Royal Caribbean

Royal Caribbean talks Perfect Day at CocoCay impact, booking trends, smart phone app impact and more

In:
30Jan2019

Royal Caribbean held a call with investors to go over their record 2018 financial results and provide guidance for the coming year.  Royal Caribbean Cruises Ltd earnings beat Wall Street expectations, benefiting from higher demand for its Caribbean cruises and passengers spending more money on activities while on board.

Between the fiscal anecdotes and figures shared, cruise fans could glean a few tidbits of interesting information.

Two powerful booking trends

At the beginning of the call, Royal Caribbean Cruises Ltd. Chairman and CEO Richard Fain started off that two powerful trends are dominating bookings for Royal Caribbean: experiences over material possessions and favorable demographic shifts.

Mr. Fain spoke about what he is seeing in the market, "As we have been very vocal about two important and positive consumer trends. First, the trend in favor of experiences over material possessions, and second, the favorable demographic shifts.

We've been talking for a long time about how people have shifted their focus from buying TVs, cars, etc to buying memories or experiences. And that shift has become so powerful that I think it's now obvious to everybody.

At the same time, the demographic makeup of our population keeps shifting in our direction. 

These two trends have become increasingly powerful, and our company and our brands are well-positioned to benefit from these trends."

The first two weeks of Wave season have been fantastic

For those unaware, Wave season is the sales period that has historically taken place between January and March and stands out because a large percentage of cruisers book their sailings in the early months of the year. This year, Royal Caribbean has seen a record Wave season take place.

Richard Fain mentioned it at the top of the call, "Happily, the record-breaking start to Wave validates our confidence. And with Wave off to a wonderful start, our already good booked position continues to strengthen.  Bookings have been at higher levels than last year, and in fact we received more bookings during the first week of Wave than we have in any other week in our history...except for the second week in Wave, which was even better."

Royal Caribbean Chief Financial Officer Jason Liberty also touched on the great start to the year, "Over the past three months, bookings have been higher than the same time last year.... In fact, two out of the past three weeks have been record-booking weeks for the company."

Perfect Day at CocoCay facts

With the launch of Perfect Day at CocoCay coming up in just a few months, Royal Caribbean sounded quite bullish on the impact it is already having and will have on the cruise line's bottom line.

Richard Fain commented on the impact Perfect Day at CocoCay will have on the cruise industry, "The island development will really shake-up the short-term cruise market, and I am confident that our guests will love it."

Royal Caribbean International President and CEO Michael Bayley also had some interesting facts to share about Perfect Day, "When you look at Royal Caribbean International, we have I think 13 ships operating in the Caribbean during the year, and then when you look at the deployment of those ships to Perfect Day in 2019, I believe ten out of the thirteen ships are calling to Perfect Day.  Our projections are that by 2020, we will be taking just shy of two million guests a year to Perfect Day.

And then of course the other element is the sales associated with the experience of Perfect Day, and we've seen our sales of activities and experiences really take off on our pre-cruise sales for the experience, so we're up by a factor of close to nine, I think, for our Perfect Day sales."

Smart phone app investment return

Naturally investors want to hear that a company's investment in a piece of technology or a new initiative is driving home a return and Royal Caribbean is happy to report that despite its major tech initiative, code named Project Excalibur, has not fully launched yet, already the cruise line is reaping some benefits.

Mr. Liberty explained that essentially, the cruise line is seeing guest satisfaction rising quickly because the app and other tech advances remove friction from the guest experience.  That in turn provides higher yields for Royal Caribbean.  In the future that will make it easier for the consumer to buy things from the cruise line.

"There is a strong relationship to where guest satisfaction scores go up, and people pay more both for their ticket as well as onboard. Certainly ships that we have put Excalibur on we are seeing those benefits."

Royal Caribbean Cruises Ltd names Adam Goldstein Vice Chairman

In:
19Mar2018

Royal Caribbean Cruises Ltd announced today it has appointed Adam Goldstein, to serve as vice chairman.

Goldstein will assume his new post in May 2018. In his new role, Goldstein will continue to oversee RCL’s global government relations and destination development efforts, and will represent the company in industry associations.  Both areas have been a constant focus for Goldstein across a career filled with challenging assignments.

Goldstein ia a 30-year veteran of Royal Caribbean Cruises Ltd, has served as RCL’s president and chief operating officer since 2014.  He also served as the President and CEO of Royal Caribbean International prior to Michael Bayley.

RCL’s chairman and CEO, Richard Fain, said, “Adam has played a pivotal role in our success since he joined the company in 1988. He has exerted a positive influence across the company and provides exemplary leadership in our industry and in the communities we serve. As Adam transitions to his new role, I look forward to working with him to continue to build on these successes.”

Goldstein said: “It remains an incredible privilege to work with the men and women of RCL, who help create the memories of a lifetime for our guests, and who know the importance of doing good while we do well. I look forward to focusing my efforts in a few key areas where I can help advance the cause of both RCL and the cruise industry.”

Royal Caribbean names Sean Treacy new Associate Vice President Strategic Planning for International

In:
Category: 
27Feb2018

Royal Caribbean Cruises Ltd. has announced that Sean Treacy, Managing Director, Asia Pacific who is based in Singapore, will relocate back to Miami in August 2018 to take up the new role of Associate Vice President Strategic Planning for International.

Treacy has played a key role in both Australia and Singapore during his four years in the Asia Pacific region.

Angie Stephen, currently Associate Vice President, Market Development, China, will relocate to Singapore to take on Treacy’s role.

Stephen who comes with almost 20 years of experience in the company, has fulfilled a key market development role in China for the past year. She will take on the management of the Singapore source market for the brands Royal Caribbean International and Azamara Club Cruises.

Royal Caribbean giving all of its employees a 5 percent salary bonus

In:
Category: 
24Jan2018

Royal Caribbean Cruises Ltd, the parent company of Royal Caribbean International, announced the company's record-setting year will mean a surprise bonus for all of the cruise line's 66,000 employees.

Thanks to the company hitting its goal of doubling earnings per share and recording a double-digit return on invested capital, employees were informed they will be thanked for their contribution with individual salary bonuses of five percent.

"Exceptional results require exceptional effort," said Richard D. Fain, RCL's chairman and CEO. "Reaching the Double-Double required remarkable focus and discipline from our employees, and they delivered."

Employees will receive equity awards equal to five percent of their 2017 salaries in an $80 million program called the "Thank You, Thank You Bonus."  The awards, which vest over three years, will go to all employees – shipboard and shoreside, full-time and part-time, domestic and overseas. Corporate officers, however, are excluded. In addition to the five percent equity awards, the company will contribute to the Crew Welfare Fund for upgrades to crew living and recreational areas.

Fain said the Thank You, Thank You Bonus had the added benefit of enabling employees to see the company as shareholders do. "Ours is a people business, Fain said." We want to thank every one of our people for the hard work that got us to today's announcement, and give them a stake in our success going forward."

Royal Caribbean named a best place to work for LGBTQ Equality by HRC 2018 Corporate Equality Index

In:
Category: 
04Dec2017

Royal Caribbean Cruises Ltd was named a “Best Place to Work for LGBTQ Equality” after scoring a perfect 100 on the Human Rights Campaign’s 2018 Corporate Equality Index.

This is the second year in a row that Royal Caribbean earned this honor, after making the list last year as well.

Last year the HRC, one of the oldest gay and lesbian political action committees in the U.S., added a requirement for inclusion as a top-ranking company on the 15-year-old index – a global non-discrimination policy or code of conduct that specifically prohibits discrimination on the basis of sexual orientation and gender identity.

In meeting all requirements, RCL is among 609 major American businesses earning top scores on the index, a national benchmarking survey and report on corporate policies and practices related to lesbian, gay, bisexual, transgender and queer workplace equality.

It’s thrilling, of course, says Adam M. Goldstein, RCL’s president and COO, explaining: “We actually have an opportunity as a company to be understood as one of the most welcoming employers anywhere, in any industry. And I think we should be.

“You have guests coming from absolutely everywhere, you’ve got crew coming from absolutely everywhere, you’ve got ships going absolutely everywhere, and really the only way to make an environment like that work well is that you have to be welcoming to everyone.”

“If we’re going to do that on the ships, then clearly we also need to do that in our land-based facilities because it all has to be consistent, it has to tie together,” he says. “Here at our headquarters campus, obviously this is the location from which we direct our overall global effort, and if we want to have that type of situation out at sea then we need to be sure we have that type of situation here at headquarters.”

“It’s just fantastic how we’ve been recognized, Goldstein continues. “And we see that not only in terms of big public awards like this one, but in the number of serious companies – well-established, well-known companies – who are now coming to us and asking how are we doing these things, what are our methods, to see what techniques they can adopt from the techniques and behaviors that we’re demonstrating.”

With focused efforts, he says, RCL went from being a company with the right instincts and motivations “to a place where we are in the absolute forefront of how to construct and sustain workplace environments that are open and tolerant to the full array of diversity.”

Royal Caribbean named one of America's Best Employers by Forbes

In:
Category: 
09May2017

Forbes announced today that Royal Caribbean Cruises Ltd. has been named to the Forbes List of Best Large Employers for 2017.

Forbes surveyed 30,000 American employees working for large or midsize companies. Respondents were asked to rate their employer on the quality of the work environment and whether they would recommend their company to potential employees as one of the most important factors in the assessment.

"I am extremely pleased that Forbes has recognized Royal Caribbean as one of America’s Best Employers of 2017," said Richard D. Fain, Chairman and CEO, Royal Caribbean Cruises Ltd. "This recognition would not be possible without our employees. It is because of their passion, determination and commitment that we are constantly able to push the boundaries of what is possible."

Royal Caribbean announces new head of Europe, Middle East and Africa

In:
Category: 
06Dec2016

Royal Caribbean announced today that it is promoting Stuart Leven, Associate Vice President and Managing Director, Royal Caribbean International (UK and Ireland), to become the new Vice President, Europe, Middle East and Africa (EMEA) and Managing Director of RCL Cruises Ltd.

This new role will include responsibility for Royal Caribbean International (UK and Ireland) and Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises across the rest of Europe, the Middle East and Africa. Leven will work with Royal Caribbean’s key European markets to ensure the cruise operator has the best investment in place to capitalize on the swell of interest in cruise vacations across the region.

"Stuart is a proven leader with many years’ board experience across the airline, hotel and dotcom sectors" said Gavin Smith, Senior Vice President International, RCL Cruises Ltd. "He joined us with a clear vision to build a distinct brand and attract a new audience to cruise. Royal Caribbean International in the UK and Ireland has seen unprecedented growth under Stuart’s watch and his experience and expertise will be vital as we look to expand our European deployment."

Replacing Leven is Ben Bouldin, who will become Associate Vice President and Managing Director, Royal Caribbean International (UK and Ireland), reporting into Leven, also effective immediately.

Bouldin commented: "I’m absolutely delighted to be leading the Royal Caribbean International UK and Ireland business. It’s an incredible opportunity at an exciting time for the cruise market. We have an extraordinary team here in the UK and Ireland and I look forward to building on the work Stuart has started during his tenure."

Royal Caribbean receives perfect score as workplace for LGBT Equality

In:
Category: 
05Dec2016

The Human Rights Campaign (HRC) named Royal Caribbean a "2017 Best Place to Work for LGBT Equality", with a perfect score of 100 on its Corporate Equality Index (CEI).

The HRC is one of the oldest gay and lesbian political action committees in the U.S. and launched the index in 2002 to rank American companies.  This year, for the first time since, the HRC required top-scoring companies to have a global non-discrimination policy or code of conduct that specifically prohibits discrimination on the basis of sexual orientation and gender identity.

The CEI rates companies and top law firms on detailed criteria falling under five broad categories:

  • Non-discrimination policies
  • Employment benefits
  • Demonstrated organizational competency and accountability around LGBT diversity and inclusion
  • Public commitment to LGBT equality
  • Responsible citizenship

This is the second year running that RCL earned a perfect score on the CEI survey, even with the addition of the new global requirements. In October, Royal Caribbean International became the first cruiseline to be designated “Gay Travel Approved” by GayTravel.com.

Royal Caribbean building new Innovation Lab with virtual reality simulator

In:
Category: 
11Aug2016

Royal Caribbean announced it is building a new Innovation Lab facility at PortMiami, adjacent to its corporate headquarters.

Royal Caribbean is being touted as a first-of-its-kind facility built entirely designed to promote the “relentless innovation” that powers the cruiseline, the building will house unique collaborative spaces where new ideas can tested and tweaked.

Much of the first floor will be open space large enough to allow the construction of full-size mockups of shipboard spaces and the things that fill them – "real" reality rather than virtual – for trials, tests and aesthetics. he rest of the building will contain "ignition hubs" where people from different departments and vendors will gather to spend hours, days or weeks talking through problems and projects.

The new 20,000-square-foot, two-story lab, is intended to be as functional as it is architecturally stunning. Royal Caribbean vice president of architectural design, Kelly Gonzalez, is very excited about the the lab as an idea mill where most of the moving parts are human, "Innovation is nothing new for us. Our daily existence here is thriving off of always wanting to raise the bar a little higher. And go a little further."

"Imagine a large conference room that eight to 10 people would walk into. Now imagine the floor is one seamless sheet of glass and there’s rear projection underneath it."

"The whole room is Virtual Reality," Gonzalez continues. "But when you put the glasses on, you and the people you’re with are all sharing the same experience in that room."

Completion date for the lab is the end of January.

 

Royal Caribbean appoints Gavin Smith as Senior Vice President International

In:
Category: 
18Mar2016

Royal Caribbean announced today it has appointed Gavin Smith to the role of Senior Vice President International, effective immediately.

In his new role, Smith will be responsible for all sales, marketing and commercial operations for the cruise brands Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises in Southeast Asia, Europe, the Middle East, Latin America, the Caribbean and Australasia, and he will report to Royal Caribbean International CEO Michael Bayley.

Smith opened Royal Caribbean's first Australian office in December 2008 as a Managing Director.

Smith will replace Dominic Paul, who announced his is leaving Royal Caribbean on May 1, 2016.

Pages