I just got back from 7 days on Royal Caribbeans Freedom of the Seas sailing the ports of the Western Caribbean. This blog is all about Money and Markets, so why am I talking about Cruise ships? Because if your play your cards correctly, its an amazing deal. Allow me to explain.
Faced with the idea of how to take a family of four on an amazing vacation, what are your options? Here are a few as I see it:
- Rent a beach house for $1500-$2500. That gets you lodging and some entertainment from the beach, but entertainment and food is all extra.
- Book a week at an all-inclusive resort in Mexico or the Caribbean. That will set you back about $800-$1000 per person including food (and maybe drinks) but before airfare. Some entertainment is included but it can get old quick.
- Rent a motor home and take a drive or go camping if you are the type to 'rough it' in the woods. This would not work for my family where the girls need clean rooms and their daily shower and enjoy getting cleaned up in the evening.
So what's the alternative? Pay about $1000 per person and and get yourself on a Cruise ship and get all this:
- 7 days of nearly unlimited food and non-alcoholic drinks
- World class evening entertainment including Broadway style shows, comedians, acrobats, musicians, you get the picture.
- You get to visit one or more tropical port destinations. No two days are the same and the scenery is always changing.
- Seven days at sea which is a life-changing experience in itself. Go to bed to the gentle rocking of the ship and wake up in a new place in the morning. How cool is that?
So where's the trading angle and why bring it up on this blog?
The simple fact is that the cruise line doesn't make a thin dime on all the basics, food, lodging, entertainment, etc. Their entire profit comes from everything they try to sell you once you get on the ship. And there is not shortage of profit centers once you get on board. So here's my advice for you first time or repeat cruisers:
- Alcohol is one area where they have you in a bind. You can't bring any alcohol on the ship from the ports. Drinks run about $6 for a domestic 16 oz beer or about $8 for frozen drinks. I enjoy a few beers as much as the next guy, so all you can do is keep your consumption down or spring for the $45/day unlimited beer/wine package.
- Gambling is a big profit center. Anyone who has studied the odds knows that gambling can be expensive entertainment. My advice is to avoid the casino. Ditto for bingo which is simply gambling for the less educated. Both of these areas are taxes on people who are bad at math.
- Speciality Restaurants - this might be worth it if you a looking for an extra-special dining experience for an extra $20-$25 per person. For me the regular food was more than adequate.
- Shore Excursions - this is an area where it depends. If you are just looking for a beautiful beach, you can walk or take a cab from many ports. Much of the time the excursions being offered from the ship are overpriced and not worth the cost. We did one excursion (at $87 each) which included 6 hours of beach, water sports, Wi-Fi and unlimited beer, wine and frozen drinks. You can bet I took advantage of the open bar.
- Wi-Fi and communications may be an issue. Once you get out to sea, cell services is charged at international roaming rates. The ship will charge as much as $20/hour or $187 for unlimited Wi-Fi for a week its best to plan to be incommunicado. Advice is to put those phones into airplane mode and keep them there. You may be able to find free or low priced ($10/day) Wi-Fi in the ports.
What are the downsides of cruising? You know I always tell it like it is, so here goes.
- Crowding can be an issue. There were times when the buffet area was so crowded, it was a challenge to find a table. I don't like crowds, but I just had to tolerate this.
- The same areas that were wall-to-wall people during peak times were beautiful and quiet after hours and waking up for your morning coffee and looking out at the ocean is amazing and well worth it
- Getting on and off the ship can be a hassle with long lines and some patience is required.
- You do have to get a bit dressed up, so bring some khakis, at least one button-down shirt and maybe a blazer.
- Finally health issues can be a concern. The cruise line does a great job here by encouraging frequent hand washing and providing alcohol hand sanitizers outside every dining area.
All told, I paid about $1000 a person each for my family of 4 (not counting airfare) and got away with only about $500 in extra charges. But I came away with some amazing memories, pictures and one very happy family.
So get out there and enjoy the high seas traders. Play your cards right and you will come out way ahead on this trade.
One additional thought here traders - if you go during off-peak times (Sept - Nov in North America) the prices are about half, $500 per person for a week. That's almost cheaper than staying at home. So take advantage of that if your schedule allows ..
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