Royal Caribbean Increases Financial Guidance for 2024

Posted on 22 February, 2024 by Spacejunkie2

Independence and Symphony of the Seas in San Juan, Puerto Rico photo credit Spacejunkie2 Flickr

Royal Caribbean Group today provided an update on demand and updated its 2024 guidance.

The company said it continues to be very encouraged about the demand and pricing environment for 2024.

Since its most recent update on its Q4 2023 earnings call, the WAVE booking season has exceeded the company’s initial expectations, with the first five weeks of the year resulting in the best WAVE booking weeks in the company’s history.

“Bookings have been significantly higher than during the same period last year, with the back half of the year up by more than the front half. For 2024, all four quarters and all key products are booked ahead of the same time last year in both rate and volume. Consumer spending for onboard purchases continue to exceed prior years driven by greater participation at higher prices, indicating quality and healthy future demand,” the company said in a statement.

“Since our last earnings call, robust demand for our vacation experiences has significantly exceeded our initial expectations,” said Jason Liberty, president and CEO of Royal Caribbean. “As a result, we are increasing our 2024 guidance on stronger revenue outlook, and we expect to achieve all Trifecta goals in 2024. Trifecta marks an important milestone as we remain intensely focused on delivering a lifetime of vacations and priceless memories for our guests while delivering exceptional long-term shareholder value.”

As a result of the strong WAVE season, the company is increasing its 2024 Adjusted EPS guidance by $0.40 compared to its February guidance. For the full year, Adjusted EPS is now expected to be $9.90 to $10.10 driven by an increase in constant currency net yield growth of approximately 100 bps compared to the February guidance. Approximately $0.15 of the full year increase in adjusted EPS is driven by an improved revenue outlook for the first quarter of 2024. The company now expects to achieve all Trifecta goals in 2024.

Adora Cruises’ Second Ship To Get Upsized

Posted on 11 February, 2024 by Spacejunkie2

According to a report from China Daily, the new vessel will be 17.4 meters longer than the 2023-built sister ship.

Currently under construction at China State Shipbuilding Company’s Waigaoqiao Shipbuilding Yard in Shanghai, the cruise ship is scheduled to enter service in 2025.

At 141,000 gross tons, the newbuild will be roughly five percent larger than the 135,500-ton Adora Magic City, the report added.

Citing shipyard sources, China Daily also said that the new vessel will feature an optimized interior layout, in addition to enhanced facilities.

“China State Shipbuilding Company will continuously make efforts to enhance the second cruise ship’s design, craftsmanship, construction and facilities to achieve higher quality, greater efficiency and lower cost,” the report concluded.

With its construction started in August 2022, the second China-made cruise ship currently has 75 percent of its design workload finished, while 58 percent of the production design was completed.

Both the 2025 newbuild and the Adora Magic City feature a basic project based on Carnival Corporation’s Vista class.

Built to serve the Chinese domestic market, the vessels offer a series of customized features, including an expanded shopping area and a series of alterantive restaurants.

After five years in the making, the Adora Magic City kicked off a series of short cruises to the Far East departing from Shanghai in January.

Also built at the Waigaoqiao Shipbuilding Yard, the 4,200-guest ship became the first large cruise ship ever constructed in China.

In addition to the two newbuilds, Adora Cruises also operates the former Costa Mediterranea. Now named Mediterranea, the 2003-built ship is offering a series of short cruises departing from Tianjin.

Virgin Voyages Repositioning Update: Ship Heading Around Africa

Posted on 11 February, 2024 by Spacejunkie2

Virgin Voyages is making deployment changes for the upcoming repositioning voyage for the Resilient Lady. The vessel will now sail from Australia to Europe, heading around Africa, and not transiting through the Middle East.

“We remain concerned about potential escalations in this part of the world over the next 12 months and the risk that this presents for safe passage through the region. As a result, we have been left with no choice but to make changes to Resilient Lady’s repositioning voyage taking place on March 27,” the company said.

“In place of her former repositioning voyages, the award-winning Resilient Lady will now be departing from Sydney, embarking on an iconic, once-in-a-lifetime sailing around the coast of Africa with a brand new route stopping in Eden and Fremantle (Perth) in Australia, Port Louis (Mauritius Islands), Durban and Cape Town (South Africa), Walvis Bay (Namibia), Praia (Cape Verde), Santa Cruz de Tenerife (Spain), Casablanca (Morocco), Barcelona (Spain), Valletta (Malta), as well as Santorini and Piraeus (Athens) in Greece — all with extended time at sea,” the company said.

“All passengers on these former three legs of the repositioning voyages will have guaranteed spots on these sailings at no additional cost and a price protection commitment in place. If these dates are not convenient, they can receive a Future Voyage Credit based on their paid balance or a full refund. We know that based on our conversations with passengers and travel partners, they understand the complex geopolitical challenges that have arisen making this change necessary. In addition to this, we are committed to remaining a good partner to our First Mates (travel advisors) and will be protecting their commissions.

“With the very likely continuation of this escalated regional conflict top-of-mind, and in an effort to minimize further disruptions to our passengers’ future vacation plans, Virgin Voyages is now conducting a full review of other geographically similar repositioning voyages and linked sailings. We will provide an update in the coming weeks on any further changes we will need to make.”