Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line Holdings are on pace to spend roughly $2 billion on food and beverage items in 2023,( according to Cruise Industry News estimates).
This is based on third-quarter spending this year, which saw Carnival spend $259 million, Royal come in at $195 million and Norwegian at $77 million.
Compared to the last “normal year” in 2019, food spending was up at Royal Caribbean Group and Norwegian Cruise Line Holdings. The former spent roughly $150 million on food in the third quarter of 2019, while Norwegian spent $57 million.
Both companies have seen fleet expansion since then. Royal Caribbean Group not only completed its acquisition of Silversea but has welcomed a number of new big ships such as the Wonder of the Seas, Celebrity Apex and Celebrity Beyond.
Norwegian has also seen growth with the additions of new builds for the Norwegian and Regent brands since the third quarter of 2019.
Carnival, meanwhile, saw a reduction in food spending while growing with big new ships, but has also disposed of over 20 ships from its fleet over the same period.
Jason Liberty, President and CEO of the Royal Caribbean Group, shared some insight on the company’s deployment and sourcing plans for the upcoming year.
Speaking on Thursday’s third-quarter earnings call, he revealed hopes for a return to normality in 2023, focusing on a strong U.S. market.
“While we are still early in our planning cycle, 2023 is shaping up to be a strong year for the company and in the return to normal, typical business,” Liberty said.
“Our overall capacity will grow 14 per cent compared to 2019 on account of ten new ships which have joined or will join the fleet across our brands during this period,” he added, noting that the growth will be achieved despite previous ship disposals.
Liberty also said that deployment across markets is “relatively unchanged” compared to 2019 with the Caribbean representing just over half of the overall deployment and Europe with almost 20 per cent.
“Asia is in the low single digits, with no planned deployment in the high-yielding China market,” he said.
About 18 per cent of the U.S. population is within driving distance to a U.S. homeport, Liberty added, with the “Short Caribbean” product upsized by 35 per cent compared to 2019.
Perfect Day at CocoCay has also been an important part of the deployment, with 65 per cent of the guests sailing on Royal Caribbean International’s Caribbean itineraries in 2023 set to visit the private destination in the Bahamas. The number of calls is up 30 per cent from 2019, he said.
“We expect almost 80 per cent of 2023 guest sourcing to come from North America as we continue to see particularly strong demand from that customer,” Liberty said.
Royal Caribbean’s multi-brand strategy also allows for efficient guest sourcing around the world, he added.
“Our global brands’ appeal and nimble source model allows us to attract the highest yielding guest and partially mitigate the impact from a strong dollar.”
The new Celebrity Beyond set sail from Fort Lauderdale following its christening, Celebrity Cruises announced in a press release.
Kicking off its inaugural season in the Caribbean, the vessel’s sailing was marked by a series of festivities, including its official naming ceremony, the company said.
Led by the godmother Simone Biles a 19-time World Champion, seven-time Olympic Medalist and most decorated American gymnast in history, the event was also attended by Captain Kate McCue. She, according to Celebrity, is the first and still only woman to be named captain of a large cruise ship.
“I can think of no one better to be the Godmother of this incredible ship than the G.O.A.T. herself – Simone Biles,” said Jason Liberty, President and CEO of the Royal Caribbean Group, the parent company of Celebrity Cruises.
“This ship’s beauty, power, and resilience set the standard by which all others will be measured. Simone’s determination, progressive nature, empowered attitude, and grace in the face of challenges make her such an inspiration to so many around the world. All of these attributes are why Simone Biles is perfectly suited to watch over Celebrity Beyond’s journey,” he added.
“I’ve been waiting for this day to arrive for a long time, and I am ‘Beyond’ excited to be able to share her with our guests. She is the gold standard by which other ships are built and embodies the meaning of relaxed luxury,” said Lisa Lutoff-Perlo, Celebrity Cruises President and CEO.
“She is ‘FULL’ of wonder and excitement and our guests will undoubtedly feel reconnected to the world around them as they visit new destinations and immerse themselves in culinary experiences and wellness amenities not found anywhere else at sea.”
Alongside Liberty, Lutoff-Perlo and other Celebrity Cruises executives, Simone Biles officially named Celebrity Beyond in a ceremony attended by 2500 guests and media, capped by a live performance from singer and songwriter, Leona Lewis.
“It is an honour to be selected as Beyond’s Godmother and to join such a distinguished group of strong, barrier-breaking women named Celebrity’s Godmothers before me,” said Simone Biles.
“I appreciate the important message this designation holds in recognizing our accomplishments as empowering women, and I am honoured to share the stage today with fellow brave, boundary-breaking leaders like Lisa-Lutoff Perlo and Captain Kate McCue,” she added.
According to Celebrity, the arrival to the U.S. of Celebrity Beyond ushers a “new era of cruising,” coming on the heels of a new brand campaign that aims to “define what a relaxed luxury resort at sea is.”
As it kicks off its inaugural season, the vessel will offer Western and Eastern Caribbean itineraries visiting Grand Cayman, Puerto Plata, Cozumel, St. Thomas and more.
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