa	Costa Firenze	$0.78 billion	2021	135,225	4,232
Carnival	Carnival Panorama	$0.78 billion	2019	133,500	4,700
Costa	Costa Venezia	$0.78 billion	2019	135,500	5,260
P&O	Britannia	$0.77 billion	2015	141,000	4,370
Princess	Majestic Princess	$0.76 billion	2017	143,000	3,560
Princess	Regal Princess	$0.76 billion	2014	141,000	3,600
Princess	Discovery Princess	$0.76 billion	2022	143,700	3,668
Princess	Enchanted Princess	$0.76 billion	2021	143,700	3,668
Princess	Sky Princess	$0.76 billion	2019	142,700	4,272
Royal Caribbean	Odyssey of the Seas	$0.75 billion	2021	169,300	4,284
MSC	MSC Seaside	$0.745 billion	2017	153,516	4,134
MSC	MSC Seaview	$0.745 billion	2018	153,516	4,134
Carnival	Carnival Dream	$0.74 billion	2009	130,000	3,646
Carnival	Carnival Breeze	$0.74 billion	2012	130,000	3,690
Carnival	Carnival Magic	$0.74 billion	2011	130,000	3,690
Princess	Royal Princess	$0.735 billion	2013	139,000	3,600

What Does It Cost to Run a Cruise Ship?

Building a cruise ship is just the beginning; the real expense comes with keeping it running. Operating costs vary by ship size and itinerary, but on average, Royal Caribbean spends around $240 million per ship per year.

There are six major cost areas cruise lines must cover. Here’s a breakdown:

1. Commission and Transportation

This category includes everything involved in getting passengers onboard. That means ticketing systems, commission for travel agents, and port fees during embarkation and disembarkation.

Port costs are especially hefty for larger ships. Charges are typically based on the ship’s size and passenger capacity. Bigger ships need more space, more staff, and more power to keep everything running smoothly at the terminal.

2. Onboard Expenses

Running the onboard experience isn’t cheap. Entertainment, spas, shops, and activities all come with their own running costs, not to mention the specialist insurance needed for many of them.

3. Crew Wages

This one’s straightforward: cruise staff need to be paid. Larger ships often have over 1,000 crew members, sometimes more than the total number of guests on smaller vessels. The payroll can be a major chunk of operating costs.

Recommended reading: How Much Do Cruise Ship Workers Really Earn? The Truth About Their Pay

4. Food and Drink

Cruise ships go through an astonishing amount of food, and not just for guests. Think three-course meals, midnight snacks, cocktails, buffets… then multiply that by thousands of people, every day. Crew meals are included too, so it’s no wonder this category stands on its own.

5. Other Expenses

There’s a catch-all category that includes repairs, maintenance, and insurance for the ship itself. Keeping a cruise ship safe, seaworthy, and in top condition is a constant (and costly) job.

6. Fuel

Lastly, fuel is one of the biggest ongoing expenses for any cruise ship. It’s not just about buying the fuel itself; there are also delivery and storage costs to consider. And given the size and distance these ships travel, the total spend can be eye-watering…

Fuel Is One of the Biggest Costs for Cruise Ships

Fuel is a massive expense for cruise lines, and how much a ship uses depends on its size and speed.

The biggest ships can burn through 250 tonnes of fuel per day, which at today’s prices is around $750 per tonne, which adds up to $187,500 per day. That’s over $68 million per year… for a single ship.

Smaller ships are a bit more efficient, typically using 100 to 150 tonnes daily. At an average of 125 tonnes, that’s still nearly $95,000 per day, or $34 million a year on fuel alone. Not exactly small change.

Cruise Ships Need a Lot of TLC

Maintaining a cruise ship is no small task, and it doesn’t come cheap. On average, cruise lines spend around 7% of their revenue on maintenance, which works out to roughly $19 million per ship per year.

That figure varies depending on the age and condition of the ship. Minor issues are dealt with on the go, but every few years (usually every three to five years) ships undergo major refurbishments to keep everything looking fresh and functioning smoothly.

After all, cruise lines don’t want guests noticing the wear and tear. Cleanliness, repair work, and regular updates are key to delivering that polished, five-star experience.

And those refurbishments? They can cost serious money. Take a look at some of the biggest examples below.

Big-Money Makeovers: Cruise Ship Refits

Refurbishments aren’t just about fresh paint, cruise lines spend tens or even hundreds of millions to bring their ships up to modern standards. Here are a few standout examples:

Regent Seven Seas Cruises

Between 2016 and 2017, Regent spent $125 million refurbishing Seven Seas Navigator, Voyager, and Mariner after launching the ultra-luxurious Seven Seas Explorer. While that might sound modest next to NCL’s $100 million spend on one ship, these Regent vessels were already top-tier, so less work was needed.

Celebrity Revolution

Towards the end of the 2010s, Celebrity Cruises launched a $500 million fleet-wide makeover across nine ships. The goal? To bring them up to the sleek, modern standard of Celebrity Edge. Suites and public areas were completely reimagined in what the line called an “epic makeover.”

Norwegian Spirit

In 2020, Norwegian Cruise Line poured $100 million into upgrading Norwegian Spirit, one of the biggest single-ship refurbishments ever. 

Cruise Ships Still Turn a Profit – Here’s How

With all those massive costs, you might be wondering: how do cruise lines actually make money?

Surprisingly, owning a cruise ship can be very profitable, as long as the ship sails at around 70% capacity or higher. Cruise fares are carefully calculated to cover the bulk of operating expenses while still appearing affordable to travellers.

Even drinks packages are part of the strategy. Cruise lines track how many drinks the average passenger consumes, then price packages to reflect that. Some guests will get their money’s worth, but many won’t, and that’s where the extra profit comes in.

The real moneymakers? Casinos, spas, speciality restaurants, and suite upgrades. If you’re cruising in an inside cabin and skipping the extras, the cruise line probably isn’t making much, or might even take a small loss on your fare.

Cruise Ships vs. Hotels: Who Makes More?

In 2019, Royal Caribbean Group reported $1.8 billion in profit, while Hilton Worldwide Holdings made $886 million. That means Royal Caribbean earned twice as much, despite having far fewer rooms, just 70,000 staterooms compared to Hilton’s nearly one million hotel rooms worldwide.

That’s a pretty striking difference, showing just how profitable cruise ships can be when sailing at full capacity.

Of course, things changed dramatically after the 2020 global shutdown. Many cruise lines operated at a loss for a while, but profits are starting to return as travel rebounds and bookings surge.

Per Ship, It’s a Pretty Decent Profit

On average, a cruise ship brings in $200 to $300 million in revenue each year. After expenses, the profit per ship typically ranges from $20 to $40 million annually.

To put that in perspective: in 2019, Royal Caribbean Group made $1.8 billion in profit. Spread across all the ships it operated at the time, including those from Royal Caribbean International, Celebrity Cruises, and Silversea, that works out to roughly $40 million profit per ship.

Not bad for a floating hotel that costs a billion dollars to build!

Eventually, Every Ship Reaches the End of the Line

Most cruise ships have a lifespan of around 30 years, assuming they’re well maintained and undergo a few refurbishments along the way. But some ships beat the odds and keep sailing well beyond that.

Take Sea Cloud, for example, currently the oldest cruise ship still in operation. Built in 1931 as a private yacht, she served in World War II and now hosts up to 64 passengers for luxury voyages under Sea Cloud Cruises.

Another long-serving ship is the Hebridean Princess. Launched in 1964 as a car ferry and Royal Mail ship (MV Columba), she’s now a boutique cruise ship exploring the Scottish isles.

Of course, not every ship is so lucky. Many are eventually sold, repurposed, or scrapped, especially when maintenance costs begin to outweigh their earning potential.

Cruise Line	Ship	Year Launched	Year Ended Service	Years Active
Carnival/Century	Carnival Fascination/Century Harmony	1994	2022	28
Carnival	Carnival Sensation	1993	2022	29
Fred.Olsen	Black Watch	1972	2022	50
Fred.Olsen	Boudicca	1973	2021	48
NCL	Norwegian Star	1973	2021	48
Cunard	Queen Elizabeth 2	1969	2008	39
P&O Cruises	Arcadia	1988	2021	33
Royal Caribbean	Sovereign of the Seas	1988	2020	32
Carnival	Mardi Gras	1972	2003	31
MSC Cruises	Melody	1982	2013	31
Carnival	Carnival Fantasy	1990	2020	30
Celebrity Cruises	Horizon	1990	2020	30
Royal Caribbean	Monarch of the Seas	1991	2020	29
Princess Cruises	Princess Patricia	1949	1978	29
P&O Cruises	Arcadia	1954	1979	25

The Bottom Line

That was a stat-packed ride, but it’s clear just how eye-watering the numbers are when it comes to cruise ships, from billion-dollar builds to tens of millions in annual running costs.

Did the figures surprise you? Whether bigger or smaller than expected, one thing’s for sure: the cruise industry runs on a massive scale.

And those numbers are only going up. As ships return to full capacity and new, feature-filled vessels hit the seas, we’re entering an exciting era for cruise fans, even if each new ship comes with an equally impressive price tag.

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