Royal Capitalizes on Robust Consumer Demand, Allowing Pricing To Remain Above 2019 Levels Ahead

With travel constraints and coronavirus hesitancy in the rearview mirror, consumer behavior around travel and social distancing have returned to normal for Royal Caribbean, leading to robust demand and pricing (ahead of 2019 levels) at the business. The redeployment of the fleet was completed mid-2022, and booking patterns have returned to a historical pace. As such, Royal Caribbean should see record pricing in 2023, as the firm digests a few remaining bookings paid for with future cruise credits and takes new reservations. On the cost side, the impact of inflation and fuel prices could reman disruptive over the near term but should continue to moderate over the remainder of 2023, aiding profitability.