Video: Cruise Critic's Carolyn Spencer Brown Talks Biz with Peter Greenberg

Last night many cruise fans and business executives alike tuned to CNBC to watch Peter Greenberg's documentary, Cruise Inc: Big Money on the High Seas.

The show brought to light just how mass market cruise lines, like Norwegian Cruise Line, make money.

How they part a consumer from his money wasn't so surprising:

• onboard liquor sales
• specialty restaurant fees
• shore excursions
• gift shop purchases
• spa treatments
• etc.

What was a surprise is the margins NCL is working with. According to the documentary, a one-week cruise aboard the Norwegian Pearl must be booked at 104 percent capacity to make the desired profit margin for NCL! I find that astounding and it must be quite a challenge these days to fill ships to that capacity (basically, at least two people in every room with families adding third and fourth berths to reach the magic 104 percent).

CNBC has created a website for the documentary and I encourage you to check out the extra information that's posted. It's all quite interesting.

Also, don't miss the video interview Peter Greenberg conducted with Cruise Critic editor-in-chief Carolyn Spencer Brown. She shares her concerns about any cruise line that offers cut-rate cruise fares and then piggybacks other offers of shipboard credit on top. Those offers do cause some head scratching. With pricing so low, can these lines reach their profit margins?

Watch this video here.



While this documentary is very interesting, it doesn't shed light on the business model used by the all-inclusive luxury lines like Regent Seven Seas or Silversea. While I'm sure an emphasis is still placed on shipboard charges (spa, shore excursions, laundry, gift shop purchases, etc.), it's probable that the luxe lines carefully watch their costs when it comes to food provisions and wine/alcohol supplies.

It's been a challenge for all cruise lines to fill their staterooms lately and I do wonder about the future when all of these new ships enter service. Will there be too much capacity to fill? Time will tell.

For more luxury cruise news and unbiased luxury cruise reviews, please visit LuxuryCruiseBible.com.