In an impressive display of resilience and strategic prowess, Royal Caribbean Group has closed 2023 with record earnings and sets sights on an even more lucrative 2024, buoyed by surging demand and innovative expansions.
A Year of Unmatched Success for Royal Caribbean
Royal Caribbean Group announced its fourth quarter and year-end earnings today, February 1, revealing a journey through 2023 marked by remarkable success.
As owners and operators of Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, Royal Caribbean Group’s total revenues reached an impressive $13.9 billion in 2023, a substantial achievement highlighting the growing consumer confidence and demand in the cruise industry.
“2023 was an exceptional year, propelled by unmatched demand for our brands from new and loyal guests,”said Jason Liberty, president and CEO, Royal Caribbean Group. “With the wind in our sails and record-breaking bookings, 2024 is poised to be another robust year, and we expect to achieve two of our trifecta goals one year early.”
The fourth quarter of 2023 was particularly notable, with a Net Income of $0.3 billion a stark contract to the -$0.5 billion New Loss reported in the same period of the previous year.
Charting a Bold Course
After a standout year in 2023, Royal Caribbean Group is ambitiously expanding its horizons for 2024, not just aiming to maintain success but to surpass it.
In a move that sets it apart from competitors, who are holding back on building new ships, Royal Caribbean is introducing some of the world’s largest cruise ships, underscoring a commitment to growth and innovation in the cruise industry.
January 2024 marked the debut of the Icon of the Seas, heralded as the largest cruise ship in the world. This colossal vessel, weighing an awe-inspiring 236,800 gross tons, has the capacity to accommodate 5,600 passengers at double occupancy.
Entering service on January 27 out of Port of Miami, Icon of the Seas is wrapping up her inaugural 7-night cruise on February 3. She will continue to chart courses in the Eastern and Western Caribbean throughout the year, with exceptionally strong bookings demonstrating the high level of anticipation and global interest.
“Demand for our brands continues to outpace broader travel trends, driven by a shift in consumer spending towards experiences and the exceptional value of our products,” said Liberty. “We’ve entered 2024 in a record booked position at significantly higher process, positioning us for a strong year ahead.”
Also set to join the fleet in 2024 is Icon’s sister ship, Utopia of the Seas, the sixth Oasis Class ship. Utopia, focusing on shorter 3- and 4-night cruises to Nassau and Royal Caribbean’s private island, Perfect Day at CocoCay, is completing construction at Chantiers de l’Atlantique shipyard in Saint-Nazaire, France, and will homeport in Port Canaveral, Florida, when she sets sail this summer.
Strategic Initiatives for 2024
With the launch of these innovative Oasis-class vessels and the ongoing expansion of Perfect Day at CocoCay, including the introduction of Hideaway Beach, an adults-only escape set to open soon, Royal Caribbean is poised for a prosperous 2024.
The company confidently projects an Adjusted Earnings per Share in the range of $9.50 to $9.70 for 2024, a significant increase from the previous year.
Moreover, Royal Caribbean is on track to achieve two of its ambitious trifecta goals in 2024: triple-digit EBITDA and a Return on Invested Capital (ROIC) in the teens. These goals, once achieved, will not only demonstrate the company’s financial strength but highlight its leadership in the cruise industry.