Royal Call
GREG Purdy, senior vice-president, marine operations, Royal Caribbean International (RCI), indicates that the group expects to return the full fleet before the summer season of 2022.
The cruise industry was one sector of the travel industry which suffered significantly with the advent of the novel coronavirus pandemic. Now, industry-wide, expectations are high.
Purdy told the Jamaica Observer, “The group expects to return the full fleet before the summer season of 2022 and load factors approaching historical levels in the third quarter of 2022.”
At the end of 2021 the group, which is headquartered in Miami, Florida, had returned 50 out of 61 ships to operations across its five brands, representing over 85 per cent of its worldwide capacity.
Listed on the New York Stock Exchange, the company’s latest report indicates that it operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises.
RCI also owns a 50 per cent joint venture interest in TUI Cruises, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises.
The company’s 61 ships have an aggregate capacity of approximately 140,855 berths as of December 31, 2021. Ships operate on a selection of worldwide itineraries that call on approximately 1,000 destinations on all seven continents.
Purdy noted that, during 2021, the group carried approximately 1.3 million guests across the five brands, achieving record guest satisfaction scores and on-board spend per passenger.
He shared, “The company is excited about the introduction in 2022 of two new ships, Wonder of the Seas and Celebrity Beyond. These new ships are in addition to the six new ships that joined the fleet over the last 20 months and are expected to be important contributors to yield growth and profitability.”
Historic booking day
Pent-up demand for cruising is evident. The spokesman said there is currently robust demand for vacation experiences. He noted, “Recently, Royal Caribbean International set new records with the largest, single booking day and the highest-volume booking week in its 53-year history.”
Purdy indicates that the strong demand and new bookings are reflected in more than 1.5 million guests having sailed with the line since January 2021, alongside “consistently record-high guest satisfaction ratings across its ships and private destinations, Perfect Day at CocoCay in The Bahamas and Labadee on the north coast of Haiti”.
The VP said, “All these indicators are very encouraging and give us further confidence in the recovery trajectory of our business.”
The company, meanwhile, is seeking to return staffing to 2019 levels. Approximately 60,000 men and women worked in the Royal Caribbean International fleet in 2019.
Purdy commented, “We continue to seek out the best and the brightest to support our marine operations as well as front-line personnel who can provide our guests with vacation experiences that last a lifetime.” Interested candidates can visit: www.rclctrac.com
The company indicates in its annual report that it has increased focus in bringing in data analytics and artificial intelligence into operating processes, a move which is helping to drive company revenues. These include apps for booking vacations and highlight service offerings which drive revenue.
The company is also investing in shipboard operational technology to facilitate casino play, hotel maintenance, as well as the optimisation of marine maintenance.
Island technology solutions are now enabling guests to remain connected with Wi-Fi access, order food and beverage, as well as take advantage of island-based activities, it was noted.
For the full year of 2021, Royal Caribbean reported a net loss of US$5.3 billion compared to a net loss of US$5.8 billion in 2020.
RCI’s directors said they expected operations in the first quarter 2022 to be cash flow-positive.
As at December 31, 2021 RCI had US$1.3 billion in customer deposits. It was noted that deposits for forward sailings for Q2 2022 were higher than for the similar period in Q2 2019.