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Royal Caribbean will end stricter face mask rules on its cruise ships

In:
09 Feb 2022
By: 
Matt Hochberg

With Omicron cases on cruise ships plummeting, Royal Caribbean will not extend its stricter face mask rules and will allow them to end.

In mid-December Royal Caribbean tightened its face mask protocols due to the increase of Covid-19 cases around the world due to the Omicron variant.

Specifically, face masks were required to be worn indoors at all times, unless actively eating or drinking. This included vaccinated-only zones.

Beginning February 15, 2022, the stricter mask rules will go away and that means guests will not have to wear face masks at venues designated for vaccinated guests only, such as select bars, lounges, restaurants, shows and Casino Royale. 

Woman wearing a mask in front of cruise ship

During a webinar with travel agents, Royal Caribbean's Senior Vice President, Sales, Trade Support and Service, Vicki Freed, told travel agents the policy was changed yesterday, and beginning February 15, 2022 the stricter mask rules will go away.

"One thing that changed yesterday is we have now announced that in our casinos you will not be required to wear masks and you can smoke again in the smoking areas of the casino," Ms. Freed told travel agents.

Royal Caribbean International Assistant Vice President of Guest Experience, Aurora Yera-Rodriguez, told travel agents protocols will go back to the way they were before the stricter mask rules were added due to Omicron, "After February the 15th, we'll now allow smoking in the casino again. That is actually aligned, with us going back to protocol the way they were before, where you don't have to wear a mask in vaccinated areas."

"We'll go back to the way it was before on Omicron."

"As of right now, we did not push that additional mask restriction and casino smoking out to guests beyond the 15th. So hopefully we're in a good spot."

Masks are NOT required to be worn:

  • In open-air areas of the ship, unless you are in a crowded setting.
  • In the pool or any activity where they may become wet.
  • At venues designated for vaccinated guests only, such as select bars, lounges, restaurants, shows and Casino Royale. NOTE: For cruises departing through February 14, 2022, masks must be worn in vaccinated-only venues
  • In your stateroom when you are with your traveling party.
  • While visiting our private destinations, unless you are in a crowded setting.
  • By any guest under the age of 2.

Masks ARE required to be worn:

  • While indoors in public areas of the ship, unless seated and actively eating or drinking.
  • While visiting public ports of call, where local regulations may require them.

Falling Covid cases on ships

What it's like to go on a cruise with Royal Caribbean's stricter mask rules | Royal Caribbean Blog

The change in protocols coincides with Covid cases onboard falling back to pre-Omicron levels.

Royal Caribbean Group CEO Jason Liberty told investors last week that ship cases are significantly lower than the last two months, "In the last several weeks, cases on board our ships have been declining rapidly and we now have returned to exceptionally low pre-Omicron levels."

Over the last seven days, Royal Caribbean Group has averaged only "a handful of positive guest cases per cruise."

Other cruise lines relaxing protocols

Royal Caribbean's announcement comes a day after Norwegian Cruise Line said it would end its Omicron protocols as well.

NCL said beginning March 1, masks will no longer be required while indoors. Instead, they will be recommended.

Another change is NCL will now allow children under 5 years old to sail if they are unvaccinated, beginning on March 5.

In addition, NCL will require its passengers to test once at home before the cruise begins in an effort to speed up the check-in process.

Royal Caribbean Wow sale offers discounts on cruise fare and pre-cruise purchases

In:
09 Feb 2022
By: 
Matt Hochberg

You might be able to save extra money on booking a new cruise or a pre-cruise add-on, such as a drink package, excursion or wifi.

Royal Caribbean's WOW Sale begins today, which offers new discounts on cruise fares and items purchased via the Cruise Planner website.

Whether or not either of these sales saves you money will depend on the ship and sailing you pick, but here's what you should know about the promotion.

WOW Sale

Wow Sale banner 2022

WOW Sale applies to new bookings made between February 9 – 14, 2022.

It offers up to $400 USD Onboard Credit per stateroom on select sailings departing on or after March 9, 2022. 

OBC amounts are per stateroom and determined by category booked and sailing length:

  • Sailings 5 nights or less, $50 OBC for Interior and Ocean View, $75 for Balconies and $150 for Suites
  • Sailings 6 nights or longer, $75 OBC for Interior and Ocean View, $100 for Balconies and $400 for Suites

Onboard credit does not apply to China departures.

Combinability: 30% Off Every Guest, 2022 Kicker, CAS Bonus and FCC Kicker are combinable with each other as well as promotional OBCs, Next Cruise offers, instant savings, restricted discounts (for example, Seniors, Residents, Military), Promo Code driven offers, Free Upgrades, Crown and Anchor discounts and Shareholder Benefits. WOW Sale is combinable with 30% Off Every Guest, 2022 Kicker, CAS Bonus and FCC Kicker as well as with promotional OBCs, Next Cruise offers, Instant Savings, restricted discounts (for example, Seniors, Residents, Military), Promo Code driven offers, Free Upgrades, Shareholder Benefits, but not combinable with Ultimate World Cruise and Crown and Anchor discounts. Resident rates apply to select states on select sailings; valid state of residence must be provided at time of booking. 30% Off Every Guest, 2022 Kicker and CAS Bonus is not combinable with any other offer or promotion, including, but not limited to, Ultimate World Cruise, Standard Group, Interline, Travel Agent, Travel Agent Friends and Family, Weekly Sales Events, and Net Rates. FCC Kicker is combinable with all rates and promotions. Promo Code driven offers are based on select ships and sail dates and must be applied at time of booking; limit one promo code per booking.

Offer available to residents of United States, Canada, Puerto Rico, and select countries in the Caribbean. 

Cruise Planner WOW Sale

Cruise planner sale

The new sale offers up to 35% off pre-cruise purchases made between February 9 – 16, 2022 on sailings departing between February 13, 2022 – December 31, 2022.

Here is what is included during the sale:

Beverage: Up to 40% off

  • Classic Soda Beverage Package: 30% off onboard prices.
  • Classic Soda Beverage Package + VOOM Surf & Stream 1 Device: Over 35% off onboard prices.
  • Spring Water Cans: 40% off onboard prices.
  • San Benedetto Water Cans: 40% off onboard prices.
  • Evian Water Bottles: 40% off onboard prices.
  • Deluxe Beverage Package: Discount varies by ship.
  • Deluxe Beverage Package + VOOM Surf & Stream 1 Device: Over 30% off onboard prices.
  • Refreshment Package: 30% off onboard prices.

Shore Excursions: Up to 30% off

  • Shore Excursions: Discount varies by ship.

Internet: Up to 50% Off

  • VOOM Surf + Stream Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship.
  • VOOM Surf + Stream Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship
  • VOOM Surf Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship.

Dining: Up to 55% Off

  • Unlimited Dining Package on 3N – 9N sailings: Discount varies by ship.

Gifts & Gear: Up to 20% Off

  • Anniversary Decorations with Champagne
  • Happy Birthday Decorations with Chocolate Cake & Strawberries
  • Happy Birthday Decorations with Vanilla Cake & Strawberries
  • Inky Beach Set
  • Inky Beach Towel (TicTacToe)
  • Inky Travel Set
  • Red Wine and Cheese
  • Royal Caribbean Beach Towel
  • Strawberries with Champagne
  • White Wine and Cheese

Photo Packages: Up to 70% Off

  • Photo Packages: From 5 – 100 Print and/or Digital Options: Discount varies by ship..
  • Photo Package: Private Photo Session: Discount varies by ship.
  • Photo Package: Picture This Private Studio: Discount varies by ship.
  • Photo Package: All Digital: Discount varies by ship.

Spa: Up to 30% Off

  • Spa Packages: Discount varies by ship.

Can I save money with this sale?

Each Royal Caribbean sale adds the potential to save money on the cost of these purchases, but the price does not change for every single sailing and item available to purchase.

Some prices may change, but there is not a flat discount applied across all sailings.  Some people will notice better prices, while others may not see any change.

To check if your sailing has this new offer available, log into the Cruise Planner on Royal Caribbean's web site look for any available offers. Keep in mind that not all sailings may see the sale applicable, nor are all offers significantly cheaper than previously posted.

If you spot a better discount on something you already pre-purchased, you should be able to cancel the purchase and then re-purchase the same item under this promotion.

More helpful information

What is the most expensive suite on Royal Caribbean?

In:
09 Feb 2022
By: 
Jenna DeLaurentis

A Royal Caribbean cruise ship is home to many impressive suites, but which one is the most expensive?

While there are spacious multi-room suites and even Aquatheater suites offering stellar views of the ship’s aft, the most expensive suite on a Royal Caribbean cruise ship is the Ultimate Family Suite.

Designed to be a hub of activity and fun for families, the Ultimate Family Suite first premiered on Symphony of the Seas in 2018. As of 2022, the suite is currently on three Royal Caribbean ships: Symphony of the Seas, Spectrum of the Seas, and Wonder of the Seas.

Each Ultimate Family Suite offers a kid-centric design, colorful decor, and unique features not found on any other stateroom or suite onboard. While each suite has a similar concept, though, they differ in layout and offerings.

To see what makes the Ultimate Family Suite the most expensive in Royal Caribbean’s fleet, let’s take a closer look at these one-of-a-kind cabins.

Symphony of the Seas Ultimate Family Suite

The Symphony of the Seas Ultimate Family Suite is the one most known to cruise fans in North America and Europe. This suite can accommodate up to eight guests and is 1,134 square feet with a 212 square foot balcony.

The first thing you notice when you walk into the Ultimate Family Suite is color. Neon orange, red, blue, and yellow cover the walls, furniture, and decor.

The Ultimate Family Suite is two stories. The downstairs area features a dining room area fitted with an air-hockey table, a living room with a couch, chairs, and large television, and a bathroom.

Kids will not be bored hanging out downstairs, either, as the suite features a game room corner with a TV, video game consoles, and lounge chairs. There is also a mini bar in the game room so your favorite beverages and snacks are never too far away.

Extra kid-friendly features are incorporated throughout the downstairs, too. Underneath the stairs are small nooks where kids can relax, read a book, or play with electronics. The dining room wall is also a chalkboard and the game room features a floor-to-ceiling LEGO wall.

There are comfy seating areas throughout the suite as well, with plenty of bean bags and a multicolor hanging chair.

In the upstairs area of the Ultimate Family Suite are two bedrooms, each with their own onsite bathroom. The master bedroom features a king-sized bed, television that drops down from the ceiling, a desk and vanity area, and full-sized closet. The master bathroom features an extra-large rainforest shower with two shower heads.

Since this is a suite, there are upgraded amenities available throughout the bedrooms and bathrooms including bedding and toiletry products.

Next door to the master bedroom is the kids bedroom, which can be accessed via a regular door or through a small porthole designed for kids to crawl through.

The kids bedroom can sleep four and has three murphy beds and a pull-out sofa bed. Like the rest of the suite, colorful decor dots the bedroom and bathroom.

One of the premiere features of the Ultimate Family Suite is the slide. Starting from the kids bedroom and ending in the living room downstairs, it’s sure to be popular with kids staying in the suite.

Complete with a hot tub, outdoor table that doubles as a ping pong table, and colorful step climbers, the balcony is another spacious area of the Ultimate Family Suite. The suite does not have a full ocean view, but instead overlooks the sports area and boardwalk neighborhood on Symphony of the Seas.

Spectrum of the Seas Ultimate Family Suite

There’s no doubt that the Ultimate Family Suite on Symphony of the Seas is impressive, but the suite on Spectrum of the Seas goes a step further.

At over double the size, the Ultimate Family Suite on Spectrum of the Seas is 2,766 square feet with a 212 square foot balcony. And while the suite on Spectrum has a similar concept to the suite on Symphony, there are quite a few differences.

The suite is still geared towards families, but there is noticeably less neon color throughout the suite. Instead, it has a more muted color palette.

There is also much more downstairs space on Spectrum’s Ultimate Family Suite. As the suite can accommodate up to eleven guests, there are two master bedrooms with ensuite bathrooms downstairs. The master bedrooms are more spacious than those on Symphony of the Seas and come with balcony access.

The balcony on Spectrum of the Seas does not feature the step climbers found on Symphony, but has a large jacuzzi and comfortable seating.

Just like on Symphony of the Seas, The Ultimate Family Suite features a kid-friendly living room with an air hockey table, couch and television area, dining room, and separated game room.

A unique aspect of the Ultimate Family Suite on Spectrum of the Seas are the steps leading upstairs. Designed like a piano, each step is a “key” that plays a note as you go up or down.

Upstairs you will find two bunk beds, a crib area for babies, and a third master bedroom.

The bathroom attached to the upstairs master bedroom is perhaps the most impressive in Royal Caribbean’s fleet. More like a spa than a bathroom, it features a standalone tub, spacious vanity, and a rainforest shower room.

The windows are made from a switchable glass to allow for privacy when in port or views of the ocean when sailing. To top it off, the bathroom jets off the side of the ship.

Just like on Symphony of the Seas, there is a porthole connecting the kids room to the master bedroom and a colorful slide heading back downstairs.

The Ultimate Family Suite on Spectrum of the Seas is on the side of the ship and features ocean views.

Wonder of the Seas Ultimate Family Suite

Royal Caribbean’s newest cruise ship also has an Ultimate Family Suite. As of February 2022, though, little is known about the suite on Wonder of the Seas.

Captain Kate of Celebrity Cruises posted a Tik Tok compilation from the construction of Wonder of the Seas. Near the end of the video there are two short clips of the Ultimate Family Suite. From first glance, it appears to have a similar design to the suite on Symphony of the Seas.

Royal Caribbean’s website states that the Ultimate Family Suite on Wonder of the Seas has two king beds, four twin sized bunk beds, and a double pull out sofa bed. The suite can accommodate up to nine guests.

The deck plan for the Ultimate Family Suite shows it to be on Deck 18. It lists the square footage at 1,134 for the room and 212 for the balcony. 

The location of the suite is different on Wonder of the Seas compared to Symphony of the Seas, too. Whereas on Symphony the suite overlooks the sport area, the Ultimate Family Suite on Wonder faces the forward and starboard sides of the ship.

Therefore, the view from the Ultimate Family Suite on Wonder of the Seas should be that of the ocean, pool deck, and the Central Park neighborhood below.

What does the Ultimate Family Suite cost?

While the price of the Ultimate Family Suite can vary significantly based on the time of year and ship you choose, it will always come with a hefty price tag.

As an example, I priced out a few separate sailings to see just how much the Ultimate Family Suite can cost:

  • 7-night Eastern Caribbean & Perfect Day cruise on Symphony of the Seas: $33,366
  • 7-night Western Mediterranean cruise on Symphony of the Seas: $25,492
  • 5-night Nagasaki and Fukuoka cruise on Spectrum of the Seas: $38,681
  • 9-night Thailand & Vietnam cruise on Spectrum of the Seas: $82,949

The cost of the Ultimate Family Suite does not appear to increase significantly with the number of guests. The 7-night Western Mediterranean cruise is listed as $25,492 for two guests and $28,570 for four guests.

Is the Ultimate Family Suite worth it?

Ultimately, deciding whether a suite is worth it or not depends on what you value in a vacation, your families’ specific needs, and, of course, your budget.

Some guests may opt to book a smaller suite or a balcony room and instead use the money they saved to book beverage and dining packages, spa treatments, and shore excursions.

Others may value the exclusivity of a suite and decide that the extra comfort, space, and amenities are worth the extra cost.

It’s important to note that the benefits of staying in the Ultimate Family Suite suite don’t just stop at the suite’s features and amenities, though.

Guests staying in the Ultimate Family Suite are part of Star Class, the highest tier of Royal Caribbean’s Royal Suite class, which comes with exclusive benefits.

Star Class guests will receive full access to Coastal Kitchen, complimentary specialty restaurants, complimentary Deluxe Beverage Package, complimentary gratuities, complimentary VOOM internet, expedited boarding and departure, reserved seating at entertainment venues, and Suite Lounge and Suite Sun Deck access, among others.

Perhaps the best benefit of staying in Star Class, though, is the Royal Genie. Each Star Class Suite has its own Royal Genie. A Royal Genie acts as a personalized concierge onboard who can take care of special requests, arrange and manage reservations, and plan special events and celebrations.

The exact list of services a Royal Genie can provide vary based on your specific needs. For example, the genie may bring an ice cream bar to your suite for kids, deliver Starbucks to your room at the same time each morning, bring specialty dining to your suite, etc.

Prior to your cruise, you will receive a questionnaire so your Royal Genie can get to know you and your party better before you board the ship.

Is the Ultimate Family Suite more expensive than other staterooms and suites onboard? Yes, but the features, design, and concept of the Ultimate Family Suite is unlike any other cabin offered on a Royal Caribbean cruise ship. Staying in the Ultimate Family Suite is sure to be an unforgettable experience for both kids and adults alike.

 

Norwegian drops mandatory face mask rule on its cruise ships

In:
08 Feb 2022
By: 
Matt Hochberg

Norwegian Cruise Line announced it has relaxed its Covid-19 protocols beginning in March, perhaps signaling a change for the industry.

On Tuesday, Norwegian Cruise Line updated its Sail Safe Health and Safety Program for cruises sailing March 1, 2022 and beyond. In it, it changed its mask and vaccine requirements by reducing how strict they are.

Like Royal Caribbean, NCL had tightened its protocols due to the Omicron variant. 

Here's a look at the major changes NCL announced.

Face masks

Norwegian announced for cruises sailing on or after March 1st will be no longer required to wear face masks onboard.

NCL continues to recommend face mask use, but will not require it indoors.

Sailings through February 28 still require all guests to wear masks onboard while indoors, except when actively eating or drinking. This matches Royal Caribbean's current stricter protocols.

It's important to note that NCL did not require masks while indoors before Omicron because they required all of their passengers to be fully vaccinated. The CDC had a policy if 95% or more guests are vaccinated, there were different mask rules for those ships.

Covid-19 vaccines

Another change is NCL will now allow children under 5 years old to sail if they are unvaccinated, beginning on March 5.

Prior to this change, all passengers had to be fully vaccinated, including children ineligible to be vaccinated.

On NCL's site, it said the change is part of the evolution of the protocols, "As we continue to heed guidance from the U.S. Centers for Disease Control and Prevention (CDC) to prioritize maintaining health and safety, our Sail Safe Program, which requires all guests, ages five and over, to be fully vaccinated at least two weeks before departure and show proof of vaccination at the terminal in order to board the vessel, has evolved to allow children under five to sail while unvaccinated."

Testing

In addition, NCL will require its passengers to test once at home before the cruise begins in an effort to speed up the check-in process.

Previously, NCL required passengers to be tested at home and then again at the terminal.

Tests taken at home need to be completed within two days of embarkation when sailing from U.S. ports and three days when outside the U.S.

Will Royal Caribbean do the same?

Is NCL's change a harbinger of what's to come for Royal Caribbean?

Maybe.

Royal Caribbean still has its stricter Omicron protocols in place through at least February 14.  If those protocols were to lapse, then Royal Caribbean's protocols would fall back to their pre-Omicron protocols that mirror NCL's new policy.

There's good reason to believe protocols are more likely to become less restrictive given the lower rate of Covid-19 cases in society, and on cruise ships.

Last week, Royal Caribbean Group CEO Jason Liberty said cases on cruise ships were substantially down from last month, "in the last several weeks, cases on board our ships have been declining rapidly and we now have returned to exceptionally low pre-Omicron levels."

"In fact, over the last seven days, we have averaged only a handful of positive guest cases per cruise."

"With the declining cases, operational challenges are also abating. So, while the variant is not done, it appears that the worst is behind us."

Later in the call, Royal Caribbean International President and CEO Michael Bayley said the cruise line would re-evaluate its protocols, "I think what we'll see is as we get into that environment, we'll start, again, working with the CDC. We'll start removing many of the protocols that exist today, and it will become easier and simpler for our customers."

Spring break cruise on Royal Caribbean: What to expect

In:
08 Feb 2022
By: 
Matt Hochberg

Whether you are in college or taking your school-aged kids, spring break is a popular time to take a cruise vacation every year.

Spring break is the first major opportunity since the New Year holiday to go on vacation for more than just a weekend, and spring break is a popular time for many families and young people to take a cruise.

After all, cruises are usually a good time, so a spring break getaway might just be the ticket for you.

What should you know about planning a spring break cruise, and what's different about a cruise this time of year compared to other times? We've got helpful information you should know before you sail.

How busy is a spring break cruise?

Probably the number one question about spring break on a cruise ship is how busy it is onboard.

Certainly more people look to go on a spring break cruise than in the weeks prior or after, but it doesn't mean the onboard experience is a zoo either.

Spring break tends to see increased families with kids.  School is on vacation break so there will be more kids will be vacationing and that includes cruises. After all, Royal Caribbean International is a family cruise line, and there will always be plenty of children onboard, whether it is spring break or not.

When you have more children, you also tend to get more passengers. Ships run higher volume than the double occupancy capacity numbers that are often used to measure ship guest counts.  

So it may seem seem "full" onboard since there are more people than usual on a cruise.

Are there a lot of college kids?

Perfect Day at CocoCay | Royal Caribbean Blog

A Royal Caribbean cruise is not the prototypical spring break vacation of choice for the younger crowd, but there are some sailings that see their fair share of them.

Generally speaking, shorter cruises, such as 3 & 4 night sailings, can often see a younger college crowd looking for a party spring break cruise. The 4-night cruises especially tend to attract college groups because they are usually priced lower since they depart on a Monday and return on a Friday.

Kayak Adventure at CocoCay excursion review | Royal Caribbean Blog

A short cruise might seem like the obvious choice for college student spring breakers, but a family vacation can also go on longer sailings.

Longer sailings tend to come with a higher price tag, and that can put it beyond a college friendly budget.

How much is a spring break cruise?

Like any cruise throughout the year, the price of spring break cruises will depend on the ship, length, cabin, and itinerary you choose.

The travel industry largely follows supply and demand principals the "in demand" aspect of spring break can lead to higher prices.

Here are some cruise basics if you're new to cruising and trying to wrap your head around a spring break cruise:

  • Inside cabins will cost less than balcony staterooms, and balcony rooms will cost less than suites
  • Short cruises tend to cost less in total, but longer cruises can be cheaper per night
  • Most food and entertainment is included. 
  • Alcohol costs extra, but unlimited drinks packages can save money.

Just like pricing out airfare, you need to compare cruise fare prices to get a sense of which sailing will be the best deal for you.  The best strategy is to book your spring break cruise as early as you can. Cruise prices tend to go up over time, so booking earlier will likely net you a better price.

Can I get a free cruise if I bring a group with me?

10 must have Royal Caribbean tips & tricks for cruising with friends | Royal Caribbean Blog

Yes, Royal Caribbean does offer benefits to the tour conductor (that's you) if you form a group with Royal Caribbean.

You can't just have a bunch of friends book a cruise and then ask Royal Caribbean for credit.  You must instead work with the groups department to create a group, and then be named the leader. Don't worry, this is pretty easy and even easier if you work with a travel agent.

A travel agency can set up a group with Royal Caribbean that can possibly save money, or get you special perks back.  Moreover, the travel agent can handle the logistical issues of payments, price adjustments and answering common questions.

10 must have Royal Caribbean tips & tricks for cruising with friends | Royal Caribbean Blog

When you organize a group, you're going to need to get 8 rooms booked in your group and then you can qualify for a free berth (passenger).

Bottom line, work with a travel agent to organize a group if you think you might be able to get at least 8 rooms.

Where do spring break cruises go?

Many college spring break cruises will visit destinations in the Bahamas and Caribbean.

Spring break occurs mostly in the month of March, as well as April.

What you need to know about visiting Nassau on a cruise ship | Royal Caribbean Blog

The short 3- and 4-night cruises will visit Royal Caribbean's private island of Perfect Day at CocoCay and Nassau.

These cruise ships sail out of Port Everglades (Ft. Lauderdale), Port Canaveral (east of Orlando), or Miami.

Another popular destination is Cozumel. No matter where you go in the Caribbean, expect to find beautiful beaches and plenty of activities.

How to get a deal on a spring break cruise

Cruise FAQ: Saving Money | Royal Caribbean Blog

The best way to get the best value on any cruise is to book it as early as you can while there are lower prices.

As you get closer to spring break, more and more people book cruises and that leaves less capacity, which in turn drives prices up.

If you're on a tight budget, booking a cruise more than a year in advance might get you a spring break for less money than if you wait to just a few weeks before the ship is scheduled to sail.

Another benefit of booking a cruise early is you can reprice it if the price drops before final payment date. Booking early is usually your best option.

Four-day cruises tend to be priced lower than three-day cruises. Longer cruises might cost more overall, but be cheaper per night.

Read more45 ways to save money on a Royal Caribbean cruise

Do I need a passport for a spring break cruise?

U.S. citizens may travel with only a birth certificate together with a government issued photo ID on cruises that begin and end in the United States.

It's a good idea to invest in a passport book, but not necessary.

Regardless, I highly recommend getting a passport to streamline the U.S. Customs process and protect yourself in case of an emergency.

Read moreDo you need a passport for a cruise?

Is there a way to know if I'm booked on a college party cruise?

Royal Caribbean will not tell you which groups are booked on a cruise you are sailing on.  There are usually various groups on any sailing, but some people would rather avoid a cruise if there are a lot of college-age kids.

The best strategy is just google your ship name, sail date, and the words "spring break" to see what comes back.

As an example, "Freedom of the Seas March 7, 2022 spring break" would return a result for a group on that week.

Even if you are booked on a cruise with spring breakers, it does not mean your cruise is going to be awful or ruined.  Having sailed on spring breakers an entire week on Mariner of the Seas in 2018, it ended up being a lot of fun. They did their special events, and we did what we liked. One nice thing about Royal Caribbean is that it rarely skews heavily towards one demographic entirely.

What to wear on a cruise formal night

In:
07 Feb 2022
By: 
Jenna DeLaurentis

Cruise ship formal nights are often a cause for concern for many first time cruisers. Worries over what to pack and what clothing is and is not allowed can be stressful.

And while formal night may stir up images of guests dressed to the nines, this is rarely the case once you get onboard. In reality, there is a lot of flexibility when it comes to what to wear for formal night on a Royal Caribbean cruise.

What is formal night?

Formal night only applies only to the Main Dining Room on a Royal Caribbean cruise. Specialty dining and other venues have their own separate dress codes, although they are usually pretty similar to a formal night dress code.

Royal Caribbean states the following about the formal night dress code:

Think of our formal dress code as a night out in your best black-tie look — suits and ties, tuxedos, cocktail dresses or evening gowns are all acceptable options. There can be 1-3 formal nights during a sailing and is at the ship’s discretion. Our Chef’s Table dining experience also enforces a formal dress code policy.

From reading this, it may seem like a tuxedo and evening gown are the standard outfits that most passengers will be wearing on formal night. In reality, though, this is rarely the case.

While you will likely spot a few guests in tuxedos and ball gowns, most guests will be in a formal outfit that is a lot more casual. Women may be dressed in a cocktail or sundress and men in a button-up shirt and dress pants.

Formal night dress code for men:

Collared shirts, slacks, and dress shirts are typical options for men on formal night. The most “casual” yet acceptable outfit for men on formal night is a polo shirt and slacks.

A dress shirt and slacks is the most common option. Suit jackets and ties are not required, although many guests will choose to wear them. Guests looking to dress up even more can wear a tuxedo, but again, this is relatively uncommon.

Formal night dress code for women:

Women have quite a few more options than men when it comes to outfits for formal night. Acceptable attire for women includes cocktail dresses, sundresses, skirts, blouses, dress pants, dressy rompers, and more elegant attire like evening gowns.

Women should pack dress shoes like flats, heels, wedges, or dressy sandals to wear on formal night.

Can I wear jeans on formal night?

You can get away with wearing jeans to the Main Dining Room on formal night. However, it’s a good idea to make sure the jeans are fairly nice and do not have any holes or rips in them. A dark-washed jean will look more formal, although you will likely not be turned away with any type of jean.

Clothes you should not wear:

Passengers should not wear casual clothing such as shorts, casual t-shirts, flip-flops, swimsuits, and tank tops. As a general rule of thumb, you don’t want to wear the clothes you would wear to the pool deck or walking around port on a cruise ship formal night.

Do I have to participate in formal night?

You do not have to participate in formal night on a cruise, but your dining options in the evening will be more limited. Since formal night is so flexible, though, it’s easy to participate even by wearing an outfit as casual as khakis and a polo shirt.

Most specialty restaurants also require a semi-formal dress code. A good dinner option for those who aren’t interested in dressing up for formal night is the Windjammer, as casual clothing is always permitted there.

Other ways to get ready for formal night

Royal Caribbean cruise ships do not have irons in each stateroom because of the fire hazard they create. However, guests are able to have clothing pressed or dry cleaned prior to formal night. When you arrive in your stateroom on the first day of the cruise there should be a paper there with information about laundry, dry cleaning, and pressing services. 

Guests may also choose to get their hair styled or get a manicure prior to formal night. The salon onboard in the Vitality Spa has services including updos, blowouts, shampoo and style dry, manicures, and pedicures.

How many formal nights will there be on my cruise?

The number of formal nights on a cruise varies by ship length. Shorter sailings will usually have only one formal night whereas longer sailings will have 2, 3, or 4 formal nights. Royal Caribbean lists the amount of formal nights per cruise on their website, although the amount of formal nights are ultimately at the ship’s discretion:

  • 3/4/5 night cruises - 1 formal night
  • 6 and 7 night cruises - 2 formal nights
  • 8 to 10 night cruises - 2 formal nights
  • 11 to 14 night cruises - 3 formal nights
  • 15 + night cruises - 3 or 4 formal nights

Planning a cruise? Check out these articles:

Cruise ship passengers are spending more money on their cruises than ever

In:
07 Feb 2022
By: 
Matt Hochberg

There's usually a few interesting nuggets of information in Royal Caribbean Group's earnings each quarter, including the fact a lot of people are buying more extras than ever before for their cruise.

Referred to as "onboard spending", this is the revenue from purchases of everything for a cruise on top of the cruise fare, such as shore excursions, drink packages, wifi and more.

Not only is onboard spending up, but it's shocking to the cruise line at just how much is happening.

During Royal Caribbean Group's earnings call on Friday, one Wall Street analyst wanted to know more about the particularly strong spending numbers, and if there was any correlation to lower occupancy.  His thought was less people means shorter lines and that translates to more of an inclination to spend money on experiences.

Royal Caribbean Blog - Unofficial blog about Royal Caribbean cruises

It's an interesting theory, but executives aren't sure why people are spending more than usual on their cruise vacations to enhance it, but they certainly are happy about it.

"I wish we knew. I can tell you that we've been absolutely delighted and initially very surprised by the onboard spend," said Royal Caribbean International President and CEO Michael Bayley.

"I think when we started operations out of the U.S. back in July, we were initially just shocked. It was really, really positive and it's just continued."

The reference to July is when cruises first resumed in 2021 from the United States and Royal Caribbean saw people were spending more on their cruise than before. That phenomenon has carried over for the last six months.

Mr. Bayley agreed there probably is some truth to the idea lower capacity on cruise ships, "creates a different kind of environment that help people spend more."

He also thinks Royal Caribbean's investment in pre-cruise technology may play a factor in those higher numbers. The company has spent the last 12 months working on improving their back end and front end systems to make the process better for customers.

Cruise Planner on an iPad

Royal Caribbean Group CEO Jason Liberty said people spending more on their cruise is not just suite guests, "Whether it's the consumer that is booking the inside state room or the consumer booking the ultimate family suite as an example, you're seeing them all over index on their historical spend by quite a bit."

Not only that, people aren't just buying drink packages or spa treatments. Rather, they are spreading the money around.

Mr. Liberty said guest spending in the casino, spa, food & beverages, and gift shop are all "outperforming significantly".

Guest spending is the path to profitability

Onboard spending has been a great metric, and something for the cruise company to tout during an otherwise big loss for the quarter.  But it's also how Royal Caribbean will move back into the black.

How important is onboard spend? The rule of thumb Royal Caribbean uses is every dollar of pre cruise spend is worth an incremental 50-cents of onboard spend.

Prior to the pandemic, Royal Caribbean Group would consistently point to onboard spending as the difference maker in a good quarter to a great quarter.

In February 2020 (the last quarter before Covid-19), Royal Caribbean Group reported 2019 was another year of very strong performance that generated over $2 billion in adjusted net income.

In 2019, Royal Caribbean Group generated $3.09 billion in onboard revenues, which was up from $2.7 billion for the year in 2018.

With the company seeing "historical spend" from people cruising these days, it's a positive sign brighter times are likely ahead.

Royal Caribbean Post Round-Up: February 6, 2022

In:
06 Feb 2022
By: 
Matt Hochberg

Happy weekend! We hope you are in the midst of a wonderful weekend full of things to do to pass the time between cruises.  We have a summary of all of this week's Royal Caribbean news in case you missed any of it!

Royal Caribbean released its fourth quarter 2021 earnings this week.

Not surprisingly, it was another billion dollar loss, but things look more promising as the year progresses.

Notwithstanding the impact from Omicron, the expectation is to be operating cash flow positive in late spring. 

They expect a Net Loss for the first half of 2022 and a return to profitability in the second half of 2022.

Royal Caribbean News

Royal Caribbean Blog Podcast

The 440th episode of the Royal Caribbean Blog Podcast is now available and this week, Matt lists the things he thinks is worth spending extra on during a cruise.

What's really worth your money and which extras aren't? Matt has a list of his picks for this week's episode.

Please feel free to subscribe via iTunes or RSS, and head over to rate and review the podcast on iTunes if you can! We’d appreciate it.

New RCB Video: Harmony of the Seas full ship tour

Have you subscribed to the Royal Caribbean Blog YouTube Channel? We share some great videos there regularly, all about taking a Royal Caribbean cruise! This week, we are sharing our latest video — Harmony of the Seas 2022 Cruise Ship Tour — and don’t forget to subscribe here.

February 2022 cruises: what to expect

Friday Photos - February 8, 2019 | Royal Caribbean Blog

Have a February cruise booked? Here is what to expect onboard.

This article looks at the weather, health protocols, and special events anyone with a February cruise should know about.

Royal Caribbean removes future cruise credit "book by" deadline

Royal Caribbean hopes a new change to future cruise credits will be a positive change for guests.

Royal Caribbean has removed the "book/redeem by" deadline, and FCCs can now be redeemed anytime up until the expiration date listed on the certificate.

Royal Caribbean said the decision was made due to limited options for guests in light of the current global situation.

Health expert shares advice for going on a cruise ship amid Omicron

Navigator of the Seas Live Blog - Day 2 - Sea Day | Royal Caribbean Blog

What should you or shouldn't you do to keep yourself healthy on a cruise right now?

I reached out to Dr. Anthony Harris to share recommendations for best health practices

Dr. Harris has a lot of experience with travel recommendations, and shared his thoughts for anyone going on a cruise.

How much does an Alaska cruise cost?

In:
05 Feb 2022
By: 
Jenna DeLaurentis

Going on an Alaska cruise is a bucket-list worthy vacation, but how much does it cost?

The price of an Alaska cruise can vary widely depending on the month you sail, stateroom you choose, and excursions you book.

Cruise fare prices

Cruise fares are dynamic, so that means how much a cruise costs could be slightly or significantly different from the price of a cruise to Alaska tomorrow. There are two main considerations when determining the price of a cruise: the month you sail and the type of stateroom you book.

The price of an Alaska cruise can vary greatly based on which month you sail.

The Alaska cruise season usually runs from May - September. The most popular times to cruise to Alaska are during the summer months of June, July, and August. Because of the higher demand at this time of year, cruise fares can be more expensive.

The shoulder seasons of May and September, on the other hand, can see less demand and therefore lower prices.

Stateroom selection can also have a huge impact on the price of an Alaska cruise. Interior, ocean view, balcony cabins, and suites all come with varying price points.

Different ships offer different stateroom availability as well. Some ships, like Quantum of the Seas and Ovation of the Seas, have more balcony staterooms available than smaller ships like Enchantment or Radiance of the Seas. Therefore you may find balcony staterooms more affordable on a Quantum-class ship than on smaller ships.

As an example, I priced out the different cruise fares available for two sailings: a 7-night Southbound Alaska & Hubbard Glacier cruise on Radiance of the Seas and a 7-night Alaska Dawes Glacier cruise on Ovation of the Seas.

The cruises I priced out were for 5 and 7 months in advance from the time of writing this article. The price reflects the total cruise fare for two guests as well as taxes and fees:

Radiance of the Seas: 7-night Southbound Alaska & Hubbard Glacier Cruise

July:

Interior: $1774.52

Ocean view: $2216.52

Balcony: $5779.52

September:

Interior: $1426.70

Ocean view: $1626.70

Balcony: $2910.70

Ovation of the Seas: 7-night Alaska Dawes Glacier Cruise

July:

Interior: $2185.14

Ocean view: $2445.14

Balcony: $3488.14

September:

Interior: $1775.50

Ocean view: $1935.50

Balcony: $2538.50

Unlike in destinations like the Caribbean and Europe, sailing on an older and smaller ship does not necessarily mean the cruise fare will be cheaper than a new ship. Because smaller ships can fit into more Alaska ports, demand for those ships are often higher than the larger ships.

We recommend booking a cruise as soon as you decide you would like to sail to Alaska. Waiting for a lower price usually does not pay off, as cruise fares tend to get higher closer to the sale date.

Plus, with Royal Caribbean’s Cruise with Confidence policy, you are able to reprice your cruise as many times as you want up to 48 hours before your sail date. If you notice the price is lower, you will receive the fare difference in onboard credit.

Excursions

An Alaska cruise is itinerary-focused, meaning that you will want to plan your days in port to get the most out of your visit. Budgeting for excursions is important to ensure you will be able to do what interests you most.

Royal Caribbean offers both budget-friendly and more exclusive shore excursions. Here are a few examples of excursions and their prices on the day of writing this article:

  • Exclusive Alaskan Whale Discovery in Juneau: $169/adult, $99.75/child
  • White Pass Scenic Railway in Skagway: $95.99/person
  • Ketchikan Pub Crawl: $93.99/person
  • Wildlife Safari & Bear Viewing in Haines: $89/adult, $69/child
  • Haines Scenic Byway & Summit: $69/adult, $49/child
  • Chilkoot Trail Hiking and Rafting in Skagway: $129/adult, $79/child
  • Bike and Brew Glacier View in Juneau: $109/adult, $79.75/child
  • Exclusive Coastal Drive, Wildlife Cruise & Oyster Farm in Ketchikan: $188.99/person
  • Last Frontier Food Tour in Tracy Arm Fjord: $121.99/person
  • Wildlife Quest Cruise & Fin Island Lodge in Sitka: $214.99/adult, $158.99/child
  • Best of Sitka: $99/adult, $79/child

There are also some higher-end excursions which can offer a truly unique opportunity to view Alaska’s scenery from a different perspective.

The “Mendenhall Glacier by Helicopter and Guided Walk” excursion brings guests on a helicopter ride above the Tongass National Forest before landing on Mendenhall Glacier. Following the landing, guests will put on glacier boots for a guided walk around the ice. The cost for this excursion is $339/person.

Those looking for a more comfortable whale watching experience may be interested in the “Luxury Whale Watching” excursion in Icy Point Straight. In this excursion, guests will set sail on a yacht while enjoying sparkling wine and looking for humpback whales and orcas. The cost for this excursion is $399/person.

Whatever your budget, you will likely be able to find a shore excursion that works well for you. You may also wish to search for excursions through outside providers or explore on your own.

Exploring on your own

If you don’t plan on booking excursions, you may choose to explore Alaska’s ports on your own. Most Alaska cruise ports are just a short walk from the main area of town, where you will find restaurants, saloons, historical districts, museums, and nature to enjoy.

You can also visit popular destinations within the ports on your own as opposed to booking an excursion. As an example, instead of purchasing an $80 excursion to Mendenhall Glacier in Juneau, opt to take the express bus. Located just outside the pier in Juneau is a stand that sells roundtrip tickets to the Mendenhall Glacier Recreation area. The total cost for the roundtrip bus ticket was $45 as of 2021 and included the entrance fee into the park.

Cruise Tour

Royal Caribbean also offers land-based Cruise Tours before or after an Alaska cruise. These are 3-6 day land tours in either Alaska or Canada that bring guests to destinations inaccessible by cruise ship.

Prices for a Cruise Tour vary depending on how many days the tour runs and the tour’s location.

Those looking to visit Denali can book the “Destination Denali” Cruise Tour which includes a 7-night sailing on Radiance of the Seas followed by a 3-night land tour exploring Seward, Anchorage, and Denali National Park and Reserve. The total cost of the cruise and land tour begins at $1410 per person for an interior cabin.

A more in-depth Cruise Tour is the “Fjords and Tundra National Parks Explorer”. This tour combines a 7-night sailing on Radiance of the Seas followed by a 4-night land-tour that visits Seward, Anchorage, Denali National Park and Reserve, and Fairbanks. The price for this Cruise Tour begins at $2300 per person for an interior cabin.

The Mountain Resort Experience Cruisetour is the most expensive option available, with prices for a 7-night cruise and 6-night land tour beginning at $4,200 per person for an interior cabin. This tour begins with a visit to popular Alaska destinations such as Sitka, Juneau, Skagway, Haines, and Tracy Arm Fjord before beginning the Cruise Tour, which visits Jasper, Banff, and Calgary, Canada.

The total cost of my Alaska cruise

How do all of these pricing options play out when pricing out your Alaska cruise? To put these samples into perspective, I broke down the expenses I encountered on my recent 7-night Alaska cruise on Ovation of the Seas.

Cruise fare & Gratuities: $727.88

To make up for lost revenue from the Covid pandemic, Royal Caribbean’s Alaska cruise season ran into October in 2021. When I sailed to Alaska on the last cruise of the season, I was able to find a fantastic deal. My 7-night cruise fare with gratuites added on Ovation of the Seas was only $727.88 total for 1 person in an interior virtual balcony room.

While this price could be seen on another sailing, the extremely low cruise fare combined with the fact that there was no single-supplement fee made it a deal you don’t come across very often.

Excursions: $200.98

On my Alaska cruise I was able to find shore excursion opportunities that fit my budget while still providing wonderful insights into Alaska’s culture, history, and nature.

In Ketchikan I split my time between a Royal Caribbean excursion and exploring the town on my own. I booked the Saxman Native Totem Village excursion for $59.99, which took me on a bus ride to the village of Saxman for a few hours of cultural insight into the native Tlingit people. The rest of the day was spent walking around Ketchikan with no expense other than lunch and souvenirs.

In Juneau we opted to take the $45 Mendenhall Glacier Shuttle Bus that leaves from the cruise port to Mendenhall Glacier and back throughout the day.

Skagway was the most expensive excursion of the three ports with a ticket on the White Pass & Yukon Railway for $95.99. The ride was definitely worth the cost in my opinion, as it brings passengers on a ride through Skagway’s majestic mountain scenery.

Additional onboard and in-port expenses: around $200

As with any cruise vacation, I incurred extra expenses onboard Ovation of the Seas and when walking around ports. I estimate that I spent around $200 extra on drinks, food, and souvenirs.

Approximate total cost of my Alaska cruise: $1128.86

My Alaska cruise was significantly cheaper than most passengers will encounter due to the fact that it was at the very end of the season and that I was traveling solo. However, even if my cruise fare had been a more “normal” price, such as around $1500, my cruise still would have been relatively budget friendly.

I found it easy to pick excursions for my budget, and since most food and expenses are complementary while onboard, a cruise can be a nice way to visit Alaska without incurring as many expenses as you might on a land-based vacation.

The total cost of an Alaska cruise will vary widely based on the month you sail, stateroom you book, and excursions you reserve while in port, but there are options to fit any vacation budget.

Planning an Alaska cruise? Check out these articles:

Royal Caribbean Group Earnings Call Transcripts: Q4 2021 earnings call with investors

In:
04 Feb 2022
By: 
Matt Hochberg

Here's everything Royal Caribbean Group said at its Q4 2021 earnings call on Friday, February 4, 2022.

Royal Caribbean Group CEO Jason Liberty, Royal Caribbean Group CFO Naftali Holtz, and Royal Caribbean International President and CEO Michael Bayley spoke with analysts during the company's Q4 2021 earnings call.

Here's a full transcript of their comments and remarks during the hour-long call.

Liberty's opening remarks

Michael McCarthy - Vice President of Investor Relations

Good morning, everyone, and thank you for joining us today for our business update and 4th quarter and full year 2021 financial results earnings call. Joining me here in Miami are Jason Liberty, our Chief Executive Officer; Naftali Holtz, our Chief Financial Officer; and Michael Bayley, President and CEO of Royal Caribbean International.

Before we get started, I'd like to note that we will be making forward looking statements during this call. These statements are based on management's current expectations and are subject to risks and uncertainties. A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release issued this morning, as well as our filings with the SEC for a description of these factors. We do not undertake to update any forward-looking statements as circumstances change. Also, we will be discussing certain non-GAAP financial measures, which are adjusted as defined and a reconciliation of all non-GAAP items can be found on our website and in our earnings release available at www.RCLInvestor.com.

Jason will begin the call by providing a strategic overview and an update on the business. Naftali will follow up with a recap of our 4th quarter and full year results, an update on our latest actions and on the current booking environment. We will then open the call for your questions. With that, I'm pleased to turn the call over to Jason.

Jason Liberty - Chief Executive Officer

Thank you, Michael, and good morning, everyone. I'm pleased to be with all of you today in my new role here at Royal Caribbean Group. I'm very fortunate and humbled to take the helm of this incredible organization, which includes our industry leading brands and the most innovative fleet in the world that is enabled by our incredible people and culture. I'm very much looking forward to building on the company's remarkable legacy and track record in the years ahead.

I also want to congratulate and welcome Naftali as our new CFO. Many of you already know Naft, but for those who don't, I'm confident you'll enjoy working with them.

Our mission at Royal Caribbean has been and continues to be focused simply and completely on delivering every day the very best vacation experience and doing so in a responsible way. It is all inspiring to see our team deliver on our mission each and every day. While 2021 was another challenging year for our company and the industry, it also marked our healthy return to sailing. In just a few short months, and thanks to the incredible preparedness of our operating team and crew throughout the last year and a half, we have brought back more than 85% of our capacity into service and delivered extraordinary vacations and memories to approximately 1.3-million guests. I want to thank the hardworking people, the Royal Caribbean Group, both our crew and our shoreside employees for their incredible efforts to bring back our fleet in such a short window and such a successful way. I am so proud and grateful for their efforts. I also want to thank our guests, travel partners, destination partners, suppliers, investors, and financial partners for their steadfast support.

As we navigate through this black swan event, we have focused intently on a successful, healthy return to service, as you would expect. At the same time, we have been charting our course to get back to pre-COVID performance levels and beyond soonest. The combination of very strong secular and demographic trends, our leading brands, the most innovative and a growing fleet, our global sourcing footprint, a leading technology platform, and the reshaping of our cost structure positions us exceptionally well to accelerate.

Let me focus a moment on our healthy return to service. Since we resumed operations, our goal has been to making cruising one of the safest vacations anywhere in the world while providing an exceptional guest experience. We continue to demonstrate that in a very tangible way. As you heard me say, we have carried approximately 1.3-million guests since the restart, with about 2,500-guests testing positive for COVID-19, a positivity rate of 0.19%. This positivity rate is still a small fraction of what it is in society at large, and nearly all cases on board were asymptomatic or had mild symptoms. Our rigorous health and safety protocols, with 100% vaccination rate among our crew, and close to 100% vaccination rate among our guests, provide a safe environment where we can fulfill our mission of delivering amazing vacations. And our guests are responding by providing record net promoter scores for us exceeding their expectations.

A few weeks ago, the prescriptive CDC conditional sail order expired, demonstrating the agency's confidence in the overall effectiveness of the health and safety protocols of the cruise industry. Our own protocols continue to go above and beyond anything the framework provided and what consumers will find in any hospitality setting. We continue to engage with the CDC and other public health agencies as we look to adjust our COVID-19 risk mitigation measures in response to the changing nature of the virus.

Our healthy return to service plans anticipated twists and turns on our recovery path. We remain nimble in our approach, adjusting to changes in the operating environment, with a constant focus on our long-term strategy and success. As everyone is aware, the Omicron variant has impacted most parts of society as well as our operations. Since mid-December, we experienced an increase in the number of people testing positive for COVID on board our ships. The good news is that in the last several weeks, cases on board our ships have been declining rapidly and we now have returned to exceptionally low pre-Omicron levels. In fact, over the last seven days, we have averaged only a handful of positive guest cases per cruise. With the declining cases, operational challenges are also abating. So, while the variant is not done, it appears that the worst is behind us.

The timing of Omicron was particularly painful as a typical wave booking period begins in early January. So, we do expect it will weigh on our performance in Q1 and to a lesser extent in early Q2. But with the peak of Omicron now seemingly behind us, we have seen meaningful and sequential improvement in the booking activity week over week since the beginning of the year. In fact, in the last week of January, bookings returned to pre-Omicron levels and we except the demand recovery to accelerate as the variant subsides. With that in mind, we have extended our sales and marketing activities for a delayed and extended wave.

While Omicron created some short-term challenges and will likely delay our return to profitability by a few months, our recovery trajectory remains intact. We remain confident that we will have a strong spring and summer season with great demand for cruising both domestically and internationally. The robust secular trends of experiences over things that has propelled our business in the past few years is now recovering towards pre-COVID levels. We have also seen a change in the mindset of consumers coming out of the pandemic with the desire to travel and reengage with the world being stronger than ever. In fact, the U.S. travel organization research confirms that leisure travel will continue to increase at higher levels than business travel. All of this coupled with consumer resilience and easing travel restrictions provides tailwinds for our recovery.

After a storied 2020 and 2021, we are eager to move forward in this new year. As people are keen on taking a vacation, we are ready to make their vacation dreams come true in a healthy and safe environment. We expect 2022 will be a strong transitional year as we bring the rest of our fleet into operations and approach historical occupancy levels. We expect a net loss for the first half of 2022, due to the impact of Omicron, and a return to profitability in the second half of the year.

During 2022, we look forward to welcoming two additional new ships, Wonder of the Seas for Royal Caribbean International and Celebrity Beyond for Celebrity Cruises. These exciting new ships will deliver amazing vacations to our guests and join six other new vessels that have entered our fleet since 2020. This is a key pillar to support our recovery. New hardware is an important driver of quality demand, extraordinary customer experience, and exceptional financial performance. And just as important, it improves our sustainability as these are innovative ships that are much more energy efficient.

We remain focused on continuing to innovate our product and maintain our strong competitive advantage setting the foundation for a strong recovery and long-term profitable growth. During the pandemic, we have had a relentless focus on reshaping our cost structure and rigorous capital allocation framework. We expect that the combination of new ships, growing yields, and higher profitability will propel our financial performance and support our focus to return to pre-COVID financial metrics and beyond soonest.

Corporate stewardship remains another key priority as we continue to progress across environmental, social, and governance focused areas. Climate change and reducing our emissions have been central to our environmental stewardship activities for decades. Last quarter, we announced our comprehensive decarbonization strategy and goals. We realize that the transition to net zero will not be easy and to achieve our ambitions we will rely on our culture of innovation, as well as strong partnerships with governments, suppliers, and shipyards to develop alternative and accessible fuels and technologies.

Additionally, in the past few months, we were named an employer of choice by Forbes and Glass Door. And last week we earned 100% score on the Human Rights Campaign Foundation Corporate Equality Index, which rates corporate policies and practices that relate to LGBTQ+ workplace equality. These are recognitions we're proud of and they reflect our commitment to our employees.

All of this tells you that our business model is incredibly strong, and we have a track record of growing revenue, earnings, and cash flow. Our formula for success is unchanged, recover and grow yields, enhance our margins, profitability, and ROIC. To that, we added returning our balance sheet to pre-COVID levels. We have the best brands in each of our segments, the most innovative fleet in the industry, exclusive destination experiences like perfect day at CocoCay, a nimble and effective global sourcing footprint, a leading technology platform, and most of all, the very best team, both at sea and on land. With that winning formula, I am confident about the recovery and I'm very excited about the future of Royal Caribbean Group.

And with that, I will turn it off to Naftali, Naft.

Naftali Holtz's detail on the quarter

Naftali Holtz - Chief Financial Officer

Thank you, Jason. Before I begin my remarks, I would like to share our energized I am to take on the Chief Financial Officer role. I will focus my energy on continuing the accelerated recovery and returning our performance metrics to pre-COVID levels as soon as possible, while positioning the company for long term success.

I will now turn to discuss our results for the 4th quarter and full year 2021. This morning we reported an adjusted net loss of $1.2-billion for the 4th quarter and $4.8-billion for the full year. It is important to note the Q4 results were better than our internal expectations, mainly due to continued strong onboard revenue performance and better cost management.

The financial results for 2021 reflect the impact from the suspension of sailing in the first half of the year and the tremendous effort to resume cruise operations and accelerate the flywheel in the 2nd half. In the 4th quarter, we continued our return, bringing 12 more ships back into operations, building the load factors, and restarting our sales and marketing efforts. This was all to position the company for a successful 2022.

Load factors for the quarter were 65% on core itineraries with month over month improvements. We are incredibly pleased with the progress we have made in the 4th quarter. Our total load factors grew from 36% in Q3 to close to 60% in Q4. In addition, the continued strong onboard revenue contributed to a 10% increase in total gross revenue per passenger cruise day compared to the 4th quarter of 2019. Cash flow from operating ships turned positive in the 4th quarter.

Now I would like to discuss capacity and load factor expectations over the coming period. The Omicron variant caused short term disruptions to the travel industry as well as our operations. As Jason just mentioned, our focus, since we restarted operations, has been to ensure the health and safety of our guests and crew, matching or exceeding guests vacation experience expectations, and bringing the fleet up in a financially prudent way. With that in mind, we made the decision to cancel several sailings in the 1st quarter. We plan to operate about 7.7-million APCDs in Q1, or approximately 95% of our planned capacity. We expect that operating ships in the 1st quarter will be cash flow positive.

Our capacity will further increase at the end of the quarter following the delivery of the incredible Wonder of the Seas. Wonder will be introduced to the U.S. market in March before heading to the Mediterranean for the summer season. Due to the impact from Omicron, our near-term bookings and cancellations, we expect load factors of approximately 60% on core itineraries in Q1, with month over month improvement within the quarter.

We also expect to bring the rest of our fleet back to service in time for the lucrative summer season. We expect our load factors to continue to steadily increase month over month and approach historical levels in the 3 rd quarter. While we offer cruises in the vast majority of our key destinations, we continue to closely monitor both China and Australia. We anticipate Australia to open for cruising for its summer season, our wintertime. With respect to China, it remains closed for cruising, and we have redeployed the remaining two ships planned in 2022 to other key markets. We remain optimistic that we can capture long term growth opportunities in the China market.

Shifting to our balance sheet. We ended the year with 3.5-billion dollars in liquidity, excluding the 1-billion dollar issuance we completed in early January. We have ample liquidity to allow us to continue our recovery trajectory. During 2021, we focused on managing and improving our balance sheet. We reestablished access to the unsecured debt markets and successfully refinanced 2.3-billion dollars of secured or guaranteed high coupon debt. Our plan is to continue with these balance sheet improvement efforts throughout 2022.

In early January, we issued 1-billion dollars at 5.38% coupon, and we plan to use the proceeds to refinance near term debt. In addition, we have taken and continue to take numerous actions to reshape our cost structure with a focus on further improving our leading pre-COVID margins. While these actions will improve our cost structure and margin profile, we do anticipate that inflationary pressures and some transitory costs related to our healthy return to service will weigh on this year's earnings.

Now I'll provide an update on the demand environment and our 2022 sailings. For the last several quarters, we have seen new bookings improve from one quarter to the next. Bookings in the 4th quarter continued this positive trajectory, culminating in our biggest ever Black Friday and Cyber Weekend from the U.S. Bookings in the 4th quarter were up more than 75% compared to the 3rd quarter. As we restarted our brand marketing programs in Q4, we generated strong demand to support the Book of Business for ‘22 and ’23. As the Omicron variant began spreading in December, we experienced slower booking activity and higher near-term cancellations over the holiday period, as many guests were testing positive before their cruise. But from the beginning of the year, we have seen meaningful week over week improvement in booking activity for both the first and the second half of ‘22. Second half booking activity has been recovering at a faster pace. In addition to that, we have seen a rapid improvement in cancellations over the same period.

Similar to our experience with the Delta variant, as Omicron cases are beginning to decline, booking activity has begun to pick up. In fact, in the last week of January, bookings have returned to pre-Omicron levels. The U.K., which is further ahead on the Omicron curve, has been on that improvement trajectory for several weeks. From an accumulative booking standpoint, our booked load factors for sailings in the 2nd half of this year remain within historical ranges at higher prices, both with and without the impact of FCCs.

Load factors in the 1st half are below historical ranges as expected, but are aligned with our anticipated load factors.

Our customer deposit balance as of December 31st was 3.2-billion dollars, an improvement of about 400-million over the past quarter despite the quarter over quarter increase in cancellations related to Omicron and significant revenue recognition, both of which reduced the customer deposit balance. Our customer deposit balance is only 5% lower than it was at the end of December 2019, with the entire difference driven by the 1 st quarter sailings, where we have less capacity. Our customer deposit balance related to bookings for Q2 forward sailings is higher than at the same time in 2019. Approximately 32% of our customer deposit balance is related to future cruise credits. Of the FCCs, approximately 50% have been redeemed thus far.

Lastly, turning to the outlook for 2022. Given the progress we have made, ramping up operations, and everything I said about the booking environment, the costs, and the impact of the Omicron variant, we still expect to reach positive EBITDA and operating cash flow in late spring. We expect a net loss for the first half of 2022 and a profit for the second half of the year.

With that, I will ask our operator to open the call for a question and answer session.

Analyst questions

Robin Farley from UBS asking questions.

--that expected that new wave season volumes, you know, are lower than historic. But I think still positive to see that your historic load in the second half is still above. I think there had been some concern that maybe the historic load would have fallen below given how slowly the first month of wave is. I guess, I wonder if you could give us a little bit of quantification on, do you expect, even with this sort of maybe later start to wave because the Omicron disruption-- Do you still expect load factors in the second half, you know, if we move at the rate we are going through the next month to still be ahead of historic, or within historic ranges?

Jason: Robin, I'll start off in and of course, good morning, good to talk to you. I think the first point I would make is while Omicron was certainly impacting our bookings and impacting our cancellation, they really was focused on the 1st quarter and a little bit of the 2 nd quarter. We didn't really see too much of an impact in terms of demand, as related for, call it, June on in the year. And I think that, you know, just talked to the consumer psyche and just concerned around Omicron in itself and the timing of all of that. So, I think we remain confident and based off the booking activities that we've seen that, you know, the back half of the year is going to look like what we had expected it to. And that includes on our expectations on a load factor standpoint.

Robin: Okay, great, thank you. And I do have a follow up. But I should have said congrats, by the way, to you and Naftali both in your new roles. I should have started that way, sorry.

And then, for the follow up, it’s about FCCs. I didn't know if you had said 50% was redeemed or 15%, I just wanted to clarify. But the real question was on FCCs, it seems like a fair amount, I know people think about what the represents as a percent discount to booked price, but is it fair to say that a lot of your FCCs at this point are not the bonus FCCs that represent a discount but that are just dollar amounts that somebody reschedule their cruise or canceled and moved to a later date? In other words, what you talk about is being FCC does not automatically mean that that represents a discounted FCC? I don’t know if you can clarify that, thanks.

Jason: Yeah, I mean, I think that's right. I think that most of the FCC application are what we call our lift and shift program. The balance of that would be the FCCs in which, you know, they had the 25% of value to them. And I think that program in general has been working relatively well. And for the most part, our guests, you know, they want to go on their vacations. They want to typically go around the same time that they were planning on going and they're just lifting and they're shifting that to periods of time that are in the same zone of when they were planning on vacationing before, just a year later or a quarter later, etc.

Naftali: And Robin, just to answer your question, it is 5-0, 50%. And we're very pleased with that. And we've seen progress in the last quarter, both redemptions, as well as just new bookings.

Robin: Great. Thank you very much.

Moderator: Your next question is from Steve Lasensky of Stifel.

Steve Lasensky: Hey, guys, good morning. I'm going to start with a quasi-guidance question, I'm not sure you'll answer it or not. But I understand that you are not giving guidance for the year but last quarter you talked about being earnings positive for the full year. Now you're saying first half still will be generating losses back half of the year going positive. So, you know, I guess the question is, do you still think it's possible for the full year to wind up being positive, even with all the variant headwinds that have occurred so far? And the, the second part of that question is, did you guys contemplate or are still contemplating helping us think about the long-term prospects for this business over the long term? Whether that's long-term guidance or targets or stuff like that?

Jason: So, on the first question, Steve, and good morning. I would say that we are not an organization that gives up based off of an event like Omicron. So, we are kind of taking all efforts to ensure that we maximize our profitability here each and every quarter and each and every year. Omicron certainly will weigh in here heavily on the 1st quarter and a little bit of the of the beginning of the 2nd quarter. But a lot of it will be as bookings start to come in, how can we improve on the 1 st quarter and the 2nd quarter? And that will kind of dictate whether we are positive or negative on the earnings side. We're focused on it. But there certainly has been pain. I mean, the cancellations of those 50-plus sailings weigh pretty heavily onto the 1st quarter on a profitability standpoint. So, that's kind of the answer to question one.

On question two, we are certainly looking past COVID. We believe we are past, you know, COVID in terms of the overall impacts on our business and we're focused on our healthy return to service. And the great, as I said in my comments, you know, this is a great business with great brands and great ships. And as we get our load factors up to historical levels and we start getting to predictable quarters and patterns, I do believe we will come out and provide long-term programs and metrics as it relates to the overall business. I feel good about that, but I think we're going to wait until we're in a little bit more of a predictable state and our quarters are predictable before providing that guidance.

Steve: Okay, gotcha. Thanks for that, Jason. And then second question, how do you guys think about changing COVID mandates on board? And I guess what I mean by that is, you know, I assume there are folks out there that still don't want to cruise either because of testing or mask mandates and are waiting for those to be removed or eliminated. So, what are you guys watching or what do you think will give you the confidence to start removing some of those mandates? And what do you think that would ultimately do to bookings and demand

Michael: Hey, Steve. Yeah, I mean, obviously, that's a consideration in terms of the protocols that we have in place and how the customer perceives that. I mean, in many ways, the customer is perceived as a positive, you know, during the time of COVID. But obviously, I think we believe and what we see now is that many destinations and countries are beginning to ease some of these restrictions. And the belief is that we're going to start moving to a new normal. And we've seen now with the U.K., for example, where Brits returning to the U.K. do not require testing. There are effectively almost no protocols for them to return home. I think last week, also Denmark and Sweden are following the same kind of path. And we believe that we'll see more and more of this over the coming weeks.

Certainly, we see now with Omicron that the decrease in positivity is really significant, not only in the U.S. and certain states, but also on board of our ships. And we believe that we're going to move into a much more positive environment. I think what we'll see is as we get into that environment, we'll start again working with the CDC, we will start removing many of the protocols that exist today, and it'll become easier and simpler for our customers.

Just as a point of reference, around 10-million customers visit our Royal Caribbean International website every month. And around 400,000 or so visit our Healthy Sail Section of that. And you can see as people's anxiety either raises or decreases, then obviously that number raises and decreases. So, we're feeling quite positive about where we're going with this. We also believe that in the not too distant future, the CDC level four will be downgraded to level three, and I think that will also be another positive step in the right direction.

Jason: And Steve, I'll just add, I mean, as you know this because we say it quite frequently, the health and safety of our guests and our crew are our number one priority. So, a lot of this is, we're following the science and the protocols that we have in place are well beyond what has been asked upon by the CDC and the CSO or by others. So, we're following the science and based off of that we are making changes to our protocols again to kind of help ensure that our guests and our crew are safe at all times.

Michael: That's great color. Thanks, guys. Really appreciate it.

Moderator: Your next question is from Andrew Didora of Bank of America.

Andrew: Hi, good morning, everyone. This is for Naftali or Jason, your marketing G&A spend were at record levels in 4Q. We clearly knew your marketing spend was going to be higher given the restart. But when we think about the Omicron impact and sort of the delay we've seen here, does that mean these costs will stay elevated in the first half of 2022? Is there any color that you can provide in terms of the cadence there? I think it will be helpful.

Jason: Yes, thanks Andrew. So, as you noted, after quite a while started our brand marketing efforts in Q4, and that's why you see that elevated. We've seen very good receptivity to those and generated really strong demand that cultivated into the bookings we’ve seen. As Omicron started spreading, we’ve really thought thoughtfully about how we are going to spend the sales and marketing. Also, we are within the typical wave season. So, we are thinking about that, and we will continue to adjust. We will eventually go back to what you would think as a more of a historical range.

Naftali: Yeah, I think that's a key point. But our behavior in terms of our marketing activities and so forth, as well as how we're going to market is actually very similar to how we were pre-COVID. And that kind of that pattern and tempo is what you should be kind of thinking about as you are considering your modeling and so forth. You know, just be mindful, you know, we have more capacity than we did in 2019. But I would just kind of make that point that you should expect us to kind of return to typical behavior.

Andrew: Okay, got it. And then my follow up question, you know, certainly appreciate you wanting to wait to give long-term guidance until there's just a bit more clarity on, you know, probably on the revenue side. I would think you have a little bit more kind of more clarify on your cost situation, particularly as all your ships kind of return to service here. So, I know there have been some puts and takes stirring during the pandemic in terms of taking costs out of the system and then there is just general inflation in the market. Can you help us think about where your unit cost x fuel could be relative to 2019 as you begin to get back to the full utilization of your fleet?

Jason: Well, I will just start off and Naft can certainly jump in here. As you start considering the transitory costs, which will evaporate here, we were hoping here in 2022. You know, the efforts we've made around cost is for our cost per APCD, to get more efficient, for us to gain more margin here here over time. So, a lot of the things as you look at our cost per quarter and saying, “Well, where are these cost savings?” A lot of that is being absorbed by short term transitory costs and also being absorbed by what we believe to be some of the short-term inflationary elements in food, as an example, that we think we will be able to effectively manage.

Naftali: And just to add that, you know, we also have six new ships that have joined a fleet since 2019, in addition to the cost focus that we've had in reshaping our structure as we had in the last couple of years. So, as the fleet comes back and the load factors build up, we are very well positioned to perform and improve margins.

Andrew: Sorry, just one last follow up there, do you think your longer term kind of non-fuel unit cost can get back to pre-pandemic levels?

Jason & Naftali: We do.

Andrew: Thank you.

Moderator: Your next question is from Ben Chaiken of Credit Suisse.

Ben: Hey, how's it going? You guys talk about load factors being in line with pre-COVID, I think 3rd quarter ’22. Just to pick that apart, did you say in 3Q, you'd reach normal or 3Q for the course, I know this is a little bit in the-- Or 3Q should be normal? And then, just one follow up.

Naftali: In Q3.

Ben: Okay. And I guess, with that in mind, can you help us with the thought process or data points you are looking at to make you comfortable with that assumption? Is it simply the pace of bookings? Is there any way to approximate like how booked you are currently on a percentage basis for 3Q sailings, for example?

Jason: Yeah, well obviously we know those numbers very closely. But it’s not something that we typically are going to be guiding on at this point. But what brings us the confidence and whether it was Naft’s commentary around the customer deposits in the back half of the year, especially for Q3 relative to 2019, the booking activities that we've seen is what provides us confidence that we're going to return to those historical load factors. So, it’s not based off of hope, it’s based off of the patterns that we are seeing today that is our best perspective on the patterns that are going to continue on.

Ben: That’s really helpful. And then just one more on onboard spend, which has been particularly strong. Do you think part of this is to do with like the ships having lower occupancy so there's more opportunities to spend and not wait in line? I'm kind of making that up or is it some pent-up demand or is it a change in how people are booking packages? Could you just help us think about how you guys view this strength and how it should persist in the back half of ’22?

Michael: Hi, Ben, it’s Michael. I wish we knew. I can tell you that we've been absolutely delighted and initially very surprised by the onboard spend. But I think when we started operations out of the U.S. back in July, we were initially just shocked. It was really, really positive and it's just continued. So, I think it’s, you are probably not far wrong that I think lower load factors create a different kind of environment that help people spend more. But we've seen it across the board in nearly every single category where people are just simply spending more in every single revenue stream. We also really pleased with what we've seen with our investment in the pre-cruise technology that's really starting to come online over the past 12-months. And the pre-cruise penetration is significantly higher than it’s ever been before. So, we’re in a very positive environment. We know back in ’20 and ’21, the savings rate was significantly higher and credit card debt was much lower. So, we do think that people are happy. We’ve seen the net promotor score on all of our ships and brands being at records highs. So, we’ve got a lot of happy customers in that happy frame of mind opening up their wallets and spending literally all over the place. So, we are very pleased with what we are seeing.

Jason: I think to just add a little bit more color on to it, when Michael talks about categories, I think it is in two dimensions. Whether it's the consumer that is booking the inside state room or the consumer booking the ultimate family suite as an example, you're seeing them all over index on their historical spend by quite a bit.

And then the other dimension of the category is by area, effectively every revenue area, whether that's spa, whether that's gift shop, whether that's casino, F&B, and so forth, it is just outperforming significantly. I don't know how much of its volume, how much of its mix, how much of it is just the consumer with more money in their pocket, how much of it just-- [no audio 37:56 - 38:16]

Ben: --pre-cruise penetration, does that mean like offering them opportunities to book spa and all the items you listed before they get onboard?

Michael: Yeah, that’s right, Ben. I mean, the level of sophistication of our pre-cruise software and our ability to market directly to customers has improved quite a lot over the past year or so. I think that does play a key role in this.

Jason: And Ben, as you know, from following us for some time, we had talked about pre-COVID that we were replacing our pre-cruise or our EOR, ecommerce platform for our onboard spend, which not only includes being a lot easier to conduct and book business with us, but also our ability to yield, manage it, and so forth. And so, that's definitely been an area where we have continued to invest under these very difficult times to prepare ourselves for another opportunity for margin improvement.

Michael: And just one final points on this, this wonderful piece of good news, as a rule of thumb, every dollar of pre cruise spend is worth an incremental 50-cents of onboard spend. And that's pretty much a rule of thumb that’s been true for some time.

Ben: Got it. Thank you.

Moderator: Your next question is from Jamie Katz of Morningstar.

Jamie: Hey, good morning. I have a couple of bigger picture questions for you guys. First, can you unpack any of the supply chain constraints you're seeing? I know in the past you had talked about sourcing different food items from different places and whether or not that's easing or still problematic?

Jason: Yeah, sure. Our two main areas that inflation really impacts us is food and it is fuel. Obviously in the food and other things that we have, we have on the shipping side some costs with our shipping lanes and so forth. But for the most part, we have seen the cost of these items now begin to come down, somewhat as we had anticipated, and also what our suppliers had anticipated. It's not back at all to kind of pre-COVID or 2020 levels, but it is definitely beginning to move in the right direction here, which aligns very well because we have a lot of longer-term fixed contracts on a lot of our commodities. And so, we've been patient to update those and until we started to see a change in those patterns, which we've been seeing.

Jamie: And then, can we talk about China a little bit? I'm curious what you guys think the road to reopening looks like? Are there certain hurdles we need to clear? And then, maybe what has that opportunity set changed to become now that Genting Hong Kong is a bit in flux? Thanks.

Michael: Yeah, Jaime.. That's a great question. It's been very much in our thoughts, particularly as it related to Genting and what's happening there. I mean, obviously, we see opportunity. You know, China for us has been a long journey. We've had our ups and downs. We've had some incredibly productive and wonderful years and we've had some equally challenging years. And true to form, it seems to stay on the same path.

So, you know, we are waiting and there is a belief that after the Olympics are behind us, there will be more positive news coming out of China. One of the positive things that has happened is obviously we redeployed our capacity out of the China market some time ago. And of course, one of the ships that we redeployed was Wonder of the Seas, which is, you know, our latest newest Oasis class ship. And we put the Wonder of the Seas both out of the American market and into Europe in the summer. And the demand and the response to Wonder of the Seas has been incredibly strong. And we've been actually delighted with what we've seen in terms of how Wonder has been selling both in the European markets and in the American market. So, there has been a silver lining to redeployment efforts out of the China market.

I think a long-term perspective of China is, we're in China, and we're going to make China work. And we see a huge amount of upside and opportunity. I think Genting, you know, exiting the stage is again an opportunity for us and our teams in Asia are already planning and leveraging what we think could be those opportunities. But our appetite for the opportunity has not shifted. We think China is always going to be a very important part of our strategic portfolio and we are going to continue our journey as soon as the news starts to become more positive, which at some point it does have to become more positive. Thank you, Jaime.

Jaime: Thanks so much.

Moderator: Your next question is from Stephen Grambling of Goldman Sachs.

Stephen: Hey, thanks for taking the questions, and congrats Jason and Naftali on the roles. Maybe following up on Steve's earlier question on the longer term earnings potential, as we look back to 2019, can you just remind us of some of the big exogenous impacts and/or factors that may have hit the headline earnings number as we contemplate a base to build off of in a normalized environment?

Jason: From memory, Stephen, I don't think there are a lot of, you know, large elements that impacted 2019, I mean, we did have a little bit of a write off with Grand Bahama shipyard and an impact from some sailings due to the Grand Bahama shipyard incident. But besides that, there weren't a lot of one offs that would have impacted 2019. If anything it would have helped 2019 relative to our final net income number.

Stephen: Got it. And then, one of the other questions we get is just really around any change in terms of new to cruise versus kind of the core cruise customer. Is there any color you can provide on either how booking trends are evolving for the new to cruise passenger versus core customer? And when you look at what happened with cancellations, anything you can discern from the type of customers who are canceling?

Michael: Hi, Stephen. A good kind of proxy really was when we came out of Delta, you know, we saw a week by week-- In fact, what we're seeing now is almost exactly the same as what we saw when we came out of Delta, which is, you know, as we went into it, bookings dropped, and anxiety was increased from customers. As we started to come out of Delta, bookings started to return and week by week, month by month, those bookings really started to take off. And as we moved into the 4th quarter of last year, our bookings started to exceed 2019 levels, both in volume and rate. And it was clear that, you know, everybody was in the vacation mode.

As it relates to new to cruise and loyalty, loyalty certainly led the way and we've seen that. But new to cruise lagged, I would say, four to six weeks when we look at our data. And again, I'm talking about when we came out of Delta, you know, loyalty was at the beginning skewed heavily. And then new to cruise started to jump back in and it started to even out back to normal levels.

The other consideration is the product that we have in place for new to cruise and particularly for the Royal brand out of the American market. We've got great new hardware and new products. We've of course got a lot of short product, which is very appealing to new cruise, and we've got perfect day, which is in pristine condition. As we know, it’s an incredibly popular destination and that is already generating significant demand, with a premium with new to cruise.

So, our view is that new to cruise is lagging, but it's coming back. And we feel that's exactly what's going to happen now as we come out of this latest variant.

Jason: And to the second part of your question in terms of the cancellation trends, this one's an easier one, an intuitive one. The majority of the people canceling were people who either tested positive for COVID before getting on sailing or somebody in their family who was traveling with them tested positive for COVID. And that led the vast majority of the cancellation activity. And we did see some of our customers shift their bookings from, you know, late December, early January into future periods. But that's more or less the story around the consumer and canceling.

Stephen: That's helpful. Maybe this is more of a housekeeping question if I can slip it in. You may have had some of this in the press release. But can you give us a little more detail on the CAPX spend, kind of split between maintenance and new ships? Maybe not even just this year, but as we think towards next year? Can you provide some initial color?

Naftali: Yeah, sure. So, as we said in the release, we expect this year to have roughly 3.1-billion dollars of capital expenditures. Remember that we are taking two deliveries, we already took one, Wonder of the Seas and the other one is Celebrity Beyond. And we also have some progress payments towards, you know, future deliveries. So, those are the majority of our, significant part of that number. And as you know, being really thoughtful and really disciplined about how we invest in capital and making sure throughout that, on one hand, we maintain financial stability. But on the other hand, we also invest in the future in years to come. So, you should expect that a lot of it is just new build and the ships. That will be for this year.

Jason: And Stephen, just as a reminder which I know you know this, but all the new builds, whether the Wonder that we just took delivery of or Beyond that we will take delivery of, as well as in the future, all have committed financing to them.

Stephen: Yep, thanks so much.

Moderator: Your next question is from Fred Whiteman of Wolfe Research.

Fred: Hey, guys, good morning. I was hoping you could maybe just summarize sort of the big bullet point differences between Omicron and Delta so far, whether that sort of peaked to trough booking disruptions that you saw, whether the speed of the recovery, and just sort of how that informs your expectations for any future variants that come down the pipeline?

Jason: I think the big difference between Delta and Omicron was really the operational impact to us. I mean, just like everybody is experiencing it spread like wildfire, which our protocols and in our ability to manage a situation I think was exceptional. I mean, our teams did an exceptional job managing it. So, I think it was more of an operational issue. I think what we saw as it relates on the booking side, as Michael said, you know, a similar pause. And then we're seeing a similar recovery coming out of it. I would also just add that, I think Omicron had a little bit more of an impact on shorter term or closer in than Delta did. But Delta was spread more over a couple of quarters in terms of bookings. While Omicron was really more focused on upcoming sailings 1st quarter.

Naftali: I have to add, I just want one point to this on Omicron versus Delta. Omicron certainly was fast, and it did sweep through the fleet. Interestingly, all of the protocols, as Jason mentioned that we worked on with the CDC were incredibly effective. And the fact that all of our fleets in the industry continue to operate during this period, I think, is testimony to the quality of these protocols.

But the other observation just to share is that for all of our crew positivity, 99%of the crew positivity was asymptomatic and the 1% was extremely mild symptoms. I mean, it really was remarkable in many ways. But the impact on the crew was effectively zero, except it did take them out of operation for the period of their quarantine. But I just wanted to share that statistic with you.

Jason: Which I think builds on the environment of all of our crew are vaccinated. If they're eligible, they're getting boosted. So, we're doing, I think, all best efforts here to make sure that we are focused on ensuring that cruising is the safest experience you could have.

Fred: Makes sense. And could you guys just build out a little bit on some of the U.K. booking trends that you alluded to? It makes sense that they're a little bit farther along than the U.S. But it also sounds like they've sort of continued that march up into the right as far as getting back to pre-Omicron booking trends. But could you just give us a little bit more detail?

Michael: Yeah, Fred. Yeah, that's right. I mean, again, it's regardless of market, the kind of the behavior seems to be very similar. You know, when a market or a country or a region goes into the variant as it starts to spike, bookings head into the opposite direction. And as soon as we get over the peak, which happened in the U.K. ahead of the U.S., then all of a sudden you start, you see activity returning. As the infection rate continues to drop, you see the booking rate continue to accelerate upwards. And that's really what we've seen out of the U.K. market. You know, the kind of the line of ascension is very similar to what we saw in Delta and what we're seeing now with Omicron in the U.S. market. You know, the more the positivity rate drops, the more the bookings increase. And it's very, you know, it's kind of becoming quite typical. And the U.K. in this case, led the way because it's a fairly significant international market for us. So, we have quite a lot of volume out of that market. And we saw it literally start to come back as soon as things started to drop down.

Fred: Great, thanks, guys.

Moderator: Your next question is Vince Ciepiel of Cleveland Research.

Vince: Great, thanks for taking my question. Revenue per cruise day remains a low double digit, curious if you can help us understand ticket prices on an apples-to-apples basis relative to 2019 with what you just saw in the 4 th quarter? You look at short term rentals or resorts that are pricing 20 to 25% ahead, I don't think your ticket prices were that far ahead. But kind of curious where they're at now and maybe how you can kind of close that gap versus some of the other land based alternative vacations over the next year or so?

Jason: I'll jump in here first. So, you know, in terms of the improvement in revenue, you see it in ticket, you see it in an on board. I think the part of this is us just getting to a consistent operating environment. You know, other land-based operators have that opportunity to be doing at this point. And I think we're now getting there. Having a consistent operating environment, we think is key. You have that have that consistent demand and also having that that consistent demand here in the short term. And that to me is very important for us to see similar trends in the short term to what others are seeing. Now, when you look at it further out and you look at, you know, like I said, you know, back half of Q2 and Q3 and Q4, you're seeing similar trends to what you're seeing on some of the land-based vacation experiences that you just talked about.

Vince: Great, thanks. And then one housekeeping item on fuel, the price per ton guide for one queue, I think it was almost 40% ahead of ’19. And if I look at MGO and IFO they are only up, call 25 to 30. So, I think that maybe some of that increase, is that attributable to mix, maybe a burning a little bit more higher expensive MGO. Can you remind us your mixed expectations for 2022 and maybe how that compares to what you burned in 2019?

Jason: For us, obviously fuel prices are up from 2019. And just as a reminder, we also hedged a little bit over half of our fuel at below market prices over the last couple of months. So, we're benefiting from these actions. And you're right, we have some of the mixed in the short term a little more skewed more towards the MGO. But that should normalize throughout the year.

Vince: Thank you.

Moderator: Your final question is Patrick Scholes of Truist Security.

Patrick: Hi, good morning. In your prepared market press release you talked about bookings since the beginning of ’22 now back to pre-Omicron levels. Can you give us a little more apples to apples color, certainly we are in wave season I would expect normally they should be back well above pre-Omicron, or excuse me, back to October, November levels. How did January, apples to apples, turn out for you versus a comparable 2019 as far as booking pace? Thank you.

Jason: Well, the reason why we pointed out pre-Omicron levels, where we were pre-Omicron and as Naft commented in his remarks, every week, every month our bookings were accelerating, right? They were picking up steam and so forth. Then we had a period of time which extended into January, obviously, where Omicron was quite present in society. And so, our bookings, you know, went backwards in terms of the volume, especially as it relates to Q1 and in the early part of Q2.

The point about pre-Omicron and getting back to pre-Omicron levels is just showing you the build here through the month of January, despite the elevated cases of Omicron. Now being on the other side of it, we've seen that next pop, and we are pre-Omicron. And then we continue as your comment around wave and our marketing activities and so forth. We are getting back to levels that we would expect on the booking volume side for the balance of the year. It was just really to kind of give you a point of reference on where we are in the journey relative to the dip here on Omicron.

Patrick: Okay, I guess, I misread the press release. When you say pre-Omicron levels, are we talking about 2019 comparability or pre-Omicron, as in October, early November of last year?

Naftali: The latter. But remember that, you know, as we were going into the Cyber Monday weekend and Black Friday, we seen a good, accelerated pace. And we had the best weekend there.

Patrick: Okay. I did read it correctly. Okay. Thank you.