Royal Caribbean has raised its annual profit forecast for the fourth time this year, citing strong demand and higher prices for its voyages to private destinations, as well as its European and Alaskan vacations. Cruise operators are seeing a shift in traveler preferences towards sea-based vacations, following the initial surge in bookings known as revenge travel after the pandemic lockdowns. The company’s shares have risen by 1.3% in morning trade, adding to a 57% gain this year.
Demand for 2025 is strong for Royal Caribbean, with booked load factors in line with previous years and at higher rates. Analysts at William Blair expect the company to see a healthy 20% profit growth in 2025, recognizing Royal Caribbean’s evolution into a more consistent, higher-return business. The company has invested millions of dollars in amusement park-like private destinations, boosting ticket revenue.
Royal Caribbean expects adjusted earnings per share of $11.57 to $11.62 for 2024, up from its earlier projection of $11.35 to $11.45. CEO Jason Liberty highlighted the robust demand for the company’s differentiated vacation experiences, following exceptional third-quarter results. Despite a warning of a hit from Hurricane Milton and a forecast of fourth-quarter profit below estimates, Royal Caribbean remains optimistic about its future performance.
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