The True Cost of Building and Operating a Cruise Ship (And How They Make Money)

Cruise ships aren’t just big boats – they’re floating cities packed with restaurants, theatres, swimming pools, and thousands of cabins. Even the smaller ones are mind-blowing feats of engineering, designed to move entire resorts across the ocean.

Now, think about the cost of running a luxury hotel… then add the engines, fuel, navigation systems, and power needed to keep everything running smoothly at sea.

It’s easy to imagine it costs a fortune – but the real numbers behind building and operating a cruise ship might still surprise you. Let’s break them down.

The Cost of Building a Cruise Ship (They Aren’t Cheap!)

Cruise ships are no longer built for a few hundred million – today’s flagships routinely stretch well into the billion-dollar range.

While older vessels might have averaged around $500 million, modern builds now frequently fall between $1 billion and $2 billion USD, depending on size, amenities, and technology.

This table shows the world’s most expensive cruise ships in order:

Cruise Line	Ship	Cost to Build	Year Entered Service	Volume (GT tons)	Guest Capacity
Royal Caribbean	Icon of the Seas	$2 billion	2024	248,663	7,600
Royal Caribbean	Star of the Seas	$2 billion	2025	248,663	7,600
Royal Caribbean	Allure of the Seas	$1.43 billion	2010	225,280	5,412
Royal Caribbean	Utopia of the Seas	$1.35 billion	2024	236,860	6,788
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
Princess	Sun Princess	$1 billion	2024	177,882	5,189
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

At around $2 billion each, Icon of the Seas and Star of the Seas share the crown for the most expensive ship ever built.

In comparison, the cruise ships sailing in 2025 that cost the least amount of money to build are SeaDream Yacht Club‘s SeaDream I and SeaDream II. They were built in 1984 and 1985, respectively and cost a mere $35 million each.

An alternative comparison you can make is to look at the most expensive cruise ship per berth. Most cruise ships cost in the region of $100,000 to $350,000 per passenger to build, but there are a few anomalies below and above that range.

The most expensive cruise ship ever built, when you look at the cost per berth, is the luxury expedition cruise ship Hanseatic Nature, which is operated by Hapag-Lloyd for the German market. At $155 million, the ship wasn’t so expensive overall, but as she only has a capacity of 199 passengers, that works out at a huge $779,000 per person.

That’s a lot of cruises that the ship needed to operate to make back her money!

Of the cruise ships to have a maximum capacity of at least 1,000 guests, the most expensive are the Oceania Marina and Riviera, which each have a capacity for 1,258 passengers at a cost of $380,000 per person to build.

Suggested read: New ships for 2025

Running Costs of Cruise Ships

Of course, building a cruise ship is only the first step. Most of the cost of running a cruise line comes from operating and maintaining the ships.

The cost to operate a cruise ship varies depending on the size of the ship and where it’s sailing. As a guide, Royal Caribbean ships cost an average of $240 million per year to operate.

There are six main areas of expense for cruise ships:

1. Commission and Transportation

This is a broad area that covers everything to do with getting passengers onto a ship. So that’ll be the cost of producing tickets, any commission fees paid to travel agents, and the costs involved in using a port for embarkation and disembarkation.

Port costs are normally calculated based on the capacity and tonnage of a ship – a bigger ship means more passengers will be boarding, which in turn means more space is needed, more security staff must be hired or paid for longer, and even just the cost of power for the terminal goes up too.

2. Onboard Expenses

This area covers the cost of any facilities or features on the ship that cost money to run. So think entertainment, spas, shops and activities. These all need special insurance too, so that’s covered in this section of expenses. 

3. Payroll

A really simple one – the staff on the ship need to be paid. Again, depending on the size of the ship, this will vary pretty dramatically. Often, the larger ships will have as many crew as some smaller ships will have total passengers.

Suggested read: How Much Do Cruise Ship Workers Get Paid?

4. Food

Unsurprisingly, the cost of cruise ship food is high – cruise ships get through a lot of food, and so this expense gets its own category. There are all the upmarket meals that guests eat, including snacks and drinks, while the crew also needs to be fed while they’re on board.

5. Fuel

Fuel costs include the cost of buying the fuel, but also the cost of getting the fuel delivered to the ship and any costs involved with storing it. Fuel is expensive, and cruise ships spend huge amounts on it – more on that below.

6. Other Expenses

The final category of expenses covers ‘everything else’, such as general repairs and maintenance, and the cost of insuring the ship as a whole.

Fuel Is One of the Biggest Costs for Ships

The amount of fuel a cruise ship uses depends on its size and cruising speed. The largest ships, like Icon of the Seas, can burn through around 300 tonnes of fuel per day when sailing at full speed.

With today’s fuel prices averaging around $514 per tonne globally, that’s roughly $154,000 per day or about $56 million per year in fuel alone.

In comparison, large cruise ships typically use about 250 tonnes per day, equating to $128,500 daily or $47 million annually, mid-size ships average 125 tonnes per day, costing around $64,000 a day or $23 million a year and even smaller vessels still consume roughly 80 tonnes daily, which adds up to more than $15 million a year in fuel.

Despite prices easing from the $700–$750 per-tonne highs of recent years, fuel remains one of the single largest expenses in cruise operations – and stricter emissions rules mean those costs aren’t going anywhere.

Maintenance Matters Too – Ships Need a Lot of TLC

It’s been reported that around 7% of a cruise line’s revenue goes into ship maintenance. That averages out at around $19 million a year per cruise ship, although that figure fluctuates as cruise ships will do larger refurbishments every three to five years.

Ships go through a lot of wear and tear, but cruise lines don’t want guests to know about that. It’s important that everything is properly cleaned, repaired and maintained so that every guest gets the same high-quality experience.

This means there are ongoing costs to keep on top of smaller issues, and then larger refurbishments when features start to get tired and need an update.

These refurbishments often cost huge sums. Here are some examples:

Celebrity Revolution

Celebrity Cruises undertook a massive refurbishment programme towards the end of the 2010s, spending $500 million to modernise the entire fleet of nine ships and bring them in line with Celebrity Edge, at the time their newest ship. Suites and public areas were given an ‘epic makeover’ as part of the investment.

Norwegian Spirit

In one of the largest ever single-ship refurbishments, NCL spent $100 million to upgrade the Norwegian Spirit in 2020, carrying out a number of major enhancements.

I visited Norwegian Spirit just before the makeover, and she actually looked fine! A little dated, yes, but still in good condition, as you can see from my ship tour.

Regent Seven Seas Cruises

Regent spent $125 million to upgrade the Seven Seas Navigator, Seven Seas Voyager and Seven Seas Mariner from 2016 to 2017, following the launch of the Seven Seas Explorer. Compared to the $100 million NCL spent on one ship, it doesn’t seem like an incredible sum, but these ships were already exceptionally luxurious.

Royal Caribbean

Royal Caribbean operates an ongoing Amplification Programme, designed to modernise and enhance its older ships. As part of this initiative, Allure of the Seas is set to undergo a $100 million refit in April 2025, featuring new venues, redesigned suites, refreshed pool decks, updated soft furnishings, and a host of upgraded guest amenities.

Ships Still Make Money (of course)

So, given the huge costs of building and maintaining cruise ships, you may now be interested to know how much profit cruise lines are making.

Owning a cruise ship is profitable, providing the ships sail with enough passengers – likely around 70% capacity. While there are huge expenses involved, cruise fares are designed to cover these costs while still being affordable to passengers.

Even deals like drinks packages are carefully planned out based on the data that cruise ships record. They’ll look at how many drinks they’re selling on average by passenger, and then offer a package that covers that cost.

Passengers who drink a lot will probably get value for their money but there’ll be a lot of passengers who take out a drinks package but don’t consume their share – extra profit for the cruise line.

A decent chunk of profit comes from casinos, spas, speciality dining and guests booking suites. As a general rule, if you book an inside cabin and decline the drinks, speciality dining, spa services and casino, the cruise line will make a loss on your stay.

Cruise Ships vs. Hotels

Royal Caribbean Group made $1.8 billion in profit in 2019. Hilton Worldwide Holdings made $886 million in the same year.

So the Royal Caribbean made twice as much money, which is even more impressive when you consider that Hilton has almost a million rooms in its hotels, whereas Royal Caribbean has around 70,000 staterooms on its ships.

In the years since the global shutdown of 2020, many cruise lines lost money rather than being profitable, but year-on-year things are improving again.

By 2024, both industries had bounced back strongly. Royal Caribbean Group reported a $2.9 billion profit, while Hilton Worldwide earned $1.5 billion. The gap isn’t quite as dramatic as it was in 2019, but Royal Caribbean’s results are especially impressive given the billions it has invested in new ships like Icon of the Seas and Star of the Seas.

Per Ship, It’s a Decent Chunk of Change

A cruise ship typically generates $200–$300 million in revenue per year, with profits usually falling somewhere between $20 million and $40 million annually, depending on size and itinerary.

As stated above, in 2024, Royal Caribbean Group reported a record $2.9 billion profit across its brands – Royal Caribbean International, Celebrity Cruises, and Silversea. Divided across its 65 ships in operation, that’s an average profit of around $45 million per ship, showing just how strongly the industry has rebounded since the global shutdown.

Ships Will Eventually Need to Be Sold or Scrapped

On average, a cruise ship tends to last for around 30 years if properly maintained, and they will usually undergo some refurbishments or a refit during that time to keep them updated.

That can vary, though – some ships have a much longer lifespan. The longest-surviving cruise ship still sailing is the Sea Cloud, owned by Sea Cloud Cruises, operating as an independent cruise ship for up to 64 passengers. She was first built in 1931 as a private yacht and served during World War II as a weather ship for the US Navy.

Hebridean Princess is another ship that’s had a long life – she was first launched in 1964 as MV Columba, serving as a car ferry and Royal Mail ship. She now serves as a cruise ship for Hebridean Islands Cruises around the islands of Scotland.

Here are some notable ships that no longer operate, and their lifespan:

Cruise Line	Ship	Year Launched	Year Ended Service	Years Active	Notes
Celestyal	Celestyal Crystal	1980	2023	43	Started life as Viking Saga, extensively rebuilt after a 1990 dry-dock fire
Celestyal	Celestyal Olympia	1982	2023	41	Spent early career with Royal Caribbean as Song of America
Carnival/Century	Carnival Fascination/Century Harmony	1994	2022	30	Spent most of her life as Carnival Fascination for Carnival, until 2020.
Carnival	Carnival Sensation	1993	2022	31	After being retired in early 2022 by Carnival, she was scrapped immediately.
Fred.Olsen	Black Watch	1972	2022	50	Never returned to service after the global shutdown of 2020.
Fred.Olsen	Boudicca	1973	2021	48	Began life as Royal Viking Sky. Various operators including Princess from 1993-97.
NCL	Norwegian Star	1973	2021	48	Originally built for Phoenix Reisen, bought by NCL in 1997.
Cunard	Queen Elizabeth 2	1969	2008	39	Cunard’s longest-serving ship, now operating as a floating hotel in Dubai
P&O Cruises	Arcadia	1988	2021	33	P&O’s second Arcadia also served for Princess, and Cruise and Maritime
Royal Caribbean	Sovereign of the Seas	1988	2020	32	Served as MS Sovereign for Pullmantur Cruises from 2008 to 2020
Carnival	Mardi Gras	1972	2003	31	Carnival’s first ship was sold on in 1993
MSC Cruises	Melody	1982	2013	31	Sailed for MSC from 1997-2013. Started life as the Atlantic.
Carnival	Carnival Fantasy	1990	2020	30	Served its whole life with Carnival.
Celebrity Cruises	Horizon	1990	2020	30	Sold by Celebrity in 2005, served for Island, Pullmantur and CDF since
Royal Caribbean	Monarch of the Seas	1991	2020	29	Served as MS Monarch for Pullmantur Cruises from 2013 to 2020
Princess Cruises	Princess Patricia	1949	1978	29	Princess’ first ship when bought in 1965.
P&O Cruises	Arcadia	1954	1979	25	Built as a passenger ship originally, began cruises in the 1960s.

The Bottom Line

Phew – that was a lot of numbers! But it really shows just how staggering the costs (and profits) of cruising can be – from billion-dollar builds to the millions spent each year keeping these floating resorts shipshape.

Were those figures what you expected, or did they surprise you?

One thing’s certain: those numbers are only going up. As cruise lines return to full capacity and roll out ever more extravagant, high-tech ships, the price tags will climb right alongside the excitement.

It’s an incredible time to be a cruiser – with some truly jaw-dropping new ships on the horizon, each one pushing the limits of what’s possible at sea.

Related Posts:

• How Long Does It Take To Build A Cruise Ship?
• How Do Cruise Ships Get In The Water?
• How Big is a Cruise Ship?
• How Much Does a Cruise Cost?
• Cruise Industry Statistics and Facts