Royal Caribbean Group announced stellar second-quarter earnings, reflecting the success of and growing interest in its newest ships,ย Utopia of the Seasย andย Icons of the Seas.
The companyย has seen bookings soar, bringing more guests onboard its ships in the first half of 2024 than compared to the same period in 2023.
The company reported impressive financial results in its latest report, released today, July 25, 2024. The report revealed remarkable growth in the first half of the year, reporting total revenues of $4.1 billion for Q2 and a net income of $854 million, up from $459 million the previous year.
The outstanding showing has prompted Royal Caribbean to raise its full-year 2024 earnings plan, projecting an amazing 68 percent year-over-year increase.
โOur momentum continues!โ exclaimed Jason Liberty, president and CEO, Royal Caribbean Group. โWe met our financial targets 18 months earlier than expected, have our balance sheets in a strong position, reinstated our divided, and we are just getting started.โ
As of June 30, the company, which owns and operates Royal Caribbean International, Celebrity Cruises, and Silversea, has received $6.2 billion in customer deposits, indicating strong future bookings.
“We are thrilled with the ongoing excitement for our incredible vacation experiences, which has continued to result in better bookings than prior years,” said Liberty. “We have seen strength for all key products and are already taking more bookings for 2025 sailings than 2024.โ
It also reported onboard spending and pre-cruise purchases were significantly higher than in previous years, particularly for European and Alaska itineraries, which contributed to higher overall revenues.
Royal Caribbean Group expects net yields to grow by 6.5 to 7 percent for the third quarter, driven by strong demand and pricing.
Growth Fueld by New Ships and Attractions
Royal Caribbean Groupโs growth is bolstered by an aggressive new-build strategy. The release of the worldโs biggest cruise ship, the 250,800-gross-ton Icon of the Seas in January, created a media and booking frenzy.
Sailing from Miami on adventures into the Caribbean, the 7,600-passenger ship boasts the largest waterpark at sea with six record-breaking slides and the AquaDome, a transformative venue with stunning ocean views and cutting-edge entertainment.
The excitement around the shipโs introduction was amped by world-famous footballer Lionel Messi christening the ship in a ceremony worthy of Miamiโs star-studded reputation.
As if that debut wasnโt enough, Silversea introduced Silver Ray, a Nova-class ship providing an intimate cruising experience for around 700 passengers. The 54,700-gross-ton ship is sailing in the Mediterranean through early December.
Then the 6,700-passenger Utopia of the Seas was introduced earlier this month with Grammy Award-winning Meaghan Trainor on hand to perform and christen the ship. The last Oasis-class ship in Royal Caribbeanโs fleet, it was built entirely to support 3- and 4-night continuous voyages between Port Canaveral and the Bahamas.
Liberty said, โAs we look forward, we remain intensely focused on driving strong shareholder returns by delivering a lifetime of vacations and taking a greater share of the rapidly growing $1.9 trillion global vacation market.โ
In addition to these new ships, Royal Caribbean is enhancing its offerings by developing two Royal Beach Clubs. The Nassau Royal Beach Club, anticipated to be constructed at a cost of $165 million, will open in the Bahamas in 2025, providing guests with a 17-acre exclusive beachside experience.
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The Cozumel Royal Beach Club will follow in 2026, costing the company $75 million and offering another premium destination for travelers in Mexico.
Looking ahead, Royal Caribbean also plans to introduce Star of the Seas in 2025. The latest addition to the Icon-class fleet will weigh 250,800 gross tons and carry 5,610 passengers once it completes construction at Meyer Turku shipyard in Finland.