‘EXCEPTIONAL’ Q1 BOOKINGS HELP RCG UPGRADE 2023 PROFIT PROJECTIONS
In a recent trading update covering the three months to 31 March, the group, which owns Royal Caribbean, Silversea and Celebrity Cruises, saw an earlier start to an extended wave period generate a record level of bookings.
The strong trends resulted in an acceleration of the group’s booked position in relation to prior years, with the company generating "significantly" more bookings at "meaningfully" higher prices.
This year’s wave resulted in strong close-in demand at higher prices for the first quarter and enabled a significant improvement in revenue expectations for all three remaining quarters.
The increase in yield expectations for the year is predominantly related to higher load factors in the first quarter and higher prices for all four quarters, especially for Caribbean sailings.
Consumer spending onboard, as well as pre-cruise purchases, continue to exceed 2019 levels driven by greater participation at higher prices. The company expects load factors to reach "historical" levels by late spring.
"We knew that demand for our business was strong and strengthening, but we have been pleasantly surprised with how swiftly demand further accelerated well above historical trends and at higher rates," said Jason Liberty, president and chief executive of RCG.
"Leisure travel continues to strengthen as consumer spending further shifts towards experiences. Demand for our brands is outpacing broader travel due to a strong rebound and an attractive value proposition."
The company reported a net loss for the first quarter of $47.9 million compared to a net loss of $1.2 billion for the same period in the prior year.
The group also experienced particularly strong close-in demand for Caribbean itineraries, which accounted for close to 80% of first-quarter capacity. Load factors in the first quarter were 102%.
Adjusted earnings per share for the full year are expected to be in the range of $4.40 to $4.80 per share.
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