Royal Caribbean executives presented a very upbeat forecast for the full year of 2023 and outlook for 2024 on the company’s third quarter earnings call today.
The full year adjusted EPS guidance is for $6.59 to $6.30 for 2023 and “at least $9” for 2024, according to Jason Liberty, CEO.
Capacity will be up 8 percent in 2024 with Celebrity’s Ascent and Silversea’s Silver Nova sailing for the full year, the Icon starting revenue cruises for the Royal Caribbean brand in January, to be joined by the Utopia next summer, and with the Silver Ray entering service for Silver Sea.
The Caribbean will see a 13 percent capacity increase year-over-year, representing 55 percent of the Royal Caribbean Group’s overall deployment in 2024.
Europe will have 15 percent of the cruise capacity, Asia/Pacific 10 percent with the resumption of service in China, and Alaska 6 percent, representing the main deployments of the company’s three brands.
Royal Caribbean’s new destination, Hideaway Beach, will also open to guests in January, further driving onboard and shore excursion revenue.
For 2024, Liberty said that advancer booked onboard revenue is double what it was a year ago.
On the cost side, fuel pricing and foreign exchange rates are expected to have negative impact of $0.18 per share for the full year of 2023, and impacted sailings related to Israel deployment are expected to impact the year by approximately $0.03 per share.
2024 will also see drydock days double from 2023.
Meanwhile, demand for 2024 continue to accelerate, according to Royal Caribbean executives, at higher booked load factors and rates compared to all prior years, while the booking window continues to extend.