Based on how 2025 is going so far, don't expect to see cruise prices drop any time soon.
Demand has been red hot for a Royal Caribbean cruise for a while, and there's no sign of things slowing down in 2025.
During an earnings call with investors on Tuesday, Royal Caribbean Group CEO Jason Liberty said the momentum of high demand for cruises continued into 2025 with, "the best five booking weeks in the company's history."
In fact, they reported seeing more bookings than last year and at higher fares.
Traditionally the first few months of the year are known as WAVE seasons, which is an industry term for the time of year when cruise lines tend to offer their best promotion.
But with such high demand right now, deals on a new cruise booking in 2025 aren't going to be far and wide, so waiting is probably not the best approach.
"Demand for 2025 is strong"
One recurring theme of the discussion was how well-booked things are already for a 2025 cruise.
Royal Caribbean Group is seeing people paying higher prices while the amount of cabins sold remains in line with prior years, "allowing for further pricing and yield growth as 2025 bookings continue to ramp up."
Reading between the lines, the company is looking to get the most they can from their fares. That's not the formula consumers would want to hear if they are expecting price drops later.
Moreover, if you're waiting on the sidelines to book a cruise, others are ready to take your place.
"We're seeing really good demand trends from Europe, as well as obviously the U.S.," Mr. Liberty explained. He went on to say 80% of their customers will be from North America.
In fact, Royal Caribbean Group uses AI to enhance its pricing and recommend things to its customers, as well as optimize (i.e. raise) prices.
Cutting the time to book a cruise in half
Speaking of AI, Royal Caribbean saw 2024 as a transformative year for them leveraging tech to make it easier on the consumer to get what they need.
Royal Caribbean Group executives touted the innovations introduced last year to improve ways its customers can book a cruise and its various add-ons.
"Guests have been seamlessly planning and booking their dream vacations, reducing the amount of time to book a cruise by half," Mr. Liberty said in his opening remarks.
"We launched over 300 new digital capabilities across channels in 2024, improving the overall experience and reducing friction points while increasing spend."
Many of those innovations were specifically for Icon of the Seas, which had so many new features added just for that ship.
Using AI has benefitted customer and company alike. The use of artificial intelligence has provided, "a better, more efficient experience, and more personalized service."
According to Mr. Liberty, the new in-app chat saw a 35% increase in guest adoption that led to a 20% reduction in the customer service lines onboard the ship.
Why you'll want to book a cruise earlier
Royal Caribbean prices its fares largely based on supply, with higher prices for a sailing as cabins sell out.
I've consistently found the key to getting a great price on a cruise is to book it as early as you can.
Plus, booking earlier assures you of the ship, itinerary, and stateroom you want to reserve.
Suites and some of the higher in-demand cabins are the first to be reserved, and waiting to book usually results in far fewer choices.
Cruise fares tend to be cheapest the further in advance you book, and despite a few last-minute deals here and there, it’s best to book in advance and lock-in the best price.
Royal Caribbean's WAVE season 2025 offer
If you book a cruise in January, you can take advantage of its WAVE offer.
If you book before January 31, 2025, you can qualify for Buy One Guest, Get Second Guest 60% Off & 30% Off on 3/4 Guest. Plus, there's a Kids Sail Free deal on select sailings.
There will undoubtedly be another promotion in February and March, and likely similar to the January offer in one way or another.
90% of cruises will visit a private destination
An absolutely fascinating statistic was shared by Royal Caribbean Group Chief Financial Officer Naftali Holtz during the call.
"Over 70% of guests on these [Caribbean market] itineraries sailing with the Royal Caribbean brand will visit a private destination this year and that percentage will increase to 90% in 2027, with the opening of the beach clubs at Paradise Island, Nassau, and Cozumel and Perfect Day Mexico."
Demand for Caribbean cruises has been among the strongest of all the markets a Royal Caribbean cruise visits, and it's also a reflection of the overall plan the cruise line has to offer its customers a better overall experience.
Part of the impetus to develop beach clubs and an additional Perfect Day location is to give guests exactly what they want: a fulfilling day on shore where they can make memories while making it easy because Royal Caribbean is taking care of everything.
Royal Caribbean International President and CEO Michael Bayley shared a few years ago that Perfect Day at CocoCay ranks as the number one destination among Royal Caribbean guests.
"CocoCay is the number one destination that Royal Caribbean goes to in the world out of 100 global destinations, because it’s a curated experience designed and built to deliver a high-level experience to the customer. At the end of the day that’s all that matters."
That's clearly the approach they want to extend to other places in the Caribbean through their private destination portfolio.
Could amplifications be coming back?
One interesting anecdote was shared during a discussion of costs that cruise fans might find interesting.
Mr. Holtz said, "we're also restarting our modernization program," in reference to the capital expenditures the company will make this year.
While Allure of the Seas is set to get major upgrades this spring, the question has lingered what about other ships.
"We have one ship this year and then we'll share more details going forward around our program, but we do see an opportunity around that," he added. Presumably, the one ship he referenced is Allure.
