Royal Caribbean Group reported a strong third quarter in 2024, with Earnings per Share (EPS) of $4.21 and Adjusted EPS of $5.20, surpassing company guidance due to robust pricing, onboard revenue, and improved cost management.
Royal plans to expand its private destinations portfolio with Perfect Day Mexico, expected to open in 2027. Silversea are opening a new 150-room hotel in Puerto Williams, Chile to platform guest experience for its Antarctica expeditions, expected to open in 2025. Royal Beach Club Paradise Island is expected to open in 2025, and Royal Beach Club Cozumel in 2026.
The company has raised its full-year 2024 Adjusted EPS guidance to between $11.57 and $11.62, driven by strong revenue performance and pricing expectations, despite some headwinds related to Hurricane Milton and cost timing shifts.
Key performance indicators for the third quarter included a 111pc load factor, a 13.4% increase in Gross Margin Yields, and total revenues of $4.9 billion, contributing to net income of $1.1 billion.
Future growth strategies include expanding private destinations and enhancing vacation experiences, with expectations for strong bookings and yield growth into 2025, alongside anticipated increases in fourth quarter net yields and cruise costs.
Jason Liberty, president and CEO, Royal Caribbean Group shared “We wake up every day obsessively focused on our mission of delivering a lifetime of the very best vacation experiences to our guests. In pursuit of that mission, we are very excited to further broaden our Perfect Day Collection with Perfect Day Mexico and to develop the Southernmost hotel on Earth. Together with the expansion of our Icon Class, we look to continue to change the game and position ourselves to win a greater share of the $1.9 trillion vacation industry.
Closer-in demand for 2024 sailings exceeded expectations, contributing to higher load factors at higher prices and higher onboard revenue for the third quarter. Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2023 levels driven by greater participation at higher prices.
The market response to the company’s new ships, existing hardware, and private destinations, has been excellent and accelerating – further positioning the company for yield growth in 2025. Demand for 2025 is strong with booked load factors in line with prior years and at higher rates, allowing for further pricing and yield growth as 2025 bookings continue to ramp up.
Naftali Holtz, chief financial officer, Royal Caribbean Group shared: “The performance of our business continues to be robust, driven by strong demand and excellent operational execution. Our strong booked position is exactly where we want to be to further optimize our yield profile and deliver on our formula of success – moderate capacity growth, moderate yield growth and strong cost discipline – positioning us to continue to deliver margin expansion and strong financial returns.”
