It can be achieved with enough startup money, planning, and hard work, if you want to own your own cruise line.While your own cruise business may not grow to the level of the big players, like Carnival or Royal Caribbean, you can still create a smaller line that offers personalized service or different routes.
Step 1: Gain experience.
If you want to start a cruise line, you don't need to have worked in the boating industry, but you will need an intimate knowledge of the inner workings of cruise ships.A high-ranking employee aboard a cruise ship may be able to give you a good amount of experience.If you want to start your own line, it's a good idea to work as a captain, entertainment coordinator, guest services manager, or other important position on another ship.
Step 2: Do you want to develop your cruise line on your own or with a syndicate?
It's a good idea to research each option thoroughly to ensure that the decision you reach is the right one given your expertise, financial flexibility, and previous experience.It will be expensive and require trial and error to develop a cruise line on your own.The benefit of working with a syndicate is that you can have partners that share in your business and also share the risk and responsibility.
Step 3: You should study the market and your competition.
You can outline an unfulfilled niche for your cruise line by learning about the industry and your competitors.The cruise industry is very competitive and this is the only way to make money.What will be different about your cruise line that will draw customers?Think about going to unusual locations as a way to differentiate yourself, or offering very luxurious travel, unique experiences or entertainment.Carnival and Royal Caribbean are powerful and established companies that should not be taken on directly.There are a number of smaller companies that serve less than 10,000 passengers a year.You could compete against these companies more easily than against the larger ones.
Step 4: Take into account routes and destinations.
Think about what cruise routes you plan to use and what permission you need to navigate them, as well as what competition you'll be up against on the same routes.You need to think about where you will be sailing and what it will mean for your customers.Market penetration for cruise lines is relatively low outside the United States, which could offer an opportunity for easy growth in an unexplored market, like Asia or the Middle East.It would be cheaper to start a mini-cruise ship line.It would simplify your navigation restrictions and allow you to access more remote locations.
Step 5: Startup costs can be estimated.
Purchasing or building your ships will be your primary expense when starting a cruise line.The cost depends on what size cruise line you are considering.This can vary from a small fleet of one or two small cruise boats that can take a group up to a full-size liner.A small cruise boat with room for a small group or family is a sensible beginning for most people.Over time, this will allow you to build up your business and prove to yourself and others that it can work.Even a small cruise ship with 100 berths will cost about $50 million.For the smallest ship class, a full-sized cruise ship will cost at least $150 million.The largest ships cost over a billion dollars.Specific ship needs will affect your cost.Do you need to build a new boat or ship from scratch?Buying a ready-made cruise boat will cost less than buying one from scratch.You will need operating capital to pay dock fees, pay employees, stock the ship with supplies, and for other ongoing expenses.
Step 6: You could charter your cruise ships instead of buying them.
Although still pricey, chartering an existing cruise ship is a cheaper option.You can charter a ship for your own cruise as you please.Some organizations have charter cruise ships for special interest events.The cost of chartering is still high.A three-day charter for one of Royal Caribbean's ships can cost over $900,000.Longer trips can cost up to $6 million.To cover these costs, you will have to fill the boat with customers and find a way to earn back your charter fee, plus a profit for yourself, over the course of the trip.
Step 7: A business plan can be developed.
Before you go to the bank or look for other sources of financing, you should have a business plan drawn up.Your source of convincing others that this project is a go-ahead is it.As part of developing your business plan, address all previous steps, including your own experience, your competition, the state of the market, and your funding needs.The cruise line's name needs to be spelled out.The same way that your offerings differentiate you from your competition, this should do the same for you.The type of cruise line you are starting should be reflected in your name.You will provide activities on your cruise.For example, whale-sighting cruising, on-board activities, visiting cities or islands, etc.You have a pricing structure.Cruise lines make most of their money from on-board purchases like food and alcohol.In 2015, the average price of a cruise ticket was $1,350, while customers spent an average of $429 on on-board purchases.Crew and fuel costs are eaten up by the ticket price.Growth and earnings projections.
Step 8: Decide where to register your vessels.
Find out what licenses you need.If you want to register in a developing country, consider doing so in the United States.
Step 9: There is a possibility that this may be the case.
Determine what type of financing is best for your project.Other sources of financing include the bank, other major lenders, venture capitalists, angel investors and partnerships.You can finance a business using your savings.Most people can't come up with this type of money.If you qualify for a small business loan, it can be an effective solution for funding your business.You will need experience, a sound business plan, and good personal credit to do that.SBA offers guarantees on small business loans that can help you get the loan you need.The International Trade and Export Working Capital loan has a limit of $5 million.The other SBA programs are subject to strict scrutiny.You must find a lender who is familiar with the industry and willing to make loans, as the SBA program is not a source of capital itself.Angel investors are more difficult to get but can be a great source of capital and advice, as the angel is usually an experience business person.Angels offer start up funds in exchange for equity in your company.
Step 10: You have to get your ships.
You will need to purchase or charter your ships when you have financing in place.If you want to negotiate a price and go through with the sale, you should search online at sites like YachtWorld or Ships4Ever.com.There are many sites that offer listings for smaller boats.
Step 11: The ships should be repaired as needed.
If you find a good deal on a used ship, that means that you will have to make repairs to get the ship ready for passengers.An engineer should be hired to make sure that the boat is sound and seaworthy.Modifications to your ship can add more amenities, cabin features, shops, or communal spaces.Buy furniture and appliances for cabins.
Step 12: It's a good time to hire employees.
Depending on the size of your cruise ship and overall operation, you will need a variety of crew and employees.You will need crewmen for the ship to run the engines and fix anything that breaks.Administrative assistants will probably be needed to handle bookings and billing.You will need to hire food service personnel and maids to cook and clean.You will need employees to provide entertainment, such as musicians or tour guides.Many of these roles can be filled by you if you run a small operation.
Step 13: Purchase insurance coverage.
General liability insurance is one of the most important types of insurance.In the event that you are sued by a customer who was injured on one of your cruises, this will cover your legal expenses, court fees, and settlements.It is possible to avoid being financially ruined by one bad experience.In case of a fire, you may need insurance to cover potential losses of property.To inquire about this type of coverage, contact major insurers.It's best to get the highest insurance coverage amount you can afford, because customers can file lawsuits for any number of reasons.Passengers can file lawsuits over rough seas.
Step 14: Obtain the required licenses.
You will need licenses to operate both a business and a cruise line.Depending on where you are registered, the licenses will be different.You'll need to get clearance from a part authority or local government if you're going to stop.Because of the complexity of these permits and dealing with local authorities, it may be wise to hire a consultant.If you are not cruising in international waters, you will need to get liquor licenses for the relevant regions.In all cases, contact the relevant authority.To inquire about license requirements.You have to follow the CDC's twice-annual health inspections due to the outbreak of diseases on cruise ships.It is also a form of liability.
Step 15: It's your first cruise.
You have to attract customers to fill your first voyage now that you're ready to sail.If you want to reach the right customers, you need to set a date.You should consider who you want to attract first.Are you looking for young people?Do you want families, couples, or single people on the plane?The nature of the cruise you are offering will affect your advertising and media choices.Many cruise lines are trying to attract the younger generation by focusing on adventure and destinations instead of gambling and shopping.
Step 16: Make sure you double check your crew and operations.
Before you leave, make sure to check your ship's systems, crew members, and services.Make sure everything is running smoothly.If you want to keep running your cruise line for a long time, you need to be ready for your first voyage.