Oasis of the Seas continues to enjoy premium pricing
Oasis of the Seas, the celebrated largest ship in the world and now seven months old, is still generating enough demand to maintain it's premium prices over other ships in the Royal Caribbean fleet, according to a report by Majestic Research. In the report, cabins on Oasis of the Seas are selling for 41% more than the rest of the Royal Caribbean fleet during the current quarter. Even interior cabins, the cheapest option, sell for typically 69% more.
Majestic Research's Matthew Jacob had this to say about the future outlook for Oasis of the Seas, "We expect the ship will continue to generate strong premiums throughout most of 2010, although premiums appear to be leveling off sequentially".
When Oasis of the Seas debuted in 2009, an interior cabin cost 142% more than a cabin on Royal Caribbean's other ships. Majestic Research reports that the premium dropped to 112% in the first quarter of 2010 and then to 74% in the second quarter of the year.
This trend should continue until December 2010 when Allure of the Seas, Oasis of the Seas' sister ship, debuts.
So this sounds like great news for Royal Caribbean, right? Well, the bad news is Majestic Research says the higher prices on Oasis come at the cost of cannibalizing the premium for cabins found on the rest of Royal Caribbean's fleet.
Jacob says Freedom class ships have seen their premium for interior cabins versus the rest of the Royal Caribbean fleet shrink to 4% during the current quarter from 27% during the same quarter last year (the last full quarter prior to the launch of Oasis). Celebrity's Solstice class ships have seen their premiums decline to 22% during the current quarter from 68% during the same quarter a year ago, he says.