Royal Caribbean has raised its full-year guidance for 2025, citing a surge in cruise demand and evolving traveler preferences. The cruise giant now expects adjusted earnings per share to range between $15.41 and $15.55, up from its previous forecast of $14.55 to $15.55. The revision reflects continued strength in consumer appetite for experience-based travel and a willingness to spend more on leisure activities.
CEO Jason Liberty highlighted that more consumers are prioritizing travel, particularly younger generations who are taking more frequent vacations. Around 75% of surveyed consumers indicated plans to maintain or increase their leisure travel spending over the coming year. Royal Caribbean is aligning its offerings to match this shift by focusing on experiences that resonate with modern vacationers.
The second quarter saw a notable uptick in last-minute bookings, driven by younger travelers, including millennials and Gen Z. According to Liberty, these guests are not only booking closer to departure dates but are also willing to pay a premium for the limited cabins still available. He emphasized that these last-minute bookings are generating substantial revenue as travelers compete for remaining accommodations.
For the quarter, Royal Caribbean posted adjusted earnings per share of $4.38 on revenue of $4.54 billion. This exceeded Wall Street’s earnings forecast of $4.09 per share, though revenue slightly missed expectations by a small margin. Net income rose to $1.2 billion, or $4.41 per share, compared to $854 million, or $3.11 per share, in the same quarter last year.
The company also reported a 5.8% increase in capacity year-over-year, with 2.3 million guests sailing with Royal Caribbean in the second quarter alone. Despite these strong results, the company’s shares dipped 5% on Tuesday.
Bookings for Royal Caribbean’s new ships, including Star of the Seas and Celebrity Xcel, have shown robust performance, bolstering confidence in the brand’s strategic direction. Liberty noted that the strong demand for new ships and destinations underscores the company’s ability to connect with today’s travelers. This positive momentum positions Royal Caribbean for continued growth as it targets an increasingly diverse and experience-driven market.
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