Cruise Ship Passengers Cut Back On Gambling

It isn't easy for someone who likes to gamble to walk away from a casino. But that's exactly what thousands of gambling-loving cruisers have been doing over the past few months, and it's having a material impact on the bottom line of some big cruise companies.

Royal Caribbean CEO Adam Goldstein told Wall Street analysts Thursday that onboard spending on the line's 21 ships is "meaningfully down," and about half of the decline is the result of less gambling in shipboard casinos.

By comparison, revenue from other traditional cruise ship profit centers such as shore excursion sales and onboard cell phone usage remains relatively strong, says Goldstein.

Also reporting a decline in gambling on ships Thursday was Dan Hanrahan, CEO of Celebrity Cruises. Both executives cite the economic downturn for the cutbacks by cruisers.

"Onboard revenue was a mixed bag in the fourth quarter," noted Hanrahan, who joined Goldstein in a conference call to discuss parent company Royal Caribbean's fourth quarter earnings. Spending on "beverage, shore excursion, spa and communication services held up well. Onboard shopping and gambling were off."

Gambling, it seems, is one of the first things vacationers are cutting as they try to slash their spending during the current economic downturn.