Royal Caribbean Group is pleased with the increased demand for European itineraries, resulting in a better-than-expected yield performance.
“While the Caribbean remains a standout performer this year, we were particularly pleased with the strength and quality of cruising [Ph] demand for European itineraries. This acceleration of demand for Europe contributed to the better-than-expected yield performance for the quarter,” said Chief Executive Officer Jason Liberty, speaking on the company’s second-quarter earnings call.
Liberty added that volumes from European consumers looking to book their summer vacations have accelerated, leading to double-digit yield growth expectations for this year compared to 2019.
“Europe sailings account for 17 per cent of our full-year capacity and 35 per cent in the third quarter. The acceleration in demand is increasing our revenue expectations for Europe sailings,“ said Chief Financial Officer Naftali Holtz.
“The better-than-expected performance has mostly been driven by our European customers, which underscores our nimble and global sourcing model,” he added.
Commenting on the somewhat surprising takeaway regarding the European market, Liberty explained that Europeans’ willingness to spend was very competitive with the North American consumer. Still, the difference is that they were delayed in activating their vacation.
“We expected Europe to be a little bit lighter versus 2019, in terms of load factor and it came roaring back,” continued Liberty.
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