Higher Ticket Prices and Onboard Spend Primary Drivers for Royal Caribbean’s Q2

Symphony of the Seas

With capacity up 2.6 per cent, higher ticket prices and onboard revenue were the main drivers for Royal Caribbean Cruises reporting record results today in the second quarter.

Royal Caribbean reported net income of (GAAP) $466.3 million, or $2.19 per share, on revenues of $2.3 billion for its second quarter ended June 30, 2018, compared to net income of $369.5 million, or $1.71 per share, on revenues of $2.2 billion last year.

Ticket revenue per passenger day was $163.76 for the second quarter of this year, compared to $158.92 last year and the onboard spend was $65.12 compared to $61.70 per passenger last year.

Operating expenses rose moderately at $128.70 per passenger day with increases in all expense categories, from $126.30 last year.

With operating income of $456.9 million this year, up $37.2 million from $419.7 million, $9.4 million in interest and other income this year, compared to a $50.2 million in interest and other expenses last year, contributed further to boost net income to $466.3 million over $369.5 million.

The increase in per share income was also boosted by fewer outstanding shares, a result of Royal Caribbean’s share buyback program. Outstanding shares numbered 212.5 million, compared to 216.1 million for the same period last year.

Royal Caribbean reported 10,213,067 passenger cruise days this year, up from 9,950,570 passenger cruise days last year, and 1,461,055 passengers, compared to 1,433,339 in 2017.

Carnival Corporation expects revenue to rise by 2.5% in 2018

Related image
Carnival Horizon being constructed and due next year.

Carnival Corporation has announced a $2.6billion net income for the full year of 2017.

Revenues for 2017 were $17.5billion – $1.1billion higher than the $16.4billion in 2016.

Carnival said in its annual report that it expects 2018 revenue yield to be up 2.5% compared to this year.

Bookings across the world’s largest travel company for 2018 have been running well ahead of the prior year at higher prices, Carnival said.

Carnival’s president and chief executive officer Arnold Donald said that despite booking disruptions from this year’s hurricanes, the company was heading into 2018 with a stronger base of business and higher prices than last year.

Donald said: “We have numerous efforts underway to keep the momentum going in 2018 and beyond, from our innovative approaches to increased consideration for cruising, to the further roll-out of our state-of-the-art revenue management system.

“In 2018 we also look forward to the delivery of four new cutting-edge ships, Carnival Horizon, Seabourn Ovation, AIDAnova, and Nieuw Statendam to further our strategic fleet enhancement program.”

Disruptions to voyages caused by hurricanes reduced fourth quarter earnings by approximately $0.11 per share.