Royal Caribbean to Expand Wonder of the Seas’ Casino

Royal Caribbean to Expand Wonder of the Seas’ Casino

Royal Caribbean International is expanding the casino onboard one of its Oasis-class vessels, the Wonder of the Seas.

According to a statement sent to guests, the venue will take over the area of the existing Crown Lounge on Deck 4.

As an exclusive space for guests on the higher levels of the company’s Crown & Anchor Society, the venue will be relocated to a different area on Deck 16.

“During this transition, the Crown Lounge will be closed from June 22-28, then reopen on June 29 on Deck 16,” Royal Caribbean said.

While the change takes place, eligible Crown & Anchor guests will take advantage of their perks in other parts of the ship, the company added.

“To keep the fun going, cocktail hour drinks can be redeemed at any bar or lounge. Plus, Diamond and Diamond Plus guests will enjoy extra cappuccino credits loaded onto their SeaPass cards, redeemable at Café Promenade,” Royal Caribbean continued.

Social100, Wonder’s teens’ club, will also remain closed during the transition period and is expected to reopen on June 29.

The Golden Room non-smoking casino will close on June 22 and reopen on July 13 as part of the expanded non-smoking gambling space on Deck 4.

According to the statement, the ship’s conference centres will be unavailable for guests during the construction period.

As the fifth ship in the company’s Oasis-class, the Wonder of the Seas entered service for Royal Caribbean in early 2022.

The 5,738-guest vessel is currently offering seven-night cruises to the Caribbean departing from Port Canaveral.

As the new Star of the Seas takes over the schedule from August 2025, the Wonder is set to reposition to Miami for short cruises to the Caribbean.

Royal Caribbean recently added a larger non-smoking casino to another Oasis-class ship, the new Utopia of the Seas.

After entering service in 2024, the vessel saw a new gambling room take over the space of its nightclub and comedy club.

World’s Largest Cruise Ships Meet in CocoCay

World’s Largest Cruise Ships Meet in CocoCay

Royal Caribbean International’s Icon of the Seas and the Wonder of the Seas met in the Bahamas earlier this week.

Currently serving as the world’s largest cruise ships, the vessels docked simultaneously at the company’s private island destination Perfect Day at CocoCay.

After assuming the title in 2023, the Icon of the Seas is currently the largest cruise ship in the world at over 250,000 tons.

Part of a new ship class, the vessel was delivered to Royal Caribbean last November. Visiting CocoCay during one of its short preview cruises, the Icon is being prepared to kick off its maiden season later this month.

Starting on Jan. 27, the 365-meter-long ship is scheduled to offer a series of week-long sailings to the Caribbean departing from PortMiami.

In addition to weekly visits to Perfect Day at CocoCay, Icon’s schedule includes many popular ports in the region, including St. Maarten, St. Thomas, and St. Kitts.

At 250,800 tons, the Icon of the Seas was built by the Meyer Turku in Finland, and can accommodate over 5,610 guests at double occupancy, in addition to 2,350 crew members.

Previously serving as the largest cruise ship of the world until 2023, the Wonder of the Seas is offering week-long cruises departing from Port Canaveral.

Slightly bigger than its sister ships, the 227,627-ton vessel is part of the Oasis Class and entered service in early 2022.

Sailing from its Florida homeport every Sunday, the 5,448-guest vessel offers different itineraries to the Western and the Eastern Caribbean.

The recent arrival in CocoCay was part of a seven-night cruise to the Western Caribbean that also features visits to Cozumel and Costa Maya, in Mexico, as well as Isla de Roatán, in Honduras.

During its year-round program in the region, the Wonder of the Seas also sails to Puerto Rico, St. Maarten, Labadee, and more.

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Royal Caribbean Partners with Eurovision Song Contest

Royal Caribbean Partners with Eurovision Song Contest

Royal Caribbean International is now an Official Partner of the Eurovision Song Contest for 2024 and 2025, according to a press release.

Sponsoring the world’s largest live music event, Royal Caribbean will bring to life a variety of experiences, including brand exposure throughout the event, host-city promotion and more.

The new partnership will debut ahead of the upcoming 68th Eurovision Song Contest to be held in Malmö, Sweden, in May 2024, and broadcast in the 37 participating countries with millions of viewers online. This will also mark the start of Royal Caribbean’s European season with six ships sailing from eight cities across the continent.

Ben Bouldin, vice president of Europe, Middle East and Africa, Royal Caribbean International, said: “As two world-renowned brands that are known for delivering memorable moments to millions across the globe, the combination of Royal Caribbean International and Eurovision Song Contest makes the ultimate partnership that will bring to life the very best of world-class live entertainment and a fusion of cultures from all over. With more than 60 historic years of the Eurovision Song Contest, we’re proud to partner with an iconic brand that has a global audience, which only continues to grow with the popularity of an event that has become a cultural moment for so many around the world.”

Martin Österdahl, executive supervisor for the Eurovision Song Contest said: “We’re thrilled to announce our exciting new partnership with Royal Caribbean International. The Eurovision Song Contest and Royal Caribbean share a passion for creating unforgettable experiences that unite people from all around the world. We look forward to making new memories for our fans and guests alike and can’t wait to set sail together on this new adventure!”

Details on how to get tickets for the 68th annual Eurovision Song Contest with Royal Caribbean will be revealed in the coming months.

Royal Caribbean has unveiled Hideaway Beach, its first adult-only getaway at CocoCay

Set to open in January 2024 with the debut of Royal Caribbean’s newest ship, Icon of the Seas, the getaway will have a private beach and pools as well as two bars and three dining spots. 

 

“Everything from its hideaway location to the exclusive beach and pools to the private cabanas is designed for adults who want a day just for them,” said chief executive and president Michael Bayley.

 

Located in the north-west of Cococay, Hideaway Beach is an all-day experience reserved for adults aged 18 and above.

 

The unveiling comes as the cruise line announced earlier this week it was putting on sale the 2025-2026 season onboard Icon of the Seas three months in advance due to skyrocketing demand.

Royal Caribbean Sees Increased Demand for European Cruise Itineraries

Royal Caribbean Sees Increased Demand for European Cruise Itineraries

Royal Caribbean Group is pleased with the increased demand for European itineraries, resulting in a better-than-expected yield performance.

“While the Caribbean remains a standout performer this year, we were particularly pleased with the strength and quality of cruising [Ph] demand for European itineraries. This acceleration of demand for Europe contributed to the better-than-expected yield performance for the quarter,” said Chief Executive Officer Jason Liberty, speaking on the company’s second-quarter earnings call.

Liberty added that volumes from European consumers looking to book their summer vacations have accelerated, leading to double-digit yield growth expectations for this year compared to 2019.

“Europe sailings account for 17 per cent of our full-year capacity and 35 per cent in the third quarter. The acceleration in demand is increasing our revenue expectations for Europe sailings,“ said Chief Financial Officer Naftali Holtz.

“The better-than-expected performance has mostly been driven by our European customers, which underscores our nimble and global sourcing model,” he added.

Commenting on the somewhat surprising takeaway regarding the European market, Liberty explained that Europeans’ willingness to spend was very competitive with the North American consumer. Still, the difference is that they were delayed in activating their vacation.

“We expected Europe to be a little bit lighter versus 2019, in terms of load factor and it came roaring back,” continued Liberty.

Royal Caribbean: More New to Brand Guests

Royal Caribbean: More New to Brand Guests

Independence of the Seas in Southampton Photo credit Spacejunkie2 (Flickr)

“In the second quarter, the per cent of guests were either new to the brand or new to cruise surpassed 2019 levels by a wide margin, and we have seen post-cruise repeat booking rates nearly double 2019 levels,” said Jason Liberty, CEO of Royal Caribbean Group, speaking on the company’s second-quarter earnings call.

“While we have made positive strides in narrowing the gap to land-based vacations over the last several months, cruising remains an exceptional value proposition, allowing us to outperform broader leisure travel as we seek to further close the gap to land-based vacations, drive better revenue and welcome even more happy customers,” he said.

Liberty said that the company had double the web traffic now compared to 2019.

“In addition, our travel partners are now fully back up and running and delivering more bookings than they did in 2019,” he continued. “Our improved commercial capabilities have allowed us to capture this quality demand and expand our share of the guest wallet.”

Part of the new brand strategy has been the company’s investment in the short cruise market, with refurbished ships and Perfect Day at CocoCay. That strategy takes the next step in 2024 with the new Utopia of the Seas, which will be positioned year-round in the short cruise market.

“Utopia will be the first Oasis-class ship that will be entirely focused on short cruises in the Caribbean, supporting our strategy of competing with land-based vacation alternatives and driving new-to-cruise customers into our vacation ecosystem as we seek to close the value gap,” Liberty said.

“Demand and pricing for Utopia have far exceeded our expectations.”

Inside the Construction of Royal Caribbean’s Icon of the Seas

Inside the Construction of Royal Caribbean’s Icon of the Seas

Northern Europe’s largest gantry crane, nicknamed “Baby” at the Meyer Turku shipyard, lifted a single block of cabins for Royal Caribbean’s new Icon of the Seas, weighing more than 900 tons recently, Royal Caribbean Group officials said Tuesday.

The nine-deck, roughly 60-meter-wide block was moved in one day. It was the largest ever lifted in Europe, as far as shipyard officials knew.

Meyer Turku CEO Tim Meyer said there were no nerves in the move. His team had done a detailed study of how the steel would flex while being lifted and knew exactly how it should be handled while being moved into place.

“It’s very easy,” Meyer deadpanned. “It’s like building a Lego ship.”

While hoisting the cross-section of cruise ship cabins was a feat of engineering, it was also an example of Icon’s aggressive build schedule. Putting the blocks together shoreside is much faster than doing so on the ship, so the larger the block moved, the less schedule burden.

In all, the Icon consisted of 201 blocks, with roughly one installed a day. Each block required about 100 meters of welding once in place.

Building the world’s largest cruise ship meant roughly 2,600 workers a day coming to the Turku, Finland shipyard, representing some 20 nationalities from countless subcontractors. The ship will debut in Miami next January.

The Turku shipyard opened in 1737 — 58 years before the Meyer family started building ships.

Royal Caribbean Group President and CEO Jason Liberty called the yard the “tip of the spear” of innovation.

In their seventh generation of ownership and 228th year in operation, the Meyer family remains both focused and humble.

Patriarch Bernard Meyer, CEO of Meyer Werft, declined to spend much time looking backwards.

“We have no time to be proud; we have work to do,” he said.

Royal Caribbean Newbuild Outlook: ‘Market Underpenetrated’

Royal Caribbean Newbuild Outlook: ‘Market Underpenetrated’

Royal Caribbean Group and its portfolio of cruise brands will launch 11 new ships between 2023 and 2026, culminating in the third Icon Class ship in 2026 being delivered from Meyer Turku to Royal Caribbean International, and a newbuild for TUI Cruises from Fincantieri, according to the cruise ship orderbook.

In the near term, Jason Liberty, president and CEO, said that the business would grow capacity by 10 per cent in 2024, 5 per cent in 2025 and 6 per cent in 2026.

“I think the first thing to point out is, that’s not just one brand in one market, in one destination,” he said. “So this reflects our three wholly owned brands and how they’re going to grow in their different segments and also for these ships to be in other parts of the world.

“If you look at the orderbook, as you get into ’27 and ’28, it’s lighter orderbook. We believe that at Royal Caribbean that the addressable market is underpenetrated, especially in all the different markets in which we operate. We work very hard to create global brands that attract guests from all over the world and build revenue management systems to effectively harvest that quality demand. And we think that apparatus more than supports our expected supply growth over the coming years.”

Royal Caribbean Names Wonder of the Seas

Royal Caribbean Names Wonder of the Seas

Royal Caribbean International officially welcomed Wonder of the Seas into the family on Friday at Port Canaveral.

The cruise line’s latest ship was named by its Godmother and Wonder Mom Marie McCrea from Pennsylvania. The evening ceremony also marked the start of a new chapter for Wonder as it makes waves as Port Canaveral’s new, year-round family vacation, the company said.

Royal Caribbean executives and teams, families, friends, travel advisors, the cruise line’s partners and more came together on board the world’s largest cruise ship to celebrate the occasion.

In the time-honoured role of Godmother, Marie bestowed a blessing of safekeeping on Wonder, its crew and the millions of families who will make lifelong memories on board in the years to come. On stage with Marie were Royal Caribbean Group President and CEO Jason Liberty, Royal Caribbean International President and CEO Michael Bayley, and her daughter, Allie, who nominated her mother for the role as part of a nationwide search started by Royal Caribbean on Mother’s Day.

“Wonder of the Seas exemplifies Royal Caribbean Group’s focus on unparalleled innovation, sustainable cruise ship design and our commitment to delivering world-class, memorable vacations, responsibly,” said Jason Liberty, president and CEO, of Royal Caribbean Group. “This milestone represents the culmination of millions of hours of work, from the most innovative minds in the industry, to deliver the world’s latest wonder.”

Designed for memory-making from end to end, Wonder inspires awe and adventure in kids and vacationers of all ages with feats and experiences across eight neighbourhoods – a first in the revolutionary Oasis Class. To find the Godmother to match, Royal Caribbean took to TikTok and launched the #SearchforWonderMom contest, which saw 16,000 videos posted and 10.6 billion hashtag views.

The search was complete when the cruise line heard Marie’s story, one of a devoted mother, wife and cancer survivor whose spirit inspired her family and those around her to set out on adventures and enjoy every moment together despite the hardships they faced.

“It was an honour to officially welcome Marie, and Wonder of the Seas, to the Royal Caribbean family,” said Michael Bayley, president and CEO, of Royal Caribbean International. “Marie’s story is one of incredible strength and family memories to last a lifetime, and those are the types of memories we’ve committed to creating with our guests and crew on every Royal Caribbean ship for more than 53 years. Wonder is the adventure of all adventures that combines what families know and love on our revolutionary Oasis Class ships with brand-new experiences, and it’s already delivered memorable vacations to more than 180,500 guests since first setting sail in March.”

“Carrying out my role as Godmother and a part of such an important moment for Royal Caribbean and Wonder of the Seas was such an honour,” said Marie McCrea, Godmother of Wonder of the Seas. “Having my family by my side to celebrate this incredible ship was yet another memory we’ve made together – and with our new Royal Caribbean family – that I’ll never forget.”

 

Big Three Cruise Corporations Set to Spend $2 Billion Food in 2023

Big Three Cruise Corporations Set to Spend $2 Billion Food in 2023

Norwegian Bliss in Ponta Delgarda, Azores. Photo credit Spancejunkie2 (Flickr)

Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line Holdings are on pace to spend roughly $2 billion on food and beverage items in 2023,( according to Cruise Industry News estimates).

This is based on third-quarter spending this year, which saw Carnival spend $259 million, Royal come in at $195 million and Norwegian at $77 million.

Compared to the last “normal year” in 2019, food spending was up at Royal Caribbean Group and Norwegian Cruise Line Holdings. The former spent roughly $150 million on food in the third quarter of 2019, while Norwegian spent $57 million.

Both companies have seen fleet expansion since then. Royal Caribbean Group not only completed its acquisition of Silversea but has welcomed a number of new big ships such as the Wonder of the Seas, Celebrity Apex and Celebrity Beyond.

Norwegian has also seen growth with the additions of new builds for the Norwegian and Regent brands since the third quarter of 2019.

Carnival, meanwhile, saw a reduction in food spending while growing with big new ships, but has also disposed of over 20 ships from its fleet over the same period.

 

ABB And Royal Caribbean Group Collaborate To Make Emergency Stops Safer And More Efficient

• ABB Ability™ Marine Braking Assistance helps ships minimize stopping time and distance, without compromising steering capability
   
• Initially developed at the request of Royal Caribbean Group, the new digital solution improves safety for ships, seafarers and passengers
   
• Automated braking saves wear and tear on critical ship control systems

As the world’s largest cruise ship Wonder of the Seas, departed on her maiden voyage in the beginning of March 2022, she was the first in the world to feature the new ABB Ability™ Marine Braking Assistance. Designed for safe and smooth emergency stops, the automatic braking system is the result of collaboration between supplier and owner, initiated at Royal Caribbean Group’s request.

Following full sea trials by shipbuilder Chantiers d’Atlantique and acceptance by the owner, the DNV-approved Marine Braking Assistance provides the latest example of how technology can be leveraged to improve safety for ships, seafarers and passengers.

Marine Braking Assistance, through the push of a button, triggers an automated braking sequence, optimizing the angles and power of all the Azipod® propulsion units based on vessel position, heading and speed to allow maximum braking efficiency. Critically, operators have time to attend to other urgent matters while retaining control over steering.

“We at ABB take great pride in introducing new technologies to the industry to improve safety and add value for our customers. Marine Braking Assistance is a good example of a co-creation project where we, in close collaboration with Royal Caribbean Group, developed a solution that makes a real operational difference,” said Kalevi Tervo, Global Program Manager of ABB Marine & Ports. “The adoption of an automated process that improves safety holds special significance at a time when regulators are moving forward on rulemaking for autonomous ships.”

The Marine Braking Assistance can be compared to an automated braking system (ABS) whose safety benefits car drivers today expect as standard. Automation of the braking sequence also minimizes the wear and tear systems experience due to vibration cavitation and the heating up of braking transformers under manual control.

Hard stopping a ship in an emergency situation can be highly stressful. Unlike slamming on the brakes of a car, for vessels with shaftline propulsion the turn to full astern results in losing steering ability. For a vessel equipped with podded propellers, the pod way emergency stopping procedure allows much faster stopping, with limited steering ability, but it demands step-by-step manual actions by the helmsperson, at a moment when other issues require immediate attention.

Anders Aasen, Vice President, Global Technical Operations, at Royal Caribbean Group states: “We have a long history of innovating to improve maritime safety. I am pleased to debut Marine Braking Assistance technology onboard our ships through close cooperation with ABB.”

ABB’s Process Automation business is a leader in automation, electrification and digitalization for the process and hybrid industries. We serve our customers with a broad portfolio of products, systems, and end-to-end solutions, including our # 1 distributed control system, software, and lifecycle services, industry-specific products as well as measurement and analytics, and marine offerings. As the global #2 in the market, we build on our deep domain expertise, diverse team and global footprint, and are dedicated to helping our customers increase competitiveness, improve their return on investment and run safe, smart, and sustainable operations. go.abb/processautomation

ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries. www.abb.com

Royal Caribbean’s Wonder of the Seas Arrives in Port Canaveral

Royal Caribbean’s Wonder of the Seas Arrives in Port Canaveral

Following a full summer program in Europe, Royal Caribbean International’s Wonder of the Seas is debuting in Port Canaveral today.

Returning to the United States after first debuting in March, the Royal Caribbean International vessel is wrapping up a 14-night trans-Atlantic.

Ahead of its first complete season in the Caribbean, the two-week repositioning cruise sailed from Barcelona. It included visits to four additional ports in Spain: Palma de Mallorca, Valencia, Cartagena and Malaga.

Before arriving in Florida, the vessel also paid a visit to Nassau, the Bahamas.

Now set to sail from Port Canaveral on a weekly basis, the Oasis-Class ship will offer a year-round schedule of cruises to both the Western and Eastern Caribbean.

For its first sailing from Central Florida, the Wonder offers a seven-night itinerary to the Eastern Caribbean.

In addition to three full days at sea, the voyage features visits to St. Thomas, St. Maarten and Perfect Day at CocoCay.

A highlight of the deployment, the Royal Caribbean International private island in the Bahamas is set to be featured on most of Wonder’s cruises.

Other destinations set to be visited by the 5,448-guest ship include Cozumel, Costa Maya, Roatán, Labadee, San Juan, Falmouth and more.

Built-in 2022, the Wonder is the latest vessel in the company’s Oasis Class and debuted as the world’s largest cruise ship.

Following the 2009-built Oasis of the Seas, the 2010-built Allure of the Seas, the 2016-built Harmony of the Seas and the 2018-built Symphony of the Seas, the vessel debuted new features, such as a lineup of more than 20 dining venues that include the all-new The Mason Jar Southern Restaurant & Bar.

With a menu of Southern staples and new twists on classics, the venue offers live music, a collection of more than a dozen American whiskey and more.

Completing the ship series, a sixth Oasis-Class vessel, the Utopia of the Seas, is set to debut in 2024.

Royal Caribbean Reports Q3 2022 Earnings; Net Income of $33 Million

Royal Caribbean Reports Q3 2022 Earnings; Net Income of $33 Million

Anthem of the Seas in Liverpool, UK Photo Credit Spacejunkie2 (Flickr)

Royal Caribbean Group today reported third quarter 2022 Earnings per Share of $0.13 and Adjusted Earnings per Share of  $0.26.

Third quarter results were better than expected and above guidance for the quarter mainly due to higher load factors from strong close-in demand, further improvement in onboard revenue and better cost performance. The Group also introduced the Trifecta Program, a new three-year initiative designed to drive superior performance, according to a press release.

"Last quarter's better-than-expected performance was a result of the continued robust demand environment and strong execution by our teams," said Jason Liberty, president and chief executive officer of Royal Caribbean Group.

"The combination of our leading global brands, the best and most innovative fleet in the industry, our nimble global sourcing platform and the very best people have delivered a successful return of our business to full operations and positions us well to deliver record yields and adjusted EBITDA in 2023," added Liberty. "The Trifecta Program provides us with the financial coordinates we are looking to achieve over the next three years. As we have demonstrated in the past, we expect the formula of moderate yield growth, strong cost discipline, and moderate growth of our fleet will deliver a strong financial profile."

Business Highlights

• Load factors in the third quarter were 96% overall, with Caribbean sailings reaching almost 105%.
• Total Revenue in the third quarter was $3.0 billion, Net Income was $33.0 million and Adjusted EBITDA was $742.3 million.
• Booking volumes in the third quarter accelerated versus the second quarter of 2022 and remained significantly higher than booking volumes received in the third quarter of 2019 for all future sailings.
• For 2023, all quarters are currently booked well within historical ranges at record pricing.
• During the third quarter, the company addressed $5.6 billion of its 2022 and 2023 debt maturities, resulting in $0.1 billion and $2.1 billion of maturities remaining in 2022 and 2023, respectively.
• Based on continued strength in consumer demand and typical load factor seasonality, the company expects fourth-quarter load factors to be similar to the third quarter overall, and to reach triple digits by year-end.
• For the fourth quarter of 2022, based on current currency exchange rates, fuel rates and interest rates, the company expects to generate Total Revenue of approximately $2.6 billion, Adjusted EBITDA of $350 - $400 million and Adjusted Loss per Share of ($1.30) – ($1.50).
• The Trifecta Program is designed to achieve three important financial goals by the end of 2025: increasing Adjusted EBITDA per APCD to triple digits, increasing Adjusted EPS to double digits, and achieving ROIC in the teens, while in parallel returning to an investment grade profile and reducing carbon intensity by double digits as compared to 2019.

Third Quarter 2022

The company reported Net Income for the third quarter of $33.0 million or $0.13 per share compared to a Net Loss of $(1.4) billion or $(5.59) per share for the same period in the prior year. The company also reported an Adjusted Net Income of $65.8 million or $0.26 per share for the third quarter compared to an Adjusted Net Loss of $(1.2) billion or $(4.91) per share for the same period in the prior year.

Third quarter load factors were 96% overall and almost 105% for Caribbean Sailings. As expected, total revenues per passenger cruise day were flat as reported and up 1%  in constant currency versus the third quarter of 2019 despite the negative impact from the redemption of future cruise certificates (FCCs) and lower-than-average load factors on high-priced Europe itineraries.  

Gross Cruise Costs per APCD increased by 1% as reported and in constant currency, compared to the second quarter of 2022. Net Cruise Costs (NCC), excluding fuel, per APCD improved by 11% as reported and 10% in constant currency, compared to the second quarter of 2022. Gross Cruise Costs per APCD and NCC, excluding fuel, per APCD for the third quarter included $3.37 per APCD related to health protocols and one-time lagging costs related to the fleet ramp-up.

NCC, excluding fuel, per APCD for the fourth quarter is expected to be higher by low to mid-single digits compared to the fourth quarter of 2019, all on a constant currency basis. The company still expects to have transitory costs in the fourth quarter, but is expected to normalize as the company is nearing full occupancies, full crew staffing levels, and adapting protocols. The improvement is partially offset by inflationary and supply chain challenges, mainly related to fuel and food costs, which are expected to continue to weigh on costs through the rest of this year and through the first half of 2023.

Update on Bookings

Booking volumes in the third quarter were significantly higher than in the corresponding period in 2019, the company said.

This improvement in bookings was helped by the easing of testing and vaccination protocols which now align more closely with the broader travel industry, allowing everyone to enjoy a cruise vacation.

Guests continue to make their cruise reservations closer to sailing than in the past, resulting in about 50% more bookings in the third quarter for current year sailings when compared to the third quarter of 2019. 

While 2022 bookings remain strong and on pace to achieve occupancy targets, the most notable change has been a substantial acceleration in demand for 2023 sailings.

Booking volumes for 2023 doubled during the third quarter when compared to the second quarter and were considerably higher than bookings for 2020 sailings during the comparable period in 2019, the highest in company history.

As of September 30, 2022, the Group's customer deposit balance was $3.8 billion, reflecting typical seasonality as peak summer sailing deposits have been recognized in revenue. In the third quarter, approximately 95% of total bookings were new versus FCC redemptions.

Trifecta Program

The Trifecta Program is a three-year financial performance initiative designed to chart out the pathway back to superior performance with three main goals to be achieved by the end of 2025, the company said, including:

• Triple Digit Adjusted EBITDA per APCD, to exceed prior record Adjusted EBITDA per APCD of $87 in 2019.
• Double Digit Adjusted Earnings per Share to exceed the prior record Adjusted Earnings per Share of $9.54 in 2019.
• Return on Invested Capital ("ROIC") in the teens to exceed the prior record ROIC of 10.5% in 2019 through optimizing capital allocation and enhancing operating income; all while returning to an investment grade profile and reducing carbon intensity by double digits compared to 2019.

To achieve these goals, the company expects to execute its proven formula of moderate capacity growth, moderate yield growth, and strong cost controls, all while ensuring disciplined capital allocation, investing in the future and improving the balance sheet.

"Our brands, vacation offerings and fleet have never been stronger and we are well positioned for a continued step change in financial performance," said Liberty. "Our proven formula for success is unchanged as we grow capacity and, enhance profitability while seeking to deliver superior shareholder return."

Liquidity and Financing Arrangements

As of September 30, 2022, the Group's liquidity position was $3.1 billion, which includes cash and cash equivalents, undrawn revolving credit facility capacity, and a $700 million commitment for a 364-day term loan facility.

During the third quarter, the company took proactive actions to address $5.6 billion of 2022 and 2023 maturities, in addition to securing financing for the Silversea Endeavour acquisition:

• In August, the company issued $1.15 billion of 6.00% convertible notes due 2025 and used the proceeds to repurchase $800 million of its 4.25% convertible notes maturing June 2023 and $350 million of its 2.875% convertible notes maturing November 2023;
• In August, the company issued $1.25 billion of 11.625% unsecured notes due 2027 to refinance 2022 and 2023 debt maturities;
• In August, the company extended its existing commitment from Morgan Stanley for a $700 million delay draw term loan facility to August 2023;
• In September, the company amended its $554 million Term Loan (due October 2023) such that the aggregate outstanding principal balance is $502 million, with $30.0 million maturing in October 2023 and $472 million maturing in October 2024.
• In September, the company priced $1.0 billion of 8.25% secured notes and $1.0 billion of 9.25% guaranteed notes, both due 2029 and callable in 2025 to refinance $1.0 billion of secured notes and $1.0 billion of guaranteed notes, both due June 2023. The transaction closed in October.

"During the third quarter, we took a series of proactive actions to methodically address a significant amount of our 2022 and 2023 debt maturities," said Naftali Holtz, chief financial officer, Royal Caribbean Group. "Our strong near-term liquidity enables us to focus on continuing to improve the balance sheet as we seek to return to an investment grade profile."

Royal Caribbean’s New Terminal to Feature Galveston-Inspired Sculpture

Royal Caribbean’s New Terminal to Feature Galveston-Inspired Sculpture

Royal Caribbean Group's soon-to-be-opened terminal at the Port of Galveston will display the Galveston Beach Trio sculpture, designed by Brad Oldham Sculpture, according to a press release.

The cruise line's initiative to feature the sculpture in its new terminal is aimed at strengthening ties with the local community and celebrating local art and culture. Travellers will be able to enjoy the sculpture when the terminal opens on November 9, 2022, according to Royal Caribbean Group.

"Showcasing the history and culture of Galveston was our top priority in establishing this art installation in our new terminal, and we're thrilled to partner with Brad Oldham Sculpture to bring this vision to life," comments Joshua Carroll, vice president, of destination development, Royal Caribbean Group.

The sculpture, fashioned in stainless steel and lost-wax bronze, depicts a musical trio inspired by the port city's musical heritage, which includes Barry White, Joyce Fields and guitarist Joe Pena.

The Royal Caribbean Group team enlisted the help of Piper Faust Public Art to compile a list of Texas artists to be considered for the project and ultimately selected Brad Oldham and Christy Coltrin of Brad Oldham Sculpture.

"Some of our best memories are from travelling together. We are honoured to create a permanent installation that cultivates the vacation vibe with an approachable music theme using native animals to make up the band,” said Brad Oldham.

This community-inspired feature is the most recent addition to Royal Caribbean Group's Blue Green Promise. The RCG has committed to engaging the Galveston community through the development and operation of its new terminal, with the incorporation of local arts and culture serving as the first step in this effort.

New Royal Caribbean Galveston Cruise Terminal to Be Zero-Energy Facility

New Royal Caribbean Galveston Cruise Terminal to Be Zero-Energy Facility

Royal Caribbean Group's new Galveston terminal, which is opening on Nov. 9, will be the first cruise terminal to generate 100% of its needed energy through on-site solar panels. According to a press statement, this makes the terminal, which will be used by the company's Royal Caribbean International brand, the first LEED Zero Energy facility in the world. 

We are focused on innovating across all aspects of our company, especially in our work to advance sustainability in the communities we visit," said Jason Liberty, president and CEO, of Royal Caribbean Group. "We deeply value both the oceans we sail and the communities we visit and operate in, and the modern design and development features at our terminal in Galveston will work in service of both."

The new cruise terminal at the Port of Galveston will be the first in Texas to achieve LEED Gold certification, an industry-leading certification expected to be received within the first two quarters of 2023.

The Galveston terminal marks the cruise company's fourth LEED-certified facility and its first Gold certified. The previous projects include Terminal A at PortMiami; the Springfield, Oregon campus; and the Innovation Lab at Royal Caribbean Group's corporate headquarters in Miami.

The $125 million, 161,334-square-foot Galveston Cruise Terminal significantly expands the company's presence in the port, increasing the cruise line's ability to accommodate up to 630,000 guests annually. The opening of the terminal will mark the first time Galveston welcomes Royal Caribbean International's signature Oasis Class, the world's largest cruise ship, with the arrival of Allure of the Seas and the first time the company is bringing its frictionless arrival and departure process to Texas.

Royal Caribbean Upsizes Fundraising, $1.25 Billion at 11.625 Percent

Royal Caribbean Upsizes Fundraising, $1.25 Billion at 11.625 Percent

Independence of the Seas in Southampton View Independence photos click here, photo credit Spacejunkie2 Flickr  

Royal Caribbean Group today announced that it has priced its private offering of $1,250,000,000 aggregate principal amount (up from the previously announced $1 billion) of 11.625% senior unsecured notes due 2027 (the "Notes").

The Notes will mature on August 15, 2027. The Notes are expected to be issued on or around August 18, 2022, subject to customary closing conditions.

According to a press release, the Company intends to use the proceeds from the sale of the Notes to repay principal payments on debt maturing in 2022 and/or 2023 (including to pay fees and expenses in connection with such repayments). Pending such uses, the Company may temporarily apply the proceeds to repay borrowings under its revolving credit facilities or other borrowings.

The wonder of the Seas Arrives in Barcelona for Summer Season

The Wonder of the Seas Arrives in Barcelona for Summer Season

Royal Caribbean International's Wonder of the Seas has arrived in Barcelona, Spain, to kick off a summer full of European cruises.

The fifth ship in the cruise line's Oasis Class line-up sets course for the Mediterranean on seven-night cruises from Barcelona and Rome beginning Sunday.

Calls include Florence, Naples and Capri, Italy; Provence, France; and Malaga, Spain.

The Wonder's Western Mediterranean sailings will continue through October, rounding out a summer splash in Europe with eight action-packed ships, including Odyssey of the Seas – also marking its first season in Europe.

In November, the Wonder will return to the U.S. to sail from its new year-round home in Port Canaveral, Florida, to explore the Caribbean and The Bahamas, including the cruise line's private island destination, Perfect Day at CocoCay. 

Royal Caribbean’s Wonder of the Seas Arrives in the U.S.

Royal Caribbean’s Wonder of the Seas Arrives in the U.S.

The new Wonder of the Seas from Royal Caribbean Internationals which, according to a press release, is the largest cruise ship in the world, is marking its debut reaching Port Everglades, where it arrived on Feb. 20.

The ship will spend her first few months in Florida offering five- to seven-night Eastern and Western Caribbean itineraries which also includes CocoCay, Royal Caribbean’s private island.

In May, the ship will head back to Europe, sailing seven-night Western Mediterranean voyages with passengers able to embark either at Barcelona, Spain or Barcelona, Spain (Rome), Italy.

In November, the ship will return to the U.S., to Port Canaveral, to offer six- and seven-night Caribbean itineraries.

“The Wonder of the Seas will energize cruising in a bolder and bigger way. Adding this ship to our already best-in-class fleet elevates the company is continuing to lead the industry with new features and innovation,” said Jason Liberty, president and CEO of the Royal Caribbean Group.

The Wonder of the Seas was escorted by fireboats and welcomed with ship horn greetings.

Mask Requirement Dropped for Vaccinated Guests on Royal Caribbean

Mask Requirement Dropped for Vaccinated Guests on Royal Caribbean

Independence of the Seas Photo credit for Spacejunkie2

Face masks are soon to be optional for fully vaccinated guests sailing from the U.S. on cruise ships from Royal Caribbean International.

The cruise line made changes to the Healthy Sail Center section of its website following the news it will participate in the CDC's new voluntary program for cruise ships,.

The mask mandate becomes optional on sailings from the U.S. and Puerto Rico on Feb. 25.

The company said it expects unvaccinated children to continue wearing masks indoors and in crowded settings. Masks are required for all children while at the Adventure Ocean youth program. Guests under 2 do not have to wear a mask at any time.

Masks are also optional at the company's private destinations, Perfect Day at CocoCay and Labadee. Royal Caribbean said that at other ports, guests are advised to follow local regulations. Masks should also be worn at the cruise terminal during the boarding and screening process, as well as during disembarkation. Guests under 2 do not have to wear a mask at any time.

As for sailings in Europe, which are set to start this spring, Royal Caribbean said it has yet to determine its health and safety protocols for cruises in that region, with news coming soon. 

 

Royal Caribbean Details Low COVID-19 Case Numbers

Independence of the Seas in Southampton, UK. Photo credit Spacejunkie2

Since restarting operations in 2020, Royal Caribbean Group has carried approximately 1.3 million guests, with about 2,500 guests testing positive for COVID-19, for a positivity rate of 0.19 per cent.

Those numbers were shared by President and CEO Jason Liberty on the company's year-end and fourth-quarter earnings call on Friday.

"This positivity rate is still a small fraction of what it is in society at large, and nearly all cases onboard were asymptomatic or had mild symptoms," Liberty said.

"Our rigorous health and safety protocols with 100% per cent vaccination rate among our crew and close to 100 per cent vaccination rate among our guests provide a safe environment where we can fulfil our mission of delivering amazing vacations. And our guests are responding by providing record Net Promoter Scores for us, exceeding their expectations," he added.

Michael Bayley, president and CEO of the Royal Caribbean International brand, also said that while the Omicron variant did impact crew aboard, most crews had no symptoms.

"99 per cent of the crew positivity was asymptomatic and the 1 per cent was extremely mild symptoms. I mean, it really was remarkable in many ways. But the impact on the crew was effectively 0, except to take them out of operation for the period of their quarantine," Bayley said.