The 5 Most Interesting Analyst Questions From Royal Caribbean's Q1 Earnings Call

Royal Caribbean’s first quarter results for 2025 reflected steady demand for cruise vacations, with management attributing performance to strong close-in bookings and increasing onboard spending. CEO Jason Liberty highlighted that "consumers are still prioritizing experiences, planning to spend more on them this year and are seeking value that we are well positioned to offer." The successful launch of new ships and increased guest participation in onboard activities also contributed to higher ticket pricing and guest satisfaction, helping offset broader macroeconomic uncertainty. Management emphasized the effectiveness of their loyalty programs and direct-to-consumer channels in sustaining demand across all itineraries.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Royal Caribbean’s Q1 Earnings Call

• Matthew Boss (JPMorgan) asked about specific drivers of the strong first quarter and initiatives that could insulate results in a volatile macro environment. CEO Jason Liberty emphasized close-in demand, high-quality customer engagement, and investments in loyalty and digital platforms as key factors.
• Ben Chaiken (Mizuho) questioned the impact of new ships on third and fourth quarter yields. CFO Naftali Holtz clarified that timing of ship entries leads to headwinds in capacity and load factors during ramp-up periods, not a lack of demand.
• Steven Wieczynski (Stifel) inquired whether guidance conservatively captures potential shifts in onboard spending or close-in pricing. Liberty explained that the company’s guidance range reflects both optimistic and more cautious scenarios, with high booking visibility for the remainder of the year.
• Lizzie Dove (Goldman Sachs) explored the mix between like-for-like pricing and new ship premiums in yield growth. Holtz indicated that yield growth is balanced between new ship contributions and ongoing strength in existing fleet pricing, except for timing-related shifts in the third quarter.
• Brandt Montour (Barclays) asked if loyalty members are trading down for value within the Royal Caribbean ecosystem. Liberty responded that customer behavior remains consistent, with no evidence of trade-down trends or reduced spending among loyal guests.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be watching (1) the booking pace and pricing for new ship deployments, (2) the rollout and reception of the Royal Beach Club Nassau and other destination expansions, and (3) trends in onboard spending and guest engagement through the company’s digital platforms. Progress in cost management and further evidence of margin stability will also be closely monitored.

Royal Caribbean currently trades at $272.85, up from $217.15 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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