Demand for Cruising Persists at Royal Caribbean, Keeping Pricing on a Positive Trajectory

Consumer interest in travel is set to maintain momentum for Royal Caribbean into 2025, continuing the robust demand and pricing trends in the business. With the redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth has begun to normalize. Royal Caribbean is expected to report record pricing again in 2024 (26% above 2019's level), with further growth anticipated in 2025, given robust advance booking patterns and price levels. On the cost side, expenses should be better managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.