Royal Caribbean: More New to Brand Guests

Independence of the Seas in Southampton Photo credit Spacejunkie2 (Flickr)

“In the second quarter, the per cent of guests were either new to the brand or new to cruise surpassed 2019 levels by a wide margin, and we have seen post-cruise repeat booking rates nearly double 2019 levels,” said Jason Liberty, CEO of Royal Caribbean Group, speaking on the company’s second-quarter earnings call.

“While we have made positive strides in narrowing the gap to land-based vacations over the last several months, cruising remains an exceptional value proposition, allowing us to outperform broader leisure travel as we seek to further close the gap to land-based vacations, drive better revenue and welcome even more happy customers,” he said.

Liberty said that the company had double the web traffic now compared to 2019.

“In addition, our travel partners are now fully back up and running and delivering more bookings than they did in 2019,” he continued. “Our improved commercial capabilities have allowed us to capture this quality demand and expand our share of the guest wallet.”

Part of the new brand strategy has been the company’s investment in the short cruise market, with refurbished ships and Perfect Day at CocoCay. That strategy takes the next step in 2024 with the new Utopia of the Seas, which will be positioned year-round in the short cruise market.

“Utopia will be the first Oasis-class ship that will be entirely focused on short cruises in the Caribbean, supporting our strategy of competing with land-based vacation alternatives and driving new-to-cruise customers into our vacation ecosystem as we seek to close the value gap,” Liberty said.

“Demand and pricing for Utopia have far exceeded our expectations.”

Royal Caribbean’s Utopia Sailing from Port Canaveral in 2024

Royal Caribbean International will put the new Oasis-class Utopia of the Seas in the short cruise market from Port Canaveral when she debuts next year.

“Vacationers are looking to make every moment count by celebrating and recharging with their friends and family, and Utopia of the Seas makes all that possible in more ways than one,” said Michael Bayley, president and CEO, of Royal Caribbean International. “With the variety of dining, bars, pools, entertainment and thrills that make Oasis Class ships revolutionary and the experiences to match on our private island, Perfect Day at CocoCay, we’ve combined the best of the best to create the world’s biggest weekend for everyone.”

The signature adventures of the newest LNG-powered Oasis ship will make their short getaway debut alongside firsts and reimagined experiences, like a new Caribbean tiki bar, a first-of-its-kind immersive dining experience, the latest, greatest – and longest – dry slide at sea; newly designed resort-style pools; and more, the company said.

The Utopia opens for bookings on Royal Caribbean’s website as soon as Friday, June 23. Crown & Anchor Society loyalty members can book on Thursday, June 22.

Perfect Day at CocoCay Driving Revenue at Royal Caribbean

Royal Caribbean International plans to take 2.5 million guests to Perfect Day at CocoCay in 2023 as the company’s private island in the Bahamas has become a major selling point on itineraries.

“The pricing premiums continue to be really robust, and the spend on the island continues to be really robust as well,” said Michael Bayley, president and CEO, of Royal Caribbean International, speaking on the company’s first-quarter earnings call.

Bayley said the company had about 250,000 guests disembark at Perfect Day in March.

Naftali Holtz, CFO, added: “The booking strength has been particularly evident on Caribbean sailings where our superior hardware and Perfect Day at CocoCay continue to be a winning combination.”

Holtz said that these itineraries are driving outsized yield and pricing growth.

“As we’ve increased the volume, we’ve seen no decline in the power of the pricing. And in fact, it continues to accelerate. With Hideaway Beach, that will accommodate approximately 2,500 more guests,” added Bayley.

The new Hideaway Beach area at Perfect Day is slated to open later this year ahead of the debut of the Icon of the Seas, which will call at Perfect Day weekly on its roundtrip Miami cruises.

“We’ve also got Utopia coming online in June (2024),” said Bayley. “We haven’t announced the deployment, but Utopia will also be going to Perfect Day. There’s a lot of demand for that particular product in any of our ships that have Perfect Day on their itinerary demanded, and there’s a strong pricing premium that we see there.”