‘EXCEPTIONAL’ Q1 BOOKINGS HELP RCG UPGRADE 2023 PROFIT PROJECTIONS

Independence of the Seas in the port of Southampton, photo credit Spacejunkie2 (Flickr).

Royal Caribbean Group (RCG) saw booking volumes in the first quarter of 2023 perform "considerably" better than expected, enabling the company to "significantly" improve its revenue expectations for all three remaining quarters of 2023.

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.

Marella Cruises will offer voyages to Canada

A new 14-night East Coast Adventure sailing, departing Port Canaveral in October 2023 and calling at Newport, Bar Harbor, Saint John, Sydney, Halifax and Boston, will go on sale on 21 July, along with the line’s full winter 2023 programme. 

 

Speaking to TTG on Tuesday (28 June), managing director of cruise at Tui UK and Ireland Chris Hackney said the new itineraries will "bring North America to life".

 

"It’s a great time of year to go to Canada, and we’re really excited to go there for the first time," he added.

 

"We’re going to different parts of the US and offering a nice range of options. It brings to life the different destinations, whether it be the south, the north, it will be very appealing to customers and it will help tick off those bucket-list holidays."

 

Discovery will also offer a 12-night Stateside Discovery sailing, departing Port Canaveral and calling at Miami, New Orleans, the Dominican Republic and Barbados.

 

Meanwhile, the line’s newest ship, Marella Voyager, will offer three Caribbean itineraries from Barbados in winter 2023, including an eight-night Paradise Islands sailing in November 2023, which calls at Tortola, Saint Maarten, Saint Kitts, Antigua and Dominica.

Elsewhere, Marella Discovery II will homeport in Singapore and offer a 14-night Eastern Experience sailing, calling at Laem Chabang, Phu My, Malacca, Langkawi and Patong Bay.

 

"We have operated in Asia in the past, but this time we will homeport out of Singapore, where the ship will overnight, giving customers the opportunity to experience the destination in the day and the evening," Hackney added.

 

"In the past, we have received really good feedback from customers on being in a place like Singapore, where you’re centrally located in such a vibrant city, so we think it will go down really well.

 

"Everything is really exciting, and these new itineraries allow us to bring in some new destinations, we have a lot of customers who ask when we’re going back to Asia and it’s great to be able to bring it back for next winter for customers to see some fantastic parts of the world."

Katy Perry as godmother of new-ship Norwegian Prima

As godmother, Perry will not only fulfil the maritime tradition of blessing and officially naming the vessel, but she will perform during the christening ceremony in August before the vessel embarks on its inaugural voyage from Reykjavik.
 

Harry Sommer, president and chief executive of NCL, said the brand was "excited" to welcome the "one-of-a-kind artist" as godmother of Prima.

 

"We are so incredibly proud that she will be part of the Norwegian Cruise Line family and look forward to launching our beautiful, innovative ship with her in August," he added.

Perry said her favourite form of a holiday with her family was on the water. "Every morning that you wake up, you get to experience an incredible new view," she added.

 

"I love that I get to christen her with my good vibrations, and I’m so excited for this new, beautiful, high-end, high-tech ship to take the seas, and provide once-in-a-lifetime vacations for so many families."

 

Prima will offer inaugural voyages to Northern Europe from Southampton, Amsterdam and Reykjavik from 12 August, sailings to Bermuda from New York from 6 October and Caribbean itineraries from Texas and Miami beginning 27 October. 

Navigator of the Seas Arrives in Miami Following Huge Refit

Royal Caribbean International’s newly amplified Navigator of the Seas is in Miami following a $115 million refit aimed at the important short-cruise market.

Among the features are new waterslides, a new poolside area, new retail and restaurants and much more.

“We have really dialled up the adventure and Caribbean vibes in ways that will make Navigator of the Seas the ultimate getaway to take from Miami,” said Michael Bayley, President and CEO, Royal Caribbean International. “Independence and Mariner of the Seas, the first two modernized ships in our Royal Amplified program, have quickly become standout hits, and Navigator builds on this momentum with a combination of new, exciting features and signature Royal Caribbean offerings that will surprise and delight guests cruising with us for the first time and those who have vacationed with us before.”

The Navigator of the Seas is the third ship to be reimagined as part of the Royal Amplified modernization program, an investment of more than $1 billion in the cruise line’s fleet and part of the booming drydock market.

The effort spans 10 ships in four years and touches every facet of the guest experience with the introduction of a wide range of new thrills and Royal Caribbean staples meant to appeal to every generation, the company said. 

Beginning Friday, March 1, Navigator will sail five- and 9-night Caribbean itineraries through May 2019.

The ship will then set course for The Bahamas with three-night weekend and four-night weekday cruises, including visits to the cruise line’s private island, Perfect Day at CocoCay.

Beginning May 2019, each sailing onboard Navigator of the Seas will visit Perfect Day at CocoCay

Carnival Fascination chartered to FEMA, San Juan departures canceled

Carnival Cruise Line said its ship operating out of San Juan, the Carnival Fascination, will be chartered to the Federal Emergency Management Agency (FEMA), wiping out four months of cruises.

The move came at FEMA's request, Carnival said. The cruise line had been set to resume its normal seven-day cruise schedule from San Juan on the Carnival Fascination on Oct. 15.

Instead, Carnival said departures from Oct. 15 through Jan. 28 have been canceled. The Fascination will resume regular year-round cruising from San Juan on Feb. 18.

"We recognize how important vacations are, and we sincerely apologize for the disruption this late change in plans has caused our guests and travel partners," a Carnival advisory said. "We value your trust in us and hope you understand that this decision was made after careful consideration of the great need to support the recovery efforts in the region."

Carnival also modified Caribbean itineraries on a variety of ships through Dec. 31 that substitute new ports of call for visits that had been scheduled for St. Maarten and St. Thomas.

Carnival joins Bahamas Paradise Cruise Line in chartering a ship to FEMA for hurricane relief efforts in the U.S. Virgin Islands.

In 2005, Carnival chartered three of its ships to FEMA for six months for emergency housing in New Orleans after Hurricane Katrina.

Virgin Cruises to launch from Miami with mid-size cruise ship

Virgin Cruises has agreed a deal to have three ships built to start sailing from 2020 and “redefine” the cruise experience.

The 2,800-passenger vessels are due to be delivered between 2020 and 2022. Each will be 110,000 tons and also carry 1,150 crew.

The first vessel will be based in Miami offering seven-day Caribbean itineraries.

Virgin Cruises revealed today that it has signed a binding letter of intent with Italian shipbuilding company Fincantieri for the trio of new mid-size ships.

Potential customers are being invited to visit the Virgin Cruises website to share their ideas on what the new cruise line can do to deliver an "incredible experience at sea".

Virgin Cruises’ binding letter of intent with Fincantieri is the first part of a two-step process with both companies committed to signing a contract at the end of 2015.

Virgin Group founder, Sir Richard Branson, said: This is a very exciting day for Virgin and travellers around the globe.

“We now have the right partners in place to build a world-class cruise line that will redefine the cruising experience for good.

“The Virgin Cruises approach will appeal to cruisers and non-cruisers alike, and we look forward to being in Miami and delivering an experience for people who want a new way to cruise.”

The line’s chief executive, Tom McAlpine, said: “We are committed to making waves in the cruise industry, and partnering with Fincantieri and PortMiami sets Virgin Cruises up to do just that.

“Today’s announcement brings together important ingredients in our future success – Miami’s vibrant culture paired with the excellent port infrastructure and port team; and Fincantieri’s expertise in prototyping, their creativity and understanding of our vision.”