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Originally posted by KarenS:
How about if Radisson just quit handing out compensation for missed ports, that might subsidize our drinking habits right there!

And yes, I would be willing to pay more for my cruise as well.
Using Frank's estimate of 60 cents per drink as a benchmark for call brands, let's assume it would cost Radisson an average of $2 per drink for super premium brands like Grey Goose and Tanqueray 10 (I think increasing the cost by roughly a factor of 3 is reasonable given the volume Radisson does - I remember seeing on Travel & Leisure that Voyager alone goes through 10,000 bottles of wine per month).

Figure that the average person would have 6 drinks outside dinner and cocktail parties per day. 42 drinks per 7 day period would mean an average cost of $84 or so per person. If you figure Radisson would want to make 60% margin, they'd need to charge $140 per person per 7 night period. Since the cruise fares are averaging about $4000 per person per 7 night period (assume this factors in, on a weighted average basis, the top suites), that comes out to something like a 4% surcharge. If you figure Radisson has about 54,000 person nights available per year across its fleet that are sold (that assumes a load factor of 70% on average where Voyager+Mariner+Navigator have 1600 person nights available running 48 weeks out of the year), you get about $7.5MM in revenue with a net of $4.5MM or so. So my question is this: is a 4% surcharge noticeable especially given the added conviviality it would create? And that would, based on this very crude back of the envelope calculation, still afford Radisson over $4MM in additional operating income (not revenue).