How much does it cost to build modern cruise ships? Many people, whether they are cruisers or not, are surprised to learn that it costs over US$500 million to get a cruise ship up and operating, with the most elaborate ships having a price tag of up to $2 billion.
In This Article:
- How Much Does It Cost to Build a Cruise Ship?
- Real Examples of Cruise Ship Building Costs
- Why Do Cruise Ships Cost So Much to Build?
- Factors that Affect Build Cost
- Where Are Cruise Ships Built?
- Refurbishing vs. Building New
- What Is the Most Expensive Cruise Ship to Build?
- Comparing Cost Per Passenger
- How Much Does It Cost to Run a Cruise Ship for One Day?
- How Much Does a Cruise Ship Make Each Cruise?
- What’s the Bottom Line?
How Much Does It Cost to Build a Cruise Ship?
The exact cost of building a cruise ship varies depending on the cruise line, the ship size, the features of the ship, and other factors.
Many Carnival and Princess ships cost about three-quarters of a billion dollars, while Royal Caribbean’s newest ships, Icon of the Seas and Star of the Seas, cost about $2 billion.
Real Examples of Cruise Ship Building Costs
| Ship Name | Cruise Line | Cost to Build | Passenger Capacity (Double Occupancy) | Launch Year |
|---|---|---|---|---|
| Star of the Seas | Royal Caribbean | $2 billion | 5,610 | 2025 |
| Wonder of the Seas | Royal Caribbean | $1.35 billion | 5,734 | 2022 |
| Carnival Celebration | Carnival | $0.95 billion | 5,374 | 2022 |
| Celebrity Edge | Celebrity Cruises | $0.9 billion | 2,918 | 2018 |
As one of the newest, largest, and most elaborate ships in operation, it’s not surprising that Star of the Seas has such a high price tag. It’s part of Royal Caribbean’s Icon Class of ships, which means more space, more entertainment, and more advanced technology.
In comparison, Carnival’s Celebration cost about half of what Star of the Seas cost to build. That doesn’t mean it isn’t a great ship. It’s arguably Carnival’s most fun ship, which is saying a lot since the cruise line is known for being fun.
One reason for this is BOLT, the world’s first rollercoaster at sea. Although it’s been around for a few years now, I still consider it one of the greatest thrills you can experience at sea. Celebration also features six themed zones, further enhancing its theme park atmosphere.
Why Do Cruise Ships Cost So Much to Build?
Many factors affect the cost of building a cruise ship.
First and foremost, the ship must be safe. This includes a design capable of withstanding harsh ocean conditions and advanced navigation and emergency systems. Ships must comply with strict international safety regulations.
Everything from fire-suppression equipment to lifeboat capacity must meet rigorous standards. All of these things take time and expense in the construction process, which increases the cost.
Additionally, some features that add to the cost are not necessary for safety but make a ship more marketable.
Larger ships with complex features and state-of-the-art technology cost more than smaller, more basic ships. Whether you’re a frequent cruiser or you’re planning a once-in-a-lifetime trip, many people want the best of the best.
Factors that Affect Build Cost
Several specific things affect the building cost of a cruise ship, including:
Size and Gross Tonnage
Larger ships require more steel, materials, and structural work, which drives up both raw costs and build time.
Labor Costs and Shipyard Location
Wages and expertise vary by country, so building in a high-cost or highly specialized yard significantly raises overall expenses.
Propulsion Systems and Engineering
High-performance engines, propulsion units like azipods, and other advanced mechanical systems require specialized design, integration, and testing, which significantly increases construction costs.
Regulatory Compliance and Safety Features
Meeting international safety, fire, and evacuation standards, including having enough lifeboats, requires expensive systems, redundancies, and certifications.
Passenger Capacity
Increasing passenger capacity requires more cabins, larger public spaces, and more amenities, driving up material and labor costs.
Onboard Amenities
Things like dining options, pools, theaters, and other onboard features add to the cost of building a ship. Each requires special design, adding millions in construction costs.
And for really over-the-top amenities, such as Carnival’s BOLT rollercoaster or Royal Caribbean’s Ultimate Abyss 10-deck high stainless steel slide, you’re looking at an even higher cost.
It’s all well worth the expense, though. Thrills and fun activities like these are often the deciding factor for many cruisers seeking a unique experience.
Environmental Technology
The cleanest, most advanced technology and alternative-fuel systems are costly to install and integrate. However, they’re essential for emissions compliance and are increasing in popularity among cruisers.
Some ships have switched to LNG (liquefied natural gas), a cleaner-burning fuel that’s cooled into a liquid so ships can store and use it more efficiently.
Worth Reading: How Much Does it Cost to Fuel a Cruise Ship?
All of these factors play a role in the final cost of cruise ship construction.
Where Are Cruise Ships Built?
The world’s major shipyards focusing on cruise ship construction are located in Europe.
The best-known shipyards include Meyer Turku (Finland), Fincantieri (Italy), Meyer Werft (Germany), and Chantiers de l’Atlantique (France). These regions dominate the industry due to their highly skilled labor force and decades of experience building ships.
Additionally, the shipyards have the infrastructure needed to handle the massive components and advanced technology that go into cruise ship construction.
Refurbishing vs. Building New
Updating an older ship is one way that cruise lines can offer the most up-to-date amenities and safety features on a ship without starting from scratch. In many cases, refurbishing an older ship costs less than building new, but it isn’t always a worthwhile investment.
For example, a smaller ship from budget-friendly cruise lines might not offer an ROI with updates due to its smaller capacity. And if a ship is too old or damaged, structural improvements could cost nearly as much as building from scratch.
On the other hand, updates focused on interior improvements or upgraded technology on a ship with a sound structure are a great way to bring new life to an older ship.
It can cost anywhere from $80 to $150 million to refurbish a large cruise ship, which represents just 20-30% of the new construction cost while extending its service life by up to 15 years.
The average cruise ship sails for a couple of decades. Most become less popular later in their lifespan, but updates can increase their appeal with refreshed amenities and improved comfort.
What Is the Most Expensive Cruise Ship to Build?
Royal Caribbean sails the two most expensive cruise ships built to date. Both the Icon of the Seas, launched in 2024, and the Star of the Seas, launched in 2025, cost $2 billion to make. Each has a double occupancy capacity of 5,610 passengers.
Star of the Seas, in particular, offers an unforgettable cruise experience that includes 20 decks of activities. It’s divided into themed “neighborhoods,” including Thrill Island waterpark and Chill Island pools and swim-up bars, as well as family-friendly and adults-only sections.
Entertainment on board includes Broadway-quality productions, ice shows, and the AquaDome, where you can see aqua-theater performances. The Star of the Seas runs on cleaner-burning LNG fuel and uses an advanced AI system to create a safer, less wasteful experience.
Comparing Cost Per Passenger
It’s not surprising that some of the most expensive ships built are also some of the largest mega-ships in operation. However, many mid-size and expedition ships have a high cost per passenger/berth because they sail with fewer passengers on board.
Most ships cost in the range of about $100,000 to $350,000 per passenger to build.
For example, the Star of the Seas‘ per-passenger cost is approximately $263,000. The original cost of building was US$2 billion, and the ship holds more than 5,610 passengers at double occupancy.
However, the smaller luxury expedition vessel Hanseatic Nature, operated by Hapag-Lloyd, had a total cost of $155 million to build, but its small capacity of just 199 guests means the cost is $779,000 per passenger.
These per-passenger estimates are approximate and based on the original cost of building the ships. Another way of looking at per-berth cost is to evaluate the current values of ships in a cruise line and compare that to the passenger value.
For example, according to Royal Caribbean’s annual report, its current fleet is carried on its books at $39.3 billion. When you divide that value by the company’s published capacity of 94,100 berths, you get an estimated $418,000 per berth.
Remember, this is based on book value (not original construction cost) and includes depreciation, so it doesn’t exactly match “build cost per passenger,” but it’s a useful ballpark estimate.
Read Also: World’s Most Expensive Cruise in 2027 to Cost Up to $839,999 Per Guest
Larger ships that cost more to build might actually be less expensive in the long run as cruise companies make back their investment faster than with smaller capacity ships.
How Much Does It Cost to Run a Cruise Ship for One Day?
The daily operating cost of a cruise ship is based on several factors, including:
Fuel and Energy
Fuel prices account for approximately 9% of a ship’s operating cost. In addition to the cost of buying fuel, cruise ships must also account for transporting, delivering, and storing the fuel.
In many cases, fuel is one of, if not the most, expensive daily costs of operating the ship.
Cruise ships use an average of 140 to 250 tons of fuel daily. With an average cost of US$3.00 per gallon ($1,056 per ton), daily fuel costs for a ship range from $148,000 to $264,000.
Crew Salaries and Onboard Staff
Cruise ships are nothing without their staff, and operating a ship requires a lot of staff.
Paying staff accounts for approximately 13% of a ship’s operating budget. Larger ships have thousands of crew members, while smaller ships and expedition ships have a few hundred. Most ships staff one crew member for every two to three passengers.
The average salary for a crew member is approximately $2,000 per month, but this varies widely based on the work they’re doing. For example, cabin stewards and bartenders earn far less than ship captains.
Most cruise ships also offer a variety of entertainment that employs dozens of performers. Salaries for musicians, actors, and casino dealers, and more, add to the cost of staff.
Food and Beverage
Supplying a cruise ship with food and drinks is another massive expense. On many ships, food is available around the clock and, in some cases, in unlimited supply for cruisers. Add to that the cost of storing and preparing the food, and you’ve got a significant daily expense.
Maintenance and Consumables
Safe and comfortable cruising means the ship must be equipped with everything (and more) that you’d expect to find in a hotel. Clean towels, toilet paper, linens, and toiletries must be replenished each day.
Ships also need regular maintenance of engines, plumbing, and HVAC systems to keep everything running smoothly. These ongoing costs for supplies and upkeep can add millions of dollars to a ship’s operating budget.
Port Fees, Taxes, and Insurance
Cruise companies must also budget for port fees, taxes, and insurance costs. It costs a cruise ship money every time it pulls into port. Ships are also subject to taxes and duties in each country they visit.
Not to mention, cruise lines carry extensive insurance coverage to protect against accidents, natural disasters, and liability claims, which can amount to millions annually for a single vessel.
These costs are often passed on to passengers in their ticket price.
How Much Does a Cruise Ship Make Each Cruise?
Like the operating expenses, the profit from each cruise varies based on the size of the ship, operating costs, and other factors. Cruises have several revenue streams, including:
The average profit margin per cruise is about 15%, or $291 per passenger. The highest revenue is generated by ticket sales, but onboard services, such as gambling, excursions, drinks, and personal services, can account for more than 30% of the total profit.
The cruise industry turns a profit, but this profit is reduced every time fuel prices spike or there is a reduction in passengers. For passengers who book an inside stateroom and skip drink packages or specialty dining, cruise lines often operate at a loss.
What’s the Bottom Line?
Cruise ships cost a fortune to build because cruisers want bigger spaces, cooler tech advancements, and experiences that aren’t available anywhere else. That’s part of the fun of cruising.
So next time you’re onboard, take a moment to appreciate just how much engineering magic goes into your vacation.
