Royal Caribbean to offer more luxury cruises and make use of big data
Compared with its competitors, the airline focuses more on the premium segment. However, it is less diversified in terms of routes and the nationalities of its passengers
Which stocks have been the standout performers on the stock market over the last 12 months? For the most part, for better or worse, the usual tech stocks and – unfortunately – those in the defence and military sectors.
The Stock Exchange
On closer inspection, however, there is another sector that has also performed well: cruises. In particular, Royal Caribbean Cruises has maintained a remarkable pace. According to Seeking Alpha, the US group has risen by 78.8 per cent over the past year. This figure is significant because, over the same period, the Nasdaq rose by only 23.6 per cent. One might argue that extending the period under review would change the picture. This is not the case: the trend remains the same. Looking at the last two years, Royal Caribbean’s share price has risen by over 250 per cent, whilst the tech index has seen an increase of just 69 per cent. What’s more: from 2021 to the present day (a five-year period), the ‘cruise line’ company has risen by 394.6 per cent on the stock market, compared with a 102 per cent rise in the Nasdaq. Of course, individual tech companies, such as chip giant Nvidia, outperform Royal Caribbean on the stock market – and by a considerable margin. However, the underlying point remains valid: the group has performed well on the market.
Economic trends
Yes, that’s right. But what are the reasons behind this trend? One key factor was the improvement in the company’s financial results. The company – like the rest of the sector – suffered a collapse in the wake of the Covid-19 pandemic. The suspension of cruises sent its financial figures plummeting. According to the Bloomberg terminal, in 2020 and 2021, adjusted revenues fell to $2.2 billion and $1.5 billion respectively. At the same time, the bottom line was marked by losses of $4 billion and $4.9 billion. In 2022, however, the recovery began. Turnover – driven by the resumption of cruises – rose to $8.8 billion, whilst adjusted profitability remained in the red (-$1.9 billion). The situation turned around completely in the following financial year (2023). In that year, Royal Caribbean posted an adjusted profit of 1.8 billion dollars. Then, in 2024, turnover reached 16.48 billion and adjusted net profit stood at 3.24 billion.
First half of 2025
On closer inspection, the trend continued into 2025. In the first half of the financial year, revenue stood at $8.54 billion (compared with $7.8 billion twelve months earlier) and net profit rose to $1.9 billion, compared with $1.2 billion recorded in the first half of 2024. In particular, with regard to turnover, a boost came from ticket sales, which accounted for almost two-thirds of turnover (69.6 per cent of the total). This figure grew by 9.4 per cent, rising from $5.4 billion in 2024 to $5.9 billion (2025).
This surge is the result of two factors. On the one hand, there is an increase of 274 million linked to the so-called ‘yield’. That is to say: the average revenue per passenger per day of cruising, which depends on both price levels and cabin occupancy rates. On the other hand, the growth (+4.4 per cent) in fleet capacity (more passengers carried) is significant, thanks to the addition of the ships ‘Utopia of the Seas’ and ‘Silver Ray’ to the fleet. The remaining 30.4 per cent of turnover, for its part, relates to on-board activities (plus other revenue). The latter totalled 2.6 billion, up 7.7 per cent compared with the same period last year. Here too, this trend was driven by both increased capacity (+106 million) and improved profitability (+79 million). This combination resulted from higher passenger numbers and higher prices.
