Understanding PPPN: The Core Metric for Cruise Pricing Analysis
PPPN (Price Per Person Per Night) is the foundational metric for comparing cruise pricing across ships, itineraries, and operators. This guide explains how we calculate it and why it matters for investment analysis.
What is PPPN?
PPPN = Per-Person Fare ÷ Number of Nights
A 7-night Caribbean cruise showing $700 per person:
$700 ÷ 7 nights = $100 PPPN
Why PPPN Matters
Cruise fares vary dramatically based on itinerary length and destination. Per-person fare comparisons are misleading without normalization.
Consider two sailings:
| Sailing | Per-Person Fare | PPPN |
|---|---|---|
| 7-night Caribbean | $700 | $100 |
| 4-night Bahamas | $480 | $120 |
The shorter cruise costs less overall but commands a 20% premium on a per-night basis. PPPN surfaces this difference.
For equity analysts tracking cruise line yield, PPPN provides an apples-to-apples comparison across an operator's entire fleet—regardless of whether they're selling 3-night getaways or 14-night transatlantics.
How We Calculate PPPN
Data Source
OTAs display cruise fares as per-person prices assuming double occupancy. This is industry standard—when you search for a cruise, the price shown is what one person pays, not the total cabin cost.
Calculation
We capture the per-person fare and divide by itinerary length:
PPPN = Per-Person Fare ÷ Nights
A sailing showing $1,400 per person for a 7-night cruise:
$1,400 ÷ 7 = $200 PPPN
Why This Matters
Some data providers work backward from total cabin fares divided by occupancy divided by nights. Our approach is simpler: we capture what OTAs actually display (per-person pricing) and normalize by length only.
This means our PPPN directly reflects the price consumers see when booking.
Aggregation
Fleet-level and operator-level PPPN represents the average across all tracked sailings, weighted equally. We don't weight by cabin inventory since we track prices, not remaining capacity.
Investment Applications
Yield Tracking
When an operator's average PPPN rises 3% month-over-month while capacity stays flat, that's a direct yield signal. PPPN movement indicates pricing power independent of volume.
Cross-Operator Comparison
PPPN enables direct comparison between operators with different fleet compositions. Royal Caribbean's larger ships and longer itineraries produce different total fares than Carnival's shorter cruises—but PPPN normalizes for these structural differences.
Cabin Mix Analysis
Tracking PPPN by cabin category reveals demand patterns at different price points. Expanding suite premiums indicate strong high-end demand. Compressing premiums suggest operators are discounting premium inventory to fill ships.
Yield Signal: When an operator's average PPPN rises 3% month-over-month while capacity stays flat, that's a direct yield signal—pricing power independent of volume.
PPPN vs. Other Metrics
| Metric | What It Measures | Limitation |
|---|---|---|
| Total Fare | Absolute price | Not comparable across itinerary lengths |
| Per Diem | Industry term, often includes onboard spend estimates | Definitions vary by source |
| PPPN | Normalized cabin fare | Excludes gratuities, onboard spend, port fees |
We use PPPN specifically because it measures what operators control: cabin pricing. Onboard revenue (drinks, excursions, casino) is a separate yield lever not captured in booking fares.
Limitations
PPPN captures cabin pricing only. It does not include:
- Gratuities (typically $16-20/person/day)
- Port fees and taxes
- Drink packages, excursions, or other add-ons
- Solo traveler supplements
For investment analysis, this is a feature: PPPN isolates the pricing signal from ancillary revenue, which operators report separately in earnings.
Related Reading
- How Our Cruise Pricing Data Works — Full methodology documentation
- Fleet Pricing Signals — How we detect fleet-wide price movements
- Regional Pricing Signals — Geographic breakdown of pricing activity
Questions?
For methodology questions: hello@allaboardanalytics.com
Frequently Asked Questions
PPPN (Price Per Person Per Night) is the per-person fare divided by the number of cruise nights. A 7-night cruise at $700 per person equals $100 PPPN.
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About the Author
Graham Heldreth — Founder & CEO
Graham is the founder of All Aboard Analytics, a cruise pricing intelligence platform serving institutional investors and equity research teams.
With a background in UX and product design, he built All Aboard Analytics to solve a data gap he saw firsthand — cruise pricing is opaque, fragmented, and difficult to track systematically. The platform now monitors 785,000+ monthly price snapshots across 145 ships and 9 major cruise lines.
Graham has spent over 15 years designing digital products and data interfaces. He's also logged 15+ cruises across the major operators, giving him practical insight into how yield management and promotional strategies play out at the booking level.
Editorial Standards
All guides are based on real pricing data, live fare checks, and historical trends. Content is updated as ships launch and prices change. Questions or corrections? Contact us