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The Street
Daniel Kline

Royal Caribbean shares key news on its plans to go small

Many older cruisers think that some of the magic of cruising got lost when ships grew past a certain size, They miss the intimacy of smaller ships and the port-driven itineraries those ships were known for.

In the 1970s, 80s, and 90s, cruise ships were more a place where passengers, slept, ate some meals, and attended big production shows. Ships were more hotels than destinations in themselves.

Related: Royal Caribbean keeps Covid change that fixed a passenger problem

This has changed dramatically over the years as Royal Caribbean, Carnival, and MSC Cruises have engaged in an arms race to build bigger ships. These mega-ships aren't just bigger, they are destinations in themselves.

You can board the biggest cruise ship from any of those three lines and keep yourself occupied for a full week. There's really no need to get off in port, especially because the largest ships have limited places where they can dock.

For some passengers, however, bigger is not better. They're not looking for a roller coaster, a rock climbing wall, and dozens of bars and restaurants. 

Instead, they want a return to smaller ships, but with a modern touch. Royal Caribbean has steadily hinted at plans for what it has called "Discovery-class" ships, but it has confirmed plans for those ships in its second-quarter earnings call.

Those comments were followed by even more detail from a Royal Caribbean executive who shared key insights on the creative process.

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Oasis and Icon-class ships offer the Central Park outdoor neighborhood.

Image source: Daniel Kline/Come Cruise With Me

Royal Caribbean sees the need for small ships

Royal Caribbean executives have vaguely commented on smaller ships on multiple occasions. The cruise company's CEO Jason Liberty made very direct comments on the topic during the cruise line's second-quarter earnings call.

"And of course, the other thing I think that's important when you think about ship classes, whether they could be small, they could be larger, is kind of also a consideration that we also have ships that are reaching 30, 35 years. So, some of this is not just about we want to build same size ships, smaller ships, it's also replacing ships that will eventually kind of reach their end of life," he said.

The company's two smaller classes, Radiance and Vision class, are all nearing the end of their lives. In addition, small ships are not as efficient as newer, larger ships in many ways that can't simply be corrected with a dry dock.

Jewel of the Seas, the youngest of those classes, first sailed in 2004, making her a relatively spry 20, but Grandeur of the Seas, the oldest Vision-class ship, has been sailing since 1996, making her 28.

"We're looking potentially at smaller ships that will probably replace some of those older ships," Liberty added. "It's more about where those ships can go. It's getting them into maybe some of the more unique and bespoke destinations to further diversify our footprint around the world." 

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Royal Caribbean says size doesn't matter

Some ports, including Tampa and Baltimore, can only host ships of a certain size due to bridges the ships need to fit under when leaving port. In addition, some cruise destinations have limits on the size of the ships they can dock, while others have limits based on the number of passengers onboard.

Both of those factors are considerations for the cruise line as it looks at designing the first Discovery-class ships. Size, however, will not be the only factor.

Related: Every Royal Caribbean passenger needs to know about 'Royal Math'

"It is about the experience, and from the experiences that we put together, we get to the size. What are [guests] looking for that we don't offer today, and how can we deliver that through our product?" Royal Caribbean Chief Marketing Officer Kara Wallace told Travel Weekly.

ALSO READ: Top travel agents share how to get the best price on your cruise

The CMO also made it clear that the working name for the smaller ship line offers some hints as to what Royal Caribbean is trying to accomplish.

"Saying something's 'Perfect' is a really high bar. Saying something's an 'Icon' is a really high bar. It's almost [like] we put that out in the world, and then we manifest and challenge ourselves to make sure that it's delivering against that as a namesake," she shared.

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

 

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