Despite global challenges, Royal Caribbean Group says bookings are above last year

Despite public concerns about the Iran war and violence in Mexico, travellers haven’t lost their appetite for cruises with Royal Caribbean Group, as demand continues to hold steady.

The cruise company – inclusive of Royal Caribbean, Celebrity Cruises, Silversea, and a 50 per cent joint venture interest in TUI Cruises – reported its first-quarter earnings on Thursday (April 30), stating that reservations are currently outpacing where they were at this time last year.

"Our strong first quarter results and record WAVE season demonstrate the exceptional appeal and compelling value proposition of our trusted brands, industry-leading ships, and destinations," said Jason Liberty, chairman and CEO, Royal Caribbean Group, in a press release.

"Demand for our experiences continues to be strong, and we remain focused on delivering the best vacations responsibly, accelerating revenue growth, and managing costs, all while continuing to invest in our future and drive further differentiation.”

“We expect another year of double-digit revenue and earnings growth, driven by consumers' preference for our leading brands and expanding portfolio – all supported by our strong booked position, leading margin profile, and fortified balance sheet."

READ MORE: Royal Caribbean confirms order for Icon ships 6 & 7

Royal Caribbean Group posted $4.5 billion in revenue for the quarter, up 11 per cent from a year earlier, and reported net income of $0.9 billion.

Adjusted earnings per share reached $3.60, exceeding prior guidance, driven by stronger revenue, reduced costs, and solid contributions from joint ventures.

Overall, the results suggest that cruise demand has remained resilient despite recent geopolitical tensions.

“Exceptionally strong trajectory”

The cruise company said bookings started out the quarter tracking at an "exceptionally strong trajectory," particularly with European sailings.

But that momentum hit a temporary speed bump late in the quarter.

The company said it experienced a temporary dip in demand for European sailings and routes along Mexico’s West Coast, which it attributed to region-specific geopolitical concerns.

The hesitation was influenced by a mix of factors, including higher airfare prices, reduced flight availability, and travel disruptions.

But the slowdown didn’t last long. The company noted that bookings for Mediterranean trips have picked up again in recent weeks, even with limited availability remaining.

By April, reservations were once again running ahead of last year’s levels, suggesting that any uncertainty among travellers faded quickly.

“Travel remains a priority"

Royal Caribbean Group continues to project growth, even as global factors could still weigh on demand in certain regions.

Revenue for 2026 is expected to grow roughly 10 per cent year over year.

“Demand for our vacations remains healthy, with consumers continuing to prioritize experiences even as they navigate the impact of global events,” said Naftali Holtz, chief financial officer, Royal Caribbean Group, in a statement.

“Travel remains a priority for consumers, with guests becoming more selective and value‑focused in how and where they choose to travel.”

“That dynamic aligns well with the attractive value proposition of our experiences, which is why we have done so well historically, even during times of uncertainty.”

The second and third quarters may feel more of an impact from the earlier slowdown in Mediterranean bookings, since those sailings account for a larger share of its deployment during that period.

At the same time, higher fuel prices are expected to drive up costs, potentially putting pressure on pricing and margins.

High capacity, high spending

Royal Caribbean Group carried 2.5 million guests in the first quarter, a 12 per cent increase compared to the same period last year, while capacity rose eight per cent.

The company also sailed at very high capacity during the quarter, with load factors reaching 109 per cent (meaning, many cabins had more than two guests).

The company said its bookings are at record pricing levels while volumes remain in line with historical norms, suggesting demand is strong enough to support firm fares.

That pricing power has held up even after a brief slowdown in reservations.

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In April, bookings once again outpaced the same period last year, including continued strength in last-minute reservations.

Passengers are also spending more once onboard, with purchases like drink packages, Wi-Fi, and other add-ons exceeding prior-year levels.

The company noted that onboard revenue continues to trend higher as a result.

Part of this growth comes from better personalization – connecting guests with experiences they’re more likely to enjoy.

Royal Caribbean added that stronger demand for onboard and destination offerings, along with an expanded range of purchasable options, is driving increased spending on cruise extras.

On the horizon

Looking ahead, Royal Caribbean Group will continue to broaden its offering.

The Group is expanding its portfolio of private destinations from three to eight by 2028 through its Perfect Day and Royal Beach Club collections, and the company will enter river cruising in 2027 with Celebrity River Cruises.

The company recently launched Royal Beach Club Santorini, is preparing for the upcoming delivery of Legend of the Seas, and has confirmed orders for Icon VI and Icon VII.

“Of particular note are the steps we are taking to enhance our loyalty ecosystem, including the recent introduction of the Royal ONE credit card,” noted Liberty. "This is one further step to deepen guest engagement and to position us to capture a greater share of the large and growing global vacation market."

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