The Royal Caribbean has been doing an impressive run since turning the corner after Covid’s comeback in 2021. It took some time to return to pre-pandemic booking levels, but the cruise line is above the level of 1999 and appears to be very suitable for growing in the future.
Currently, almost all Royal Caribbean and Celebrity Cruises sail at a capacity of over 100%. Prices for the new Icon of the Sea remain very high, but its sister ship, Star of Seas, set sail from Port Canaveral this summer and is in equally high upfront demand.
Related: Royal Caribbean is currently enforcing fees that are rarely charged
Cruise Line also uses its latest ship, Utopia of Sea, to sail a short 3-4-day voyage from Port Canaveral, and move another new ship, Wonder of the Sea, from Miami on the same itinerary.
Using short-layered hardware for short sailing was a controversial choice, but it drove new cruisers into the sea. Those passengers are watching the Royal Caribbean (RCL)) Best, and it invites them on a longer voyage.
Everything about Royal Caribbean’s business has been pointed out, but its inventory is being reduced by the fears of the entire market and the tariffs of President Donald Trump. The shares closed at $188.65 on April 3, falling $22.93 from the end of the previous day. It also fell another 5.65% ($10.65) in pre-market trading.
update: The shares closed at $177.93 at the end of the market on April 4th. This is an additional $10.72 or 5.68% decrease.
This is a purchase opportunity for shopping and long-term investors.
Image Source and Colon; Royal Caribbean
Royal Caribbean has recession insurance
Royal Caribbean stocks have been reduced by market-wide sentiment that Trump’s tariffs could cause a recession, but Cruiseline has a lot of insurance against it. Cruises are booked much earlier than most types of travel.
Many people have booked cruises for over a year, with heavy penalties (or even a complete forfeiture for cancellation). You also have the option to pay for the cruise over time. This will make your financial hits smaller than booking theme parks and other traditional family vacations.
New bookings could be slower if the stock market continues to decline or the economy shows some weakness, but Royal Caribbean has been booked up to now, and only a long-term recession really hurts the company (and even that could have limited impact).
CEO Jason Liberty explained the company’s booking position. 4th quarter revenue call.
“Looking at this year, the momentum continues in 2025, with bookings accelerated since the last revenue call, bringing the best booking week in the company’s history. Reservations continue for all major products last year,” he shared.
He noted that passengers pay more per day (APD).
“Our book locations are in line with the past few years at higher APD. As 2025 bookings continue, we can further optimize pricing and harvest growth and harvest yields. As 2025 bookings have increased since the last revenue call, APD Premium has expanded last year’s expansion and focused on yield optimization,” he added.
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Cruising continues to be worth it
Book a cruise and you’ll get not only a cabin, but also unlimited food, entertainment and many other amenities. Yes, there are add-ons (and probably buy) that you can buy, such as drink packages, WiFi, and Shore Excursions, but it’s a much better deal than a traditional a la carte vacation.
In its revenue call, Liberty noted that the US economy is generally healthy.
“American households are more wealthy than ever, thanks to continued wage growth and low unemployment driving strong consumer spending. We see positive sentiment from customers in macro environments who prefer ‘thing’ as leisure and travel spending continues to grow,” he said.
Related: US government raises warnings for the Bahamas in Nassau and Freeport
He sees vacation as something more consumers don’t want to give up.
“Consumers are going to spend more on holidays and travel more than next year, and our guests are aiming to spend more on leisure trips. Consumers place great value on visiting multiple destinations.
Yes, Trump’s tariffs are an economic concern and could lead to a recession. As it is unlikely to have a major impact on the Royal Caribbean, current flooding is the best time for companies with steadily improving stock prices since July 2022.
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