Latest news with #JasonLiberty
CNBC
3 hours ago
- Business
- CNBC
Royal Caribbean lifts full-year guidance on strong cruise bookings
Royal Caribbean raised its full-year guidance Tuesday on the back of strong cruise bookings. The company now expects 2025 earnings of between of $15.41 and $15.55 per share on an adjusted basis, up from prior EPS guidance of $14.55 to $15.55. CEO Jason Liberty noted traveler prefrences are evolving, saying more people are choosing to vacation more frequently and are opting for experience-driven travel. Royal Caribbean said 75% of consumers report they plan to spend the same amount or more on leisure travel over the next 12 months. "Our experiences are designed to meet these evolving expectations," Liberty said. Royal Caribbean reported growth in bookings during the second quarter from the prior period, especially from travelers booking closer to their departure date. It's a trend Liberty attributed to the growing number of younger cruisers, with millennials or younger generations now accounting for about half of total guests. And, they're willing to pay a premium, Liberty added. "In the weeks coming up to a sailing, the very few cabins that we would have left on each voyage, people not only were trying to get those cabins, but they were willing to pay considerably more money to ensure they get the vacation experience that they're looking for," Liberty said in an interview. The company reported second-quarter adjusted earnings per share of $4.38 on revenue of $4.54 billion. Wall Street had expected earnings per share of $4.09 and revenue of $4.55 billion, according to estimates compiled by LSEG. The cruise line's income rose to $1.2 billion, or $4.41 per share, an increase from $854 million, or $3.11 per share, a year earlier. Meanwhile, the cruise line reported capacity was up 5.8% compared to the year before, with 2.3 million guests taking a Royal Caribbean cruise during the second quarter. Still, shares of Royal Caribbean fell 5% Tuesday. The company noted bookings for its new ships launching this year, Star of the Seas and Celebrity Xcel, are performing well. "The strong demand we are seeing across our new ships and land-based destinations reinforces that our strategy is working and resonating with today's traveler," Liberty said.
Skift
5 hours ago
- Business
- Skift
Royal Caribbean Sees More Last-Minute Bookings, Plans Loyalty Changes
Royal Caribbean's passengers are definitely spending. Its plans to improve how its loyalty program and co-branded credit card reward guests may fuel future growth. Royal Caribbean Group said that booking rates have accelerated since April, driven by last-minute reservations. 'Our second quarter results exceeded expectations mainly driven by stronger-than-expected close-in demand,' said CEO Jason Liberty in an earnings call. 'Bookings have accelerated since the last earnings call, particularly for close-in sailings.' The company delivered over 2 million vacations in the quarter, a 10% increase year-over-year. Half of its customers were millennials or younger. The results let the Miami-based cruise giant raise its annual profit forecast on Tuesday, banking on resilient demand for its luxury destinations as the cruise operator reported its second quarter with the highest margins in about 20 years. 'We continue to see engaged and excited consumers with roughly 75% intending to spend the same or more on leisure travel over the next 12 months,' Liberty said. 'At the same time, more than half of consumers tell us they are booking closer to their departure date than they used to. And for the people who intend to travel over the next 12 months, the majority have not yet booked.' Loyalty News Coming Cruise lines don't do as good of a job at making their loyalty program and co-branded credit cards drive direct bookings as major hotel groups do. That said, Liberty wants Royal Caribbean to do better, after having integrated all of its brands into one rewards program last year. Liberty acknowledged the company's co-branded credit card 'is tied today to our loyalty program, but not in the way that fits our ambition.' He said passengers would see 'something very meaningful coming out of that very, very soon' as the company works with its credit card provider. 'The number of loyalty members that are sailing with us has now inched up to 40%,' Liberty said. 'Our loyalty members who spend 25% more per trip.' 'Nearly 50% of onboard purchases are now coming through the mobile app compared to one-third at the end of 2023.' 'Our guests are very focused on recognition and also being incentivized for the spend and loyalty that they provide,' the CEO said. 'Especially on the loyalty program side, we are very tuned into and have a lot of plans on what things our guests and our brands feel are a value to them that would result in them behaving even more loyal to us.' The executive framed loyalty as closing the gap with hotels and resorts in attracting guests at a comparable price point. 'If somebody goes outside our ecosystem to another cruise competitor or somebody else on land, then we should look at that as a fail,' Liberty said. 'Every one percentage point [of market share stolen from hotels] is worth a tremendous amount of money.' Cost Pressures Loom Royal Caribbean's performance comes as the industry faces pressure from rising costs. The company expects expenses to climb about 230 basis points in the third quarter, driven partly by higher fuel costs linked to escalated Middle East tensions. Higher tariffs could also impact shipbuilding and supply costs, keeping cruise operators on edge. Capacity Expansion Royal Caribbean has been investing heavily in new ships and private destinations to attract both seasoned cruisers and first-time customers. The company took delivery of Star of the Seas earlier this month and expects Celebrity Excel to launch by year's end. The cruise line anticipates capacity increases of 5.5% in 2025 and 6% in 2026 as it adds seven new ships over the next few years. The expansion includes private beach destinations like Royal Beach Club Paradise Island, which opened for bookings with what Liberty described as 'incredibly strong' early demand. In late 2027, it will debut Perfect Day in Mexico, a private destination that's approximately the size of the Magic Kingdom in Orlando in footprint, though with much fewer guests. Getting Better at Upselling Royal Caribbean has proven adept at getting customers to spend beyond their initial cruise fare. Onboard and other revenue rose 9.5% to $1.3 billion in the quarter. Guest spending onboard the ships and pre-cruise purchases are still above the prior year's levels despite higher overall pricing. 'Customers who purchase onboard experiences before their cruise spend about 2.5 times more than those who do not buy pre-cruise,' Liberty said. Results Net income was $1.2 billion, up from $854 million. Total revenue grew 10.4% from the same period a year ago to $4.54 billion. Net yield grew 5.2%, outpacing the company's projections by 70 basis points. For 2025, the company expects net yield growth between 3.5% and 4%, supported by new ships and continued success at its private destinations. 'Looking back on the 1H, our data indicates that cruise operators held prices throughout March/April and moderated pricing only marginally for the 4Q/1Q during May/June,' wrote Brandt Montour in a report for Barclays. 'Nothing wrong with cruising, for right now. But the key is: for right now. Royal Caribbean seems to be a bit more cautious about Q3, said Tracey Ryniec, stock strategist at Zacks Investment Research. 'They are not allotting for further yield growth, even though it may happen.' Royal Caribbean Group CEO Jason Liberty will speak on stage at Skift Global Forum in New York City in September. Royal Caribbean CEO's Premium Push: Better Pricing, Shorter Cruises, Younger Passengers Royal Caribbean Group's CEO Jason Liberty has a strategy to push his customer base upmarket. Liberty believes there's more willingness among consumers to pay more for premium leisure travel than previously assumed. Read More What am I looking at? The performance of cruise and tours sector stocks within the ST200. The index includes companies publicly traded across global markets including both cruise lines and tour operators. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more cruise and tours sector financial performance. Read the full methodology behind the Skift Travel 200.
Yahoo
9 hours ago
- Business
- Yahoo
Royal Caribbean stock drop as revenue misses expectations
-- Royal Caribbean Group reported second-quarter earnings that beat analyst estimates, but shares fell over 4% as revenue came in slightly below expectations despite strong demand across its cruise portfolio. The cruise operator posted adjusted earnings per share of $4.38 for the second quarter, exceeding the analyst estimate of $4.08. However, revenue of $4.54 billion missed the consensus estimate of $4.55 billion, despite representing significant growth from the same period last year. The company delivered vacations to 2.3 million guests during the quarter, a 10% increase YoY, with load factors reaching 110%. "Demand for our portfolio of brands and our industry-leading experiences continues to accelerate," said Royal Caribbean (NYSE:RCL) Group President and CEO Jason Liberty. "We remain keenly focused on delivering exceptional value for our guests and shareholders - not just by executing today, but by staying ahead of where demand is going." The company raised its full-year 2025 adjusted EPS guidance to a range of $15.41 to $15.55, compared to the analyst consensus of $15.45. The improved outlook stems from stronger-than-expected second-quarter performance, lower spending, and continued favorability below the line for the remainder of the year. Net yields increased 5.3% as-reported compared to the second quarter of 2024, driven equally by new and existing ships, with growth in both ticket pricing and onboard spending. The company's capacity increased 5.8% YoY during the quarter. Looking ahead, Royal Caribbean expects third quarter adjusted EPS between $5.55 and $5.65, with net yields projected to increase 2.3% to 2.8% as-reported compared to the same period last year. Related articles Royal Caribbean stock drop as revenue misses expectations Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names Apollo economist warns: AI bubble now bigger than 1990s tech mania Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Royal Caribbean Cruises Ltd. (RCL): The Downgrades Are A Chance To Buy, Says Jim Cramer
We recently published . Royal Caribbean Cruises Ltd. (NYSE:RCL) is one of the stocks Jim Cramer recently discussed. Royal Caribbean Cruises Ltd. (NYSE:RCL) is one of the largest cruise ship operators in America. Its shares have gained 53% year-to-date due to strong earnings and analyst optimism. The shares have performed well despite the fact that Royal Caribbean Cruises Ltd. (NYSE:RCL) and other cruise ship stocks suffered earlier this year after reports of the Trump administration cancelling tax exemptions for the industry. Even though the shares were falling back then, Cramer had remained optimistic. More recently, analysts from Bernstein and CFRA have raised Royal Caribbean Cruises Ltd. (NYSE:RCL)'s price target. These upgrades were part of Cramer's latest comments: 'But did you see what people are saying about the cruise ships again? Oh my and this Royal Caribbean, someone downgraded Royal Caribbean the other day. Forget that. That would turn out to be just another chance to buy it. The, the price target bumps for these stocks are insane. But then again, I mean cruising is a very inexpensive way to go.' Here's what Cramer had said about Royal Caribbean Cruises Ltd. (NYSE:RCL) after the tax exemption removal reports: 'Yeah, Royal Caribbean. I mean we pushed that very hard last night saying that their numbers are very good. Jason Liberty, just been on the show, the CEO a couple of weeks ago and he said things are good. And that's like, the bookings yesterday were bad I don't think so.' While we acknowledge the potential of RCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Newsweek
18-07-2025
- Business
- Newsweek
World's Largest Cruise Ship to Make Maiden Voyage From Florida
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The largest cruise ship in the world is set to make its maiden voyage in August. Royal Caribbean welcomed its newest Icon-class vessel, the Star of the Seas, ahead of its inaugural journey from Port Canaveral, Florida, on August 31. Newsweek reached out to Royal Caribbean via email for comment. The Context The Star of the Seas will become the sister ship to the Icon of the Seas, which launched in January last year. They are the same size, at 248,633 gross tonnage, and will share the mantle of the largest cruise ship in the world. Construction on the Star of the Seas began in 2023 and was finished on September 25, 2024. A rendering of the Star of the Seas, which begins its maiden voyage in August this year. A rendering of the Star of the Seas, which begins its maiden voyage in August this year. Royal Caribbean What To Know The 5,610-passenger ship, constructed over nearly two years at the Meyer Turku shipyard in Finland, completed sea trials involving more than 2,000 maritime experts. The ship will commence weeklong eastern and western Caribbean sailings, including stops at Royal Caribbean's private Bahamas resort, Perfect Day at CocoCay. For testing, the ship underwent rigorous 11-day sea trials in Finland, reaching speeds of up to 25 knots while engineers measured propulsion, pressure, and maneuverability. A rendering of the Star of the Seas, which begins its maiden voyage in August this year. A rendering of the Star of the Seas, which begins its maiden voyage in August this year. Royal Caribbean As part of its environmental strategy, Star of the Seas uses LNG fuel, widely regarded as a cleaner maritime alternative. It incorporates systems that recover waste heat and enable shore power connections, reducing emissions while docked. The maiden voyage will depart from Port Canaveral on August 31, 2025, for a seven-night cruise around the western Caribbean. Fares for this sailing start at about $1,731 per person, according to The Independent. In advance, shorter showcase journeys include a three-night round-trip to Perfect Day at CocoCay, beginning August 20, with tickets from about $1,069 per person, the outlet reported. What People Are Saying Jason Liberty, president and CEO, Royal Caribbean Group, said in a July 2025 statement: "The delivery of Star of the Seas marks another bold step forward in Royal Caribbean Group's journey to reimagine the future of vacations. "Star and the Icon class are a symbol of what's possible when innovation, imagination and our relentless focus on delivering exceptional experiences come together, ultimately creating unforgettable memories for millions of families and vacationers. "We're proud to bring this next-generation vacation experience to life with our valued partners at Meyer Turku." Michael Bayley, president and CEO, Royal Caribbean International, said in July 2025: "We're incredibly proud to welcome Star of the Seas to the Royal Caribbean family as we continue to revolutionize how families and adventurers vacation. "It's a true team effort with so many talented individuals coming together to make the new Icon class vacation a reality, and we're excited to debut this incredible achievement with a star-studded celebration this August." What Happens Next Following final preparations in Cadiz, Spain, Star of the Seas is scheduled to begin regular seven-night cruises from Port Canaveral in August 2025, with additional short showcase cruises planned. Royal Caribbean aims to debut its next Icon-class ship, Legend of the Seas, in 2026.
