Normally we budget carefully to be able to take our vacations and pay them off in full long before we cruise and the money was not needed to pay for necessities. However, we still have a mortgage on our home (less than 8% of the original mortgage remaining) and although we know that the money could or maybe even should be put on paying that mortgage off we have also determined that because you never know when today is your last day we live for this moment. We are frugal in many areas, choosing to drive our vehicles until they die and not eating out but we do splurge on vacations. Both of our fathers died before they were 45 and both of us remember times when they said "when I retire or when we pay off such and such, or when we've saved for retirement or when we have a nest egg". We don't want this to be us there are no guarantees in life but the priceless memories I am making with my family now are the best nest egg that I can ever imagine owning. The return on this investment has been beyond any of my wildest expectations.
Someone else made the point that vacations are not always a luxury but sometimes a necessity. My vacation has saved me from doing bodily harm to my staff. My vacation has kept me from divorcing my husband over the numerous times that he didn't do his part of the housework. Vacation is a necessity, not a luxury in my house : ) My staff, spouse and children all agree.