The combined fleet of RCI-Royal Caribbean International, Celebrity, and Silversea (collectively operated by Royal Caribbean Group/RCG) served 7.6+ million passengers in 2023, marking a remarkable surge of ~17% from pre-COVID levels.
Demonstrating a significant turnaround, the company reported a net income of US$278 million in 2023-Q4/4th quarter, compared to a loss of US$500 million during the same period the previous year.
In a statement, RCG highlighted that the 5 best booking weeks of the company’s history had occurred since the last earnings call, including the first 3 weeks of the Wave season.
"As a result, the company is now in a record booked position in both rate and volume."
This surge in bookings has propelled RCG to achieve record-breaking levels in both booking rate and volume.
Royal Caribbean Group anticipates a robust start to Wave Season, traditionally known as the first quarter of the year when cruise booking incentives peak. The company forecasts a 40% increase in earnings per share for 2024 compared to the previous year.
The growing demand for cruising has led to an upward trend in fares, mirroring the surge in prices for land-based vacations, thus maintaining the value proposition of a cruise holiday.
Furthermore, the introduction of new vessels has generated positive publicity for an industry often scrutinized by consumer media. Royal Caribbean International's recent launch of the pioneering Icon of the Seas has garnered significant attention, providing substantial free advertising for the company and the travel advisors promoting its offerings.