Royal Caribbean CEO: Still seeing strong demand from consumers for travel experiences

Core Viewpoint - Royal Caribbean reported a profit beat and raised its guidance, but the outlook fell short of some Wall Street expectations, leading to a sharp decline in shares during pre-market trading [1][2]. Financial Performance - The company had a strong third quarter, exceeding profit expectations and raising guidance for the year [2]. - Initial projections for 2026 suggest a revenue starting with a "17 handle," indicating positive growth expectations [3][4]. Booking Trends - There is a notable shift towards closer-in booking patterns, particularly among younger travelers who prefer shorter vacation experiences [5][6]. - Traditional longer bookings still exist for products like seven-night and European cruises, which tend to be booked further in advance [7]. Consumer Behavior - Royal Caribbean continues to see strong demand, with tens of thousands of bookings daily and approximately 170,000 to 180,000 guests on ships each day [9]. - Consumers are reportedly spending more on onboard experiences and have strong financial stability, indicating a willingness to invest in vacations [10]. International Demand - The company has managed to offset some challenges in inbound international tourism through its deployment strategies, with about 20% of guests coming from outside the U.S. for Caribbean cruises [12].