Have you ever wondered how much it costs to create a floating city?
Well in this article we’re going to take a deep dive into the financial aspect of constructing the Icon of the Seas.
Building a cruise ship is a colossal task comprised of engineering marvels and intricate decor.
From the first design sketches to the grand launch every step comes with a hefty price tag.
But just how hefty is this price and is its splurge justified?
Prepare yourself because the numbers just might surprise you.
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Icon Of The Seas Cost
The Icon of the Seas is set to become the world’s largest cruise ship courtesy of Royal Caribbean. It is scheduled to start sailing in 2024 after its completion in late 2023.
This majestic ship will boast several new features including an extensive waterpark a variety of neighborhoods and the largest pool at sea all adding to its estimated construction costs.
The cost to build the Icon of the Seas is estimated to be around $2 billion. This cost is justified given the cruise ship’s size features and capacity.
It has already proved to be a worthy investment for Royal Caribbean earning the title of the ‘best-selling product’ in the company’s 53-year history seeing massive demand and generating substantial booking revenue.
Building Expenses
Building a cruise ship is an expensive undertaking due to their immense size elaborate layout and luxurious amenities. The cost of constructing cruise ships has significantly increased over the years.
For instance cruise ships built in the early 1990s would cost around $300 million today while those built in the 2000s exceeded $500 million. Today most new cruise ships can cost over $1 billion especially those accommodating over 3000 passengers costing over $750 million.
Royal Caribbean’s Icon of the Seas is no exception. With 20 decks seven pools and weighing in at 250800 tonnes it is a titan amongst its peers.
Its construction began in 2021 in Finland a choice location due to lower labor and construction costs compared to the United States. Over 3000 workers are involved in its construction working tirelessly to bring this modern wonder to life.
By 2024 it is set to be the biggest cruise ship in the world.
Expensive Cruise Ships
Building a cruise ship is not a cheap endeavor. For instance constructing a ship in the 90s would set back the builder by around $300 million.
In the 2000s the average building cost of a cruise ship exceeded $500 million. With the growing demand for bigger ships with more amenities brace to cough up over a $1 billion today.
Building ships with the capacity to accommodate over 3000 passengers generally cost up to $750 million. Moreover Royal Caribbean’s Oasis Class cruise ships hold the record as the most expensive costing between $1.3 to $1.45 billion each.
Another notable expense factor is the market research that’s conducted before commencement of the construction. This helps to design the layout and amenities of cruise ships to cater to customer preferences.
Market Comparison
There is a great disparity in cost when you compare different segments of the market. Mass market ships for instance have a lower cost per berth in comparison to luxury ships.
The location where the ship is built also plays a role in the total cost. Europe for instance offers lower labor and construction costs making it an ideal location to build cruise ships.
Construction of the Icon of the Seas the flagship of the Royal Caribbean set to be the biggest cruise ship in the world upon its launch in 2024 is also taking place here. Over 3000 workers have been employed in its construction.
The United States on the other hand has higher labor and material costs thus making it a less cost-effective location for ship construction.
Royal Caribbean’s Icon of the Seas is projected to cost around a whopping $2 billion and refurbishing older ships has been a cost-effective way of improving them to increase demand and revenue.
However the initial hefty investment pays off when you consider the revenue that these cruise ships brings in. For instance The Ultimate Family Townhouse the highest-end cabin on the Icon of the Seas is projected to generate a staggering $2.1 million in booking revenue for 2024 alone.
US Shipbuilding
The great Icon of the Seas shines a spotlight on the global shipbuilding industry and helps us appreciate the impressive feat of engineering and design that each of these vessels represents. This soon-to-be largest cruise ship launched in 2024 is a prime example of what can be achieved with modern shipbuilding techniques expertise cost management and a workforce of over 3000 people.
Building a luxurious cruise ship like Icon of the Seas entails high construction costs often exceeding a staggering $1 billion. The ship which is expected to accommodate over 8000 passengers and workers is likely to have cost upwards of $2 billion taking into account the extensive market research labor costs and advanced ship’s technologies utilized.
The shipbuilding process usually takes 12-18 months demanding a broad assortment of skills and an enormous number of man-hours. However building costs can differ vastly based on the location of the shipyard industry.
In Europe where Icon of the Seas construction began in 2021 labor and material costs tend to be lower making it an ideal spot for constructing gigantic floating cities like this one.
It is worth noting that ship refurbishment programs are commonly undertaken to modernize older vessels and stimulate demand. This strategy is generally more cost-effective though the allure of brand new features and amenities often draw cruise companies to embark on the ambitious pursuit of building new ships.
The US in contrast is faced with higher labor and material costs making the building process less affordable compared to European counterparts. Even so it’s not just the cost to build a cruise ship that matters but the ability to attract higher-end cruise passengers and secure a good return on investment.
Icon of the Seas is a testament to the grandeur that the modern shipbuilding industry can achieve a vessel that represents a significant expenditure but also a potentially lucrative endeavor for Royal Caribbean.
