Royal Caribbean Group
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$197.00 | Pxmnpv | Bwrlyrwgw |
Consumer Demand Floats Sales and Profits on a Positive Path at Royal Caribbean
Business Strategy and Outlook
Consumer interest in travel has maintained momentum for Royal Caribbean into 2024, continuing the robust demand and pricing trends at the business. The redeployment of the fleet was completed in mid-2022 and occupancy has returned to historical levels aiding a normalization of profits and cash flow. Royal Caribbean reported record pricing in 2023 (13% above 2019's level), with further growth anticipated in 2024, given robust advance booking patterns and price levels thanks to a healthy consumer appetite for travel. On the cost side, expenses should be better managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.