Royal Caribbean CEO Says Signs Point to a ‘Sensational Year’
Photo Caption: The new Ovation of the Seas is shown in Sydney, Australia. Royal Caribbean Cruises said business is starting off strong this year.
Skift Take
There's a lot of year left, but Royal Caribbean executives must be feeling pretty confident to use a word like "sensational." We'll see if reality lives up to the high hopes.
For whatever reason — pent-up demand, election fatigue, a renewed need for escape — travelers are booking cruises with Royal Caribbean for this year at a furious pace.
During an earnings call Thursday, Royal Caribbean Cruises chairman and CEO Richard Fain said the company's booked position for the coming year was better than ever before, with high load factors and rates.
"We now stand at a threshold of what promises to be a sensational year," Fain told analysts. Leaders of the individual owned brands — Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises — all have high expectations for 2017.
"Life is good," he said. "Long may it continue."
The optimism comes on the heels of a less-than-perfect quarter, when revenues and yields, or revenue per berth per day, failed to meet expectations. Profits increased from nearly $207 million in 2015 to more than $261 million in the fourth quarter of 2016, and earnings per share came in above forecasts.
