Could booking a cruise at the last-minute cost you more than if you booked months earlier?
This week, Royal Caribbean Group executives discussed their second quarter earnings, which were notably higher thanks to more people booking last-minute cruises.
For years, some cruisers relied on waiting to book a cruise in order to snag a great price, but that strategy might not be as effective based on the comments from executives.
Royal Caribbean executives have made it clear: close-in demand is surging, pricing is strong, and guests are spending more.
If this trend continues, it could mean you'll pay much more for a cruise booked late rather than early.
Surging close-in demand
Royal Caribbean Group CEO Jason Liberty opened the earnings call with this fact: Net Yield grew 5.2% in the quarter, a full 70 basis points above their original guidance.
In cruise industry terms, Net Yield includes both fare and onboard revenue per available passenger day. So if Net Yields are up because of close-in bookings, that strongly implies that those last-minute fares are coming in above average, not below.
According to Liberty, "that was driven by better than expected close-in demand across all key itineraries."
What he's essentially saying is cruisers booking closer to the sail date were booking in large numbers and at higher prices than expected.
In the past, cruise lines may have discounted their fares to fill unsold cabins. However, that's not a problem these days. The average ship in the second quarter sailed with a load factor of 110%, meaning there’s simply not as much leftover space to mark down.
Higher cruise fares holding firm
To be clear, Royal Caribbean executives didn’t say the words "last-minute fares cost more." But their commentary left little room for doubt.
As mentioned earlier, close-in bookings pushed Net Yields higher. If last-minute fares were discounted, it would have dragged this number down, not up.
They also talked about how the booking window is shortening while prices are rising.
"More than half of consumers tell us they are booking closer to their departure date than they used to… [Yet] our booked position is in line with prior years at higher rates for both 2025 and 2026," Mr. Liberty said in the earning call.
This means travelers taking longer to book a cruise, so there's more competition for those last minute bookings, and at higher fares year over year.
Younger cruisers are fueling this trend
More younger people are trying cruising, and it's this growing segment of cruisers that are waiting to book.
Royal Caribbean said during the call that millennials and Gen Z are driving this behavior.
"We are also seeing strong intent across demographics, particularly among millennials and younger, who continue to represent half of our customer base," Mr. Liberty said.
"Roughly 7 in 10 consumers in these younger generations are more likely to book closer to departure, reflecting a desire for spontaneity and flexibility."
What can cruisers do to save money?
This revelation is a warning of how to adjust your booking strategy. You don’t have to overpay, but you do need to plan better.
Book early
If at all possible, book your cruise early instead of waiting for the final months before a sailing begins.
Royal Caribbean releases sailings to book up to two years in advance, and the best pricing is often available at launch. This is especially true for new ships and high-demand routes (like Alaska, Europe, or holiday sailings).
Booking early also gives you first choice of cabins, and often better value for suites and family staterooms.
Watch for price drops
The next thing to do is take advantage of a price drop.
I recommend booking with a good travel agent that can help you find price drops, and if there is one, reprice your cruise if the fare drops before final payment.
Be flexible
It's also a good idea to look for a cruise during certain times of the year when there's less demand.
If your schedule is flexible, consider shoulder season sailings, such as:
- Late August or early September in the Caribbean
- Early May or September in Europe
- May or September in Alaska
These three strategies should net you a lower price and better stateroom choice than if you wait until closer to the sail date to book. It will also ensure you bypass this growing trend of higher demand for a last-minute cruise.
