Episode Details
Back to EpisodesHarshman Travel Agency Radio show detailing expanding cruises and Star of the Seas with Peter Mingils
Description
Harshman Travel Agency owners Pam Harshman and Ron Harshman discusses the Star of the Seas Maiden voyage and Cruise ship updates.
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On this episode Ron Harshman gives us plenty of positive updates inside the cruise industry. Peter asked about the Royal Caribbean
The Star of the Seas, operated by Royal Caribbean International, is a flagship vessel of the Icon Class, designed to deliver a premium family vacation experience. Its business model is centered around generating revenue through a combination of cruise fares, onboard spending, strategic partnerships, and operational efficiencies, while leveraging innovative ship design and sustainability initiatives to attract a broad customer base. Below is a detailed breakdown of the business model, tailored to the Star of the Seas and informed by Royal Caribbean's broader operational strategy, with specific references to the ship where applicable.
1. Revenue from Cruise Fares
- Primary Source: The core revenue stream comes from ticket sales for cruise fares, which cover accommodations, dining, entertainment, and access to onboard amenities. The Star of the Seas, launching in August 2025 from Port Canaveral, Florida, offers weeklong Eastern and Western Caribbean itineraries, with shorter three-night cruises to Perfect Day at CocoCay starting at $839 per person and seven-night cruises starting around $1,108 per person.
- Pricing Strategy: Royal Caribbean employs a tiered pricing model to cater to diverse budgets, offering everything from affordable interior cabins to luxury suites. The Star of the Seas, with 2,805 staterooms and capacity for 5,610 passengers at double occupancy (up to 7,600 at maximum), targets families, couples, and adventure-seekers with varied pricing options.
- Value Proposition: The ship's "neighborhood” concept (e.g., Thrill Island, Chill Island, Surfside, AquaDome) and unique features like the largest waterpark at sea, six record-breaking waterslides, and the Crown's Edge skywalk create a differentiated, high-value vacation experience, justifying premium pricing.
- Itinerary Appeal: Stops at Royal Caribbean's private island, Perfect Day at CocoCay, and plans for Perfect Day Mexico (2027) enhance the appeal of itineraries, driving demand. The ship's ability to offer both thrilling and relaxing experiences caters to multigenerational travelers, a key demographic.
2. Onboard Spending
- Ancillary Revenue: A significant portion of revenue comes from onboard purchases, as passengers spend on additional services and amenities not included in the base fare. These include:
- Dining: Specialty restaurants like the Lincoln Park Supper Club (with live entertainment in a 1930s Chicago-inspired setting) and AquaDome Market (offering diverse cuisines like pulled pork, pad Thai, and empanadas) charge extra for premium dining experiences.
- Beverages: Drink packages, specialty cocktails at venues like The Lime & Coconut, and swim-up bars encourage spending.
- Activities: Paid experiences such as the Crown's Edge skywalk, spa services, and premium shore excursions (e.g., cabanas at Perfect Day at CocoCay) add to revenue.
- Retail and Entertainment: Onboard shops, casino gambling, and premium entertainment options (e.g., shows at the AquaTheater) contribute to ancillary income.
- Upselling