Icon of the Seas Generating ‘Exceptional Demand’

Posted on 7 May, 2023 by Spacejunkie2

When the new Icon of the Seas debuts in 2024 for Royal Caribbean International, she will become the world’s biggest ship and is already breaking sales records.

“Despite being on sale for only five months, Icon is significantly more booked for her inaugural season at materially higher rates than any other Royal Caribbean ship launch,” said Jason Liberty, president and CEO of Royal Caribbean Group, speaking on the company’s first-quarter earnings call.

“The Icon will join the fleet later this year and debut in the Caribbean in January 2024, with itineraries including Perfect Day at CocoCay and its new expansion, Hideaway Beach.”

Michael Bayley, president and CEO of Royal Caribbean International, added: “Icon is literally the best-performing new product launch we’ve ever had in the history of our business, and we’re delighted with volume and rate, and that really is a full 2024 product … it’s really driving a huge amount of demand and a great rate.”

Following the Icon, the company has another Oasis-class ship coming in 2024, the Utopia of the Seas, plus two more Icon-class vessels, set to debut in 2025 and 2026, respectively.

‘EXCEPTIONAL’ Q1 BOOKINGS HELP RCG UPGRADE 2023 PROFIT PROJECTIONS

Posted on 5 May, 2023 by Spacejunkie2

Independence of the Seas in the port of Southampton, photo credit Spacejunkie2 (Flickr).

Royal Caribbean Group (RCG) saw booking volumes in the first quarter of 2023 perform “considerably” better than expected, enabling the company to “significantly” improve its revenue expectations for all three remaining quarters of 2023.

In a recent trading update covering the three months to 31 March, the group, which owns Royal Caribbean, Silversea and Celebrity Cruises, saw an earlier start to an extended wave period generate a record level of bookings.

The strong trends resulted in an acceleration of the group’s booked position in relation to prior years, with the company generating “significantly” more bookings at “meaningfully” higher prices.

This year’s wave resulted in strong close-in demand at higher prices for the first quarter and enabled a significant improvement in revenue expectations for all three remaining quarters.

The increase in yield expectations for the year is predominantly related to higher load factors in the first quarter and higher prices for all four quarters, especially for Caribbean sailings.

Consumer spending onboard, as well as pre-cruise purchases, continue to exceed 2019 levels driven by greater participation at higher prices. The company expects load factors to reach “historical” levels by late spring.

“We knew that demand for our business was strong and strengthening, but we have been pleasantly surprised with how swiftly demand further accelerated well above historical trends and at higher rates,” said Jason Liberty, president and chief executive of RCG.

“Leisure travel continues to strengthen as consumer spending further shifts towards experiences. Demand for our brands is outpacing broader travel due to a strong rebound and an attractive value proposition.”

The company reported a net loss for the first quarter of $47.9 million compared to a net loss of $1.2 billion for the same period in the prior year.

The group also experienced particularly strong close-in demand for Caribbean itineraries, which accounted for close to 80% of first-quarter capacity. Load factors in the first quarter were 102%.

Adjusted earnings per share for the full year are expected to be in the range of $4.40 to $4.80 per share.

Britain Predicts a Record 2023 Cruise Season

Posted on 26 April, 2023 by Spacejunkie2

According to numbers released by Cruise Britain, the cruise industry’s post-Covid transition year was a success with predictions for a projected record season in 2023, according to a press release.

“2022 was the first full year of cruise activity since the pandemic and really built upon the unprecedented success of the 2021 domestic season. What we are seeing now are the rewards for an industry that has consistently worked together to recover, regenerate and develop”, said Ian McQuade, chair of Cruise Britain. “Whilst Round Britain and Ireland cruise popularity continues to grow, we have now seen the successful return of itineraries where British port calls are part of a multi-country story of discovery.”

The previous record season for the UK was 2019 while in 2022, the UK welcomed a total of 2,176 cruise calls, which is a drop of 22 per cent compared to that record year. UK orts welcomed nearly 1.4 million guests, which is around 80 per cent of the 2019 numbers. In addition, visitors in 2022 brought around £100m to Britain’s coastal economies.

“Looking ahead to this year, we see a very robust projected growth of 8 per cent in terms of port calls across the UK. Some regions such as the South West, North West and Scotland are reporting likely figures in excess of this national growth rate,” added McQuade.

“This is a fantastic projection and the strength of the immediate growth trend is a testament to the increasing popularity of Britain as a cruise destination. We really can offer a port for every cruise ship currently sailing – from expedition ships to boutique and mid-range vessels up to the largest afloat.”

In the previous year, the UK welcomed 52 different cruise lines with ships visiting diverse ports including Belfast and Bristol, Portland and Portsmouth, Douglas (Isle of Man) and Dover, among others.

“The UK offers an incredibly diverse cruise holiday experience for guests and this is one of the most powerful reasons for the growth projections that we are seeing. Cruise Britain and all its members continue to work with cruise lines, industry partners and stakeholders, and government to support the development of cruise as a resilient and profitable sector of the travel industry,” concluded McQuade.