Royal Caribbean has fully recovered from the covid pandemic.
That massive turnaround seemed nearly impossible when the cruise line reopened after being shut down for more than a year from North American ports.
Those early sailings began with Freedom of the Seas leaving out of Miami for a July 4 excursion, which had about 800 passengers on a ship that could accommodate more than 3,600.
In the early days of what the company called its "Royal Comeback," capacities were limited due to rules from the Centers for Disease Control and Prevention. But demand was also soft.
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Some people did not want to sail because of covid fears, while others did not want to get vaccinated or wear a mask, which the rules required at the time.
Getting back to normal seemed like a long road even as the CDC stopped regulating cruises and covid became less of a day-to-day factor.
The year 2021 was slow for the cruise line, but it started to regain momentum in 2022. And that weakness fully reversed in 2023, according to Chief Executive Jason Liberty's comments during the company's fourth-quarter-earnings call.
The 2023 year "was [exceptional], fueled by unmatched demand for our brands, ..." the executive said. "Net yields were up 13.5% compared to 2019, more than 3.5 times our January expectations, and we delivered margins that were back to record 2019 levels.
"Our net income exceeded our January expectations by about $1 billion, resulting in adjusted earnings per share more than double our January guidance."
The cruise line, however, will not be resting on its laurels. It has just outlined a massive plan to win over new cruisers (and maybe take some customers from Disney World and Universal Studios).
Image source: Daniel Kline/TheStreet
Royal Caribbean makes a scheduling change
Typically, when Royal Caribbean launches a new cruise ship, it schedules seven-day sailings. That's because weeklong trips maximize revenue as experienced passengers will generally pay more to sail the latest and greatest ships.
And that's why it was somewhat shocking when the cruise line said that its next ship, Utopia of the Seas, would sail three-to-four-day sailings out of Port Canaveral.
The Oasis-class ship, which will be one of the biggest cruise ships to ever sail, has been billed as "The World's Biggest Weekend" by the cruise line, and its deployment seems like a clear shot at Disney World and Universal Studios.
Port Canaveral sits about an hour away from the Comcast- and Walt-Disney-owned theme parks, and in theory people could do a short cruise after a trip to Disney World or Universal Studios.
That's a smart strategy given the value that cruises offer compared with a theme-park trip, but Royal Caribbean isn't going after only the big theme parks. It's making an effort to use some of its best ships to win over customers.
The cruise line will follow Utopia's short sailing deployment by moving Wonder of the Seas, formerly the largest cruise ship in the world, to sail three-to-four-day itineraries out of Miami.
Royal Caribbean wants new-to-cruise customers
"In August 2025, Wonder makes its Miami debut with its first season of 3- and 4-night getaways to Perfect Day at CocoCay and Nassau," the cruise line said on its website.
The cruise line has clearly targeted first-time cruisers with Utopia and Wonder of the Seas offering three- and four-day sailings. New-to-cruise generally represents about half the industry, and Royal Caribbean appears to be going after that business with an effort to make the best possible first impression.
Experienced cruisers looking for longer sailings may not love that two of the company's best ships are being dedicated solely to short sailings. The cruise line, however, does have Icon of the Seas, the current largest ship in the world, and its sister ship, Star of the Seas, which sets sail in August 2025, sailing longer itineraries from Miami and Port Canaveral respectively.
"The plan is to entice new cruisers with a short cruise, and if they love it, then they'll want to come back for more, and there are two Icon Class ships waiting for them," Matt Hochberg of Royal Caribbean Blog, which is not affiliated with the cruise line, explained.
"If a weekend cruise is too short, then they can jump right to Icon or Star. In either case, Royal Caribbean thinks these ships have the right product that no other line can match."
