Royal Caribbean has raised its yearly outlook after a strong third quarter. The company reported impressive growth, with revenue up 17.5% compared to last year, reaching $4.89 billion.
However, operating expenses were up to $2.391 billion for the quarter. Still, the all-important net yields increased by 7.9% year-over year. Occupancy rate was 111% for the quarter.
“Our exceptional third quarter results and increased full year expectations reflect the robust demand,” said Jason Liberty, president and CEO. “We see elevated demand patterns continuing as we build the business for 2025.”
Liberty said the “moderate capacity growth and strong cost discipline “is paying off and “is expected to continue to deliver strong financial results.”
Exceptional Quarter, Says CEO
As of the end of September, the group held $5.324 billion in customer deposits. Net income for the third quarter was $1.1 billion. Overall, it was “an exceptional third quarter” Liberty said.
Onboard spending at higher prices is driving the revenue growth. “Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2023 levels driven by greater participation at higher.” Cruise to Europe, Alaska and sailings with private destination calls have seen strong demand at higher prices.
Royal Caribbean Group is boosting its vacation options in the coming years with new destinations such as Perfect Day Mexico, which debuts in 2027 and a 150-room hotel in Chile to support Silversea’s operations to Antarctica.
“We continue to bet on the long-term future and invest in new vacation experiences at sea and on land. Our strategic initiatives are paying off, and consumers are responding by increasingly choosing our brands,” Liberty wrote in a LinkedIn post.
Royal Caribbean forecasts a fourth-quarter net yield increase of up to 5.6% in constant currency to close out the financial year.
