Onboard revenue is considerably up across the Royal Caribbean Group ships back in service, with guests ready to spend.
“We are also seeing pent-up demand for our onboard revenue experiences,” said Jason Liberty, CFO and executive vice president, on the company’s second-quarter earnings call.
“Guests are really enjoying our shore excursions, casinos, spas and restaurants after spending a year in isolation,” he said.
“We are also seeing an increased demand for our WiFi services as more and more consumers have the flexibility to take vacations and work remotely.”
Michael Bayley, president and CEO of the Royal Caribbean International brand, added he was incredible encourage by the spend onboard the ships that are back into operation.
“In fact, the numbers have been very impressive,” Bayley added.
Anthem of the Seas entering the river Mersey, Photo credit Dave Jones Royal Caribbean International has extended Anthem of the Seas’ UK-based season until October and announced plans to welcome international guests onboard from next month.
In September “eligible international guests” will also be able to sail from Southampton, subject to the latest UK government travel advice and their country of residence.
Anthem’s British Isles sailings feature calls to Liverpool, Belfast and Kirkwall and Glasgow. All adults must be fully vaccinated and all passengers must provide a negative Covid test result before boarding.
Anthem’s extended season opened for bookings on Wednesday (4 August).
Ben Bouldin, Royal’s vice-president EMEA, said the line was “thrilled” with the response to its UK programme since restarting, with cruises achieving “peak guest satisfaction levels”.
“We welcome the recent update from the UK government, which lifted advice against international cruise travel. While this marks a positive step forward in the global return of cruise, there are still complexities to navigate when calling at multiple European ports of call from the UK,” he added.
“This, coupled with the popularity of our British Isles sailings to date, has led to our decision to extend our sailings around the British Isles, and I’m delighted to welcome international guests to experience these itineraries, starting in September.”
The Royal Caribbean Group expects to be cash-flow positive in about six months, Jason Liberty, senior vice president and CFO, said on the company’s Q2 earnings call.
Liberty noted that the third and fourth quarters of this year will continue to be “painful” and cautioned that 2022 will not be a normal year although trends to normalcy should be picking up during the year.
Going from four ships in service at the end of April, the group now has 29 out of 68 ships sailing and will introduce seven more this month.
By the end of the year, Liberty said, 85 per cent of the Royal Caribbean fleet should be sailing.
As for the newbuilds, Liberty said they will be introduced on 10-month delays from when they originally were expected to enter service.
Richard Fain, chairman and CEO, noted how Royal Caribbean is focused on operating their cruises safely and safer than other vacation alternatives, while still exceeding pre-pandemic guest expectations, and doing so in a fiscally prudent manner.
He underscored that their safety protocols are working and that the ships allow them to control the environment to an unusual extent: 100 per cent of the crew is vaccinated, and in July, 92 per cent of the passengers were vaccinated.
“We have had people test positive, but since people around them have been vaccinated, it means these have been isolated cases,” Fain said. “The vaccines are the ultimate weapon and they work.
“In light of the Delta variant, we have strengthened our protocols further.
“Cruises have become the example of how best to deal with COVID-19,” Fain added.