Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the yield guidance for 2025, considering the strong performance in 2024? A: Jason Liberty, President and CEO, explained that the strong demand in the fourth quarter of 2024 elevated the base comparable, making it a more challenging comp. Despite this, the company is encouraged by the incredible booking activity and expects yield growth of 2.5% to 4.5% based on current bookings and trends.
Q: How does Royal Caribbean plan to position itself in the river cruise market compared to competitors like Viking? A: Jason Liberty stated that while Viking is a strong competitor, Royal Caribbean sees an opportunity to elevate the river cruise experience by leveraging its existing customer base and brand trust. The company plans to offer a premium product with enhanced design, culinary, and entertainment experiences, aligning with Celebrity's brand.
Q: What is the expected ramp-up for the new river cruise ships, and what demographic is targeted? A: Jason Liberty mentioned that the initial order is for 10 ships, with a couple launching in 2027 and four per year thereafter. The target demographic is similar to Celebrity's current clientele, focusing on immersive experiences and leveraging the company's global sourcing capabilities.
Q: Can you provide more details on the capital expenditure plans for 2025 and beyond? A: Naftali Holtz, CFO, explained that the $5 billion CapEx for 2025 includes new ship deliveries and investments in private destinations like Costa Maya and Nassau. The company plans to continue its modernization program and expects to generate significant cash flow to support these investments.
Q: How is Royal Caribbean optimizing pricing and capacity for 2025, and what is the market share opportunity in the vacation market? A: Jason Liberty highlighted strong demand across all products and regions, with a focus on sourcing high-yielding guests. The company is leveraging technology and AI to enhance guest experiences and pricing strategies. He believes Royal Caribbean is in the early innings of capturing a larger share of the $2 trillion global vacation market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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