Tag Archives: Richard Fain

Royal Outlook Improves

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Post-Wave bookings on a tear, says Royal Caribbean chairman

By Tom Stieghorst
Allure of the SeasRoyal Caribbean Cruises Ltd. reported an unusual surge in bookings in from mid-February to mid-April, a stretch when the booking pace typically decelerates.

Company chairman Richard Fain said that while the Wave season had been merely “typical,” which was slightly concerning, bookings in the past eight weeks were up more than 20%, driven by promotions.

“The volumes have just been unprecedented,” for a period in which the booking pace usually slackens, Fain said in a conference call with Wall Street analysts on Thursday.

He said promotions such as Royal Caribbean International’s Kids Sail Free and Celebrity Cruises’ 123Go had allowed RCCL to make up most of the booking deficit it had going into the last week of February.

Although occupancy levels are surging, pricing remains lower than a year ago. Fain also said “quality demand” in regions outside the Caribbean is contributing to the surge.

RCCL profit falls 65%, but outlook improves

By Tom Stieghorst
Royal Caribbean Cruises Ltd. raised its 2014 earnings guidance by a nickel a share despite reporting lower earnings for the first quarter.

Net income was $26.5 million, or 12 cents a share, in the quarter ended March 31, down from $76.2 million, or 35 cents per share, in 2013.

But Royal Caribbean said booking volume for the past three months have risen 16% year-over-year, with bookings for the past 8 weeks up by more than 20%, stronger than typical post-Wave periods.

The company raised its profit forecast by 5 cents a share, or about $11 million, to between $719.2 million and $763.5 million.

“Despite pressures in the Caribbean, the diversity provided by our global footprint is proving its value,” CFO Jason Liberty said.

In 2013, Royal Caribbean earned $473.7 million.

Goldstein named RCCL president

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By Tom Stieghorst
_Adam GoldsteinAdam Goldstein has been named president of Royal Caribbean Cruises Ltd. (RCCL), the parent company of Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises.

Goldstein has been president of RCCL’s largest brand, Royal Caribbean International, for the past 12 years.

In addition to president of RCCL, he will hold the title of chief operating officer.

The company said it will begin a search to find a successor to Goldstein as president of Royal Caribbean International.

In his new role, Goldstein will lead the company’s cross-functional teams, RCCL Chairman and CEO Richard Fain said.

“Adam has played a key role in growing Royal Caribbean International, step by step, into a global leader. In the course of doing so, he has become an impressive leader in his own right,” Fain said.

Goldstein joined the company in 1988, and served in a number of positions before taking the helm of Royal Caribbean International, including senior vice president of total guest satisfaction, senior vice president of marketing and corporate secretary.

A graduate of Princeton University who also holds a law degree from Harvard University, Goldstein is an accomplished table tennis player and has competed in middle-distance running events in the National Senior Games Association track and field championships.

RCCL doesn’t currently have a president or a chief operating officer.

In addition to its three North American brands, RCCL owns Spain’s Pullmantur, French line Croisieres de France, and a 50% interest in TUI Cruises of Germany.

Early drydock considered for Allure of the Seas

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Early drydock considered for Allure of the Seas

By Tom Stieghorst
Royal Caribbean International’s Allure of the Seas has developed a propulsion problem that is slowing the world’s largest cruise ship. The line is considering an early drydock.

Allure, which debuted in 2010, would normally be drydocked in 2015, but Royal Caribbean Cruises Ltd. Chairman Richard Fain said that schedule may be accelerated.

“We’re considering it, sure,” Fain said while onboard Vision of the Seas for a one-night cruise to display its recent renovations to travel agents. “We’re in the process of trying to assess [whether] we move up the drydock, and if it makes sense we will.”

One option would be to give Allure the 2014 drydock slot reserved for sister ship Oasis of the Seas, and push off the Oasis drydock by a year.

The unspecified propulsion issue developed about three weeks ago. Allure can still complete its weeklong itineraries, but the slower speed means that Royal Caribbean has had to shorten its port stay in Nassau, and some excursions have been canceled. It is also arriving late in the next port of call in St. Thomas.

Fain said the design of the Oasis-class ships, which has three podded propulsion motors instead of two, gives it better resilience when one of the units malfunctions.