Modern cruise ships are like floating cities at sea.
The ships are a combination of hotel operations, restaurants, entertainment, bars, amusement park, and theatre all rolled into one.
But as you’ll soon learn, building a floating resort isn’t cheap.
How Much Does it Cost to Build a Cruise Ship?
Generally, modern cruise ships start at around $550 million to build. The most expensive cruise ships cost over $1 billion. Cruise ships with a passenger capacity of 2000-3000 cost around one billion dollars.
The cost of a cruise ship depends on many factors, including size, amenities, and decor.
Mainstream cruise lines such as Royal Caribbean, Carnival, Princess Cruises, MSC Cruises, and Norwegian Cruise Line often spend over $800 million on a new cruise ship.
The largest class of ships, Royal Caribbean’s Oasis class, costs between $1.2 million to $1.4 million per vessel.
In 2022, Carnival launched the Carnival Celebration at the cost of $1 billion. In the same year, Norwegian Prima debuted at the cost of around $850 million.
Another way to look at cost is by comparing the total cost to the number of beds (berths).
Cruise lines prefer this method of comparing the total cost to the number of births.
For example, the cost to build Oasis of the Seas was around $250,000/berth. And Carnival’s Mardi Gras was about $189,000/berth.
Luxury cruise ships are much smaller than mainstream cruise lines. And they cost less to build than a mega-ship.
However, a luxurious cruise ship has a higher cost-to-berth ratio.
That’s because luxury cruise lines have higher-end amenities and decor. These factors account for a higher relative cost than mainstream cruise lines.
Luxury cruise line Silversea’s Silver Dawn cost $380 million to build. With a 576 passenger capacity, the ship cost almost $660,000/berth.
Seven Seas Splendor had a $478 million cost to build. With a passenger capacity of 754, the ship costs $634,000/berth.
While the cost of building a new cruise ship varies, there’s no denying that they are costly construction projects.
The Most Expensive Cruise Ships Ever Built
Royal Caribbean’s Oasis of the Seas is the most expensive cruise ship ever built, which cost $1.4 billion. Oasis was built in 2009 and would have a cost to build of over $1.6 billion in today’s dollars when adjusted for inflation.
Royal Caribbean built two more ships after Oasis that cost $1.4 billion, Allure of the Seas and the Ovation of the Seas.
But, because they were built after the Oasis of the Seas, they cost less to build when adjusted for inflation. Because Oasis has a higher inflation-adjusted cost, it holds our top spot as the most expensive cruise ship ever built.
There are several Oasis-class ships larger than Oasis of the Seas. But, they are cheaper to build as there are fewer upfront costs as they share similar construction.
How Much Did the Titanic Cost to Build?
The Titanic was built at the Harland and Wolff shipyard in Belfast, Ireland, at the cost of $7.5 million. After accounting for inflation, the cost to build the Titanic is equal to $200 million in today’s dollars.
Construction on the Titanic began in 1909 and took approximately three years to complete.
Over 3,000 construction workers helped build the famous ship, which used a whopping 3 million rivets.
Why Are Cruise Ships so Expensive to Build?
A cruise ship’s price depends on various factors, including size, amenities, facilities, decor, raw material prices, transportation costs, and taxes.
At first glance, the high price tag sounds absurd. But, at over 1,000 feet in length and up to 20 stories tall, a lot of steel is required to build these floating cities at sea.
It takes approximately 12 to 24 months to build a new cruise ship. And the work begins years in advance before the first steel is laid.
Naval architects and engineers spend years designing every aspect of the ship to ensure its safe, reliable, and, most importantly, fun.
Not to mention cruise lines constantly compete to add new features and firsts to their ships. There’s a high price tag for the research and technology required to build the incredible activities we take for granted.
Why Do Cruise Lines Choose to Renovate Old Ships?
Cruise lines prefer renovating old ships because it’s much cheaper to renovate an existing vessel than build a new one.
With sky-high construction costs to design and build new cruise ships, cruise lines take great care when deciding whether to purchase or upgrade an existing vessel.
A renovation might consist of a simple paint job or a full-scale renovation.
Massive renovation projects reconstruct large sections of the ship and add new amenities like water slides, theatres, attractions, and fitness centers.
Royal Caribbean’s Royal Amplified program is an example of a full-blown renovation. Ships in the program received up to $165 million in upgrades.
When cruise lines do a good job renovating, passengers receive the same amenities that they’d expect to find on newer ships.
When we sailed on one of Royal’s amplified cruise ships, we felt like we were sailing on a brand new vessel.
And, we didn’t feel like we missed out on any of the latest thrills by sailing on an older vessel.
Cruise lines spend millions of dollars each year upgrading existing ships to stay ahead of their competition.
Cruise ships have a life span of around thirty years. And renovations ensure that cruise ships operate for as long as possible.
Environmental regulations update every year. It’s logical for cruise lines to refit an existing ship rather than replace it when the laws change.
The cruise industry is rapidly changing, and if it weren’t for the frequent updates, cruise lines would have difficulty attracting passengers to older vessels.
And if a ship isn’t popular, the cruise line is forced to remove the vessel from the fleet.
Frequent updates ensure cruise ships remain operational well into the future. And provide cruise lines with a good return on their investment.
When a cruise line is deciding whether to upgrade an existing ship or build a new vessel, they’ll examine their current fleet, passenger expectations, costs, and what their competitors offer.