In This Article:
Royal Caribbean Group said Tuesday that it would enter the river cruising market under its Celebrity brand.
The cruise line, best known for sailing large ships, will begin taking bookings later this year for European river cruises in 2027.
In an interview with Skift, President and CEO Jason Liberty said that his company had been leaving money on the table by not having a product in this market. According to its market research, half of Royal Caribbean's guests have either done river cruising or say they want to try it.
River Cruising Details
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It has committed to an initial order for 10 ships, but the launch would be modest, with two ships totaling 360 berths.
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They're partnering with experienced river operators and have hired veteran river cruise professionals.
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The company sees a segment to compete in between mass-market offerings and luxury ones run by providers like Viking and Grand Century.
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Celebrity's river cruises will be all-inclusive. Marketing efforts will target older Gen-X and early Baby Boomer demographics. They'll leverage their existing customer database of "35 to 40 million customers."
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"We've redefined travel on the ocean with our best-in-class hospitality, award-winning food and beverage experiences, and elevated design and style. We are thrilled to bring these experiences to the river,” Laura Hodges Bethge, president of Celebrity Cruises, said on an earnings call.
2024 Results:
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The company had "an exceptional year" with total revenues at $16.5 billion.
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Its net income was $2.9 billion. Adjusted net income was $3.2 billion.
2025 Preview
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Cruise wave season bookings are off to "a record start" for 2025.
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The company expects adjusted earnings growth of 23%.
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Net yields are expected to increase from 2.5% to 4.5%. "2025 is shaping up to be another great year,” Liberty said.
Consumer Outlook
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Liberty noted that their target customers "have great jobs, are paid well, and have strong finances." He says the cruising category is outperforming historical averages partly because of a trend of consumers prioritizing experiences over "stuff."
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The CEO said on the earnings call that the launch of Celebrity River Cruises was an example of the company's commitment to delivering quality vacations "and ultimately capture a greater share of the $2 trillion global vacation market."
Cruise and Tours Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of cruise and tours sector stocks within the ST200. The index includes companies publicly traded across global markets including both cruise lines and tour operators.