For Costa Cruzeiros, profit is low in Brazil; company to have ships in Santos

Costa Diadema is confirmed for the upcoming season (Matheus Tagé/AT/Archive)

The institutional president of Costa Cruzeiros in Brazil, Renê Hermann, was unequivocal in defining what is needed for the company to operate more ships in Brazil and for a longer period: lower overall costs, an end to legal inconsistencies, and greater predictability for the market. He took part in the 8th Clia Brasil Forum, held in Brasília at the end of August.

Costa will have two ships in the 2026/2027 season: Costa Diadema and Costa Serena, with embarkations in Santos, Rio de Janeiro and Itajaí (SC). When the Reportage mentioned profitability in the Brazilian operation, Hermann interrupted: “But profitable for whom?” He does not deny that there is a profit, but considers it small.

“There are other markets that are more profitable than Brazil. The competition is with the Canary Islands (Spain), the Caribbean, the Mediterranean, northern Europe, Dubai (United Arab Emirates) and Asia. In Brazil, you can sell 100, but you have 80 or 90 in costs. So profitability is very low. You buy a US\$ 1 billion ship (approximately R\$ 5.1 billion), and that money will be invested where the return on investment is greater. So, you can make ten here, but in another market you make 20 or 30. There are passengers, Brazilians buy, but the cost is very high”, he analyzes.

To give an idea, the institutional president of Costa Cruzeiros in Brazil mentioned that the cost of visas for crew members reaches R\$ 1.5 million per year, while another 2 million euros (around R\$11.9 million) is spent on labor-related expenses. He also pointed out the differences involving fuel.

Renê Hermann notes that in Buenos Aires, Argentina, no tax is paid on fuel. “If you go to Salvador, Brazil, you pay. These are very high costs that cannot be compared with Europe or the United States”, he explains, noting that the seasonality of the Brazilian season affects expenses. “The ships are here from November to April, but in the other months you also have to pay for space at the port.”