Royal Caribbean eliminating last-minute cruise discounts

In:
21 Apr 2015

During its first quarter financial results call yesterday with analysts, Royal Caribbean announced it was doing away with the last-minute cruise discounts on cruises more than two to four nights in length.


The definition of last minute cruises are cruises that might be 10, 20 or 30 days from the sailing date.

Royal Caribbean chairman Richard Fain called the long-held practice “disruptive” to loyal customers and travel agents during a conference call on first-quarter earnings.

“We think that getting our customers out of this used-car salesman kind of mentality will be overall good for the brand, good for their experience,” Fain said. 

Fain did concede the new strategy could have a negative impact in the short term because guests who would have been driven by late discounts would not have incentive to book. 

“Obviously, the reason that we have been doing last-minute discounts is because the ship wouldn’t otherwise be absolutely full, and so while the number is small, we’ve used it to top up,” he said. “There’s less topping up, so you don’t get the revenue from those last passengers. It may take a little while for travel agents and consumers to understand just how serious we are about this.”

The news is not a shock, considering Royal Caribbean has indicated a number of times over the last year that they aim to eliminate last minute cruise discounts.

Royal Caribbean christens Anthem of the Seas

In:
20 Apr 2015

Royal Caribbean had its newest cruise ship, Anthem of the Seas, formally christened today at a ceremony in Southmapton, UK.

At the naming ceremony, the ship's godmother, Emma Wilby, performed the honor of naming the ship and then pressed a button that released a bottle of champagne that broke across the ship's hull.

Wilby, a travel agent that was selected to be the ship's godmother as part of a talent search, also sang the hit song "Firework" that was made famous by Katy Perry.

Anthem of the Seas is hosting members of the media and other VIPs for a short 2-night cruise before she embarks upon her first regularly scheduled cruise on April 22nd.

Eight beautiful Anthem of the Seas night photos

In:
20 Apr 2015

Royal Caribbean's Anthem of the Seas has arrived and it is already generating a lot of buzz and interest.  She has a ton of amazing innovations, entertainment, dining choices and more, but what we really love is just how pretty she is, especially at night.

Check out these photos of Anthem of the Seas after the sun goes down to get a good appreciation for Anthem's beauty when the lights come on.

All photos by Royal Caribbean

Royal Caribbean reports stronger than expected first quarter earnings

In:
20 Apr 2015

Royal Caribbean reported its 2015 first quarter earnings today that came in notably higher than expected.

Royal Caribbean's adjusted net income was $45.2 million, or $0.20 per share, versus a forecast of $0.10 to $0.15 per share. Results were approximately $0.08 better than the mid-point of guidance, despite a $0.05 currency and fuel headwind.

Overall booking volumes during the first quarter were higher than prior year levels even after adjusting for an increase in capacity.  Caribbean itineraries enjoyed particularly strong demand, and bookings were also up year-over-year for Europe and China itineraries.

More recently, Royal Caribbean has taken further steps to improve the integrity of its pricing model including steps to eliminate last minute discounting.

European itineraries in general are booked at a higher load factor  than last year. Western Mediterranean itineraries have been booking well, while trends have been a little weaker for Eastern Mediterranean itineraries, particularly those that turn in Turkey.

Demand for China remains strong and bookings have been outpacing expectations despite the significant capacity growth in the region. 

Royal Caribbean Post Round-Up: April 19, 2015

In:
19 Apr 2015

Stay up-to-date with all the Royal Caribbean news from this week with our roundup of all this week's news.

There's no doubt the big news this week is Royal Caribbean's Anthem of the Seas made her grand debut in Southampton, UK this week, marking the arrival of the cruise line's second Quantum-class cruise ship.

Anthem of the Seas will have her official inaugural ceremony tomorrow but already she's offering a pre-inaugural 2-night cruise as we speak and that means we have a lot of photos from onboard Anthem of the Seas to share.

Check out our photos from all over Anthem of the Seas, as well as a video of her arrival into Southampton.

Royal Caribbean News

Royal Caribbean Blog Podcast

The eighty-ninth episode of the Royal Caribbean Blog Podcast is now available and this week we are reviewing Royal Caribbean's Dynamic Dining program.

In this episode, Matt and Don discuss what Dynamic Dining is, as well as how well it works and what they like about it and don't like about this new take on cruise ship dining.

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.

Join us aboard the largest cruise ship in the world!

We're so excited to announce the next group cruise for readers and staff of RoyalCaribbeanBlog.com aboard Allure of the Seas!  This is an exclusive group where we are inviting you, our readers, to join us on a fantastic Allure of the Seas sailing on an 7-night cruise to the Western Caribbean.

This Royal Caribbean Blog group cruise is all about enjoying a fun Royal Caribbean cruise along with other fans who are big fans of Royal Caribbean.  Don't miss this opportunity to check out the amazing ship as well as be a part of exclusive events for those that book with our group!

For more details on booking the cruise, the itinerary and prices, check out the Royal Caribbean Blog group cruise page and if you have any questions, email me!

Royal Caribbean Around the Internet

Forbes interviewed Royal Caribbean COO Adam Goldstein about the growth and popularity of Royal Caribbean.

World of Cruising discussed life on board Anthem of the Seas with cruise director Joff Eaton.

The Motley Fool has a look at how Royal Caribbean plans to get U.S. and European cruisers to China.

Mirror reports when Thomson's acquires Splendour of the Seas, she will be renamed Thomson Discovery.

Photos from all over Royal Caribbean's Anthem of the Seas

In:
18 Apr 2015

With Anthem of the Seas preparing for her inaugural cruise, we have photos from all over Royal Caribbean's brand new ship.

Anthem of the Seas is sailing out of Southampton, UK through October, where she will sail to the Mediterranean and Canary Islands.

Royal Caribbean has packed Anthem of the Seas with quite a number of intriguing onboard activities, restaurants and amenities.

Later this year, Anthem of the Seas will reposition to Cape Liberty, New Jersey and offer cruises out of the New York area.

Anthem of the Seas is the second Quantum-class cruise ship and is labeled as one of the most technologically advanced cruise ships ever.  High speed internet, RFID technology, robotic bartenders and entertainment advances all make this ship a technological marvel.

Photos from inside Puzzle Break on Anthem of the Seas

In:
18 Apr 2015

We're getting our first look inside Royal Caribbean's brand new Anthem of the Seas, including the Puzzle Break room.

We first reported that Royal Caribbean was partnering with a company called Puzzle Break earlier this month, which will offer a new experience called "Escape from the Future."

The new room on Anthem of the Seas is based on the Crystal Maze game show and is a first of its kind at sea.

Allure of the Seas will have drydock at Navantia shipyard

In:
17 Apr 2015

Royal Caribbean's Allure of the Seas will have its upcoming drydock session take place at Navantia shipyard in Cadiz, Spain.

 

Cruise Industry News reports that the dry dock work will provide ship-repair, revitalization, upgrading and related marine services for Allure of the Seas, as well as other future work on the fleet.

Royal Caribbean first started working with Navantia back in 2011, when when Navantia won the bid to refurb Splendour of the Seas. Since then, the yard has worked on ships across Royal Caribbean’s brands.

The agreement runs through 2016 and includes the current drydocking of Explorer of the Seas and the Allure of the Seas this May, as well as other ships.

Tip of the hat to Cruise Industry News for getting the information first.

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