Royal Caribbean Chairman: Increased revenue & efficiency

In:
25Jul2013

During Royal Caribbean's second quarter financial results conference call, Royal Caribbean Chairman Richard Fain credited an increase in revenue in part due to its newer ships being more efficient and generating revenue at a faster pace.

According to Fain, cruise ships built since 2006 are generating 25% more revenue per berth than their older sister ships.  Moreover, operating costs for older ships are more than 20% higher per berth.

To that point, Fain pointed out that Oasis of the Seas and Allure of the Seas are the most efficient ships in the fleet, with 25% lower fuel consumption per berth than the rest of the fleet.  Fain expects Quantum of the Seas to follow the Oasis-class path by doing even better, and should set a new standard.

Fain also mentioned an emerging technology that Royal Caribbean has been testing with sister-brand Celebrity Cruises that use bubbles to lessen hull friction in the water.  Tiny bubbles stick to the bottom of the ship's hull so the ship literally is sailing on a cushion of air.  The technology is working so well that Fain expects to roll it out to other ships in the fleet, "in due course".