RCL Stock

[Engineroom Snipe]

Jason Liberty was just interviewed on CNBC.

 

Record bookings, blockbuster numbers for 2023 and into 2024.

 

The cruise discount to land experience percentage used to be 45% (his words, not mine).

 

Royal has shaved 15% off of the difference since the reopening.

 

He seemed to suggest that things were going in a very positive direction (and maybe trying to get the 30% current difference lower).

 

Does not look like prices for the average Royal cruiser will be coming down.

 

Stated a "30,30,30" split on typical passengers.

 

30% new to cruising. Specifically mentioned that younger cruisers are desiring new experiences.

 

30% new to Royal that cruised on other brands. Specifically mentioned that new cruisers from other brands are 5x more likely to stay with Royal after sailing with them.

 

30% long time repeat Royal cruisers.

 

He did not seem to think their bookings would be affected by a slowing economy as their customers are now more diverse and more affluent in general. He also mentioned the generational transfer of wealth which will assist future bookings.

 

Interesting interview.

 

 

 

[firefly333]

1 minute ago, Engineroom Snipe said:

Jason Liberty was just interviewed on CNBC.

 

Record bookings, blockbuster numbers for 2023 and into 2024.

 

The cruise discount to land experience percentage used to be 45% (his words, not mine).

 

Royal has shaved 15% off of the difference since the reopening.

 

He seemed to suggest that things were going in a very positive direction (and maybe trying to get the 30% current difference lower).

 

Does not look like prices for the average Royal cruiser will be coming down.

 

Stated a "30,30,30" split on typical passengers.

 

30% new to cruising. Specifically mentioned that younger cruisers are desiring new experiences.

 

30% new to Royal that cruised on other brands. Specifically mentioned that new cruisers from other brands are 5x more likely to stay with Royal after sailing with them.

 

30% long time repeat Royal cruisers.

 

He did not seem to think their bookings would be affected by a slowing economy as their customers are now more diverse and more affluent in general. He also mentioned the generational transfer of wealth which will assist future bookings.

 

Interesting interview.

 

 

 

I saw the interview. They also asked him about suez canal how it would affect rcl.

 

Still kinda surprised its selling off. He seemed to say less impact than carnival who warned it would impact earnings.

[Engineroom Snipe]

9 minutes ago, firefly333 said:

I saw the interview. They also asked him about suez canal how it would affect rcl.

 

Still kinda surprised its selling off. He seemed to say less impact than carnival who warned it would impact earnings.

Yes, he mentioned Royal only had some of "their smaller ships" affected by the situation.

Edited February 1 by Engineroom Snipe
grammer

[nelblu]

1 hour ago, firefly333 said:

I saw the interview. They also asked him about suez canal how it would affect rcl.

 

Still kinda surprised its selling off. He seemed to say less impact than carnival who warned it would impact earnings.

Could be simply profit taking.

[grandgeezer]

9 minutes ago, nelblu said:

Could be simply profit taking.

Why today, on the day they revealed their earnings report, just a coincidence? I think not, 81% of the stock is held by institutional investors and they do it to make money. If they were so enamored with the report they would have did nothing or increased their holdings. 

[Engineroom Snipe]

22 minutes ago, grandgeezer said:

Why today, on the day they revealed their earnings report, just a coincidence? I think not, 81% of the stock is held by institutional investors and they do it to make money. If they were so enamored with the report they would have did nothing or increased their holdings. 

Yes, if one were to believe the interview information on face-value, I would take it as a "hold" on the stock that things were definitely getting better if not slightly "buy".

 

I do not hold stock in Royal but I do have a significant amount of investments.

 

Not quite sure why the institutional investors would be selling off unless there are other numbers that contradict the interview information which to me seemed very positive.

[taglovestocruise]

Sell into the good news, be a buyer when things look gloomy. Pigs get slaughtered investors get rich. 

[Biker19]

The annual report finally posted with the SEC: Inline XBRL Viewer (sec.gov) 

[Engineroom Snipe]

14 minutes ago, Biker19 said:

The annual report finally posted with the SEC: Inline XBRL Viewer (sec.gov) 

@Biker19

 

Thank you for the hyperlink and alert . Will try to digest it tomorrow time permitting.

 

This year will be even more interesting as they will have a record breaking 2023 to improve for 2024.

[Cruising89143]

https://www.seatrade-cruise.com/finance/royal-caribbean-lifts-profit-outlook-accelerating-cruise-demand
 

https://cruiseindustrynews.com/cruise-news/2024/02/royal-caribbean-increases-financial-guidance-for-2024/

[Engineroom Snipe]

Reading the hyperlinks of the previous two post.

 

Everything seems to be full steam ahead but I have seen contradictions on CC from cruisers getting "price adjustments". If demand is so high because of the value, why are price adjustments going lower than the original fare which is by most accounts, "the best price for the cruise"?

 

Shore excursion prices, unlimited dining packages, unlimited drinking packages are known to be dynamic but again trending downward from anecdotal postings.

 

The report states how "return customers" (AKA Crown and Anchor member) are receiving more enhancements which seems to contradict CC postings of the Diamond Lounge being called the Crown Lounge with more restrictive access and other high point members being denied opportunities onboard which they previously enjoyed.

 

I have to reread things tomorrow, the eyes are tired.

 

As you read through it, notice how high the "union membership" is on board the ships which is a recognized threat of a strike possibility. I would have never imagined that!

[Engineroom Snipe]

After reading the information, be ready for a huge expansion of "pay onboard opportunities and shore experiences".

 

While Royal has been increasing passenger capacity fleetwide, the Onboard and Other Revenue percentage went down from 34.5% to 32.2% (2022 and 2023 numbers).

 

The CEO has mentioned in Quarterly discussions late last year about how the onboard and other revenue "was not meeting expectations."

 

This explains the bombardment of emails describing Royal's latest "discounts" to be purchased through my app.

 

Just an opinion that "pay-to-play" is going to be an ongoing trend trying to get these percentage up.

 

Also, the new Royal shore resort area being developed at Nassau.

 

One possible scheme which they are employing now, more port days and less sail distance per cruise.

 

Benefits:

 

1. No additional cost to Royal as all new port charges (taxes) are automatically added to the passenger cost and not reflected in the advertised cabin rate.

2. Slower cruising and less fuel, less wear and tear on mechanical systems.

3. Make additional money from shore excursions.

4. Serve less food and reduce unlimited drink consumption when passengers are off ship.

 

[firefly333]

Cramer on high cruise prices. "People are long on money and short on time to do experiences"

 

Lol looks like rcl is UP this morning.

[grandgeezer]

1 hour ago, Engineroom Snipe said:

After reading the information, be ready for a huge expansion of "pay onboard opportunities and shore experiences".

 

While Royal has been increasing passenger capacity fleetwide, the Onboard and Other Revenue percentage went down from 34.5% to 32.2% (2022 and 2023 numbers).

 

The CEO has mentioned in Quarterly discussions late last year about how the onboard and other revenue "was not meeting expectations."

 

This explains the bombardment of emails describing Royal's latest "discounts" to be purchased through my app.

 

Just an opinion that "pay-to-play" is going to be an ongoing trend trying to get these percentage up.

 

Also, the new Royal shore resort area being developed at Nassau.

 

One possible scheme which they are employing now, more port days and less sail distance per cruise.

 

Benefits:

 

1. No additional cost to Royal as all new port charges (taxes) are automatically added to the passenger cost and not reflected in the advertised cabin rate.

2. Slower cruising and less fuel, less wear and tear on mechanical systems.

3. Make additional money from shore excursions.

4. Serve less food and reduce unlimited drink consumption when passengers are off ship.

 

How about charging luggage handling fees, like the airlines? According to Forbes magazine, they made $32,000,000,000, yes billion, last year. Only allow carryons, the same size restraints as airlines, to be brought on the ship. Start at $25 for the first bag and $30 for each additional bags, which is less than the airlines do. $$$$$.

[firefly333]

4 minutes ago, grandgeezer said:

How about charging luggage handling fees, like the airlines? According to Forbes magazine, they made $32,000,000,000, yes billion, last year. Only allow carryons, the same size restraints as airlines, to be brought on the ship. Start at $25 for the first bag and $30 for each additional bags, which is less than the airlines do. $$$$$.

Bright line train in florida charges $25 for each luggage if you pay for the base fare, have to buy the higher fare to include luggage. 

[Engineroom Snipe]

@firefly333

 

I can definitely see bean counter watering their lips and licking their chops over baggage. The numbers can be easily counted and we all see how much luggage is moved on and off the ships.

 

The only downside would be more people lugging it onboard and off to avoid the charges.

 

Solution: Limit the passengers carry-on items.

 

Wait, this sounds familiar, I think other travel lines use this system already......

 

CA-CHING  $$$$$$$$

 

Edited February 22 by Engineroom Snipe
typo

[Ocean Boy]

40 minutes ago, Engineroom Snipe said:

@firefly333

 

I can definitely see bean counter watering their lips and licking their chops over baggage. The numbers can be easily counted and we all see how much luggage is moved on and off the ships.

 

The only downside would be more people lugging it onboard and off to avoid the charges.

 

Solution: Limit the passengers carry-on items.

 

Wait, this sounds familiar, I think other travel lines use this system already......

 

CA-CHING  $$$$$$$$

 

Then there had better not be anyone talking smack when everyone is in shorts and t-shirts anytime they are out of their cabins. It will be one carry on for me IF I stay with RCI. 

 

Come to think of it, this should make for some grumpy porters at the cruise ports.

[Engineroom Snipe]

3 minutes ago, Ocean Boy said:

Then there had better not be anyone talking smack when everyone is in shorts and t-shirts anytime they are out of their cabins. It will be one carry on for me IF I stay with RCI.

I think we will be lucky that they are at least wearing anything on the 12th day of a 14 night cruise!

 

I can close my eyes but it is hard to stop breathing. 🫣

[firefly333]

41 minutes ago, Ocean Boy said:

Then there had better not be anyone talking smack when everyone is in shorts and t-shirts anytime they are out of their cabins. It will be one carry on for me IF I stay with RCI. 

 

Come to think of it, this should make for some grumpy porters at the cruise ports.

Easily solved. I saw a whole family with baggage issues wearing robes around the ship. Celebrate white night early, everyone in their bathrobes. I saw someone post if royal will wash these robes or change them out during a cruise. Is our free D+ laundry good to get them cleaned. All set. 

 

No worries be happy.

[diesel1973]

1 hour ago, Engineroom Snipe said:

I think we will be lucky that they are at least wearing anything on the 12th day of a 14 night cruise!

 

I can close my eyes but it is hard to stop breathing. 🫣

I think I might stick to the 7 day cruises. The thought of me following someone naked up the stairs or getting on the elevator with them causes me nightmares !!!

[jerryg95]

Wait until they don’t honor drink packages on their private islands. $15 a drink should add a few bucks to the bottom line. 

[diesel1973]

1 hour ago, diesel1973 said:

I think I might stick to the 7 day cruises. The thought of me following someone naked up the stairs or getting on the elevator with them causes me nightmares !!!

Especially if the elevator is crowded !

[Starry Eyes]

4 hours ago, grandgeezer said:

How about charging luggage handling fees, like the airlines? According to Forbes magazine, they made $32,000,000,000, yes billion, last year. Only allow carryons, the same size restraints as airlines, to be brought on the ship. Start at $25 for the first bag and $30 for each additional bags, which is less than the airlines do. $$$$$.

If they charge by the checked item, they better place limits on weight and size of those checked items or people arriving by car are apt to pack fewer but larger, heavier pieces.

[Engineroom Snipe]

52 minutes ago, Starry Eyes said:

If they charge by the checked item, they better place limits on weight and size of those checked items or people arriving by car are apt to pack fewer but larger, heavier pieces.

"What a tangled web we weave."  (Marmion, Sir Walter Scott, circa 1811). There are so many moving parts to such a decision that the bean counters do not take into consideration.

 

Something as simple as a "baggage fee" can come with a lot of baggage in the process (pun intended).

 

😉

[grandgeezer]

1 hour ago, Engineroom Snipe said:

"What a tangled web we weave."  (Marmion, Sir Walter Scott, circa 1811). There are so many moving parts to such a decision that the bean counters do not take into consideration.

 

Something as simple as a "baggage fee" can come with a lot of baggage in the process (pun intended).

 

😉

You think the couldn’t learn from the airlines and any other business that do this? The tens or hundreds of millions of dollars, available for all the cruise lines, would be worth the temporary headaches that might occur. What other options are available besides the usual raise costs and cutback on all the other pieces of the product being offered?😂