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The Street
The Street
Daniel Kline

Carnival considers megaship change Royal Caribbean already made

Royal Caribbean intends to break tradition when Utopia of the Seas begins sailing in July. 

Normally, a new megaship sails seven-day sailings to maximize revenue. Icon of the Seas, for example, the cruise line's current newest ship, has been sailing week-long trips out of Miami since it launched. That has helped maximize Royal Caribbean's  (RCL)  revenue as demand has been very strong.

Related: Carnival considers main dining room change Royal Caribbean made

Carnival Cruise Line has followed the same strategy with its largest-in-the-fleet Excel-Class ships: Mardi Gras, Celebration and Jubilee. Those three ships have been exclusively sailing seven-day trips. That makes sense given the scope and scale of Carnival's Excel Class, and Royal Caribbean's Oasis and Icon classes.

You can't fully experience these ships in a short sailing, but despite the success of this model, Royal Caribbean intends to break the mold when Utopia of the Seas begins sailing out of Port Canaveral in July.

Chief Executive Jason Liberty spoke about the success of Icon of the Seas and its plans for Utopia of the Seas during his company's first-quarter-earnings call.

"New hardware has been a great differentiator for us," he said. "Since Icon of the Seas joined the fleet a few months ago, it is already exceeding our lofty expectations in both guest satisfaction and financial performance. 

"We are also excited for the arrival later this year of Utopia of the Seas, a ship that is positioned to be another game changer for our short Caribbean product."

Utopia of the Seas will sail exclusively three- and four-day trips for its inaugural season. That's a massive change in strategy regarding new ships.

Allure of the Seas is the first Royal Caribbean Oasis-class ship sailing short itineraries.

Image source: Daniel Kline/TheStreet

Carnival considers shorter Excel-Class sailings

Liberty and Royal Caribbean are betting that exposing new-to-cruise customers to its best hardware will help convert them to frequent cruisers. Based on advertised pricing for Utopia versus Icon, that does mean taking lower per-night rates for Utopia, although it's not entirely fair to compare the sixth Oasis-Class ship to the first Icon-Class ship.

Royal Caribbean clearly believes in using some of its best hardware for short sailings given that it's moving Wonder of the Seas to three- to four-day sailings in 2024. That will put Wonder and Utopia, the two newest Oasis-Class ships, sailing short trips out of Miami and Port Canaveral respectively, 

Carnival has not used its Excel-Class ships for shorter sailings, but Brand Ambassador John Heald entertained the idea on his Facebook page.

"Do you think an Excel-class ship, Mardi Gras or Carnival Celebration should consider doing 4 or 5-day cruises? So many people ask me if that would ever happen. Is 4 or 5 days enough time to truly enjoy everything these ships have to offer?" he wrote.

He also asked his followers to share their thoughts and more than 700 of them responded.

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Carnival customers weigh in on short Excel-Class sailings

Opinions were mixed, as they generally are, on the idea of using Carnival's megaships for shorter sailings.

"The Excel class should not be any shorter than 6 days. With the cost of flights, etc., I want more time on the ship, and the time is needed to experience it due to the size," wrote Nina Anderson. "No one wants to pay thousands of dollars to be on a short cruise. Carnival should consider upgrading their smaller ships with some of the newer amenities so the shorter sailing can take advantage of those as well."

Using some of its best ships for shorter sailings is Royal Caribbean betting that new-to-cruise customers will have such a great experience that they'll come back. The cruise line also hopes to capture experienced cruisers who want a quick getaway.

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Many of Heald's followers balked at the idea of having less time to experience the Excel-Class ships.

"No way! You can barely enjoy it in 7," posted Sara Rose Curry. "I get people's schedules might not allow but it’s totally worth taking your full vacation time. There’s far too much to eat, do, and see." 

Some took a more pragmatic approach as to why Carnival should consider shorter Excel-Class sailings. 

"As an agent and avid cruiser, I think so. But also keep the longer itineraries. A short cruise will give them a taste and they won’t be able to see the entire ship so they’ll probably book another cruise on the same ship to see the rest or just to spend more time," Belinda Rucker Little shared.

Other travel agents share that view.

"Yes, definitely as a nurse and travel agent, I have many clients who can only do a max 4-5 days due to work. However, can we keep some of the options the longer cruises have?" Angela Valentine wrote.

Related: Get the best cruise tips, deals, and news on the ships from our expert cruiser

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