Royal Caribbean Blog

Planning a Royal Caribbean cruise is no simple task, and you might have questions about what to expect.

From what to pack, to what happens onboard the ship, to picking the right cabin, there's a lot to consider when planning your cruise.

We've written thousands of articles helping everyone find the right cruise for them.  To make it even easier to find the information you're looking for, we've also added this easy-to-navigate page to get you the information you need.

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Here's a list of the most frequently asked questions below to easily find the answers you need.

📋 Check-in process

🍹 Drink Packages

🏖️ Perfect Day at CocoCay

🛏️ RoyalUp stateroom upgrade bidding program

🚢 How to pick a cruise ship

🛋️ Cruise ship cabin guide

🧳 Cruise packing list

❤️ Crown & Anchor Society

🚌 Embarkation day

Checking-in for a Royal Caribbean cruise

When the day arrives to start your cruise, there's a lot of excitement and things to do.

Royal Caribbean wants you to complete as much of the check-in process before the cruise begins to expedite the process. This means taking the time while at home to get it all done so you spend less time in the terminal.

• How early can I board my cruise?
• 15 Royal Caribbean boarding process tips for a fast embarkation
• 30 Do's and Don'ts for the first day of your cruise
• What to expect with Royal Caribbean’s virtual safety drill
• Royal Caribbean app walkthrough and tips
• Should you use the porters to take your luggage on your cruise ship?

Booking a cruise

When should I book a cruise?

If you want to get the best possible price on your cruise, then you should try to book as soon as you can.

Ideally, you can take advantage of lower prices by booking a cruise 12, 18 or even 24 months in advance so that you can find the best cabin selection and lowest prices.

Once a sailing is open for booking, you may reserve a cabin at any point all the way until the week of the sailing.  Of course, capacity is limited and options will dwindle while prices rise over time.

How do I get the best deal on a cruise?

There are a few good strategies for getting the best price on a cruise and spend less overall.

Cruising on the cheap means looking beyond the obvious choices for a cruise. Here are a few good ways to save money:

• Cruise on ships that aren't brand new
• Pick a sailing at very start or end of the season
• Book many months in advance
• Book guarantee room

I also recommend working with a good travel agent to not only find the best pricing, but to help answer common questions and concerns. A good travel agent should cost you nothing to use, and they are very helpful in scenarios you never even imagined.

The ships

Which is the best Royal Caribbean cruise ship?

While this is a common question, the best cruise ship depends on what you want and like for your cruise.

Each ship offers different activities, amenities, entertainment and special features. The key is finding the ship that offers the right combination of these that appeal to you, while also sailing to the places you would like to visit.

Some important considerations you should look at in any ship is what it offers in:

• Kids Programming
• Signature activities (waterslides, Broadway shows, thrill attractions, open spaces, et al)
• Where it is sailing

What are the different classes of Royal Caribbean ships?

Royal Caribbean categorizes its cruise ships into classes, similar to auto manufacturers creating different models of cars.

There are eight different Royal Caribbean ship classes, and within each class there can be a differentiating options and add-ons that make ships different from each other.

The Oasis Class ships are the largest ships in the world, while the Quantum Class offer some of the latest innovations with a large size as well.

The Freedom and Voyager Class ships are a generation older, but are still large cruise ships that have recently been upgraded as part of the Royal Amplified program.

The Radiance and Vision Class ships combine a small size with many activities that have been added over the years. These are stylish ships that offer a refined and fun cruise atmosphere.

Majesty & Empress of the Seas are the oldest ships in the fleet, but they offer a more intimate setting than other larger classes.

Packing

What should I pack for my Royal Caribbean cruise?

We all know that feeling... you are getting ready for your vacation, but you cannot shake that feeling that you are forgetting something.

You should begin with personal items that you will need during your cruise, such as medications and prescription medicine.  It is a good idea to pack extra medicine in case of a travel delay getting home.

Onboard the ship, you will need outfits and clothes for when you're onboard, on shore, in the pool, and out to dinner. If you are cruising to the Caribbean, Mexico or other warm weather destinations, bring a hat for protection from the sun. If your cruise vacation will take you to Alaska, Canada & New England or Northern Europe, be sure to pack a jacket and several sweaters.

Be sure to pack a bathing suit, but you will not need towels as you can borrow them from the cruise line anytime you want.

What are dress codes?

The dress code rules for Royal Caribbean provide dress suggestions for the three types of dress codes onboard: casual, smart casual and formal.

• Casual: You’re on vacation – relax! Jeans, polos, sundresses and blouses are all the right amount of laid back. Please keep swimwear to the Pool Deck. Shorts are welcomed for breakfast and lunch.
• Smart Casual: Think of this as a step up from your typical dinner wear. Dress to impress with collared shirts, dresses, skirts and blouses, or pantsuits. Jackets, sports coats and blazers are snazzy and welcomed.
• Formal: Make it a night out in your best black-tie look – suits and ties, tuxedos, cocktail dresses or evening gowns. There can be 1-3 formal nights during a sailing and is at the ship’s discretion.

In practice, dress codes are infrequently enforced by the main dining room staff. 

If you are asking does everyone dress up to that extent, the answer is a resounding no. If you walk the Royal Promenade or around the Centrum of a Royal Caribbean ship around dinner time on formal night, you will spot plenty of people dressed to these specifications, but many opt for a more casual (but still dressed up) approach. Collared shirts with no jacket or tie for men, or blouses and skirts or leggings for ladies is common as well.

There can be 1-3 formal nights during a sailing and is at the ship’s discretion.

Dining

What dining options are included on my cruise?

Every Royal Caribbean ship offers a combination of complimentary and extra-cost dining choices. Keep in mind there is a great variety of complimentary dining choices that will cost you nothing extra.

Full meals for breakfast, lunch (on sea days) and dinner are available in the main dining room, as well as the Windjammer buffet.  Depending on the ship, there are also complimentary grab-and-go dining choices you can go to for a snack or even a meal.

You also have the choice of specialty restaurants that cost extra, but offer different cuisines and atmosphere not available elsewhere on the ship.

What if I have special dietary requirements?

Royal Caribbean is very accommodating when it comes to guests who have special dietary needs. The cruise line can handle a number of requests, such as food allergies, Gluten-free, Kosher, Low-fat, and Low-sodium.

Vegetarian Meals (including Indian-style vegetarian) are available on all menus in the Dining Room and Windjammer Cafe every day. Guests do not need to make a special request for these meals.

Lactose-free/soy milk, Ensure, and kosher meals are available no extra charge. All you have to do is notify Royal Caribbean at least 45 days prior to sailing (90 days for European/South American Itineraries).

For any and all dietary requests, contact your travel agent or Certified Vacation Planner and request that the remark be noted in your reservation details. If you made your reservation online at royalcaribbean.com you may add your request to the "update personal information." section. You may also send an e-mail request to [email protected]; please include in the e-mail the guests' names, booking number, ship name and sail date. E-mails will receive an automated response. 

Drinks

What drinks are included with my cruise?

Royal Caribbean provides all its guests on all its cruise ships a few different drinks throughout the day that are included in your cruise fare.   These drinks include

• tap water
• milk
• tea
• coffee (regular and decaf)
• lemonade
• iced tea
• flavored waters
• juices (at breakfast and not fresh squeezed)
• Hot chocolate (via instant packets)

These drinks are available throughout your cruise at a number of locations, so there will always be somewhere to get something to drink for free.

Other beverages, such as beer, wine, soda, espresso and bottled water cost extra.

Is a Royal Caribbean drink package worth it?

A very popular choice for guests who want to enjoy unlimited extra-cost beverages for a fixed cost is to buy a drink package.

There is no denying that a drink package has the potential to save money, but it depends on how you maximize its value.

If you can drink enough every day of the cruise, want to sample a wide variety of beverages, and like the convenience it offers, then a Royal Caribbean drink package is definitely worth it.

You do not need to get a drink package, but for many guests, the ability to lock in the price of a drink package and enjoy unlimited drinks without concern of spending too much is a very popular incentive.

Costs

What is included in my cruise fare?

A cruise remains a really good vacation value, especially when you factor in meals and entertainment.  Over the years, Royal Caribbean has realized some of its guests prefer to add onto the core experience, and began offering more options to tack onto their vacation.

Your cruse fare includes some basics:

• Entertainment & Nightlife
  • Broadway shows
  • Live music and comedy shows
  • Aqua shows and ice-skating shows
  • Parades and parties on the Royal Promenade
  • Comedy and live jazz club
  • Nightclubs, karaoke and sing-along piano bars
  • Lounge games and contests, such as trivia, Battle of the Sexes and more
• Signature Activities
  • FlowRider® surf simulator
  • Rock Climbing Wall
  • Quantum Class
    • RipCord® by iFLY® skydiving simulator
    • North Star observation capsule
    • SeaPlex play space with bumper cars, roller skating, trapeze school, video games and more
  • Oasis Class
    • Zip Line
  • Multi-level waterslides and slides on select ships
• Meals, beverages & room service
  • Main dining room
  • Breakfast, lunch, dinner and snacks in various venues throughout each ship
  • Windjammer casual buffet on every ship, open for every meal
  • Variety of juices, teas, coffees, soft drinks and water throughout the ship and with meals
• Kids & Teens
  • Adventure Ocean Youth Program
  • DreamWorks Experience
  • Fuel teen club
  • Teen lounge area with movies, games and live DJ
• Fitness Center & Sports Activities
  • State-of-the-art fitness center
  • Table tennis
  • Full-size basketball and sports court
  • Group fitness classes, such as sunrise stretch, fab abs, dancing, meditation and more
  • Seminars on topics like weight loss, reflexology, stargazing and more
  • Deck Games — Volleyball, pool games, tug of war and other active challenges
  • Running / jogging track
• Pools & Outdoor amenities
  • Outdoor poolside movies
  • Adults-only Solarium
  • Multiple whirlpools
  • Traditional swimming pools plus beach ambience areas and sports zones
  • H2O Zone and Splashaway Bay for kids

Royal Caribbean cruises are not all inclusive, but you can certainly go your entire cruise without spending anything extra.  

Royal Caribbean has designed its ships to be "modular", where you can choose to add certain extras if you prefer.

Are shows included on Royal Caribbean?

The stage shows, and so much of the live entertainment onboard, is included with your cruise fare.

Royal Caribbean is known for its Broadway shows, as well as original productions found in various theaters around the ship. These are all included in your cruise fare.

Other activities and events, such as trivia, game shows and dance classes are also included.

Sometimes Royal Caribbean may offer an experience or backstage tour that costs extra, but these are not required to experience the performances.

Important rules

What you aren't allowed to bring onboard

You should be aware there are some important rules about what you cannot bring on a Royal Caribbean cruise.

For the safety and well-being of all guests, certain items are prohibited from being brought onboard.

Prohibited items that may not be brought on your cruise include:

• Firearms & Ammunition, including realistic replicas.
• Sharp Objects, including all knives and scissors. (Note: Personal grooming items such as safety razors are allowed. Scissors with blade length less than 4 inches are allowed.)
• Illegal Drugs & Substances
• CBD Oil / CBD Products
• Candles, Incense, Coffee Makers, Clothes Irons, Travel Steamers & Hot Plates. (Items that generate heat or produce an open flame. This includes heating pads, clothing irons, hotplates, candles, incense and any other item that may create a fire hazard. NOTE: The only exception to this policy are curling irons and hair straighteners. Matches and normal lighteners are allowed onboard. However ""torch lighters"" and novelty lighters that look like guns are not allowed onboard. Torch lighters emit a powerful concentrated flame, and therefore are prohibited.
• Hoverboards
• Martial Arts, Self Defense, and Sports Gear, including handcuffs, pepper spray, night sticks.
• Flammable Liquids and Explosives, including lighter fluid and fireworks.
• Hookahs & Water Hookah Pipes.
• HAM Radios
• Baby Monitors
• Electrical Extension Cords
• Dangerous Chemicals, including bleach and paint.
• Perishable Food & Meat Products
• Alcoholic Beverages (except two bottles of wine on embarkation day)

These and other similar items will be confiscated upon being found. Alcoholic beverages, illegal drugs, flammable liquids, explosives, and dangerous chemicals will not be returned.

You cannot share drink packages

Let me be perfectly clear: it is absolutely forbidden to share the Royal Caribbean drink package benefits with anyone else. Period.

Royal Caribbean warns that guests who share a drink with someone who does not have a drink package can risk having their drink package benefits revoked with no refund.  

The package is intended for only the guest who buys the package.  If you want to buy a drink for someone else, you can do so and pay for it individually along side your drink package transaction.

Kids

What's available for kids on a Royal Caribbean cruise?

The heart of Royal Caribbean offerings for kids is the Adventure Ocean program, which offers supervised programming for children of nearly any age.

Nurseries are available on most ships for toddlers 6 months to 36 months old, where parents can drop children off throughout the day and evening. Use of the nursery comes at an hourly charge. Young children can enjoy soft play areas and age-appropriate toys, as well as cribs and cots for napping or sleeping.

For children 3 years old through 11 years old, Adventure Ocean is available for no additional cost every day of your cruise. There's a lot for kids to do here and the programs specialize for each age group.  It's a mix of learning, play time and socializing.

Kids are checked in and out by parents and it's fully supervised by Royal Caribbean staff. The requirement for children to participate is to be at least 3 years old and be fully potty trained.  There are after hours programs offered as well in Adventure Ocean for an hourly fee if parents want their kids to have supervision later into the evening.

The teens club is for older kids through 17 years old, which is about empowering teens to do their own thing but still offer activities and fun events to help introduce everyone.

There are teen-only spots onboard the ship where they can come and go as they please. Each day there are teen only events planned in the Cruise Planner, where teens can have dedicated time to enjoy special activities. 

WiFi

Is internet access available on Royal Caribbean?

All Royal Caribbean ships offer internet at sea access for an additional cost.

Royal Caribbean calls its internet service "Voom", and it relies on satellite technology for staying connected.

Depending on the ship, the actual speeds and performance will vary. On Oasis and Quantum class ships, you can easily stream video from services like Hulu or Netflix, or engage in Facetime and Skype video calls.

Some other ships, notably Royal Caribbean ships that spend time outside the United States, the speeds may not be quite as fast, but fleetwide, the Voom service is significantly better than onboard internet available through other cruise lines.

How much does WiFi cost?

The cost of a Wi-Fi internet package varies depending on the number of devices and the service package purchased. 

Royal Caribbean offers unlimited plans that can be purchased onboard the ship or pre-purchased prior to the cruise. 

Without a doubt, you will save money by pre-purchasing your Voom internet package via Royal Caribbean's Cruise Planner site.

Prices begin at $15.99 per device, per day for 1 device on the Surf (slower) access plan, and $19.99 per device, per day for 1 device on the Surf & Stream (faster) access plan.

Still have a question?

If you still have a question, or are unsure about something mentioned here, be sure to ask a question on our message boards!

The Bahamas Tourist Minister wants cruise ships to not only visit private islands, but the major cities of the Bahamas as well.

Dionisio D’Aguilar told Tribune Business that cruise lines will initially only visit private islands in order to limit exposure risks, but he hopes once the new policies are in place, cities can be visited too.

Obviously when they start cruising again they will not want to come to the population centres,” he conceded. “They will want to go to their private islands because they can control the environment. As minister of tourism I’m going to encourage them to come to the population centres because that’s where they will make the most economic impact.

Mr. thinks a 3-night cruise that includes a stop in Nassau, along with a private island is a great short sailing opportunity.

According to Mr. D’Aguilar, cruise passengers account for 11% of pre-pandemic tourism spending in The Bahamas, which amounts to $540 million in lost revenue for the country.

The thought that cruises will resume with short sailings to private islands echoes comments made by Royal Caribbean, including CEO Michael Bayley just last week.

"I think when we resume service, our thinking is that will probably we'll probably start with short product, Perfect Day, and that'll be the how we'll start phasing in operations."

With so many guests having a future cruise credit (FCC) now from cancelled cruises, some guests are curious if the expiration date will be extended.

Future Cruise Credits are issued at the time of cancellation to be used within a certain timeframe, but with more and more cruises being cancelled, there is concern guests might run out of time to redeem them.

During a travel agent webinar, Royal Caribbean spoke on this topic after the question was raised.

Royal Caribbean Director, Post Cruise Guest Relations & Shared Services, Laly Rodriguez,said Royal Caribbean is looking at this issue, but has not made a decision on it yet.

"We have been looking at that in plenty. The reason I started looking at that is because some of our Pinnacles are starting to say, 'Hey, I have all these future cruise credits and it seems like I'm not going to have enough time to use them.'"

"We're reviewing, discussing, and while we don't have an answer yet, we're keeping that top of mind to make sure that everybody has ample time to use them."

Lots of guests have taken FCCs

Since the global cruise suspension began, many guests have opted to take Future Cruise Credits, even in lieu of a refund. The bonus 25% credit for opting for a FCC when Royal Caribbean cancels a cruise has been a lucrative option.

During Royal Caribbean Group's earnings call with investors on Monday, it was revealed the company has about $900 million in future cruise credit value, with about 40-45% of those being non-refundable.

A Future Cruise Credit from a cancelled cruise must be redeemed on-or-before December 31, 2021 on a Royal Caribbean International sailing through April 2022.

New photos shared online show the new lifeboats for Odyssey of the Seas on their way to the shipyard.

Unimedien shared photos and even a video of lifeboats being delivered for Royal Caribbean's next new cruise ship.

The lifeboats were moved from the Fassmer shipyard in Berne, Germany through the Küstenkanal canal to the Meyer Werft shipyard in Papenburg, Germany.

On June 30,  Royal Caribbean announced Odyssey of the Seas will be delayed until April 2021, when she will begin sailing in Rome.

The cause of the delay is a combination of the global health crisis, delays in the supply chain, and fires at the shipyard compounding other shipyard issues.

Odyssey of the Seas will be Royal Caribbean's second Quantum Ultra Class ship and will come in at 168,000 gross-tons.

Royal Caribbean Group announced on Wednesday it has gotten a loan facility from Morgan Stanley for $700 million.

If Royal Caribbean elects to use the loan, it will bear interest at Libor plus 3.75%, and will mature in 364 days. The purpose of the loan is to help pay for "general purpose corporate purchases".

The Company has the ability to increase the capacity of the facility by an additional $300 million from time to time subject to the receipt of additional or increased commitments and the issuance of guarantees from additional subsidiaries of the Company. 

Prior to taking this loan, Royal Caribbean Group reported on Monday that it had $4.1 billion in liquidity, has debt maturities of $300 million in 2020 and $1.3 billion in 2021, and estimated a monthly cash burn rate of $250 million to $290 million.

Royal Caribbean said it is considering ways to further reduce its average monthly cash burn under a further prolonged out-of-service scenario and during re-start of operations.

Perella Weinberg Partners LP served as financial advisor and Skadden Arps, Slate, Meagher & Flom LLP served as legal advisor to the company in connection with the term loan facility.

With the United States Congress mulling over stimulus and economic relief ideas, the cruise industry is already planning to go without any federal assistance.

In an interview with CNBC, Royal Caribbean Group Chairman and CEO Richard Fain was asked if his company was willing to change being incorporated from Liberia to the US in order to increase the chance of getting financial relief.

Mr. Fain flat-out rejected the notion, saying that Royal Caribbean Group is, and has, been working to stay solvent without any financial assistance from the United States.

"We started with a strong balance sheet. We've taken a lot of steps to improve our liquidity. We've taken a lot of steps to bring our costs under control," Mr. Fain said bluntly. "It's a very painful process we've gone through."

"But we're doing that without relying on the US government. We're doing that on our own."

There was speculation that perhaps cruise lines, which have been hit hard by the global health crisis, might qualify for bailout money to remain operational.

Royal Caribbean and other cruise lines were subject to the same speculation in March 2020, when the first round of federal money was given out to boost the economy, but they were ultimately not included.

Royal Caribbean Group, the parent company of Royal Caribbean International, is incorporated in Liberia.

Taking a test for COVID-19 before you get on a Royal Caribbean cruise might be one of the many steps the cruise line takes to keep guests safe once cruises resume.

During Royal Caribbean Group's earnings call with investors, a Wall Street analyst asked is if Royal Caribbean will follow other cruise lines in Europe and test guests before boarding.

Royal Caribbean International CEO Michael Bayley answered that it testing of guests is "very likely" to occur.

The Healthy Sail Panel of health experts is currently working on an approach to address the many concerns guests may face once cruises start again, and their initial findings are expected by the end of August.

Mr. Bailey said that while the recommendations of the panel are not available yet, he did say testing will be part of it.

"Testing is part of the thinking that we have not yet reached a point in our protocols where we're ready to publish and release for for discussion," Mr. Bailey started, "But it's very likely that testing will occur."

He also noted that in addition to the cruise industry, several countries around the world are using testing as a requirement for entry, including in the Caribbean.

There was no indication yet of whether guests, crew, or everyone on the ship would be tested, but that is likely to be part of the Healthy Sail Panel's recommendations when they are published.

With some ships beginning to sail limited cruises in Europe, it is a good test for the industry.

"We're very engaged in what's happening and we're obviously receiving a lot of feedback. It's a great learning experience for for the industry in terms of what's occurring with regards to the protocols."

"I think certainly testing seems to be very relevant and discussions are underway."

If there was an over-arching theme to Royal Caribbean Group's earnings call on Monday, it was the notion that its customers want to cruise as soon as it becomes available again.  

The phrase "pent up demand" was used a number of times throughout the call to characterize what Royal Caribbean sees as a public that wants to make up for lost vacation time in 2020 due to the current global health crisis.  

Over the course of the hour-long call, the phrase "pent up demand" was used five times.

Royal Caribbean International CEO Michael Bayley was the first to bring it up, saying it was a combination of a reflection of bookings and personal belief.

"I'm kind of hopeful that we're going to see a lot of pent up demand. And certainly when you look at our bookings by quarter in '21, there's a lot of activity as we move into the summer."

"And I think a lot of people have written off this summer. They've decided that there's not going to be a big summer vacation for all of the reasons that we know. But people certainly want to have a vacation next year."

The notion of this built-in demand has made up for a lack of direct advertising that has been cut out since the start of the shutdown.

Royal Caribbean Group Chief Financial Officer Jason Liberty saw an upward trend into mid-2021 of increased bookings.

"You see this kind of line as you kind of get into the early to mid part of the second quarter, where there's just strong demand for for the season and beyond. It's almost as if the consumer has somewhat kind of focus on that's when it will be. It will be time for them to to deal with this pent up demand that Michael had had talked about."

Willingness to pay more

Not only are consumers eager to cruise again, they are willing to pay more.

Cruise line executives talked how pricing for 2021 cruises is averaging higher than 2020, and people are still paying it.

"There's strength in the Caribbean, European products, Alaskan products and so forth," Mr. Liberty said,  "So it's not just one thing, but it's it's really clear as we get kind of mid to two and beyond that, there is there's high demand and our consumers are willing to pay at or above the historical level."

"The patterns that we're seeing is with strength and our guests are willing to to pay more than what they paid for same time last year in 2019."

This phenomena is also in part because guests have an extra 25% future cruise credit to spend, and Mr. Liberty believes this may slow down once the FCCs start being used up.

How many people have used their FCCs?

There was an interesting breakdown at the end of the call about how guests are using their future cruise credits, and the breakdown of customer deposits on hand.

Royal Caribbean indicated they have $1.8 billion in customer deposits. Mr. Liberty said about $900 million of that is in FCCs, and about 40-45% are non-refundable FCCs.

"And so far there's been about a third of those [125% non-refundable credits] FCCs that have been applied, " Mr. Liberty noted, "there's been about about 20 percent [Cruise with Confidence credits] that has been applied to date."

Royal Caribbean Group executives talked about some of the hottest cruise topics being discussed these days during a conference call with Wall Street investors.

This routine meeting focuses on the financial outlook for the company, but it also provides tremendous insight into what we can expect from a guest standpoint.

During the hour-long call, the Royal Caribbean Group answered questions and commented on a variety of topics of interest to cruisers.

Selling older ships?

The big question cruisers have asked over the last few weeks is if Royal Caribbean has any plans to sell ships, and that exact question was asked by an investor.

Royal Caribbean Group Chief Financial Officer Jason Liberty spoke on evaluating plans to sell ships in the future, but nothing planned for now.

Mr. Liberty said Royal Caribbean typically sells one to two ships per year, but nothing to report today.

"This time we are evaluating opportunities to to sell ships or to take other actions with ships."

"If we don't think we have a good plan for that ship, for it to be generating sizable returns or it's difficult to make it a strategic fit to our brand by modernizing and so forth, we have looked to to to sell the ships."

"We're valuating all all options, but of course, we've put a lot of money into these ships. These ships do exceptionally well, and so it's a difficult decision to depart with ship because they generate so much cash."

New ships and projects delayed or cancelled

One interesting anecdote came at the beginning of the call, when Royal Caribbean Group Chairman and CEO Richard Fain gave an update on its big-money expenditures to indicate these are being pushed back.

In order to reduce expenses and improve cash conservation goals, spending on new projects has been hitting the brakes, according to Royal Caribbean Chairman and CEO Richard Fain.

"On top of all these efforts, most of our capital projects have been delayed or canceled because we don't know how long it will take to get beyond this epidemic."

"These are painful, but these are necessary decisions, I have to say that these five months have been the longest five months any of us can remember now since the crisis began."

No rush to start cruising immediately

While many cruise fans are very eager for cruises to resume, Royal Caribbean Group executives were insistent that they while they are equally eager to resume operations, they will only do so when it is safe to do so.

Mr. Fain emphasized the important of getting it right before cruises start up again.

"But it's fair to say that there is still a lot of uncertainty against this backdrop. We will not rush to return to service until we are confident that we have figured out the changes that we must make to offer our guests and crew strong health and safety protocols with the enjoyable experience that they rightly expect."

"We believe that our health is healthy. Return to service program will help get us there."

"Humbled and surprised" at 2021 bookings

Ever since the cruise shutdown began in March, Royal Caribbean has seen a tremendous amount of loyalty from its repeat customers.  

Once again, this quarter saw substantial bookings being made by past cruisers, which have largely buoyed the company's bottom line.

Mr. Fain started off the call with the surprising trend continuing, "We have been both humbled and surprised with the amount of bookings we're seeing for 2021, with literally no marketing efforts, and frankly, very little good news."

"The tone of our bookings, especially as we get into the second half of 2021, has been encouraging."

Since Royal Caribbean's last earnings call, Mr. Liberty noted bookings have averaged more than double the levels seen during the first eight weeks of the global cruise suspension.

He also noted good or bad news has an effect on bookings.

"The cadence of demand has generally been determined by the news cycle, we've received higher levels of bookings prior to the news regarding a surge of COVID-19 cases, and a decline thereafter."

"Bookings have been softer for the first quarter, but quite strong for the summer and back half of 2021."

China or Australia cruises could start first

While cruises from North America are stuck in limbo due to government regulations, the possibility of cruises resuming elsewhere first was broached during the call.

Royal Caribbean has no firm plans yet, but there is a possibility cruises could start up in places like China or Australia first, and even later this year.

Royal Caribbean International CEO Michael Bayley noted that while cruise operations are suspended until November, Australia and China are the exceptions.

"It may well be possible that we'll resume operations in China and potentially Australia before the end of October."

"But it's uncertain, and I not make any statements that that's going to happen, but there's some possibility.

Timeline for working with the CDC

The major obstacle for Royal Caribbean to resuming cruises where most of its customers are located is getting cruises back in North America, and questions were asked about when that might occur.

Specifically, analysts wanted to get a sense of how Royal Caribbean's Healthy Sail Panel recommendations arrival by the end of this month will coincide with the CDC's request for public comment on cruises restarting.

Mr. Bayley gave his view on the general timeline, "So the timing kind of starts to come together with with all of the public comment concluding towards the end of September, our work concluding towards the end of August. We think that that is some good opportunity in terms of how that comes together."

"I think it's important to to note that, as we know, there's just a huge amount of uncertainty with with how this will play out, and obviously, one of the biggest dynamics is, what's occurring with COVID itself."

Royal Caribbean Group reported its second quarter 2020 financial results on Monday with a $1.6 billion loss for the quarter.

The Company reported US GAAP Net Loss for the second quarter of 2020 of $1.6 billion or $7.83 per share compared to US GAAP Net Income of $472.8 million or $2.25 per share during the same time last year.

The 2020 results include a non-cash asset impairment loss of $156.5 million.  

The Company reported Adjusted Net Loss of $1.3 billion or $6.13 per share for the second quarter of 2020 compared to Adjusted Net Income of $532.7 million or $2.54 per share in the prior year.  The Net Loss for the quarter is a result of the impact of the COVID-19 pandemic on the business.

State of Royal Caribbean's business

In addition to the quarterly results, Royal Caribbean group provided a business update on what initiatives and changes it is doing during this shutdown.

Royal Caribbean Group Chairman and CEO touted its work with the Healthy Sail Panel to be ready to start up operations when the time is right.

"The COVID-19 pandemic is posing an unprecedented challenge to our industry and society. Our teams are working tirelessly to return to service soonest and doing so by developing new health and safety protocols to protect the well-being of our guests, crew and destinations we visit." 

"In the meantime, we are using this time to refine our operations to be as efficient as we can while providing the great experiences that so many people are eagerly awaiting."

Cash flow update

With the cruise lines shutdown and another quarterly loss, many investors are curious about the cash flow situation.

Royal Caribbean Group has prioritized its liquidity, "working to ensure it is well positioned for recovery." As of June 30, 2020, the Company had liquidity of approximately $4.1 billion all in the form of cash and cash equivalents.

Since the last earnings call, Royal Caribbean Group has

• The issuance of $1.0 billion of priority guaranteed notes and $1.15 billion of convertible notes;
• The issuance of GBP 300 million of commercial paper in the UK providing over $370 million of additional liquidity;
• Completed a $0.9 billion 12-month debt amortization holiday from all export-credit backed facilities;
• Amended over $11 billion of commercial bank and export credit facilities to provide covenant waivers through the fourth quarter of 2021; and
• Further reduced operating expenses due to the fleet layup measures and actions to decrease sales, marketing and administrative expenses.

Of interest to cruise fans, Royal Caribbean has $11.3 billion of committed credit facilities that are available to fund ship deliveries originally planned through 2025.

Royal Caribbean's estimated monthly cash burn is about $250 million to $290 million per month during a prolonged suspension of operations. 

This range includes all interest expenses, including the increases driven by the latest capital raises. It also includes ongoing ship operating expenses, administrative expenses, hedging costs, expected necessary capital expenditures (net of committed financings in the case of newbuilds) and excludes cash refunds of customer deposits, commissions, debt obligations and cash inflows from new and existing bookings.

The Company is considering ways to further reduce its average monthly cash burn under a further prolonged out-of-service scenario and during re-start of operations.

2021 Cruise bookings

While 2020 bookings have been significantly hit by the cruise shutdown, 2021 looks much better.

Royal Caribbean Group indicated 2021 cruise bookings are trending well and is within historical ranges.

The Lift & Shift program, along with Future Cruise Credit offers have proven popular with guests, with 40% of 2021 bookings coming from these options.

For the booking period since our last business update, approximately 60% of the 2021 bookings are new reservations.

Pricing for 2021 bookings is relatively flat year-over-year when including the negative yield impact of bookings made with future cruise credits; it is slightly up year-over-year when excluding them.

As of June 30, 2020, the Company had $1.8 billion in customer deposits of which approximately $300 million correspond to fourth quarter 2020 sailings. Approximately 48% of the guests booked on cancelled sailings have requested cash refunds.