Another Royal Caribbean cruise ship is being deployed to the port of Los Angeles.
Starting on May 28th, 2025, Ovation of the Seas will begin sailing 3, 4, and 5-night cruises out of the San Pedro World Cruise Terminal.
Instead of being deployed to Tianjin, China, as previously announced, Royal Caribbean is moving the 4,905-passenger vessel to the West Coast.
Ovation of the Seas will join Navigator in the California area for the summer of 2025.
Around October 2025, Quantum of the Seas will replace her sister ship in the Los Angeles market.
Based on the port's schedule, Quantum will take her first cruise out of Los Angeles on October 2nd, 2025.
During a call with investors on Thursday, Royal Caribbean cited high demand in California (rather than low profit in China) as the reason for the move.
The cruise line was previously absent from the Los Angeles cruise market for a decade, not entering the area due to declining profits and partially filled ships.
In 2022, Royal Caribbean finally sent Navigator of the Seas, a Voyager-Class ship, to homeport in Los Angeles.
Sending a larger vessel signifies Royal Caribbean's commitment to the LA market
Although Royal Caribbean previously cited low bookings and profits as the reason for pulling out of Los Angeles, it seems the tides have changed.
Navigator of the Seas, built in 2002, has a capacity for 4,000 passengers, and she isn't large enough to carry all the demand in the area.
Ovation of the Seas carries nearly 1,000 more passengers and signifies that the cruise line is renewing a commitment to the LA market.
"We have strong ambitions to grow the West Coast in the US," Michael Bayley, Royal Caribbean President and CEO, announced.
During the 2024 second-quarter earnings call, he informed investors that the cruise line wants to infuse more energy into California.
"It's the sixth largest economy in the world," he said.
In 2022, California reached a population of 39 million, expanding a huge market for the cruise line.
Bayley said that Navigator, which has been on the West Coast for two years, has been "performing exceptionally well."
Bookings are selling quickly, and the cruise line is responding to high demand.
Michael Bayley announced the move during a meeting for travel partners on Utopia of the Seas. The room erupted into applause.
Adding another ship to the West Coast alongside Navigator and Quantum of the Seas is a strong indication of the cruise line's investment in the area.
Does this mean Royal Caribbean is moving away from China?
During the second quarter earnings call, an investor asked if moving Ovation away from China is a sign that China hasn't been a strong market for the cruise line.
Michael Bayley responded that, on the contrary, the cruise line has "very good market choices to make."
"Our belief in the long-term potential for China has not changed at all," he said.
Spectrum of the Seas, another Quantum-Class ship that started sailing out of Shanghai a few months ago, hasn't disappointed the cruise line.
Read more: All about Quantum Class ships
"It's performing very well and we feel good about the China market."
The 5,622-passenger vessel has been consistently filling sailings since it began sailing out of Shanghai in April of 2024.
Royal Caribbean was the first major cruise line to return to the China cruise market after industry shutdown in 2020.
Spectrum of the Seas was designed for the Asian market, and Royal Caribbean is quite pleased with her performance in Shanghai.
However, Bayley did inform investors that "it hasn't reached the levels we're seeing in the American market."
Royal Caribbean was faced with a choice: continue investing long-term into China with Ovation of the Seas, or deploy to California and meet high demand there?
Ultimately, the cruise line "made the decision based upon maximizing performance."
However, this doesn't at all indicate a move away from the Chinese market.
In fact, Royal Caribbean is still committed to filling sailing there long-term.
Bayley hinted that guests will see more ships in China very soon. "We're quite committed to the opportunity there," he said.
"And we'll be announcing in the future more deployments into China."
The demand for Royal Caribbean cruises is higher than ever
Royal Caribbean's bookings and profit in 2024 have been on fire.
Jason Liberty, President and Chief Executive Officer for Royal Caribbean Group, said during the second quarter earnings call that bookings are significantly higher than in the second quarter of last year.
Inventory is flying off the shelves, "despite the fact that we have significantly fewer staterooms left to sell."
Read more: "We are just getting started" Royal Caribbean reports $4.1 billion in revenue in second quarter
In the second quarter of 2023, Royal Caribbean carried 1,900,810 guests at 105% occupancy.
In contrast, the second quarter of 2024 saw 2,040,242 guests at over 108% occupancy.
The cruise line hit its profit goals 18 months ahead of time, exemplifying how Royal Caribbean is in high demand this year.
Sailing and stateroom options are becoming more and more limited, due to the popularity of Royal Caribbean cruises.
For those looking to book a cruise in the upcoming months, booking as early as possible is your best bet.
Booking early is the smartest way to secure lower prices and a specific cabin category.
Prices for 2025 and 2026 will also continue to increase as inventory is selling out further in advance.
Go ahead and place the deposit on your 2025 cruise as soon as possible.
Read more: Royal Caribbean launches a half dozen new 2025 and 2026 itineraries in latest deployment
