Royal Caribbean Group is seeing a significant increase in younger travelers, with nearly half of the company’s cruise guests now being millennials or younger. This demographic has gained 11 percentage points of share compared to 2019, with executives attributing some of this growth to exclusive destinations like Perfect Day at CocoCay in the Bahamas. These destinations are drawing in new-to-cruise passengers and millennials, and the company is leaning into exclusivity with plans for new private developments such as the Royal Beach Clubs in Nassau and Cozumel.
Caribbean sailings remain the most popular for Royal Caribbean, accounting for 55% of the company’s deployment for this year. The upcoming Utopia of the Seas ship is set to rival land-based vacations while meeting the demand for private destinations like Perfect Day. Executives are confident in European bookings despite changes in itineraries, with Europe fulfilling nearly a quarter of Royal Caribbean’s capacity in the summer. Additionally, the company is returning to the Chinese market this month and deploying ships to Alaska.
Royal Caribbean announced its strongest wave season yet, with the first quarter seeing a net income of $360 million and total revenues reaching $3.7 billion. Customers who prebook tend to skew younger, and the company’s digital traction is steady across demographics. The Royal Caribbean mobile app, used by 94% of guests, now allows for both cruise and flight bookings. By investing in a modern digital travel platform, the company aims to make it easier for guests to book their dream vacations and expand wallet share.
Overall, Royal Caribbean Group is experiencing growth driven by younger travelers, exclusive destinations, and a strong wave season. The company’s focus on digital innovation and personalized experiences is resonating with customers, leading to increased engagement and booking rates. By investing in new private developments and continuing to adapt to changing market demands, Royal Caribbean is well-positioned for post-pandemic growth in the cruise industry.
