MIAMI — Royal Caribbean Group raised its full-year profit forecast today, backed by higher ticket prices as well as steady demand from affluent customers for leisure travel.
Shares in the company rose over 2% in premarket trading today.
After months of being hindered by pandemic-related restrictions, cruise operators are now reaping the rewards as travelers gravitate to cruises that offer a range of fun activities under one roof and are cheaper compared to taking a land-based holiday such as that to a theme park.
This has given Royal Caribbean and its competitors the ability to further hike up itinerary prices, especially in North America and Europe, as occupancy levels now approach pre-pandemic levels.
The cruise company said occupancy in the third quarter was 109.7%, up from 105% reported in the second quarter.
The company expects annual adjusted profit between $6.58 and $6.63 per share, compared with its earlier forecast of $6.00 to $6.20.
REUTERS
Reporting by Granth Vanaik in Bengaluru; Editing by Maju Samuel