Cruise Ship / Boat Tour Financial Model: 10 Year

Description
Big cruises can cost up to a billion dollars or more to get started. Yachts are in the millions. Smaller boats even less. No matter which level you are looking into, this financial model will do a great job at forecasting revenues, expenses, and investment returns for starting a business in this industry for up to a 10 year period.

Template Overview:

Output reports include monthly and annual financial statements, an annual Executive Summary, DCF Analysis, IRR, and optional joint venture waterfall with IRR hurdles. Plenty of visualizations are included as well.

There are configurations that let the user adjust assumptions on a monthly basis. The primary revenue drivers are from two streams. First is ticket sales, second is onboard purchases. 

Cost Items like fuel, food, labor, and outsourced professionals can all be accounted for as well as a full staff and other fixed costs required to run the business.

There is a monthly construction / debt financing configuration as well as initial startup cost schedule.

Let's look at some risks of operating a cruise ship:

 - Safety and Security Risks: One of the most significant risks associated with a cruise ship or yacht tour business is the potential for accidents or incidents that could harm passengers. This could include mechanical failures, fires, collisions, piracy, theft, or other security issues. Proper safety protocols, regular maintenance, and security measures can help mitigate these risks.

 - Weather-Related Risks: Cruise ships and yachts are at the mercy of the weather and sea conditions. Severe weather, such as storms or hurricanes, can cause significant damage to vessels, disrupt travel plans, and even endanger passengers and crew. Close monitoring of weather conditions and a flexible itinerary can help mitigate these risks.

 - Reputation Risks: A negative incident or accident involving a cruise ship or yacht can quickly damage the reputation of the company. Negative reviews, word-of-mouth, and media coverage can all impact future bookings and revenue. Ensuring high-quality service, maintaining clean and safe vessels, and responding quickly and effectively to any issues can help protect the company's reputation.

 - Regulatory and Compliance Risks: Cruise ships and yachts are subject to a variety of regulations and compliance requirements, such as safety standards, environmental regulations, and licensing requirements. Failing to comply with these regulations can result in fines, legal liabilities, or even the revocation of the company's license to operate.

 - Economic Risks: The cruise ship and yacht tour business can be highly dependent on economic conditions, such as consumer spending, fuel prices, and exchange rates. Economic downturns can result in decreased demand for travel, higher operating costs, and reduced revenue. Effective financial planning and risk management can help mitigate these risks.

Here are some reasons why you may want to get into the tourism business with cruise ships:

 - Growth: The global cruise industry has experienced significant growth over the past decade, with the number of passengers increasing from around 17 million in 2009 to over 30 million in 2019. According to the Cruise Lines International Association (CLIA), the industry is expected to continue growing in the coming years, with an estimated 32 million passengers projected to cruise in 2022.

 - Economic Impact: The cruise ship industry generates significant economic benefits for both the companies and the communities they visit. According to a study by CLIA, the global cruise industry contributed over $154 billion in total output to the global economy in 2018 and supported over 1.17 million jobs worldwide.

 - Customer Satisfaction: According to a survey by Cruise Critic, a leading cruise review website, 93% of cruisers rated their overall cruise experience as "good" or "excellent." In addition, 86% of respondents said they would take another cruise in the future.

 - Diversification: The cruise industry has diversified its offerings in recent years, catering to a wider range of passengers with different interests and preferences. This includes family-friendly cruises, adventure cruises, luxury cruises, and river cruises, among others.

 - Safety: While cruise ship incidents have occurred in the past, the industry has taken steps to improve safety and security measures. This includes implementing advanced navigation technology, enhancing crew training, and improving emergency response procedures.

This template is also included in two bundles:
- All Models Bundle: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic
- Industry-Specific: https://www.eloquens.com/tool/lrNGt2jL/strategy/business-plans/business-sector-bundle-35-bottom-up-financial-models