Royal Caribbean: Disciplined in Capacity Growth, Eyeing New Ship Classes

Grandeur of the Seas

Jason Liberty, president and CEO of Royal Caribbean Group, said the company felt confident about its path of growth when asked about future ship orders on the company’s second quarter earnings call.

Liberty said the company was “always” designing the next classes of ships for all of its brands, and would remain committed to disciplined capacity growth, with a long runway to generate demand on a global basis.

Planning for the Icon of the Seas started some seven years ahead of time, he said.

Those new ships could be smaller, Liberty said, noting potential homeports and transit ports that may have size restrictions.

“It’s kind of also consideration that we also have ships that are reaching 30 to 35 years,” he continued. “It’s also replacing ships that will eventually kind of reach their end of life … we’re looking potentially at smaller ships will probably replace some of those older ships.”

Older ships in the Royal Caribbean fleet include the Grandeur of the Seas, launched in 1996, as well as the 1997-built Enchantment and Rhapsody of the Seas, according to the latest Global Cruise Ship Index by Cruise Industry News.

The Celebrity fleet trends younger, with the oldest ship being the 2000-built Celebrity Millennium.

The company’s Silversea brand has one ship at the 30-year mark with the Silver Cloud, which entered service in 1994. The second oldest ship in the Silversea fleet is the 1995-built Silver Wind.

“You’re not just thinking longer term in terms of growing and orders but also your environmental foot footprint and what we can be doing further reduce our emissions and the fuel that we burn,” Liberty noted.

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