Royal Caribbean Cruises (RCL) 4 Aug 212021 Q2 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 Royal Caribbean Group's Business Update and Second Quarter 2021 Earnings Call. [Operator Instructions]. I would now like to introduce Chief Financial Officer, Mr. Liberty. Jason Mr. is floor yours. the Liberty,

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

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

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

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

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

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

us call today. the for on everyone, morning, joining you thank Good all and

revenue. has pandemic of long a been that all to it's X.X in know onset this no standstill since been the with virtual in in business how there's in period. business and You a it's almost X succeed time. a been certainly course the And difficult school We've years

of restarted operations brands. and our almost financial I'm strength importantly, that to we of restarting in challenges, but more and the we're already have of leading we're bringing Today, as set our the have reporting reporting another responding these Fortunately, Most demand capacity, produced. online environment dramatic and speak. progress results, our the very for are are well on we progress also continued half the on people our painful they we the unprecedented of proud

to board. working and about us gives comfort on their Our very well, be safety our protocols appear which guests

remarkably for in bookings like to X Lastly, especially I these XXXX. strong, address would order. are issues

want I about restarting; to second, to our operational lastly, of back impact; talk and our and First, their process the come outlook. booking protocols then

is that way our keeps even powerful. spinning it's back fleet to that machinery the call believe a going it's But flywheel We We by we take would sailing doing to me comfortable. getting will operations. to seems asking comfortable our them comfortable to effect. online cruising with clearly starting like yesterday people feel thought to we if process know Now We to only totally December. of emerging restart resuming while while cruises. that on them people return isolation, while us ship I take revenue are going a sailing full from of normalcy. half of Suddenly, demonstrate It the have it get starts and the that just thing. more the to the Once get how well make people flywheel best and it more vast of thousands safely, majority works. the people same Once spinning, the feel the keeps process were

so ships point our new but pace simply in who maximized and is passengers how the at hard inevitable. would started the implementing before the very we recovery. society and part first you we be operating In a the to normalcy, been official protocols. Also, the have top quickly. has sail thought of answer allowed people The have we crew sure that was in restart aggressive in towards and large could best vaccine had the water be the very we the were word remain service, this of And the We and preparing business asked that diligently our to back ships our we've gotten our which people why accelerated worked we started earlier, we have our some to Now where in thanks have States and that faster priority. approval quickly. make been has the progressing health of rollout, safety the return in to to

are have in regard ship prudent meeting and than to or financially shoreside safer to first, exacting expectations, so every we especially three, X restart, experience; and our we experiences in guest ensuring our exceeding a doing their committed equivalents; that pillars: as second, For ship safe pre-pandemic manner.

item the my second Now turning list. to on

think to related important to about it's safety protocols COVID. talk I the

a from our make has all attributes goal but you of vaccinations allow of can know, safe been beginning to to for the places pandemic land believe of to that impossible comparable as most cruising vacations contemplate. be We could as cruise ship the a extent. not ensure level us testing and As just that the unique even safer. control an We the to to would environment other unusual

Florida, of people choose crew not require minor to are to our under number of only fully fully require The guests get a who XXX% be bulk we be children to the as exceptions vaccinated vaccinated. the Specifically, we of XX, and vaccinated. well. And in

impossible to of limit number July taking the which cases COVID-XX in is ships. working. a aboard isolated to ships are the on it's know the special is We of board to vaccinated. we to ship seems it our But on be The idea fully cases likely people forward. to an all is going that steps designed outbreak prevent of and it's were impossible an rise our becoming And on the cases Singapore, XX% spread Excluding are board average a from as land. case, eliminate to totally, eliminate just this

significant few creates or the cases cruisers, that Repeat because We cases. have thousand them around spread. our no and people resurgence. isolated with rare the almost will that they've and a positive. is trust test goal, had million remained everyone vaccinated, drive But this That's individual hundred

Now early conclusions, for to the too they looks extensive this weapon, the definitive protocols. but everyone, problematic are It's is Delta the but ultimate vaccines draw and work. manageable variant our even by

experience are keep the Our cases that help breakthrough vaccines contained. aboard, them shows while there

In June most cases, July. unusual, vaccinated have variant of was our fact, quite mate Delta and protocols I strengthened we the in even testing tested our more the in more But positive thought and variants, has to people negative. cabin and even of had in than recently required this individual the even we of and be further, other infected light

a how fortunately, to thrilled an for deal we're how have of being reality. from We customers COVID-XX. making I'm cruises is with being source brings gone to outlook dream good. that are that a And that concern to this responding. our us cruises exemplar And

we're eager by we guests but that Our the cruise level again. were are would pent-up We hoped had even that to surprised there for cruises, demand seeing. be

about are seeing cruisers We to improvements to increasing eager a is come the among are is Jason in travel and their speak also ready non-cruisers. consideration vacation, It by steadily people to more encouraged high a clear going the among is across true. we moment. broadly booking active more trends we're our make to dreams vacation take Cruise are travel and remains industry.

hurts to know that so. the in confusion Now some the it's next of definitely few the going for we lot settle. to marketplace, situation months time There's and a or take all still

obsess vacations their book only on firmly efforts up our We catch usually But fail so well on that some and we people up the arrange our our now. if our didn't addition, present, It future can need advance. for with future. get will we or is time bookings future. In in are we we focusing ourselves prepare plans us until to about must take cruise eye that see will the to we didn't for prepare for that it, keep that to thoughts, We coming. we the

painful, year. this of in a quarter don't booking the service timing window, in and will generally fourth return year mainly our expect and it's booking Due be XXXX the normal and of expectations. third ramp-up the we the occupancy be service to continue with to ramp-up abnormal line to to While

doing seeing we the in the However, vacations best not delivering we has made and in company commitment rapid even next spring important to priority company's year. our steady a One starting stewardship headwinds, and progress normalcy The environmental, progress are summer of business pandemic sustainably. during also of remains possible additional across the only corporate Despite that tremendous social it return focus but is to areas. governance and service. are towards the point governmental

XX,XXX many been wind XXX,XXX Kansas capability a These And emissions of megawatt our Northern tours environment. X of annually which reduction energy carbon. are in energy. at a underway equipped reduces ships initiatives turbines from Reduction, the it's it hours XX,XXX in on XX% by ships And XX% with a the in more greenhouse removed It It's gas that the with oxides. that our operational a and reduced our megawatts. also We we've of about XX% include only year. are our our than the single-use to introduction saving the Tourism in remove to use plastics carbon-free achievements completed point from tons XX% to interesting That's is spans I've in by XXXX key for emissions. are farm equipped Catalytic And Sustainability perspective, acres baseline. XXX,XXX systems focused landfill certified of some X,XXX equivalent with of XX% our of XX waste total Selective of sulfur now that area put the chain. Global our homes. baseline. Council. few here generate generation just newer has XXX from One supply power purification the NOx the of We've emissions company, the will XXXX of assessments of Some over

we to is XX to to Our and introduce in for across our much will I'd Directors release have tide our ESG last and months covered initiatives suffering, of all continue efforts and -- our other board. much our we but with and Board the like The accordance turning. support improvement, improve caused of new continuous the initiatives thank accordance will mantra their clearly in Their press of of circumstances. with most pain want to this course the the through future. thank Caribbean of the men dedication is nothing I under swan challenging communities partner want and women to for I Group dedication. most for tireless to Royal black see and our us organizations the all, possible best the the seeing thank way event their of extraordinary. preparing and in of also But efforts staying short for elevate

And So to that, I turn sunnier back to days you, I'll look Jason. with ahead. forward it

Richard. you, Thank

This like rapidly nights. we bringing of for quarter. has we second an And to the or grateful. been turn a the across many, loss are forever XXXX. impressive back thank manner. safe, want of performance I This and Before service and to I a for quarter to their share whole many billion dedication through loss sleepless our per start, our that, tireless reported now adjusted collaboration in of accomplished morning, $X.X for teams financially Richard, fleet net interdepartmental second also healthy enterprise discuss responsible really our $X.XX for the will into I

the While second painful, fronts. the a are quarter multiple company on losses incredibly these for was turning point

additional First, an we cruise XX minimal service XX ships after activity. back months into welcomed of

our Second, journey sheet. our activities increase an customer in significant third, reduce that And and resulted unencumbered a balance pre-COVID a we took in booking to to began saw negative deposits. back actions financing we in large carry and increase our

of our our $X.X call, continued customer our this customer is we with of associated the XX% was is which as strong balance XX% to billion, billion. end point, June at of $X.X higher today, As a than the our last customer this At signaling about at morning, about balance quarter. as balance the time And little of XX% balance XX FCCs deposit deposit compared is demand. the of shared deposit first over

the On billion the closed front, liquidity. we quarter liquidity in with $X second

in more ourselves know, fleet March financial world-class and than helping all last new and attributes These you us a pride year. of highly billion As having strong since industry-leading and history of capital on instrumental a performance. raise been and innovative have we discipline of brands with $XX assets

beginning end, During redeem proceeds the unsecured full. to senior we $XX $XXX of that cash our million and of to annually to efforts in senior and This used second sheet. improve approximately at continued successfully X.XX% our million manage XXXX. notes quarter, X.XX% secured generate issued we those notes will balance savings And in

not delighted the with providing current the cash and a of are restart are the globe. environment and by for this generated burn in our remains kept operations We expected United momentum and that around previous our offsets we The the are fluid, layoff and reason, new the with at highlight be to expectations. revenue the for or the burn will customer that consistent is estimate related deposits. ships I rate States

ups roller of and actions service our debt little our $XX back thousands each debt back XXXX return capacity downs board million we guests our Now remainder welcoming full the as After and bringing and to year and a to are year of finally now on more the multiple service, the very coaster I fleet of a timing never-ending scheduled you maturities, of and cruise already into painful on environment. billion. this regarding booking capacity, are update $X.X our it pertains maturities of and losses, will are liquidity for financial than week. now

the guests sit board to ships in half more there with of ships our amazing incredible on which of April, than welcomed our as brands. vacations incredible. layup is Caribbean, that during In our Europe, to the across ships XX pace we and of fact, are Iceland But today, for been X The guests them bring is Galapagos. at year. Asia, we able out It brands have sailing the are X teams the the guests nothing only first and ready think of thrilled XXX,XXX our short delivering X to had XX Alaska, end on have we of

also in to guests be X of We this month. more process are ships welcoming up ramping the

of And about the year. service the the is planning, our ramp quarter end up purposes watch fleet our having the the a for capacity, been back return-to-service in XX% in As When to considering at area anticipate region. of of continue have we Asia we plans approximately and end of to result, one the Pacific fleet third the cautious. operation by of our we XX%

many you still very an update announced with levels fact on business. little and XXXX in close build I'll part in below sailings are XXXX to the Bookings reduced Now that for give our bookings. due capacity to time were

XXXX quarter. bookings However, improving months, we for second to By the And QX the XX% week during levels. received the than to QX, gap were with compared to June, narrowed X receiving further about trends the X XXXX we next. bookings about with more in bookings back each during month previous more when XX% practically

counts. closer-in with markets have small As variations mainly to Delta it we relates variant, seen with in bookings high case

July second bookings booking However, for of highest and month XXXX was the strong. year are our

and where We The #X are important strategy the this protocols incorporates the such, to by opportunity for particularly is demand the activity constantly our steadily of safety fleet several facilitate their under encouraged give the each amazing next. in is continued as in load a the X and our priority. expected and the health ships at sailing than strong XXXX factors gets After consistent spring changing seamlessly to than is factors. our and with month are occupancy guests few vacations months. ramp-up And This voyages belt, our initial that XX% capacity of crew is increase our evident our and environment. for occupancies more to booking plan from crew our new sailings low ship are start-up Overall, higher load the and our implement for to XXXX. now new summer with prices

This as seeing are isolation. our well experiences. for record onboard are restaurants only Promoter casinos, Guests year spas we and the seeing demand resumed as demand a are really spending onboard very enjoying we ships but not Scores shore as Net seeing for our pent-up cruises, in also after excursions, We revenue are is also pent-up for that have record service. encouraging revenue

seeing more also services to an as our and consumers are remotely. demand take vacations increased more and for work flexibility WiFi have We

Looking factors the of within further are up continue that too well sales. a booked and impact booking including prices our continue to are still forward, for historical will FCCs. XXXX, be that we bit the nicely demand ranges versus share next but is XXXX I load by at year, we in early to dilutive for pricing color much to impressed the It be seeing window provide

were as quarter we will That the recently we for several service. in be after returned first still expect the While planning the of in is factors for mode booked being stages ships ramp-up cycle the do quarter having lower-than-average load ranges. early still XXXX, to historical said, within first

Customer strong particularly In addition, ranges load factors a year, strong this half is than quite historical for been X/X sales booking profile we customer QX of of and are at deposits marketing only deposit the that spend. in higher Underpinning end a the for typical spending considering XXXX. demand in the of is currently and XXXX. same back the with are for position. our have XXXX profile This time encouraging, significantly about higher

provide the We rate saving an vaccination flywheel thrilled are tailwinds personal of in that saying future same increased such versus also spinning will to to ago. globe, we demand, significant number I consumer years accelerating that our time increases in indicators the will a by be larger increases macro optimistic around close and confidence further rates for are X sharp the pace. at

question-and-answer vacations been more optimistic the the will up to and and guests We this see and for have months, onboard our And more than globe ask with it's We for in and I here. United session. around dreaming open are XX call of thrilled feel more the future our a States very Shelby to about moment enjoy ships. finally incredible that,

[Operator Instructions].

is of question from first Stifel. Your Wieczynski Steve

given that's is, at there sailing you COVID sense say, been have economics think point look if to and way ship itineraries I you the actually capacity money? help is taking ship weeks, if guess And to sure cash that or the that breakeven? losing is a ships trying X or ships today higher X what or this make protocols cost you not for on, of guys can I'm the EBITDA whether are where lower us or understand going are these today? the levels, some have to flow I'm about the still So not, et last the any cetera, you gotten Or last, are but these

Yes.

So that ships guest right, experience bring ships cash Richard's getting to making are few commented in running, making and remarks, after getting up overall was up X financial exceptional, really our that guests the which finding is of those is safe; focused and can Net standpoint we as being sure a in really to pillars these as of the high And our what is the occupancy and weeks Scores; we're are position. that we're accretive very third levels we're in on crew we're that ships. a sure very responsible you the hear and Promoter on

for a And and -- being a so few really it position. weeks we're on it cash to after us, we're accretive up us seeing running,

overall me right then raises Okay. at us about on And Just way. down Understood. investors maybe mean say potential to company stuff doesn't can then down any are to I because now, you and terms right. by take I different road free be very ask back the of are way flow? of EBITDA there continue when get, bit whether or But let is a guys your to be year, in end let's think might that's service if say, help the that concerned go level, if all, of get -- cash think that of you able a something breakeven you little but the path important XX% in the you about capacity this the doesn't stay variant you let's

ramp-up But we mind, And course, say we kind year, months breakeven we're service at cash up in think business, into is in what off X I be those seeing, early. of the ourselves out flow ships returning at ramp more keep point we of our ramp-up end running back less, some being XX% from question. see fair there's But of the we Very on the of period flow business. the for fleet very going about it of as ourselves or of based see Sure. cash positive of of a are that is when months standpoint. kind the just and those. X a and about up And to

UBS. next is Your of from Robin question Farley

a the had question breakeven. flow similar I about cash

after of of finding it, where so flow number focused, of but on question, about I sort does Delta. kind my near that mentioned we XX% second occupancy hate to the kind be? the And we year. needs occupancy the the how few you're that should being a the still know know by You a release of sort breakeven then the in level July about If the was very Is mean level? in weeks. of cash or put to quantified XX% think that investors and I impacted be are term I short-term focused other on highest month you just comment that that And

stabilized bit you that be sort at was June, -- than guess that, down that direction I guess if investors don't to comfort a June are I do moving to as the guess, sequentially has just August -- bit So a things little of the feel July? that know of headed. you're about similar impact I that sort would level, that sort of directionally, August which from that maybe means XX% that you QX. into little I of here, of give better

smaller But kind are I'll around XX%. think XX% closer -- to that midpoint we've you ships XX% ships Robin, that hop to one, that of I of jump ship closer some will is And hit accretive first older, mark. newer, on of Okay. time in as the to to and the are us the I XX%. And larger Michael variant. on obviously, is and the you for been thoughts on the terms saying just think

being -- variant. over a to accretive occupancy forth to XX% pass about talk us. costs so of Delta and I'll XX% those that ships our kind considering return-to-service And range little so to to also it the where is bit is where Michael And see we

of from I the positive Delta demand. very last of Yes. the would terms I environment, weeks, perspective seen the and customer X think booking say in Robin, the we've in in growth

with vaccinations last enter a as X and we positive weeks, I into environment. As very think moved we and return, service through the as customers saw our really And return booking announced hasn't continues, a the really such But 'XX. 'XX, positive it at increases on material at but into all no trajectory as short been you it environment bookings was. look in the it's did we see When to ships over we for spring impact term. the

customers, what So this and now consumers It's a I think see bump. for a it blip is.

we've test think positive I contact by is from very a with they negative. Richard guest, see vaccinated that same We've feel may a and that in in do often, vaccinated you we encouraged very ships, case when they'll encouraged as trace, find what positive a have protocols room and either that who's to opening we in mentioned our or quickly test. unvaccinated somebody we we the got his the very onboard place, And COVID COVID be been have comments. very

So working. the really are vaccines

number the requires August who of starting XX And to accepting up. you were were I down to think community the vaccination month policy that because in X, And to we mentioned, our still be XX% kids Richard vaccinated. July, dropped of July, vaccinated as the XX age our ship we on think from of vaccinated. with I the and population, of entire month speak, so our in sailed around -- has XX

are news there with good is news this. the becoming think the I is, Delta if more So that is far good accustomed to variant, people

impact. If our and very transparent. relief you've this, and recognition feedback got something a contained to we're this encounter we as very that as vaccinated we The there's we going population, is from think, I our And minimal get highly is ships increasingly, customers communicate, pass. sail, that's

That's helpful. all super Great.

ship We orders. off. Just you will to about. just would delivery shipyard, comments that thing, locked not is then be your But totally newbuild know be trying some and hop if hear about about -- impacting so your dates? the to then Or totally final order how question to about would I opportunity a in -- I had just may price that extend any prices assume renegotiate higher don't so Royal. maybe higher steel significantly, the moving that I'm price have your steel by prices I an share up orders, these borne off. and the be or and think book, steel and by I'm one

steel Robin, in it relates There or is order our does typically, our when purchase in on not those costs. Typically an the yards lock to you the we side, steel as fix it just have know, on prices. also book there. ships, order really so impact also, inflation their of and

delayed -- us, we're to on. take looking as of to you to about reality these the originally X going these impact are when to on the forward is, not able for configuration, impact The those really an be investor ships that's the to expected efficiencies, capacity get ships the environment bring community And excited them there. at knows, that to positive online. quite they're there's had to months So When we frankly, new on. ships fuel we're coming look the the cabin get the opportunity it onboard revenue, XX

of is Badishkanian Wolfe Research. next Your Greg question from

prepared takes North customers puts year? Fred make you sort up of on It's on and of international spring the continuing there? see in you for that and evolving home year still just could we European sort you relative a American how touch travel you a of Do recovery to are next travel see think chunk market not Wightman Greg. in Richard, but into remarks, talked normalcy being summer. the big guys departures? What towards the more in your 'XX Can on normal about

I make countries more many predictions too were this goes. think and local. try about are cautious Clearly, the way we doing not today's to

our thing. domestic travel year see and actually its the other So to other the happening service domestic that weeks. in There's -- be kind how to we it's fleet this, international a you look to see domestic just of the tremendous Europe. we've restrictions the saw think But all if gone a I it this and travel. at domestic you releasing of U.S. sort back on you I travel from air is travel matter as people opposed we've in surprising, And today. tremendous all back mean quickly. decided we're growth, in we've And half restrictions U.K. so -- in particularly the same -- to this extend I time at thing changes. international and you're same going seeing at But wondering seen of quickly mean in whether that

So are the you're here. a and game And vaccinated. it it But unvaccinated Europe. I And upturn seeing and working getting already think it, getting more the as in working. the seen an vaccine also of -- you've it becomes changer people more bit in is is

that. the Europe, initially So low on having they've U.S. New fact, was equal being Asia, And much in just or, vaccinations ago, -- the cases, behind compared which up ahead have way curve in and they're rapidly are of weeks domestic shifted. on of Zealand, few ramped Europe the but and fixing And travel in to while on they're U.S. focused many not key, the a vaccines isolation and vaccinations. focused, it's Australia now they to and initially

what more distributed, I And I once out there get they people -- international travel. we vaccines staying it's uncertain this a we the think once out to I and is more think will become get an widely expect yearning is you'll for now, think But restrictions period. there. But So see closer home. to there, see months would

takes while, book tends that travel to So also further in and international advance. a

for be that be already. travel a international arranged quarter of the expect to would -- lot you So to first

booking, it means on think we haven't And move count. to quarter that And year, we're I people as fact really forward normal. to we're normal. the is the going So travel that been be that to to first weak we're the international expect looking back seeing back seeing things in

by we really encouraged we're get spring And and into summer, so we what once very are the envisioning.

new-to-cruise returning? maybe thoughts a there some up around made you how And consideration was cruise makes just give That some sense. that you non-cruisers. among see picking Could on comment also and put about numbers

Michael. it's Fred,

to to always all international Richard's on the a to globally. we've a thing much note and is of add think comment just in travel, international markets presence response had sales that's one important marketing key that significant Just pretty I

have in times benefit, and we in as utilized strength normal times that well. we've So and challenging that always

Australia in markets, we Europe, to has Pacific presence. drive which had or markets, throughout or from demand always significant drive-to And helpful. very it's always particularly whether those we've So Asia been been able significant

I what my thought was lost question? the Sorry, of there. train second

new-to-cruise, the Just new-to-cruise.

Yes.

can't recall consumer but look numbers has raged see we we've not been since stats, I this you going sentiments of obviously, What of to the have increase, think prevalent, segments you give across when all decrease, beginning them, I which our I'm the and see as different the improvements tracking logical, see, hesitancy particularly you because, at different very for we've categories. vaccines as and hesitancy and travel you the is see of cruise these become pandemic is And seen confidence consumer you segments across new-to-cruise. decrease. all

were journey. cruising the So view remarkably we of And upward of improved. if look today you it versus the at when continues its new-to-cruise pandemic, it's depth in

with new-to-cruise Richard's we'll quickly. do fairly and back that our operations, see more and think, we we about more come point point in Jason's the we have have vacation operate, the us believe an that amazing and and we the to customers more sail then the So flywheel, ships that

Jaime question Morningstar. is next of Your from Katz

mostly exists more hoping a market. new-to-cruise expectations expenses I'm pent-up entice there wondering think given back little those about should for what rest still is depressed, I'm talk your if selling the the or to the ROI of opportunity you'll out to positive a for marketing the if that there specific bit are we and year. demand remain

Jaime. question, Great Yes.

when been amount. marketing more kind want teams timing our sales we have watching the activities. of of marketing Our really overall the It's less about employ and to

up is much engine that expectation marketing even as think will and possibly Our we to we quality stronger. it our demand for we there's because opportunity to as sales can ramp be harvest that

on can is for say is, you that closer that when exceptionally timing strong. are demand were should seeing, as and expect would What the we to I the overall, marketing the what see side future is we is you back spend here, the we're to so periods And before right. sales going levels

and demand just always 'XX bit kind are very not we're a teams we generating for our so XXXX little Silversea. brands also for of for thoughtful are But even about And that. for demand like XXXX, generating

So for me just in jump -- Jaime, just sorry, let second. a

we've through the through in been we've pretty I that's And optimistic we has the seen spend months year, feeling When door we're opportunity strong. reduced think about the about think and been yet it has it all activity several front incredibly. -- of past really us. demand that this the the investment, our marketing way marketing coming over

almost ironically, been demand investment seen as level and yet And the same continues. 'XX remarkably it low. we've So at our has

move variant, of of Delta through market, significant go So think we there's thinking when really mindful that going us. but to course, and we as for into that do opportunity to the are we September, we we're be

already that things about thoughtful about, that people -- we're thoughtful And seeing one of we're only are quite pricing. spending but our of we're So seeing course, very in And the we're this. is up, onboard we spend. that not

So that earlier by our been onboard Jason already that the commented ships started I we've we've spending encouraged incredibly operating. think

In fact, very numbers the impressive. been have

encouraged that way we coming. really opportunity So I think a go quarter, an as And fourth to we demand. of into in in is we happen when what to the positive market move we're there's going by we think think terms

it was probably -- it some like it's any sounded on that? lengthening the was pre-pandemic. you fact booking directionally, be the there that and Is commentary despite actually curve, shorter add still the to There can Okay. it me on than might color

that probably previous ties actually think to referring that a -- in and my I little you're also question. to comment the was So

we shortened don't wave this didn't I would think, for us even because actually, given that base have have a booking XXXX. -- year the have the we has in period curve XXXX and

think, very shorter gotten because uncertainty of and I ramping fact so the that only And because this of it's quickly. if up the anything, is actually

helpful Our yield us. our helpful The is also longer in get booking It's it objective to curve back. to is management models.

And things do. we be will the so one we marketing. marketing It's want that to of does in happen. yes, investing And

as demand period has where with term. short on have and So even pretty we have can been the And we we're fill well long demand demand. good, up will in generate satisfied particularly a the to so short notice, more never ramp though we term if as

that is you us to that, is that first-time for relevant, rather who going The forward. asked it's be other want people cruisers that there's thing real no a or about exploring haven't we question cruised before, opportunity

bit demand course, make the kind the clear has summer window as multigenerational booking launching clear, as window a we're for of exceptional. compromised in this add holidays, average, of we're the course, thing time to they've well, really is commented, for Richard period. short travel, extend sure, sailings but and customers it, last contracted customers certainly which, little period booking family to that seeing of compromised they helping summer, very Just One to very as, themselves on in. peak selling that's that it's lock And is of want especially for you're of kind certainly is summer,

from Sharon William Blair. is question of Zackfia next Your

And of for excursions are the pricing take up follow pricing bar seeing you onboard you some those the or how customer activities. of started spa? elasticity demand or to on there? to dynamic wanted I the Have on

being the really pricing enhance also take just you're it's about or to their board just money the more -- overall So of are We're our it to seeing guests price, the wallets really our volume for willingness out on What returning. not just thoughtful things many about or experience. their is dynamic. is them as for overall, it's

thing, And across one not so of it really our just all seeing onboard we're it's activities.

as they're their on in thoughtful meets as make which of sure well it's and they're baked very vacation expectations delivering very to them. for the experiences, we're pre-cruise that a really side, planning being kind well As their high

look seen think, here saw an -- we mean, we're level have only and of are think last it's in the what what for is the a time. seeing thirst I the it's wealth we of we're what so periods if July, and record, month you over at And I previous in of look demand seeing quarter, that I but experience. APDs almost not double really of And indicator

Or passengers? to that really disproportionately seeing That's globally skew And you seeing that U.S. you helpful, nationalities? are Jason. across are pretty

We're seeing it globally.

the And see world. with I certainly, it's really occurring guests, it's you think -- American it. can all really over our

it's across customers. our all So of

next Credit is from Suisse. Ben Your question of Chaiken

the know gave capacity, you you're about talk can think in being about you of I fleet for it maybe But then You back, level on color since alluded thinking you ships. some of how around to I XQ, that capacity. Steve's gave on APCDs? guess you color total Jason, question, high some I again, So And believe. XX% I just meant XX%

on So like side? help APCD units, any

some forth. of the It's can work Yes. we bit kind test of on offline cases, and sailings a in we Well, have because little terms little APCD so bit side. a fluid in

So out it's there. to of our XX% a or put metric measure not necessarily meaningful But capacity. we're

quarter. expect XX%. up We wrap third have to itself to up going in the It's to

ships because I being quarter, especially mindful of XXXX our of that and XX is you're talk see And ramping many then they're year, not going XX% bit fourth are but online, points be we up are is to ships we think and back first themselves the and expect running, up say it's fleet that to up. in why through to is flywheel ramping additional of thing that similarly, ramp-up normal as those quarter. we little a when and kind about it the of we generally just activity. and is the up a capacity be themselves beginning percentage And the get in their ramping here about kind normal themselves

more, And I then if it, missed helpful. one I That's apologize. you. Got

position point? said this kind X I caught frame I company for correct, think you I liquidity you you if think overall. of time months you're you're Do reasonable you breakeven a in at that until said, in the think

very those are we meaningfully deposits, do. are get terms we're our mind balance unencumbered and you're customer think I journey focused seeing to we right, liquidity And strong on is sheet pre-COVID Well, increasing. the of our in position. are to in keep us And activities our collections, sheet. a other balance in that thing And think the to back

generating layer cash positive of another kind ability of that's to our flow. kind to so And positive be

is Grambling next Stephen Sachs. Goldman Your from question of

any customer deposits. seasonality quickly. be back guess early we and follow-up comments on through coming Should back one of That the Is kind next I should think year your obviously the this that, of of has that just been linear? to year? anticipate there half a about in

there's of level Stephen, always a seasonality.

for just obviously, on You customer the of you're peak on of rise as things. more time, bookings a -- side periods taking deposit there's in the

very the is a of month each most to tied for here, quantum lot a there's level announcements. just we're cruises of for just it's but step sell seeing we're But think a to the And part, I future. starting as what think for steady, that. change, So the I

a each shifts. right? announce I online coming And is flywheel time we yesterday rising. announcement deposit about than for timing that that that's are XX% would the balance that mean like resulting less or spinning And those bit starts about our when little you beginning off of our XX and towards ramp-up -- the really that, from a based see think so that and more And and Royal, of it, And ships. bookings new those FCCs customer lift in are announcements of XX% tie ship bookings, we that. -- the

I of the beginning I that interest. who a yesterday service Stephen, I'd return have from and you. of if thousands, have add saw it of to in to questions should we we deployment, return-to-service lot confirmation. we millions of just dates the bookings. was really not amount like sailing significant And our big increase get made the our the confirmation, hundreds Jason's When a a kind it's It's a and ship's customers, for of receive make significant we last comment. announced waiting announcement that's We think customers. a think We to on of deal Michael. what June, when are do confirm literally when announcements also simply at

the people waiting. social they're remaining yesterday, confirmation media, the -- gave on you And are on waiting go They're If for we confirmation. fleet.

we quite about So that. optimistic feel

and of That's other and your this in around the looks may to change for It I a missed out? gone does breakeven have couple occupancy have how only that running, your of like color. and is ships intro had But impressive. weeks these one some great of get some pricing, levels the follow-up, expectations maybe remarks. And ships especially up pretty since you've

thought your of breakeven kind the has ship-level around So evolved?

better impact Yes. APDs cash to whether necessary week, because, Stephen, or bit has The a next XXXX that's the higher. the are -- breakeven breakeven little Well, the -- order be said, you them for obviously it's as factor will position. sailing gone load certainly, our are level higher XXXX on or APDs in to

of And see at prices so overall sailing again, kind higher I think we the had with guests it what in anticipated. the guests ships, albeit that you in line to number the how -- terms of that that very us, we're are the shows just of it are than encouragement is with sailing, ramp looking with up

Georgieva of Research. next Assia is from Your question Infinity

are in the seen more be with European travel wonder, we fewer of With North if home a you of you Europe passengers difference be some would question a traveling -- Michael. normally towards State have passengers mix domestic that change there, down? can parse in -- of than what for versus our there might in would and versus of bit it more America, issues I restrictions the legal loosening Sunshine are little the Floridians the a further in expect? This

fairly that the really where terms puts which regulations, throughout strong. in and demand a is dynamic commentary a and But What as demand I our with There's that demand has think surprisingly is investment, seen of face as takes legislation, rules, significantly already shifted level, of is think higher and ships we've we marketing reflected all all of strong. look less know, environment we in changed. has -- at been I brands the landscape. we've changing provided,

COVID. stronger. even closer gone for home, Different think the to I journey through for Europe products demand own is with their have within countries

the have cetera. in issues legislation, associated various in more States, environment with than States, et though a United the United even ironically it's we it is deal the So in Europe to with complicated

been demand. you. strength I surprised answering that's have. as I the numbers think with So move really of not what the we -- the this, think I that in sure I'm we've if I'm think question And the we But is through clearly reflected to

picture answered I'm this landscape, is clearly a the the not for sure -- of bigger of positive. So view it's complex it's I've a if question but very you, complicated but kind

Well, requirements. because but have you as in -- complicated. testing, different adding not loosening of it Europe, additional is first on pretty been mentioned, lockdowns jurisdictions, And different countries changing, all, vaccination restrictions,

expectations of that getting difficulty to this it's that very say, all time. given or seems for be might embarkation might great going ports whether not wonder QX, you a And the quarter. Florida, that of have of Caribbean any let's I to be to some of because the that for that it fluid quarter, some for sort be So Europeans that affecting is

first in No, jump -- I'll don't I affect think there. point our that's really the think things that of on just quarter. there's lots I of view

First frame is just time and the booking window.

the expectations, it in Second of is a Pac the the Australia which a their Asia which Zealand from period consider I kind kind of cautious themselves is that's side, our ramping ships of of position we operate. New going outlook when time just the side, some little ramp-up our and and ships bit starting terms up. And typically kind of think especially of of

play North the you're in a but little will all our commentary so heart U.K. and markets a right Europe for and our I'm I more forth, think, I quarter. of America what that into first just it's demand sure saying, now the not, general key at think like and bit

Yes.

to -- -- -- for in we our I it's mean travel closer brands never high QX international I just our bookings as home activity mean market or been traditionally, well. not products. has also market be a on that jumping I of think tend any QX anyway.

into as QX really when and traditional of this typically, see the across lot during that's you So It's basis move continents lesser traveling period summer, peak what you. anyway. a have a -- you the people on

Thank so from also this very only has a Michael difficult, regulatory a you perspective much, perspective. and Again, but been Jason. from not virus

commentary. the appreciate I So

Cleveland your And of is Ciepiel from Vince question Research. final

I I'm about side opportunity, improve the the the the for some of But costs. there's opportunity about business longer-term been on think curious picture COVID fleet and pricing thinking you big to restart then efficiency other through learnings some wanted margin think coming -- you pretty near-term despite how noise changes more of this, I maybe within And make that as sounds should it all to the any like well. efficient. good. is

opportunity? are how you thinking So that about

really that's appropriate been opportunity Well, the because I think that's -- We on the regulation, back. the on lies. I'm focus thing service, And into with term. to question ships focused the protocols, be in very X.X the the is focused focused we've where maniacally your pleased years on as the of et short that's we cetera. And to tend sort on very on very short same question term, on on getting think I come back only begun

of this you interest that most So to coming and cruisers, ships both will think there we're are onboard of from operate better and our cruisers of we cruising the in nicely, efficiently, that in technology, we're need are better the use cetera. this a the happening revenue period up. of control also can mind. a seeing tremendous spent that as onboard is we our seeing of very operating of I changes seeing, in there's for and efficiency. that capabilities, we in have ability we've about revitalization the series new We're credibility a The to And bookings. things. have And capabilities, efficiencies better important consumer's those for We et we go during time our And lot the cost made both direction optimistic that focusing We're enhanced more and that seeing ramping generate that, ships experienced and forward do, that revenue develop we've on new And lastly, ways to had. normally many the that new technology. of the markets. reestablish

put favor. much those on think, to that trajectory prior things the those are our us we were of all we will working And as we're in the pandemic. very back forward, looking So

and Vince. available And in Okay. day. for a company. very for the follow-ups you thank us, you Shelby, assistance with thank all from any all interest great your have. we your Well, wish we be day ongoing today, might all Michael will participation you call the And today. of for Thanks, you

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

disconnect. now You may