Excellent question. The answer has two layers: what makes the most money for the cruise line and what makes the most money for the crew members.
Cruise lines operate on a “razor and blades” model. The base fare (the “razor”) often just covers operational costs. The real profit (the “blades”) comes from onboard spending, known as “onboard revenue.”
Here’s the hierarchy of profit generators, from highest to lowest:
1. Casino (Gaming): The undisputed champion of profit margins. The house always has a significant edge. Guests spend cash (or charge to their room) with no tangible product cost for the cruise line. It’s almost pure profit. On many ships, the casino is the single largest revenue generator per square foot.
2. Beverage Packages & Alcoholic Drinks: Alcohol has enormous markups (often 300-500% or more). Selling a beverage package for $70-$100 per day before sailing locks in revenue and encourages guests to drink more. Even non-alcoholic specialty coffees and bottled water have huge margins.
3. Shore Excursions: The cruise line acts as a middleman, taking a 50% or higher commission from local tour operators. They have a captive audience who values convenience and the guarantee that the ship won’t leave without them.
4. Specialty Dining & Upsell Food Items: The main dining room and buffet are “free,” but cover-charge restaurants (like steakhouses, sushi bars, or Italian tratt