The Royal Caribbean Group made its first profit since the beginning of the Pandemic in the third quarter.
The company said the results were driven by higher load factors from strong close-in demand.
Royal Caribbean Group's CEO said the quarter's results were better than expected and that demand for travel is ramping up as consumers shift spend to experiences.
This is good news for us as we are in the experience business. I don't think the value proposition of cruise is attractive. Our brands are attracting new customers into our vacation community.
Royal said that booking volumes were higher than in the previous year due to the easing of testing and vaccinations.
"Immediately after those protocols fell off, we saw a significant increase in the volume of bookings," Royal Caribbean International CEO Michael Bayley said. The volume has increased. The addressable market in the US expanded by 35 million people. We saw that in our booking. It was a step in the right direction.
When compared with the same period in the previous year, the company reported a 50% increase in bookings for current-year sailings. Almost all of the third quarter's bookings were new. Liberty said the guest mix for the quarter was the same as it was last year.
Volumes for next year doubled during the third quarter compared with the second quarter and were considerably higher than bookings for 2020 sailings during the same period in 2019.
The Caribbean sailings reached almost 105% in the third quarter. Despite the negative impact from the redemption of FCCs and lower than average load factors on its higher priced Europe itineraries, revenue per passenger day was not changed.
Royal projected a fourth-quarter loss due to higher fourth-quarter costs related to fuel and the strong dollar.
Royal said it expected a return to historical load factors in early summer and record yields for the year.
All Rights Reserved © 2024
