Royal Caribbean Navigates Last-Minute Bookings, Raises outlook Despite Revenue Shortfall
Miami, FL – October 28, 2025 – Royal Caribbean Group reported stronger-than-anticipated profits for the third quarter, while simultaneously acknowledging a persistent trend of consumers delaying cruise bookings until the last possible moment. Despite this revenue challenge,the cruise giant has raised its full-year earnings projections,signaling confidence in sustained demand for travel experiences.
Financial Performance Overview
The company announced third-quarter net income climbed to $1.58 billion, a substantial increase from $1.11 billion during the same period last year.Adjusted earnings per share reached $5.75, surpassing analyst expectations of $5.69. However, revenue totaled $5.14 billion, falling slightly short of the predicted $5.17 billion, marking the fifth consecutive quarter of missing revenue estimates.
Despite the revenue shortfall, the company’s Chief Executive, Jason Liberty, emphasized a “strong booked position,” indicating positive momentum for future performance extending into 2026. Liberty noted that consumers continue to prioritize experiential spending,with approximately three-quarters intending to maintain or increase their vacation budgets in the coming year.
Last-Minute Booking Trend Impacts Revenue
Royal Caribbean observed a surge in close-in demand during the third quarter, indicating a shift in consumer behaviour. Many passengers are waiting to make reservations later in the booking cycle, potentially due to economic uncertainties or a desire to capitalize on potential last-minute deals. According to a recent study by Deloitte, 65% of leisure travelers actively seek discounts adn promotions before making a booking.
Competitive Landscape
The results come on the heels of a strong performance by competitor Carnival Corp., which recently reported record-breaking third-quarter figures fueled by robust cruise demand. The contrasting outcomes highlight the nuances within the cruise industry and the varying strategies employed by different operators.
Key Financial Figures
Here’s a comparative look at Royal Caribbean’s financial performance:
| Metric | Q3 2024 | Q3 2025 | change |
|---|---|---|---|
| Revenue | $4.89 Billion | $5.14 billion | +4.8% |
| Net Income | $1.11 Billion | $1.58 Billion | +42.3% |
| Adjusted EPS | $5.20 | $5.75 | +10.6% |
| Net Yields | N/A | +2.8% | N/A |
Looking Ahead
Royal Caribbean has revised its adjusted earnings per share (EPS) guidance for 2025, now projecting a range of $15.58 to $15.63, up from the previous estimate of $15.41 to $15.55. The company anticipates net yields to increase by 3.5% to 4% for the full year.
However, the fourth-quarter outlook is slightly more cautious, with adjusted earnings expected between $2.74 and $2.79, falling short of analyst expectations. Net yields are projected to rise 2.6% to 3.1%.
The company’s stock experienced a nearly 9% decline on Tuesday, while shares of Carnival and Norwegian Cruise Line Holdings also saw downward pressure following the report. Despite this recent dip, Royal Caribbean shares have increased by 26.3% in 2025, exceeding the S&P 500’s 17% gain.
did You Know? The cruise industry contributes over $150 billion annually to the global economy,supporting more than 1.1 million jobs, according to Cruise Lines International Association (CLIA).
pro Tip: Booking cruises during the “shoulder season” (spring and fall) can often yield notable savings and a less crowded onboard experience.
What impact do you think the last-minute booking trend will have on cruise pricing strategies? Do you believe the cruise industry’s growth is sustainable in the current economic climate?
The Evolving Cruise Industry
The cruise industry has demonstrated remarkable resilience in the face of global challenges, including the COVID-19 pandemic and recent economic volatility. A key factor driving this recovery is the industry’s focus on enhancing the onboard experience, offering a wider range of amenities and itineraries to appeal to diverse traveler preferences. Sustainability is also becoming an increasingly critically important consideration, with cruise lines investing in cleaner technologies and environmentally responsible practices.
Frequently Asked Questions About Royal caribbean
Share your thoughts on Royal Caribbean’s performance and the future of the cruise industry in the comments below!
