This financial forecasting template enables wonderful planning for starting a cruise ship or general boat touring business. This industry has been growing for decades fairly steadily. People like to relax and see cool places. These are also great family trips and when you gain the loyalty of customers, they tend to stay with your cruise liner for life. It is not all smooth sailing and you have to be mindful of regulations as well as have a rock solid financial plan for how you are going to finance the startup costs and run a profitable operation.
$45.00 USD
After you buy the template, it will be immediately available to download. This is also included in the industry-specific financial model and hospitality financial model bundles.
Template Features:
- The model will run for up to a 10 year period.
- Construction / Acquisition
- There is a robust cost schedule that will fit the requirements of a new construction or if you are buying an existing ship. Simply enter the monthly costs in up to 6 schedules, each with 22 slots.
- Define if each cost item (row) is going to be financed or not and if so, the percentage of that cost that will be financed.
- Any non-financed items will flow straight to equity requirement.
- Debt Schedule:
- Optional use of leverage
- Construction loan / interest rate
- Main P+i loan and terms
- Option for one REFI loan if desired (define LTV per an EBITDA multiple for the cash out)
- Revenue Configuration (configurable each month):
- These inputs were all built so it is easy to account for seasonality...
- # of Cruises/Mo.
- Avg. Cruise Length (days)
- Avg. Distance per Cruise
- Average Tickets Sold per Cruise
- % of Tickets Sold at Each Ticket / Package Level (up to 10)
- Price of Each Ticket / Package Level (up to 10)
- 5 types of onboard purchase revenue streams and their associated cost/margins (Alcohol, Spa, Casino, Art Gallery / Auction, Shore excursions
- Expenses:
- Define general operating costs (start month, monthly cost, cost growth rate)
- Define staffing costs (staff description, count, start month, cost growth, payroll taxes/benefits)
- Define outsourced labor / onboard talent / professional talent services
- Fuel / Gas costs defined per price per gallon and mileage efficiency (adjustable each year)
- Define average food costs by up to 47 food categories. Cost is per cruise and adjustable each year.
- Define one-time costs for each onboard / offload event
- Output Reports:
- Monthly / Annual financial statements (Income Statement, Balance Sheet, Cash Flow Statement)
- Monthly / Annual Pro Forma detail
- DCF Analysis per your defined discount rate
- IRR, ROI, Equity Multiple
- Annual Executive Summary (primary financial line items / visuals)
- Optional joint venture cash flow waterfall (LP/GP structure with IRR hurdles) - includes monthly and annual view
- Advanced visualizations / Debt service coverage
- Exit:
- This is included to account for a proper DCF Analysis
- Define if you would like the exit value to be calculated on the 'end month' of the forecast
- Define the trailing 12-month EBITDA multiple
- Any remaining debt will automatically be repaid if an exit is assumed
Note, this template works completely fine if you are doing a single operator forecast where there is only one investor or if there are multiple outside and inside investors. It is highly flexible.
As a user, you can simply go through the template and update all yellow cells with your own assumptions and anything you don't need simply zero out.
Sanity checks will all show up on the Global Control tab and will tell you if any of the financial statements or reports don't balance.
Using this spreadsheet is a great way to test all kinds of variables and see how much money it will cost to get your cruise line business off the ground and how the returns on that investment look, how much revenue is needed to cover costs, and pricing/cost sensitivities.
There are two output reports that show what happens with the initial investment. The first is the 'Distributions' tab which runs off the cap table and the fixed percentage share of cash flows to the Owner/operator and Investor/LP. There is a second waterfall that works completely independent and will have the option for a preferred return / preferred equity and the cash distributions will flow based on the IRR hurdles defined.
Any negative monthly cash flows are assumed contributions and any negative monthly cash flows are assumed distributions. You will be able to see a running cash position and it is very clear the amount of time it takes to pay the initial investment back with operational cash flow.
This financial model is really good at forecasting cash flows based on specific assumptions that are related to running a cruise ship / boat touring / yacht business.
Advantages:
- High Revenue Potential: Cruise ships offer a range of onboard activities, such as dining, entertainment, and shopping, which can generate significant revenue. Additionally, shore excursions and other add-ons can boost profits.
- Diverse Customer Base: Cruise ships attract a diverse customer base, from families to retirees, making it an attractive business model. By catering to different age groups and interests, you can ensure a steady stream of customers.
- Brand Loyalty: Once customers have experienced a great cruise, they are more likely to book with the same company again. This means that building a strong brand and providing excellent service can lead to long-term customer loyalty.
- Innovation: The cruise industry is always looking for new ways to differentiate itself from competitors. This means that there are many opportunities to innovate and create new and unique offerings, which can help your business stand out.
- Global Market: The cruise industry is a global market, meaning that you can attract customers from around the world, which can be a significant advantage.
Disadvantages:
- High Capital Investment: Starting a cruise ship business requires a significant investment of time and money. The cost of purchasing a ship, outfitting it, and ensuring that it meets regulatory requirements can be very high.
- Seasonality: Cruise ships are often subject to seasonality, which means that the business may experience significant fluctuations in demand throughout the year.
- Regulatory Compliance: Running a cruise business requires compliance with numerous regulations, including safety, environmental, and health regulations. Meeting these requirements can be time-consuming and costly.
- High Operating Costs: Running a cruise ship is expensive, as it requires a large and skilled crew, as well as significant fuel and maintenance costs.
- Risk of Incidents: The risk of incidents, such as onboard accidents, illnesses, or environmental accidents, can be high, and can be costly in terms of compensation and reputational damage.
Overall, running a cruise business can be a high-risk, high-reward venture, and requires careful consideration of the advantages and disadvantages involved.
You may also like this small business valuation template.
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