In a world where ships can be purchased and sold at a huge profit margin, and the prices of a cruise line’s goods and services are determined by the whims of an arbitrator, it’s no wonder that many cruise ship companies make a living from the sales of their vessels.
A quick glance at the Cruise Ship Arbitration Rules of Conduct, or SCA, reveals that a cruise company may make a profit if the price of the cruise ship’s goods is high enough, but there’s a catch: the cruise line must also get a “substantial” share of the profit.
The cruises own the profit share, but only the actual profit itself.
The company must also pay out the ship’s insurance premiums.
And cruises also have to pay out to the cruise passengers for the time spent on the ship, whether they’re waiting in line, waiting in the galley, or just standing around waiting for the ship to arrive.
In other words, the cruise lines profits from the sale of a ship are often based on the passengers’ expectations of what it will cost them.
The cruise lines profit is not, however, directly linked to the cost of the goods or services sold on the cruise ships.
It’s instead dependent on the company’s ability to deliver on its promises.
In order to avoid being considered a “buyer,” a cruise lines goods and/or services must be “considered to be of a fair and reasonable standard, which will result in reasonable demand.”
This “fair and reasonable” standard requires a number of factors, including the goods’ quality and the company that’s selling them.
For example, a cruise liner’s “fair” standard might be based on a cruise operator’s promises to pay its customers fairly.
But the company selling the goods has to pay a hefty fee for this “fair standard,” which is then passed on to the customers.
The same “fair standards” can apply to any other product sold by the cruise company, as long as it meets the criteria for a “fair price” on the market.
Cruises often claim that their “fair prices” are based on “reasonable demand” when in fact, the cruises profits from selling goods at a premium are based entirely on how much people expect to pay.
The “fair, reasonable” standards, in turn, are designed to ensure that cruise lines are able to provide customers with “fairly priced” goods and experiences.
And since the SCA says that cruise companies have to take a percentage of the profits from their ships sale, these profits are passed on in the form of an insurance premium.
But cruises profit is dependent on its own “fair market price” as well, meaning that cruises prices are not determined by “reasonable” or “fair demand.”
What do cruise lines actually do?
A cruise ship is often marketed as “an adventure.”
The company promises to provide “tourism, adventure, and pleasure for a great price,” as well as “access to exotic locations and the best of the best.”
Cruises’ marketing also promises to be “easy, affordable, and fun,” with “a low-maintenance, modern cabin.”
Cruisers often advertise their “premium service,” saying that they offer “a full range of accommodations” that “give guests the most value for money.”
However, cruises usually don’t offer any amenities at all, leaving guests to “make do” with what they’ve got.
Many cruise lines also make it clear that the “tours” they offer are “exclusive” to their cruise line.
While cruise lines typically advertise that “all guests” on a ship “get to choose the activities” that they want to see, cruise lines don’t always provide any way to choose what’s included on a vessel.
Cruisers advertise that a ship is “always available for any request” but often leave the decision to guests.
When a cruise is available for a specific activity, such as taking in a show, cruisers often don’t make it easy to ask for something else.
A ship can be “fully booked” at any time, meaning guests can request other activities.
This “flexibility” is often advertised in terms of “more options” when cruise lines have “more” activities on their ships.
In fact, it could be argued that the best way to find out what activities a cruise will have is to go on one of those ships themselves.
For the sake of this article, I’ll refer to cruise ships “full schedule” when I refer to them as a cruise.
When asked how long a cruise can be, a “full-schedule” cruise ship typically says that the ship is available “every day of the week.”
A “full service” cruise will often say that the cruise can “always be booked.”
This includes weekends, holidays, and “special events” like “special sailings.”
“Full schedule” cruises often also