Royal Caribbean Cruises (RCL) 22 Feb 212020 Q4 Earnings call transcript

Good morning. My name is Shelby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Royal Caribbean Group's Business Update and Fourth Quarter 2020 Earnings Call. [Operator Instructions] I would now like to introduce; Chief Financial Officer, Mr. Jason Liberty. Mr. yours. is floor the Liberty,

Thank you, joining fourth thank for everybody, earnings Good today for morning, us and and our call. you Shelby. business quarter update

Michael Chairman Joining International; Caribbean Mengolini, of Chief Fain, are; President Carola and our Vice Relations. me Executive of Richard and Officer; Investor Bayley, our Royal President CEO and

During this been referring on investor our be posted few a call, to we website, will have slides www.rclinvestor.com. which

is would I about we to our you to started, notice which Before our forward-looking statements, refer like on slide. first get

we this as to are disclosures. and other our During the update change. do future making forward-looking. in These will a our and can undertake will by we our Also, risks all follow-up update call, are be of non-GAAP performance full Please certain information in comments note statements be uncertainties. involve circumstances guarantee described which discussing filings that Examples that the are an of do filings measures, defined, non-GAAP as we not with SEC a a strategic items not latest I providing our Richard action on and and website. liquidity business. financial overview results. quarter then of will recap historical I adjusted year and fourth the on provide environment. on will reconciliation will booking found our and be XXXX begin do

open then questions. the call will up your We for Richard?

to time XXXX ways weeks have in we're United sail this doing operate so it's the will than Even many X.X that what At past world. February, Year months. to everyone. over seven Caribbean Jason, are Group, It's year still wherever to moment take already it's better though I quickly, been States I think the last happening Happy because been late happened. realities a only into the and it's Royal intense review same the because time, year. we, pandemic much and things last because in at very much be and year the we so morning, good has adjust hard to around the that to Thanks, And good New believe say the I wherever a so so the expect in to the of we want

summarized we've year accomplished an X, and teams which actions on just Slide As that XX unthinkable were on XXXX ago. unprecedented was took months in our

the implemented members more moved countries, fleet I our there stayed to same. new think crew billions credit months, job seems whole that from not than home. dollars hundreds a our and the to to our workforce, raised took It's XX,XXX agents their challenging, of guests, of programs but our was patriated capital, all We while layup. travel new teams worries of one few our home incredibly occasion. that In into restructured in everybody working care been for

our company most global important point most to been most least April create the through mind of to conditions has operations ships is the ahead suspended also still through -- return that, to April, Now healthy are idle, of prepare we in sitting our and for while our to at sailing. a keep and moving while

travel up the and we we're can about industry on quickly. side. this the ensure as the taken navigate we've I in let on engaging fronts, initiatives I'll ramp crisis, actors how speak made other Jason on Slide to finance continued especially many we've about various restart and to governments to with continue we progress noted want particularly As X. talk that stakeholders, that

sailing, separate public their persons. health, protocols, basis as other to symptomatic maritime, over before for First, Panel, distancing for service experts. COVID to let our on the me of Sail recall taken and We've board, return testing to a what disembarkation physical we've Healthy with recommendations X,XXX medical, XX accomplished healthy from biosecurity passenger for

since these Main of and environment a on that the the Silversea walk destinations, the lot At due we protects our that last over months crew the elsewhere the intended to United the time, our Royal least is safer the a works of but of which address people vacations pre-vaccine Street. Ship over day were down recognize and confidence environment. only provide we're our an that million same their recommendations give report isolated or we here panel's will the also need well. four that not All an the than Not TUI guests, A people have protect to has know many a as from submitted. to States X.X We our is in COVID, things guests Caribbean, Celebrity, was disrupted environment that having regularly from case. to their occurred to vaccinating all

Germany Singapore, we in CVC from led we early crew guests panel, Governor, Scott cruising safest how forward our We've with the the so been they fun new the And to we strongly Greece but leadership. they early cruises to returns with continue the protect and believe December. world, And early draw Middle demonstrate as time, never destinations have proof-of-concept new us only resume the same the These and attractive them that guest, now information experience well. had the our under way visit. where And opportunity important have to valuable safety the and and Gottlieb, even the how governments, given protect experience. learnings we These one better of and to can partners we provide environment control early to expect. East. post-vaccine conclusions example. and not coordinate can while implement guests these can we a provide advance governments in successful positive effectively about At safely will that, design inform crew the on with travel and cruises vacations, itineraries Islands, new service the before provide health its we've fill port And by to an work we power operating opportunity continue dialogue I design when pathway on good the around before. including others our giving Mike most They provide can to best in protocols. identify in operations, and which Canary since These the we as Leven authorities, Dr. and our conversations also our in

Perfect clamoring think day, get have away. get want Now know out of homes. opportunity be after is we to our I COVID best-in-class new of that to and all hardware, Seas, respond XX restart with pandemic, more and at including private we'll are Moon destinations buildings, Silver ready experience to Odyssey of the And once our people we're People exclusive able outside Cococay. to real. and the Every months reopen and Apex their signs Day like fatigue our see for broadly, we Celebrity

investors committed combined out hand our period contributions give day for have a every do ongoing I support this brag to employees our And been want Again, loyal extraordinary. and on to I has our do. been their commitment I their integrity am shout just dedication, of the I also partners to Jason, individual little trust. their very for our want a Before team and travel bit. difficult and exceptional. they throughout off and by to impressed to the what

Jason? like turn now I'd it So Jason. thank over to you to back And all.

in only guidance. loss we to $X.X by In our XXXX we than of QX Richard. cruise reduce to for for the full costs. and quarter and the fourth company agile by able controlling XX% operating you, adjusted more industry and becoming morning, pandemic This Thank Due expeditiously quarter, fourth we impact operate reported a up achieved the reflects an from of billion were the This the able our that net during this XX% to XXXX brought of diligent, year. expected the billion XXXX suspension QX of in our disciplined were the operations, February in extremely staggering our $X.X expenses We stat cruises $XXX laying XXXX. our Great. initially of of to XXXX. fleet $X.X billion our revenue and simple quarterly in whole to million global the

general am and between in approximately priority Something corporation the year CapEx, through a remains the our in history. we top from ensuring efforts similar position. toughest liquidity which that standpoint, XX% entire be managing were I of the XXXX said about grateful in our our From can are financial XXXX. incredibly reduced by a strong

are action later of managing our agencies. debt capital cash million. suspended our accessing in reducing cruise we maturities our superb burn prudently banking and and Since global billion opportunistically built undertaking with due vendors. to the teams. I successful by accounting that a also and work and transactions relevancy executed banks, want of shipyards $X.X partners billion our of ship-related crucial that partners reducing liabilities legal XXXX. spring efforts our was the great of our have These While highlight export brands, finance, banking and of also defer were expected through was negotiations we These have raised almost the $XXX about XXXX with decades and operations, product, approximately capital new while outcome our secured for is debt during and collaborative our critical, another and agreements to and to this our the huge amazing were to still $X relationships liquidity strength is possible

XXXX to service as closed to We year current balance operating will primary be position, Now $X.X and great also position, ensure liquidity. cash the primarily fiscal our create return available managing focused – billion operations, that closed are return be capital value. cash our will for brands serve. of we stress while stabilize will with to we shareholder our further our expenditures – to flow our our remain that delever regarding liquidity family the sheet, on driven positioned driver I well investment-grade return in to improving and this our we and

of fourth for our of cash we which million the and approximately morning, fees. our earn prolonged a rate quarter, in to these, suspension When or collateral of includes million that November quarter the we on bond of operations. million of previously this the approximately As our that average some it Furthermore, was the driven range $XXX matured excluding $XXX and pertains commissions lower in billion, payment phenomenal timing. the – reaffirmed of $X.X cash doing end and financing spent postings, during average the per the our month fourth million cash teams spend $XXX from $XXX be approximately approximately range, will on announced diligence burn by to

several on flows rev protocols now our cash and and Reshaping our on further fluid, realign streamlining or capacity. brand. oldest efforts, procurement expect return margins leverage time, corporation fleet I environment further Over have Azamara activities. service that we entered Besides our structurally our sales to capital up will start last booking the the the our from we highlight start-up up that reducing our our very of position. will and we and that expenses by divested commentary help our scale environment executed and update marketing I successfully improve an will efficiency allocation and provide reduce operations and improving and our accruing and customer At structure include same will to also our not to measures ramping accelerate margins. to year, our our is cost ships, the these able G&A safety are the base, deposits service. our ships health to we to increased into return sales, we agreement Because we when our a provide and definitive cash to costs sell cost still and will business relate operating three improve as guidance figures.

end, a cruise. And amazing back constantly want did number not And to welcome people on bookings be lot to wait humbled we extended to our have is therefore, to to expect a board, and ramp seen to don't still beginning While Clearly, And and them back more brands operation. new not have a of clear can't Currently, bookings below we a since compared season. come and we cruises our remain the historical marketing this remain wave levels, activities increase extremely ships the strategic. Despite of traditional we our when in into marketing going period. with ships. XXXX year. throughout booked and the sales out-of-service lack been December. spend, a November for It's this impressed plan that anemic marketing until we and of of year traditional XX% up broadly

will for activities. our resumption excluding in expectations including future Our business programs too cumulative highlight Lift cash previous sailings the position terms have and The cumulative of this, pricing that very much standpoint XXXX book is window in is Cruise both related & driving not Shift early XX% second about in periods. demand dilutive too new said Future to both with half and XXXX, XXXX, the to in from and rebooking for with almost I our Having date preserving successful future of is in quite been but probably Credit booking booking in book of of than activities the It impact is aligned years. of to higher to cruise cruising similar behavior talk a credits.

for half historical within of book first Our average the ranges is position prices. higher XXXX at

expecting a noted, are we wave As not I traditional season.

encouraging years. very We XXXX stat past our However, that we bookings weeks efforts. a muted increases is prior and seen sales to given this similar over in the a in marketing think six did see increase

we cadence with canceled service. surrounding Currently, our any we most be sailings our April. back not end on our to Regarding ready will through fleet the deployment, the specific of we of which bringing are announce into have ships

in markets capacity in ramp-up will the globe likely on brands of conditions. timing and multiple region pace by Our therefore, based the local around the vary operate

the of Cruises Quantum in the which Who will the Europe on had Islands water November, our from service. from joint Seas and TUI our of to helping also as return ship operating August Singapore, since and already also us outside the venture. Singapore second inform Canary be learnings how We're and in is sailing the has are using in the ships We as well US. shift could

the end because on end for and of months This is of sailings crews suspension collected our balances September able of the Our XXXX maintain new We despite customer success the deposits the equal X,XXX relatively Shift to both deposit at of at June. options. and balance $X.X certificates six December and customer at end deposit was billion. a to were reported similar of approximately the the balance & future of bookings Lift the

booked crews. have or guests overall our of Just with balance shifting to Also, on FCCs, were canceled their and requested the half half over who an moreover, about holding nonrefundable. our other either who of associated the deposit approximately FCC customer refund, with is lifting the future booking -- booked a and balance cash is sailings XX% half

But therefore, basis timing net however, the adjusted pertains year. including the will both and of magnitude uncertain, expectations many will the loss the begins for clearly travel and will of XXXX, for remains loss further our it saying provide to the to to I confidence incur on on optimistic As up quarter can the that, close a I we US GAAP timing unable and the vaccine service. our about that first session. open grow, extent to what of note by year will my operator future. and I to control. The We we a and With are, call to and guidance ask depend to that we recovery begin for are full we return trajectory question-and-answer ease for remarks the accelerate, factors, Shelby? do continues restrictions the XXXX. an customer our expect, of and as to very on focused the distribution the advisories feel

is UBS. [Operator from of Instructions] Farley question first Robin Your

the wonder of adjusting forecasted the to very and I you about I you could consumption. timing question. talk mentioned of fuel taking tell difficult also for Great. normal if us to you would restart. your Thank versus any what you way sort I'm you're roughly thinking Alaska, could market, consumption too. your wonder that that to related help fuel like for visibility if it kind get tell hedges, on Thank I for fuel know a you're then us look you your And assumptions if sort too? for it's about a about year? us think you. consumption fuel as what a of wondering of specifically

running Well, many of water? it go to So the we angle else, the by on back timing the everything on us based expect up to very be off very consumption side, to way, interesting it's fluid. ships into how a fuel when thanks, in just like get trying that's And Robin. we have and on And provide the will service.

was to, ships specific have don't specifically I creative look and come But we'll up that the it way it. disclose to deployment a will the So number guide a will but what that we like to running. you as ask are – we know and

Okay. All I my one. just get right. Maybe follow-up, as since first then don't a

said And half XXXX? a you In it higher XXXX of second was the that. talked a you It clarify, it's half clarification. wanted that than a say different release, of specifically mean when to XXXX. you higher Or Because just than second overall? little about doesn't just pricing, obviously, XXXX did than higher I meaning? Just of has bit

around We half a overall Yes. XXXX, were similar answer the for XXXX. but of specific it's back

other half future pricing words, both second XXXX, the credit? XXXX above in and second specifically, So without is half with cruise

That's correct.

Okay. I call. quarterly last Because improvement, an think, your since that's

okay, So I will... great.

volumes a demand. the we are little are more. different I look in we of mean, there bit But impressive. that as off on our I at of -- a XXXX, clear said terms standpoint scenarios have we of before, I based Yes, very as perspective, mean, mean, resumption Yes. we in we're we And – is see service, – the demand

get line Okay. back more I'll Great. I line. as questions. in back And Thanks. in I'll got But hop

Steve from is Wieczynski question next Your Stifel. of

Good morning. Yeah hey guys.

help But you don't currently open us XXXX how guess out half that is. hopefully, is pricing or be of think right what XX% and pure the trying commentary. on actually some that a I'm but that this to half And first sale? that the first with inventory I know sure confusion whatever not relative around looks that like for to comparison XXX% there would So think to investors XXXX? first your I way about, question XXXX can really its much I'm is understand makes Jason, booking or question, number sense? I there's basis, ask about like-for-like if

most deployment Yeah. first open of for of is half Well, the our XXXX.

And lot the of here -- talk early many first our right? But historically, in bypass we're their for in on And more. XXXX. vacations, don't really we customers is we're stage. XXXX. continue about very there's what saving it demand They're a They the quarter booking of Now is here seeing of vacations. pent-up sitting

so return out to they we're going And they're go to to and eye going trying they're be when, to previously had service. to And vacations enjoy the able planned. that

you seeing at think And like-for-like our any rates certificates. relative are that very XXXX we're XXXX, or the of first cruise for look when of future up with pricing half so the shows that it's very, I again, early, application to without

I guess, looks of question, you're did, Understood. still least, made Okay. taking would I kind then or steps. think it somewhat paper. you're position, looking your a be solid still you pretty around proactive of at which, comment And again, second says at now, on right you liquidity But

So of option just trying possible to mean any the over there understand kind what those still forward? And evaluating steps near-term? moving you are out could

options. we a Well, first lot Yeah. off, have of

options. it's not So just some

and the as Obviously, equity and been we full raises. it quiver can access We market can and we about options, have our other have both market very activities, we whether methodical relates we capital baskets. extremely lot still instruments. are non-capital we But a access a capital have of even in

focus in we'll will operating the continue Some seeing on of situation. position. off a opportunistic being the And off as look to to continue some of to sheet. of it of continue be and the liquidity we balance to just strong But how that, based it's we evaluate based landscape,

business accelerate. return we as that, this, out So our of can

Got you. appreciate guys. it. Okay. Thanks I

next is Hardiman James Your question from of Wedbush.

morning. Hi. Good

live figure Sails prepared questions to which pre-vaccine by time, in. trying for how the a me, no remarks, Panel, we to the much So world? about talked how guys of think longer out you two in that's I Obviously, sort world in sail was the some in of spent Healthy just

what I'm and sail in ships how beyond? a have ships XXXX some to critical willingness trying figure whole So, that all vaccinated. the to on to on been already ships is, for some of board it's I So like maybe going board, the maybe mass speak CDC's requirement – vaccine out, have if starters, look cruise that a to just guess experience earlier, maybe let the of you and people notion

try to answer I'll that.

discussions it. Panels right, Healthy huge but coming vaccines change relatively the new. vaccine You're and They're an people of the take amazingly to where still interim vaccinated. work months those are going really Sail out were still really is numbers of and all get in it We're does period quickly, pre-vaccine to

change And And so looking that at around we and don't yet. have world the CDC the it. and answers governments we are would how

vaccination actually think can the everybody I see And, of the one that how in of is highest have the is things of are, see where example make level have the people than to nice significant were the efficacy things been the to higher they're able of people. we this number statistical out And numbers the just disease things we the now there, vaccines is on vaccinated looking the is world. larger the as is effective want to one of that Israel, therefore, very people get is look the one at and And the seen or and who is of that who one is coming done, trials that example, you've or of of high for correlations. happening. some

better reliable. more ability saying makes also even it serious is people even that. that disease in to But being So the prevent the than more they're significantly,

give that it's need that where really we sort these yet okay, while say is thing. you really say, have of could So it not all in in have -- we're vaccinated, new it quickly is is, course, pace is the the the vaccine we weapon. vaccinated people coming basis been that in the And that history yet fact But look a at the hard hope. think really or of will of able be these have that vaccines enough something what – that point a ultimate exciting to governments we that approaches. But the everybody beginning and been come we like. on to to Healthy the will Panel board will Sail so to world see a are exactly set that are and the growing around for lot nor But and it us a haven't world, out or out the of levels of of has that practice, define

Got to for it. second is a post-pandemic fleet. margin around your few you've That's helpful. and trying my quite And my head wrap then new question profile maybe gotten ships. the of Jason. revenue I'm Obviously, rid of

frame ships unquote pre-pandemic And on rid fleet? but the XX%, the – to profitable that just looking so were talk to margin the about – it, it’d like look way newer XX% yields Or “normal”, you don't quote, back call and/or once I significantly be whether to more what of, know best a got margins of and back it, levels and we're with magnitude, those order to presumably could what of?

good were to have take But spreading more so net a challenge, because efficient. to as Azamara, standpoint, of margins advantage The to tonnage. continue costs we were be us because guy the analyze obviously be of of look opportunity efficient. still the it's talk we out. And some and we've older will The on as -- about kind not it's I our cost will an of on the our a – appreciate be the It we and as that do guy organization, will costs is ways what the yield find come Yeah. early good to of this ships we very of like slight standpoint. sold for sale smaller, a James,

then But we on early be. this, too about to as those have margins. much this -- be So still wedding add talk to come we're as trying I out we our and It's to how we that to we specifically of move service. out of our ability it, come into weight the as is will kind of in accelerate goal back as kind describe of

Got be to any correct? just out thinking should about There it. guys. terms of a good clarify, in in you world, a guys aren't called And margin of we the post-pandemic couple bad

bit will mean, necessarily little here could just Obviously, up, I think bad it ramp we beginning. I ourselves look there's lumpy we return as in the have make service Yeah. guys. don't costs to which a

Sure.

important ships sold we that we incredible also think is new besides to in, we note our also or I the have brand for tonnage it's the the that that have fleet. into -- sold, that have coming

as we a cost-efficient They're better. margins. -- ships is inventory the our mix know perspective, so more And those on much they fuel and deliver higher

so the we are that all had what of coming couple noted the order in ships plus which Richard And next will have in further. us on years, here margins in also help expand our

Thanks, Jason. Thanks, it. Richard. Got

from Your of JPMorgan. Montour next Brandt question is

my quickly, the give questions. been Azamara how to some on talk what hoping it? competitive What existing And agreements? taking you're have are gears you your are was I in Good there process ship could the if working around Thanks assessing and morning us about for shifting to the then wanted comments And maybe long you've everyone. ship of credit that sales. sort you for divestitures? around potential flexibilities future different it additional factors

Yeah. Sure.

brand This our to on So will this we be here we opportunistic as tried a really to resource out Azamara an Sycamore. this we're we're think it's our do kind base. way are the of it's whole opportunity this that we do this, have we -- came at that how other really Azamara quite want supporting prioritize, on sale, we look opportunity grow. gives It And today. with how whether strategic come or think and investing, under will well great And process, of and how other I venture. through to as

so I we think ship opportunistic. moving remain forth, and other sales into

all I think these remember we cash of that need ships bit a pre-pandemic, of generated quite to flow.

It's And more that the with that state organization to little in a brands. of on less little moderate strategic think current it's some at needs is investment bit on ship we'll so whether and or fits We're this I whether within something on test typically, it, look it the we that's our -- is -- think -- ship it's its cash opportunistic. JVs. receive. through even we bit kind how brand less with for or about a And would our a remain our another fit we us,

then And Okay. could here. Thanks for that, Jason. more one I just fit in if

I but and summer your this where scenarios things for fly sale, could the don't the have the a stand you guess, portion to in over. For would have maybe could guests certification of that maybe presumably, assume, just Could Europe, summer in that there? today decent CDC out are the need reframe -- US you just as of range from play I to sailing coming med.

Michael. I do jurisdiction. say for to in it's mean, Celebrity. Brandt, to the there's our out technically, Hi, Royal CDC I it's particularly our and fair operations are fly the an not -- subject who awful Europe of Europe products, European lot to Yes, Americans But think join to

come either UK. Sail guided we'll be by the Union nevertheless, Panel through or Healthy the European from they the protocols So the as or

Health have overlaid the Healthy past particularly, instructions ongoing operations know have couple clear Italy Germany, of specific in the member then the or been that And have of been we and Authority. and that operations Canaries. for those the based countries, National with the policies by months protocols governed European So the Panel the some on Sail basically

I we're we're between as infections have to to protocols to in very to some decline we think is and of going is continue hybrid testing. which move see going States, see United vaccines probably the increase, to then going and vaccines what to kind we're what similar that see

way a are in winter through that we're season. We the coming fortunate

low into the and during Caribbean winter, the but So terms are And revenue entering the Group, it's currently in of operations. Royal we're have incredibly volume European we spring. ships into for multiple deployed that

get it's be color the and need from the to CDC. more guidance they'll very to to Or Union or that? from be that European going that you we the imagine do Does So we'll Authorities, help? guidelines subject similar UK the on that

it. very helpful. appreciate wanted you more no, provide If -- I that's to

Morningstar. of Katz Your next question is from Jamie

Thanks questions. made can have And I'd domestically might sale I morning. additionally, we the are taking quantum surface to that implement my better hear X what start then doing when believe for curious sale there? maybe you put there is been Thanks. June be is Norwegian that which has begins? different changes Good that guess, date Hi. that leads you of maybe than just a sort guys differently, X, to that May something start geographically out to

Hi, it's Jaime, Michael.

remarkable example commented really incredible great Richard we're between company It's and our Quantum and performance the in comments, government pleased cruise collaboration Ministry Singapore. it's his for the been being the Health As experience of of Singapore. learning and company, with a in opening an of

was revenue perspective. on has So protocols cruises. we've operating it than our three been now our expectations which revenue customer ticket The months. our with satisfaction probably to We've and Singaporeans close a quite around ocean before an in protocols, both is XX,XXX our exceeded carried from funny for ironically onboard way. higher is a And

products be future to has a question, may changing that our operating of But of subject So you we framework series the Europe. been the out a as probably similar performance very the landscape. It's really protocols within US or to of quite that a overall it's strong.

protocols of in the with protocols already terms reviewed. there's -- coming of So started be weeks, what changed. And in we expect being Singapore we've those in are some to

XX% XX%. factor was operations of Singapore increasing load our discussions at in weeks. For beginning constraint the We're now the capped in in about that cap coming example, to

the regime of some testing And changed. has

One come two Quantum, investment Health operate gained that technology. understand the from a times. the our really we've safely can So also together things. with is from work And to ship COVID things we in cruise large to begun we've Ministry during one the well, operationally, how of that

tracing, are Quantum your technologies an developed And using there of that So second from have combination really which it's the transforms or and lifeboat completely One done process a mastering. changing. digitally technology technologies. iPhone come of really the that And two are all whole for contact game e-mastering, app. we've the is, through is

the But done. development with have long Singapore in use we've One body then that, before that everybody in we had double of connected that our and tracing COVID technology them have artificial into facial been hasn't can share exactly who's CTV week CDC, And really, somebody recognition subsequently them, which and basically that contact ship, that very to the groundbreaking how Tracelet, cameras And been guest that we fortunate is contact basically tell Tracelet. we've with what in they verify then check onboard and and doing to happened. intelligence each sophisticated. think, event they've which been we've and the wears a else in technology wearing to that is we with conversations and last asked a did specifically us

But well think, So lot lessons vaccines a rate. being quite landscape a And with for operate. significantly learned. there's I as and you, Thank how we'll will is the interaction foundation it the the again, create of changing Jaime. ultimately,

Thank you.

from Grambling next Your Sachs. is question Stephen Goldman of

I seeing of in as of versus been in the to other you demand words, the the history what But region? seen missed versus versus the any this turning new by change improvement Thanks. look or in can mix you've bookings, like In Hi. intro. or you've comment you demographics between older new less? Perhaps crews an as bookings are up younger on trends marketing new bifurcation

will comment jump think me in as I and let Jason Stephen, well.

we has things of early XX that in that One continued a were and of increase. we've plus of came to increase is after who out seen holidays January booking guests -- proportional after number the the the in really

our if very with seeing is So becoming but and we're booking, as I know obviously is, then more belief bookings that much have getting from they're belief, the a we vaccinated, is XX-plus comfortable passed, about that in forward. a January don't this fact, are our weeks

a in as continues, the we group, think the something obviously, of obviously, bookings the to And spread positive. as every this in category. that's that age before which coming holidays Silversea that's -- by more I think we'll demographics, true And into uplift age accelerate. we that a I think we coming by age So population down an positive. see in And based is that even see vaccine major upon as that's see also started so bookings expect to see probably

that things guests cruisers have have seen of we other where in as the past mix our first seen the few part cruise not it I disproportional as to into we've we space. also back of bookings. was just experienced more to pre-COVID. a over add recently an year, What the back of loyalty is There well the been would it, amount as a -- Just of coming increase has

this, to vaccines that is, point the and think, volumes that of as point arm pretty of people because rolled there's being the shop of strong out. the But are other just would and relationship are add vaccines. I seeing plus. I distribution some vaccinated, is The We're and to Michael's being a XX in booking or

one, are confident something that are I there is, so And think the who -- point obviously, there order to out vaccine, people travel. to becoming the XX who now that, getting in

rather be realize sooner On it, confidence travel should and side that of of the this, side beginning other closer the building to than that other here people it's getting also we're to later. are

make And to a that tight just so point to seems as I well want relationship there to be that. as

Quantum, is more comment that add new-to-cruise our surprises real an with high of we which on us, bookings Quantum that's to positive. Stephen, surprised a one booking number exceptionally saw that And just but

hear. to great That's

follow-up how path? as long-term about level we recovery think and thinking sheet, As you are a the on about the Jason, near-term debt-to-EBITDA balance appropriate net a

based when able Yes. off the Well, to service. will near-term we're of return to really be

of a to So within period of it's kind accordance time. certain exactly peg tough

Board are to possible. the focused extremely levels back on as from pre-COVID getting soon down We as

be on to of that balance all or debt-to-EBITDA to a for that not of from But here to X.X if that And going is basis back sheet generation continue times obviously, at get we come in most that cash get sheet operations. the us So, to of going -- better. means service look back as we to shape. path a healthy into balance try the is to from

Your of next Ben Chaiken is Credit Suisse. from question

the say December November I February that that January so I guess, a and then, did on did go comment February up and booking And said. correct? or December, January were if -- sorry, guess were and sequential -- implied correct? that's November, catch That's ahead, XX% you I side, versus there, guys you

course, of in because December months, And, Ben. in tough correct, November an and just is cases society. incredible That rise were of

you. Got

kind question? tailwind I you saw Okay. the then you alluding were in And then, previous of normalization from to guess, XX-plus comment plus the the

who I seeing people vaccines, think vaccines. confidence travel, a in the its I -- normalization -- rollout seeing think, have a gotten just a soon over -- Well, I on wanted not on again bifurcate of that -- relationship now you're point is of who in obviously, really their the or vaccines, stimulus are the again. to to the I to you're decrease do But also because it's cases, and consumer XX travel but the they'll be with the focused able it's and

also an other as all we're -- it's the plus, increase we're just increase well. So seeing demographics in in XX not an

think if answered hoping you Got the potentially That's the CDC, alternatively mistaken, have maybe the next there? clear on key step back. any get instructions view sense. there? if timing to to to is pertains -- not, get you. super of some up And makes technical think or then, if Curious, you're some it I then, And questions That the as I helpful. I'm not

Yeah, regular soon. the the Hi, with Yeah. with any the communication at the unit we've expecting the Ben. specifications level. maritime literally both day And and been CDC, technical executive in at -- we're

between government come reviewing to back So into it's us get want an specifications. together, intergovernmental assured they But technical process operations. agencies soon things that of they've the within that, the all as several as are us these

literally just waiting. we're So

as optimism our and number increasing the we rate level comments, decline I think, our infection again, in see of to of vaccines dramatically so is think the U.S. the previous I increasing.

our get can sailing. And waiting. soon, so, we're trial we start hopefully, them and And we'll

for think, sailings, trial for I know So, volunteers. you over volunteers ask received that we when our we may XXX,XXX

of there's cruising. in So interested people plenty

I That’s great. Got it. you. you. Thank appreciate

is from Infinity Your question Assia of Research. next Georgieva

just to morning. Good Ben's my follow-up you taking question. on for Thank And question.

have more Now the us in the will you both -- process, with the of visibility et we a process the where change job of and CDC, terms all streamlined in more expect technical vaccinations of terms should cetera? cases, of how at guard evolve, in orders, including

discussions, and about exactly virus. with working really with many that When what's it's back a environment. And and us an in challenging into communication to us on very occasions And Yeah, productive, Assia. the several dialogue that's as relatively really when our us dealing to seeing what they'll they're explained indicators and Hi, they've start I get open on with this positive a is CDC assured the our move occasions, have then is think, they've process. start incredibly we we're happening situation with operation. And way, to these now. us

must Google, I single line is on on go chart the and plummeting. U.S.A. COVID and I so every how trend just the admit day So it's

is, sense news. my getting to we're So is and good that closer closer

would of CDC infection you willing offered more Michael, in they will, loosen and where any a time has sort if provide a of schedule? restrictions of be rates the to frame, threshold terms a

absolute forward. how going the are looking are vaccine Assia, statistics these to how at numbers. numbers the unknowns I quickly the like will not out, the and the us, think affect they, variance There roll it's just continues

what for try speculate be to on the variables. because so many us it's to So has number and premature threshold for it's think I or them

and we've think we day, drop the see move I that But been really rollout, U.K. too us the more. threshold that this nice and I think for And and to dramatic particularly or us bit the little try the pinpoint, we're learn to think more it's them States early the the a every still in experiencing forward. to in encouraged I United vaccine. is really allows

lot a Michael as thank well. Thank of you, makes That and sense Richard. you

of Patrick question Scholes from next is Security. Your Truist

guys. morning everyone. Hi Good

brands thoughts a far, sales forward? additional so ships sold going number You've on in of

considering in mean opportunistic we I things. remain Patrick,

in -- it the in or where our brands. investment the needs As It's strategically or commented to ship look get selling ship other cash. not it's about or within not not of when to could us, or I at that one the whether the the it ships brand whether fits fit fits earlier for within fleet, about we

goal any in continue that here. our don't but a specific specific way, have we come mind or opportunities So to we evaluate plans

Thank Okay. housekeeping, year-end Jason, the you. count? share was what follow-up, And then quick a just

in have of right back after... that me. get Let me to you we see I no, have right being if – right it I don't it. -- can front

That’d be Thank you. great. it. Got

Your of Capital. Paul next question Macquarie is from Golding

my taking much Thanks for question. Great. so

front. ships couple capacity announced you Quantum what aggregate the Have the supply the summarized follow-up, cut X just supply in a the the fleet? a aggregate in modifications to Azamara you've and cut cut the has fleet anything then changed and the that what be have in make so from to once insights you're that, view et much. the given back get water, the gleaned around you So lead cetera? on summarized to in what And as you've to might your Thanks if modifications, lead ready on time time

if in and I'll impact lead are that to But service. one, and All about our the two right. talking about let Empress, time which then of Azamara first me a for consider pass a it we X% capacity. That's you consider just majesty take terms the sold. ramp-up our you the on Michael and Well,

numbers. just So, to you provide those

Okay. Thanks.

been And operations regards operation and many, of many we've lessons from the applied months, with We've of the -- follow-up multiple corporation to and return and I whole to imagine, been been of let that bringing working the in regards on planning question have On me have for logistics. from logistics we to learning all the of just we've as course, part service Quantum terms all of teams learned with lessons the who've this. into sorry, -- that on our been mean, been to can on of working ships back second you Quantum.

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literally important So, the we is by And very week. that's return encouraged are of to I And it was last element crew. service late think results the survey. another the of

that So, you. information. extra I give Thank you to wanted just

Vince Your Cleveland from question next Research. of Ciepiel is

the occupancy, anything bookings for consumers' has appetite forward? you new my Curious going you're maybe interior to do spacing the for consider building with on get of about back to And cabins? that you'll to think or the term data your ships that Have and Thanks your layout maybe have longer changed there? related those levels? you that way informed in Great. Anything considerations, crew thoughts seen all pre-COVID about taking question. you

on very you do that It's of that berthing outside et can will sold potentially premiums see rooms rooms a were great those environment, We there when start-up, know regards beginning, or in protocols in the so cetera. that depending that. upon with the of with be question. crew, thoughtful we One place thing course, that of put we was Quantum we and And saw considering people on that quickly.

that as it So present don't may we see some it We see challenges. transitional. But permanent. as

really returning once And in as significant now. front go dynamic focus of us expectation right on returning terms we definitely is, our see transitional. of beginning, it I be the the think so we will than to pre-COVID don't we But I the in our factors. in do may no more And to outside our that's inside. phase there's load of inventory that question And transitional load pre-COVID through think factors, obviously But we know. we see

for That's mention helpful. debt Maybe debt. related follow-up remaining? Jason you And unrelated then missed that. to capacity the Did I

billion think of you recent billion, since is believe said I number $X about then? think pay billion. I the and And most the maturity schedule then you've of I think August, utilized as $X.X billion called old for down that XXXX. $X.X $X.X in I debt And

So that what kind you correct? could if of about – could changed? is And talk you

sure. Yeah,

are liquidity So under as availability we current it's it our $X you relates talk our indentures. is $XXX – billion our to And our right, for that XXXX, did debt Vince, those about maturities million. basket,

be of the for credit majority And week, and balance – As couple for last late those two was weeks. next out did closed here, what from of we have in about hopefully, agencies vast XXXX available, the of noted will we have that debt will holidays we off we of things, the export maturities our $XXX our secure based should million.

from follow-up UBS. question Your final is a Farley Robin of

Great. Thank – for question. you me for last in hop let

to where sort is to in to with into that That are reopen? I'm is comes understanding. the that kind this were were the be Australia? on the maybe very to Europe. those I US. market kind source question, to radar out a more can just Those Cuba. know there I'm ships ship my that Royal about of outside sort be Caribbean two thought of ships that market but were return opposed would that and likely thinking Havana, be I And if likely was service you thinking just in just mentioned Just other Empress fit ships – your minor, potentially Majesty. back other sourcing way only from that curious sale things, port and that is your fully just that's could but where wondering, you screen, more the the And ship is to Thanks. the Australia. then likely next one be in as like of the of the Royal that I of

ships. Jason when And I checked. we So for the okay. said, of deployment. It us these was very double a went course, great and think Robin, we've we're question buyer on all Cuba got two called and question first And

should do have into will Cuba, that back. that we fit come if So ships

we So Australia literally or and ship With or discussions elsewhere, and Europe we're they China COVID okay are vaccines, with regards around example, looking there. et world starting in to in the globally with different or et are at for cetera, governments cetera. where

So the globally occurring COVID. opportunity of is think lot of point terms in a with there's I up open to that's that starting what's

the And so in we around are world. discussions

is market. XX exceeded Canadian and quite expectations and within the North in Corning cruises XX% but of Barbados the sold in product would next on out American, of that open November the Seas, weeks. Home product I seven night couple opened our we Royal branch not into mix mean that of is products it the factor sailing our load be this the of a up, focused of the significantly. Caribbean XXXX and American, for we of Caribbean into to One we And Southern opened, Barbados, a UK of a [ph] literally really

to demand, for Royal Jason's is crews lot and of Caribbean. building there's and So back up point, think, vacations for we a globally

this kind where optimistic quite we're about is So heading. of

very be for call in day. which Okay. share great and of you will follow-ups interest you, you I the putting and participation the we for you a thank in any your Thank count, available might along. pass for assistance all your And for Carola today, all and Shelby, everybody, the wish have, I'll company.

and Ladies conference your this today's concludes you gentlemen, participation. Thank for call.

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