Royal Caribbean Profits Down 98%

Royal Caribbean reported this week that 4th quarter earnings were down 98% compared to the previous year.  It’s not a surprise that earnings would be lower. With the economy as it is, many companies are seeing sales go down. People have declared that 2009 will be the Year of the Deal, where travel is concerned. Cruise cabins, just as hotel rooms and airline seats, are time sensitive products. Once the ship has sailed, well, the ship has sailed. Conventional wisdom is that some revenue is better than none, and so prices go down to at least put some people in those rooms and cabins.

In the case of cruises, sailing full is even more relevant because cruise passengers add to the line’s income by spending money onboard.  In fact, USA Today states that Royal Caribbean gets 25% of their revenue from on board spending. All the more reason to discount the price of the cabin to get people to spend on board!

Royal Caribbean has acknowledged the need to lower prices, as have most other cruise lines. However, CEO Richard Fain has said that he’d rather have empty cabins and not sacrifice prices to levels that would be artificially low. Through the last couple of years, Royal Caribbean has been able to keep prices up compared to competing lines like Carnival and Princess, mainly because of the high demand the Freedom class ships get.  Even so, I have clients sailing on the new Independence of the Seas in April for less than $700 per person, for 13 days, including all taxes (and there are even lower prices available!).

In addition, Royal Caribbean is offering reduced deposits until February 28th. Celebrity Cruises, also owned by Royal Caribbean, has a similar promotion, but they are offering up to $300 on-board credit with many sailings as well.  You can read my review of their newest ship, Solstice, and see the details below and contact us for more information or to book your cruise:

Amazing Ships, Amazing Perks

Feel free to contact us for details on these promotions, or to plan your next vacation.


Enrique Brener
KC Travel
N. Miami Beach, FL
FL Seller of Travel Reg. TI-35171


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