Professor Elam

Here is another 2006 idea trying to, literally, float in the New Normal. Royal Caribbean 

commissioned this $1.5 Billion cruise ship. Yep, 6300 passengers which is about the entire population of well, Crane, Texas. the smoke stack retract so it could fit under the bridge outside the Danish shipyard where it was built. 

Cost students will recall that break even is fixed cost divided by contribution margin per passenger in this case. I think I will pass on being a passenger, imagine the lifeboat drill?  This ship is, are you ready, five times the size of the titanic. Good think it will be floating in the warm waters of the Caribbean…

Clearly RC thought they could book enough passengers to hit fixed cost on each trip and rake in money from the rest. This is rather like that Airbus plane that seats 600, I will pass on that one too….