According to an investor note sent out by Wells Fargo Securities, Royal Caribbean Cruises is seeing stronger than expected Caribbean performance, but Europe is weak, despite limited capacity growth for the company’s brands in Europe year-over-year.

Cruise Industry News Annual Report data shows European capacity still down significantly from record levels in 2011 and 2012.

In addition, the Chinese market may be nearing a ceiling on top of various reports of significant price wars going on in the region. Wells Fargo cautioned on capacity growth in China in the near-term.