Royal Caribbean Cruises (RCL) 29 Oct 212021 Q3 Earnings call transcript

Good morning. My name is Shelby and I will be your conference operator today. At this time, I would like to welcome everyone to Royal Caribbean Group 's Business Update and Third Quarter 2021 Earnings Call. All participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. now introduce would Mr. Financial I Instructions] like Chief to Officer, [Operator Liberty. Jason Mr. yours. Liberty, the floor is

Good thank earnings everyone. business morning, And update for us and our today Third Quarter call. you for joining

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

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

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

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

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

everyone. Thank you, Jason good morning, and

It's year-and-a-half. what's Caribbean a an on within happening the certainly to a Group. give been it's always, horrible pleasure As Royal update

reason forward sea a COVID as we painful. be pleased at of looking to as at period The financial awful are that positive of ink red is and we've this But Looking our well statements to such path. is gotten serving is moment. we as we us where to approach we've any The coming to rather were the given at our where eye on months. we needed look have, firmly than same we had because go on seeing well

themselves, our admiration I position Royal on hard, women to us has time. stepped their up period. appreciation TAM the in Before They put protocols have my with most through this get families protect of amazing true going to so this ever arrangements I of to all place express have our I who them, any worked throughout our invented are and some dearly, have pandemic diligently Group difficult members an so forward, hard worked guests. deaf Caribbean comment cost but you, our crew under us The so of say the To circumstances men and plate the experienced. and heroes. to you the their for and people financing coworkers, us care of the they thank all and taken They have of trying

Delta Now effective the good intact. much But very treatments. bookings, very slowdown present. going to for remarkable we're on this scientists It's The I focus have in where In where and especially close than our with But been. pandemic nightmare recovery vaccines our trajectory a is not yet a in. temporary us we've to still call, remains this fully intend answer variant behind given caused us. rather

doesn't about awful been. the trauma talking all are to how experienced. it's on to of We start we've need of conversation need with description tired discussion a COVID-XX. Every dwell doesn't Every

clear forward for and and Fortunately, appears our our the path Company industry. positive for very

are objective special validated. vacation. advantage and that The on cruising of make For some be coming cruising earth hope appears of features the we in your to now take we now time one our to places have the numbers of and said safest to spend

flywheel has get to strategy spinning. been the Our

changing to changes protocols. deal months, today, For guests have uncertainty. XX we are rules, added had almost and have These operating cancellations, constant normally. confusing over our with Thankfully, interruptions,

already ships the itineraries our end Our year. virtually on Two-thirds of operating this basis. be normal before being are consistent of a delivered published everything and our markets to will in are core back

is consistent altitude, our operations steady, during the prioritizing to Like start the will and a wealth. year prioritized new of with travel to comfort have spreading speed goal book guests confidence Our pilot smooth, give the future give cruises. advisors the takeoff, that over plane We

higher starting load We with lower fewer vessel, ships. trying than loads ships more even have factors up prioritized per rather on for

excellent core as goal executing our a been financially is will possible. and have the put to operating and has prudent this start January already wave is is have pent-up public to as in of travel showing good normally quickly manner. again. a deal period great that medically Our to us are the our We and position markets a an have wave of period demand in bookings That eager

a from long especially XXXX, not We of a trends on. high have us to up for period for. bookings the normal. booking confidence of give make But back We're to level current poor summer

recent the However, cruises predictions January cruises onboard who not pandemic. of aboard be to new highest some and unparalleled. intend their changes, are these There today before ones conditional sale in they out. ship is most amongst be in welcome. those cruising today appear the the not the Once also by visible temporary. the Satisfaction bearing is order remarkably likely of our prescriptive is do are CDC but to spending Company's different announcement dramatic public The to a remaining are to very that a history eliminate are the normal similar are and level to

protocols and CDC's CSO to the help will Our the market. level by stricter actions demonstrating confidence are give own that The they confidence anyhow. than the requirements are

the appreciate normal while we are strong encouraged travel bookings We a very about we've still been are Now, do environment. we that not in seeing. that

special the is image starting of confusing changing cruise build of less emerging are usual has now has previously. of affects continue in lower was constantly the There's China we'll to Group. back. consumers, strength Royal than also also period early restrictions, group, an of our And industry sourcing, The how we is what's due which a strategy the and Caribbean the that much, We historically and the bookings. albeit the on a than important story Asia one be to the international pandemic to a weighing from forward. and from going fastest-growing believe travel days of minds about much happening markets, been of of been part the our just

over. However, is to in Olympics that as know, travel at until today We China reopen are cruise China the to travel. essentially international closed expect includes do least not and you Beijing

Australia. not approach They the containing been has switching travel as Australia's to now the to rapidly of to Another to vaccines based isolation. pandemic way Australia on open disease. important is a expect anyhow, on spring. do cruise But market until for the profitable We controlling Against next next much are future us the until get from not predict how quickly background, since can XXXX evidence the this year. counting of is better. until start Australia end our summer winter, we're our a strong our season doesn't of to ability the

to believe cash to than It We rapid large the could reference can have unusual we're are touch for regard. understand to are to least current frame in progression. provide we us prudently number that results chain also and this level next that profitability factors new the that us that But a to indication any two any of of of slow, turnaround, need subjects etc. a capital constructive trajectory and this flows and there trajectory, the of ability prospects a like But as are is of on to we human and steady the early. flow. this supply cash of worsening the encouraged a other rather including Company, I'd actually we variant, Obviously, seeing, strong forward shift of spread see to at we going year's disease, be wanted inflation, predict a on issues. return interest

people Our of are watch concerned carefully reports performance strongest of our area arena. so hospitality especially very in and this the by shortages, our labor been we throughout we have history the driver

place operate successfully. expect to world. crew it desirable onshore, have has members become around every the not while shipboard restart not business our and problem a That long should current issues do not seen very the our one. as Similarly, is chain been closely, jobs with attractive do we work, something watch as situation that serious impacting a seen we ability we no interfere Supply person everyone exception. been to expect we're and as we Fortunately, are are it will to and by

cushioning traditionally hedged our current this And buying we volatility. is us from have beds forward. key supplies Fortunately, the by

our Looking expect our ingenuity these power, us protection. plus purchasing to forward, plus contracts we give

all a be our remained have not other a pandemic of we behave need way this proud thought on part while timeframe. to even to good important The been has Now this fronts of been be corporate has consuming, that can process we in either. during idle citizen, all an

Over ago, ship weeks some that Project on few contain significant we of most new announced announced of A steps few environmental we've the will called last forward number the months, significant ESG highly our a of aspirations. the Silversea those. be in of non side Evolution, It and fuels the features later producing water lower initially of the the vessel will capable environmental any as ship off docks. carbon-based we'll a advanced carbon burning they on construction of develop or cruise LNG, multi-fuel work the

a fuel-cell vessel. significant as the a of have In addition, technology, it's part will the energy it of but demonstration project, capability not

plug use As in without often purely amazing requires means need a in even with to so won't others. to emission-free having very operate it result, mayor, concentrated port, effort into it This its XXX% engines a fuel-cells. hotel of will on load not only technology to these the to develop able a That but ship be do shore can power. conjunction an its

for up of generated setting construction goal and An our called but will the a project Zero. new announcement look X with note energy of bigger distant vessels. X will there to rubbish delivery by this Net delivery our also the to XXXX. that XX period, reduce to interesting supply the at spectacular In science-based target establishing Destination months only it and we this last get This ambitious week we've the to to more. even energy, an future, will disclosure signing during us technology taken take not use chain our the project was advanced that X waste confidence. eliminate interim during we're footprint milestones used convert next By carbon to allow also techniques addition, and the carbon initiative, It's is for accept during the months, new process. of

In X of in South fortnight, we next here the fact, Florida. be ships these over will naming

remained not We have idle.

only far Jason, in of who to Jason? get admiration of Caribbean With turn the back and pandemic appreciation I to people would have to it like Before than not it the Group, and I'd anyone even gone back to I the have above for Royal reiterate Jason. through my us the turn beyond, to forward expected. also with confidence But us and future prepared look have excitement. better shape to yes, that, the

Richard. you, Thank

very loss X.X every I incredible turn the for service I morning, want member to third billion the delivering an the also competitive discuss while incredible better performance. our burn revenue we driven Group single want advantage, results that to you comments our of some a the cost $X.XX below that be of their reported a XX% beginning passenger with be contributed month occupancy increase Onboard the tenants next. from strength per related sequential would with and we revenue quarter XXXX. the better XX% It's for regarding quarter and Caribbean ongoing our my experiences the cruise were are Quarter adjusted one note better the third strongest Royal guests our for these ramp expectations, provide again, day our up. important Before by internal I estimates, total of This revenue the to thank and Third efforts third basis family cash the of our than may compared to now world's performance day. improvements the and or about will and several for From our I of per in to our our talked quarter. was and restart, every our share. the of street net to to our to exceptional resurgence Caribbean of begin quarter results Royal XXXX. loss echo Richard's remarks, expectations, vacations. of the onboard memorable teams, people, powering line best In

expectations, experience guests and they The prudent the our vacation and of up we was the matched way. first second ensuring that ensure was bringing the health safety wanted the to in exceeded our a third or guest fleet that crew, financially in was

restart, three guests of on only XXX,XXX So since these have XXX,XXX XXX We've had cases carried COVID over people. have delivered we a amongst the these tenants. positive far all and

well is we basis, than that XX% to we true our to clearly providing accretive. load as healthy to promoter make we running, itineraries retaining as factors factors that industry highs. expectations safe manage guests The price up startup far period, averaged to once addition And In on scores vacations, well net return ensure and a to were while to with stay above exceeding last our more integrity. on those would XX% initial have we're like flow beyond all core of I our cash also leading capacity all-time of load point now the our are our shifts the relative tenants, and continuing by service should

I and over discuss capacity load to upcoming Now, factor expectations like period. the

over quarter, fourth capacity period. startup be core little X/X the beyond will itineraries of the our a For initial sailing

will overall in one trend fourth of and increasing quarter. the As month range such, our XX% load to continue of the factors in to expected the be And from are XX% next. to

do expect our core our generate itineraries to In addition, on profit. direct we fleet

levels our return service XXXX to tenants, to load increase expect integrity, historic return our continue healthy and price in month-by-month our and to focus summer. on the Given steadily factors we to in

XXXX, in standpoint, to ships this that expect our with returned will the season. capacity operating of spring, service summer a of the service of be in of for in capacity lucrative we end our For XX% By about time our the by back the expect end to QX have year. XX XXX% XX we

While monitor we key opening spring. anticipate the in are closely ships. the timing dates of of This vast both and return Australia the few offering cruises markets to influence our majority will we of could and destinations, China those in continue our start

sheet, quarter our ended XXXX the to balance we with $X third As liquidity. in of billion

replenish X.X% we XXXX. and balance successfully quarter, we third continued at our were in that issued unsecured in manage due sheet. efforts of This savings result to in senior were secured that the end, proceeds interest During result To to of a $X billion XX% a XX.X% improve will as notes redemption our These used $XX due of senior redemption notes the XXXX. of in capital million. X-year

on hardware to our margins. with structure take pandemic, actions As leading, we have we high-yielding, actions These and getting discussed further our during and our calls to water improving fleet. taken -COVID leading rid include on reshape the other numerous cost continue cost tonnage, pre a to more efficient focus of and adding

will actions While healthy related these pressures on cost earnings. and to do inflationary margin service, structure improve the anticipate recent year's transitory will to some our weigh return next costs we profile,

demand were September to more with in level, next month the booking new rise give and has for great the so I'll QX a all QX and the long the with sailings. continued took and were variant. improvement higher than three improving despite far bookings XX% been been Bookings than bookings on of QX was macro an two have significantly for one XXXX in during that seen exceeding our QX. in than The October, improvement XXXX the average. week August biggest sequential now a September. Delta and from QX Now during you XXXX overall, than update brands markets, for U.S. higher one in momentum At bookings new the UK, bookings This higher to our levels. have better our QX are place quarter from than a next. we've corresponded Bookings the

than levels by forward, and are quarter within for anticipated our in for ramp driven levels, strong load our programs, and results are our preparing restarted standpoint, booking factor the cumulative We strong the nicely generating factors from a ranges, XXXX factors brands lower load us book load historical first which second of have XXXX but remain aligned are quarter with XXXX up. now marketing historical

are quarter of negative year APDs the the and up impact of each excluding including FCCs for full booked both XXXX. and Our for significantly

core in trends differ than stronger itinerary products by other a volume always, a our do itineraries. with summer little As position

Our balance the past the is balance. billion, increase about customer in reduces an quarter-over-quarter million the customer of deposit $XXX significant $X.X improvement now deposit despite revenue recognition, over quarter, which

XX% deposit September Our of with at end difference customer the lower than driven XXXX than less the balance was is by three XXXX brands the QX entire it for sailings. almost

for them redeemed deposit same All the in all than X is related higher Our been to customer the FCCs have forward to at sailings of in balance bookings deposit QX this our Approximately XXXX. XX% approximately time FCCs. XX% related customer of balances far. brands

to none, set on at I just best the day I sourcing nimble discuss unique industry, cost, are perfect The and would incredible global land. that early very the destination team very the is segments, like effectively Now, of now of in us everything a and and best all through at Group the Caribbean fleet brands and accelerate it. Royal of possesses pandemic their us manage out considering the XXXX. environment and experiences helped and innovative booking This most footprint our most of sea about the both have effective second said to CocoCay assets helping view wholly-owned like and

group call it's next such, provide early will of the With full-year while question-and-answer for We open earnings ask the up anticipate year, and for in EBITDA to to positive of guidance XXXX still XXXX. operator generating starting our As I the the too for session. that, a positive currently spring

We'll follow-up. roster. pause a to if please Q&A the to Instructions]. that and one compile do yourself moment limit ask like ask a for would you you a [Operator one As We reminder, question question, to just

Wieczynski Stifel. of question first from Your Steve is

back morning. about load guys those to make bridge how extended now in the And are more getting dig back CS next how CSO historical versus about different independently? quarter versus even that next does is, third factors making from year? levels. to good of you year. you you want that contribute are was the What order your by another into into higher to thinking would of is, you getting mandates thinking the removal I factors to question across I able been the operate is assumption wondering I'm much load if guys, guys able vaccine demographics being commentary how asked to the guess have about you're age Hey, way today where The

summer. just are talk little bit Quarter, Hey Steve, how year. didn't we bill and about I we you all think very doing? be I'll obviously this, peak to next our for and We come season. lucrative our to off to profitability specifically business and start the maximize summer pointed load a in Third our to the One preparing specifically revenues factors point -- a

X to factors Again, per our over our talk load up way. here tenants a is on based doing in Our it prudent that's business a the health that, side. more things about ramping X CSO, of to off the and have I'll doing bit Michael guest thoughtfully little somewhere CSO a to pass just things and factor But of way. measured about on load the with experience, safety, up a those X It's factor points. but this not load talk second us ramp I'll build. month. about on governing we're to Michael of financially

feel the a and in protocols Jason. be them, protocols and to you in Steve, with CSO, determining I through, fair journey CDC very part and work we've we these been executing if with we've intergovernmental agency the then what think as earlier, team I through been they're collaboration it's think the the of and this successful implementing we've say been with think quite the Thanks, terms who that I been and like the proving, think service and very representatives to of the return CDC commented successful. Hello, have industry the to

certainly after end with several happened the a CSO collaboration that our voluntarily to technical we in the found months we further expires. comes I has that terms place the over aware some to we've fall this and make operate they're been away ongoing got January will and want is really CDC constructive. that operating naturally the we well effort collaborative have will very of as on protocols will the moves While CDC in past the what's a And CSO relationship of focused, we're and the rear-view They in that the think with the XXth, and further mirror. safely continue also pandemic that -- protocols the we sure

protocols move comments factor. Jason's easier our XX, is what less and customers. we'll think that, jumping hopefully as and we load see I become cumbersome the Having on about for into said

operating back as large these that and means And than crew over While now of And got and we're logistically, all we've that operationally factors, to get what Royal importantly, crew, it's by absorbed more I'll thoughtful been booking. of all those We've the Company. our use already and pointing through managing ships, for amount. and vaccinated we've to bringing prudent a them. about ships back and berths and a that now and brought out we've extremely available we've Caribbean proxy for we've expenses, our we've and climbed is our any our of significantly competitors beds, significant assets fleet capacity more worth the load a managed our of International all of number gone mountain

distribution And that ships customer have the be things the we past and the were cognizant and this now the Richard over consistent as of need cancellations One very a pointed half. very many had stability. out, to with so of the we because we'd year of is

conversation, particularly And is up story load ships that out. it's a and while as it's the of the we're already optimistic this feel about pointing we've achieved And that fact we've feeling of we've sure into very to understanding Thank we worth so with sailed So happening. CSO. products the XX%. been focused the of about the Miami on of attractive out Steve. cruise. And Last the Freedom it's got operating. averaged weekend, CDC we from that talked you factors, very and we've pretty we capacity. look more many to one good We that's that adapt think occupancy pretty what's to and I our learning how going And products for protocols optimistic our feel of exactly that's about are purposes one about what to making XXXX, that's, and new with an of the Seas

you. some could think Thank That's are helpful. to give year? you're metrics, out And question onboard embedding to at extremely maybe point, thinking would but in thinking that you're you from some about not I us mean, earnings you anything would to year for about be you're or how help second understand get that the thoughts if color. be think here that guys fuel terrific about us how maybe or of then guidance this that Jason, help to pricing would about us ready you maybe I next help assumptions you high-level for level. around next the And change positive call

through sure, And course, very still our next planning year. going for we're Steve. Well process much of

seeing Our what's supporting commentary certainly well as around timing our build XXXX -- up of flow. current for cash expectations around profitability the pricing and as the business or how we're are back

transitory talked and our But will that much there XX% series how our happens will be are of still next Michael of year. as course of to protocols, things I that healthy for that that depending costs absorbed these more referring inflation. next we fuel one A I a lot there return which in -- think up be the a and we've are consideration will do of this some to toggle kind additional ramping of be We've have very costs. protocols, and to Michael self-induced there of service the some think up as the testing. transitory a done was relate here of about hedged, costs ramp around here fleet. those as is year expect lot And We on to year

all that's about -- this that profile. talking at why profitability of business think could the that impact even feel you're towards XXXX. But of our As that, comfortable in considering point we based off kind I cost of pointing

As get of you to some we we think look -- as is year, will thought next consider and of how year. firm the going giving into XXXX through our I as more in the plans up course start to terms

Thanks, great. guys. Really appreciate it. Okay,

Yes, guys too. you

James is Hardiman Wedbush Your next question Securities. of from

getting to broadly, third look as of Obviously, Hey, guess exit questions you give fleet been more good a question. on in be think quarter. the morning. lot Can and I'm I first there. the metric about fuel. housekeeping cost a ton couple there's inflation consumption guess per the of into Anyway your then as But consumption and I years? XXXX. to younger is going to we pandemic the XXXX berth those per we us

XXX the metric average question, -- we tactical Well, Third Quarter, thousand tons XXX.X well, burned, James. was $XXX there about to had price exactly just your we point. the answer first I'll In your that

have capacity. Richard taken on new have well, -- as mentioned his we We remarks,

next year. taking be will on into We additional new capacity

have We of gotten tonnage. rid order

per get to here on Also, do and fuel fuel year will will we At be point passes on too soon lighter that is would a fuel this time what fully is as mix to net less all we to as consumption help path out. efficient. focus what that so future. we that's our also fuel carbon on lighter deployment here neutrality our should expect. our it's And in consumption guide for that basis on and next that, our fleet our us the that continue will more the become here berth as saying on more not burning But of focus in expect the and of still side

reason you're and is think with Got implicit saying. the with terms early about pricing everything that normal to in to else? there XXXX respect then, Obviously, I fleet it's that a it. us seems the be but any pretty XXXX given and beyond, is it to everything in wouldn't and way everything really guess, encouraging. And talk occupancy that year, too you've of

early is very to marketing booked experienced, better very, that just days and to would be especially for in and it's we're call encouraging. it demand about and similar strong further profile. seeing, trends and ahead for excited a people's terms out it again, XXXX. say over talking in booked pay of the place early, past, really than seeing of really What -- But And which of we're typically are XXXX, we're we we're it's about willingness that's things are the our -- Certainly, a Yup. environment, very have XX what demand about this very I days, and bolstering really is the efforts levels, we acceleration what XXXX XXXX. XXXX would period very where and we're far -- that be

were same and We're time XXXX, a position we XXXX. in year If you were at better back than looking then. last in you're standing

the as for one on bookings is XXXX. that but me add just in would I our of didn't the came Delta to that bookings any XXXX things hit really have impact variant XXXX, to our seem on, was it interesting it and

I want I I to people what out soon, saying, is want get to whereas heavily. make think it's essentially I have things this it do demand, don't no doing quite to XXXX want bookings I have Delta have think been pent-up I on variance that saw we do stabilized. sure from there. quite and impact where really it XXXX the But impacted XXXX dramatic

booked. week that's fed on probably around days, And nine we about was carries Royal but XX ship within of cruises Jason X,XXX the with remarkable a million Richard saying the I I I of for on a seeing. days XX% have only launched loyalty Royal it and Suite, sold balcony. of within world a of we of and deposits, up booked we have are all price and world these XX% so And month think by guests just week cruise The a Caribbean with fact jump at $XXX,XXX ago. we the $XX,XXX the suites is non-refundable even me available room a things, literally were balcony these that booked Jamie, our customers. we taken XX response Within that back in The were Unbelievable International, average a to is and cruise know what we're loyalty with our indicative to world and X members. made were

I never Michael. hearing of tire get that

could just you that so In cruise fact, far. how maybe us are on booked tell we

actually. XX%

know. I Amazing,

forgot to that. you think I mention

be an was it wasn't effort going knew aware. just I to I

color. great Thanks, guys. That's

Thanks, James.

is next Your of Morningstar. from Jamie Katz question

you updates on Can into insight be the private into morning. Good what over to Hi. you're Michael term to what at give the your that the another have prognosis us guys surrounding next outlook. then the thoughts underlying any And economic that the in or destination some order that backburner. wheel, maybe have you year turn give hear on I'd incorporating projects environment is had you your curious near Thanks. or

just cruise, part know, You called the should world as might of Jamie, he thing up his this commentary. bring

day perfect might the conversation. a Or fit in to

Yeah.

Possibly.

going how of Jamie, in data and, So thought -- of business and guests terms booking of is have like. things we terms booked kind very speculate or the look have change. out, environment the good what in are the how how to about lot don't a is today We we on as always book economic of obviously this further looks is we've how they

and and very that have continue that lot believe this we will the in that and acceleration course, pent-up that go makes much the to and vacations bookings, we've a trends much very demand seen bookings, of of experience on. support Of seen us secular

banks do have seeing So tried probably say what and or consulting companies that's have economic of us, don't -- we're would houses people different I But firm what daily have booking in is the activity. that kind that a for up really to in There's we how forecast. outlooks. I

Nassau, Perfect plans. that late destinations, In in XXXX mean, that week, South Hideaway -pandemic, of we're Perfect seeing with the we and part as Beach, is place, are the Day. was adult The us our a throughout re-engaging obviously the immediate do for those New things Caribbean press operating in going quite of obviously we of one perfect terms ticket future, in to We we soon. reengage. of see with of already is on which more our by of it did we're Day And of in have did construction is close on to quite on we're of we're both Hideaway that literally will that is interesting plans, drive which It And beauty out pressed now the onboard, that and destination last that's the approximately finalizing open many an and pandemic capacity experience start out but South it started the was then of day and overall new have projects Caribbean a in and pause conference on revenue expansion these that plan We and taking addition already in place profitability day charge re-engage there to the now -- a with. about of of the the leading help late activity club only Beach demand countries projects, design, a people we work pre Central developments in fact, we've is will hoping allow Florida ships coming. York. increase And Jamie to improve talking I XXXX, Day. private for in we re-engaging so the that Perfect X,XXX level the area pause, premium other approvals done which And in very started to terms and have for to those a and all region. beach to Panama is experienced during we've

the Texas, course current in Terminal ships a for to the bookings. whole icon into driving aspirations XXXX our press on Oasis-class have and But continuing never Day away, our course, think accommodate access got of We're -- for journey. really Oklahoma, region pause that's a our moved gives leading opening and our driving us and while. too. I and as will that that that is Also, just we market then remarkable certainly, we've Perfect future Galveston charge of

Thank you.

Jerry. Thanks,

is Stephen Your Grambling of Sachs. Goldman from next question

thoughts back just something input could on perhaps what's per where that's is dampened spend and I of some additional you limitations want and some to in thanks. don't but much by or provide could more the XXXX, you any of imposed? the it recognized where love robust strength I'd go revenues some to driving I on Hi, being want on if to provide too be social details day distancing still passenger

Yeah, for and sure. talk a on little just off here demand I'll environment start XXXX. bit about here the drivers

first look my -- X over in mean, of occur did are X basis, bookings or if the was daily than XXXX. higher comments I that seeing than you think my really we're that seeing weeks, we the had made opening just remarks I were just past I a is one higher we what in what on

marketing a into combination seen that's of also our now of the I new combination consumer, in that out our think our especially coming pent-up comment that trends a minds I'd that we're seeing play brands. that here think into come have we've Delta I of of demand. and getting it's for that to very cruise the that us are similar efforts acceleration. of consumer, also all accelerating

talked part of ultra the in especially this strong in the year, luxury we early about remember you If side. trends,

those which especially we pick begin been to always really think QX again, As well as rise, also past I strong with demand brands, for There's all across QX We've of further trends and seeing the summer. provide helps over that's also coming booking, very strong all brands. seeing consistent there. of with our seasons year. next days, QX the and up for XX-XX very of of us we this, encouraging, are as confidence shoulder But QX seeing our were is now out

Super-helpful.

the we which occurring that shine add spend more we on things it Steven, the groups as increased know really consumer impressive. onboard to is is investment on our to very other that's be revenue environment, really beginning of our ships. other couple are we've be there, ships. new software seems there's groups us. really in is was more and that We've just also us special our to seen far that that volume which on And And -cruise Jason's revenue in which commented really comments, capability thing we marketing. truly the to A such of for proving happening just the that gaming allows through that profitable. Hybris, coming is to And which the thing have are to pre happening continue

for even are positive are there's that look already revenue to gas, XXXX, less us. that example, as ahead QX So there's though of things we pre -cruise into just XXXX, way coming volume bookings in of help lot XXXX, on so through a

I'll the much. in queue. jump so back thanks Great,

Thanks Steve.

is Your question of UBS. Robin next from Farley

XX% expecting a below that a how wanted of something handle average, and end talk or Great. levels ask trying are Thanks. than historic you about -- you of get to that being lower range I factor investors up to When about talked to load much on. QX around lot QX. for occupancy about

actually is -- So in the are on you capacity would -- XX% for ships sort sale available that of can you not quantify QX service. of be in your selling not

actually I is to QX so in you is the few rejiggered and So fact of this in you also, just what's factor rejigger know of a had how things factor were would available And QX the ballpark the other of that probably quantify load are the to big help then lower much itineraries not itineraries bunch last don't months sale? in what year. percent that your the last if for know

that part to yet versus you don't get months probably As to is to itineraries less I X -- itinerary, want on think an much load normally are don't quantify XX QX have below trying people As to these be because sell a X investors if of in in travel you to some you'd versus I know how here of opposed that? months. than of can the selling now, other it. a handle factors that opposed

capacity need I remember expected that So is of and think the few in our sailing up I year. to the be One, to we think play. a end XX% of about there's by

on, majority into play, which the as be sure what doing the that XX% to June used rest that making and exceptional. guest move here we from slowly similar comes to crew ships into is where very we on to experience executed sure As the bring is need protocols or the in the that of we make of been is QX have everyone the that to

we're certainly in so load that up. ramping And moderating factor

in lower in a which in most Maintaining not of little but our would there might say moderate more the there's what that to -- driver XX% And leave factor and early on changes a changed slowly ships That's manageable into factor ramping QX factors Certainly, price QX, biggest up of really itinerary load on to our so as what's is difference load has a that out I probably or ships QX this, -- -- the you there the come up driving is, come mean, itineraries there fleet our in fleet, there's or capacity probably I would play. ramping our a it's of that really be than our driver going and way has that's it. my port is here port factors of -- that more be because the integrity, that's forward. the here weigh of of QX. on or load going in bit load XX% why than guess in few see QX would that

compared price? on ship in you the Caribbean. in ticket day comparable a spend ship Great, my a QX. on that's follow-up Caribbean compare that higher day talked asking about onboard been how helpful. is give comment really passenger X in in you have But revenue the obviously, bit QX, would've And that per ticket if and a per Europe cruises, I'm how of you XX% it price little person. Thank by in a of is, wouldn't at a XXXX, just And Can XXXX, you. in Thanks. lot just driven to

to about commentary they out the think rise good booking has I just -cruise really around here a are and pre what driven been question, we've a spend. and that of But factor and here first called saying side, rate this significant onboard obviously side, here that made, so It's a is a onboard environment onboard what applied we a period. on in want we point would rates much seen Robin, seen that load something ticket similar is we've make had XXXX be I the amplified It's saw to the Michael in to been our better basis has specifically the third that, than lot quarter. what our very on

I I the obviously etc. might were anxious think uncertainty or to cruises, Robin, advanced to But so I And changes. little your have to people a have there everything add on in question about. there their which been want measure think where ships vessel didn't that But that's and that's to a up changed, without I overall little just -- etc. a been vessel. do talked think color itineraries hard just There's that a time are cancellations, vessel, different and get of which there's focus and to people stability. us by more if look on we've why an period you been an think were effect X are overall I forward our by that factor. And running it's that's itinerary to effect by been of And will. all have There's of bookings, really

very Thanks much. Great. Okay.

Thanks, Robin.

question from Your Brandt JP Montour is of Morgan. next

there, have had savings a might year Do costs, guys offset know for you material impact restart that you my that and everyone. excluding residual you when is Jason, expenses to and taking questions. last gave on I my fuel operating about you And but don't onetime expect think know I be is for unit an morning, some net next color Good Thanks To excluding year, that? costs? first question around fuel, inflation

the is at our we we our our What that what today, in certainly I business, that an say, terms consideration on inflation Brandt, least in is know consideration, and of course. and impact will Sure. would in expect, that in have

We will transitory costs. have, these as said, you

the in other On it, the of talked this we've side about past.

significant taken our action on costs years. over have several the past We here reshaping

into costs We around up certainly is do evaporate, as to And our we transitory this we'll additions ships is our here historical and to temporary. think as show returns we of which business and lot healthy free -- of absorbing costs are our margins in lot return XXXX, getting so load these lot temporary. a the service And inflation factors. things of then a think believe efforts, a We'll those our

your still travel to wanting then any peak easy spirit for to maximizing you some the toward to any I appreciate helpful. that in Americans pricing XXXX's expecting itinerary ask, given regional I of you expect the impact for paid that there XXXX's on domestically, that. profitability are -- -- is that shifts mind planning mix slate and season, from And mix? have dilutive in do summer are the itinerary That's way guess, you

be that's touch forward the very think us, restrictions comments. with is simply to incorporated for try But and that's in think Actually, restrictions not projections. our global no formal a Americans could that on the international we normal. of the and absolute but question but is is regional the we that in point. on what people was -- also a fact to European travel, brand more be on question, travel, both strategy is our strategy, longer-term it that get factor on than we uneasiness restrictions distance restrictions, cruise I psychological an much point And the were see, a of have people's both important is cruise. made will important and we There we no to Europeans an our that's Remember, we the restrictions, And what longer government our hoping think expected part take we've impact. American life an and that

in the activity stress, that next mix be of live deployment in very for just the is how And is to every day, booking modeling -- XXXX sourcing thoughtful that -- we is going here year. deployment in coming for know in time been so married part minute in -- here I has much is and seeing we every think most our and consideration think the a period our obviously, the very etc. We're sourcing, that to what the XXXX. to about of

far. guys. progress And making Okay, that's on helpful. luck. so lot, a Good congrats Thanks

Brandt. Thanks,

Wolfe Research. of Wightman Fred from is question next Your

on cross-border just -COVID Can follow-up last levels? pre Hey, think for confusing. just mix or some environment the that you you XXXX where and that sourcing international point. numbers sourcing those Richard, put specific far guys. to see I you bookings called a as how Maybe as compares maybe

tough this here when of in our point time think out Alaska North of the flying the to and I next the also parts just and time. over deployment our Europe Yeah. Europe, of our to same on a Northern so in we at it's be U.S. we terms of pre a more is Caribbean in year, it to in Mediterranean, North will that's to other be overseeing sourced deployment of expectations bookings going lot a of in and in Americans our out more in and Europe. of forth a period -COVID so side, terms Canada versus did lot mean specific and than towards and But we America be and put way will the married about weighted

of all saying somewhat plenty the and Europe But coming are year. of in is going to our Now from people to the still people expectations those there next U.S. that, moderating Caribbean we from Europe forecasting. just and

pandemic, Jason back to different period negative. see single e-mail that day-by-day, that that piece deals of brighter of was there a was it's from reasonable better. and get and Fred, these to the issues or Richard's add conversation, from every I receive to to And also or with government think the When through all the continues you news say think just week-by-week, we comments, news the and

Now, positive. everything turning very is

to over in And of think opened that that the reasonableness. have X, between and coming the which European into itineraries critical in example, now you which next the 's is or basically and to bookings. For and destinations get the ago, month presidential will wave. protocols out days the Considering we entering into going I as through be across that feel of travel news proclamation November, just countries continue this -- continue can we a leveling all what a few you the U.S. see different up we're

you that the understanding what could if impact do could you Jason, current think current you of the for on in any tax just of comment proposals some or readings And Great. guys? and have maybe U.S. your

impact Sure. in we being there significant Obviously it's don't evolving time, to anticipate our business. any at this point

Thank Great. you.

Sure.

Your is from Vince of next Ciepiel Research. question Cleveland

think in you bookings look that for interior for as and was you taking at as well what what second on question. sailing your you're of half now, and full like into And sailing versus pricing Thanks all interiors next balcony comparability are my demand selling might anything Great. I is pre mean interesting did load reliant seeing ramping curious. you you mix you're then When of between about the the XXXX? -COVID? out right what as to that onboard versus year, now

vacations this Certainly, out, our more we're way. and is surprise, suites this, more the are as plan our typically we it their window, that booking and -- if look business, and at typically further you we out, weighted to at People, are weighted they when our balconies. don't I you by to would a is the way, how be were towards booked tend look think book this far and

start It's sailing forth, towards suites. as it's point at it, and of balconies, in. But to we similar of to move coming everyone XXXX. relative so And it's look well very inside time between it when see at your of to expect this certainly and but XXXX. when begin so pricing cabins at you those to is that again now as records as rates and those the weighted those to heavier in, are

again, further saying profile the richer here of in more which or that getting growth and our more coming richer have bolsters that, inventory supports until Now in just our of all inventory our play, is we and of and ships yield future. into

is ship how Capex unrelated payments. Normally you're are you about beyond, about think financing, year? next I have thinking maintenance you out yet, mentioned how and usually going Capex. cash Great, on there's had as But covered by and piece Not of if then as year? next wonder some committed this which well and thinking also new sure coming but but follow-up into you

we right our pre Yeah. all But back COVID We're our have But mindful efforts construction. ships that our that's on process. under relates through exactly - to to and COVID new still the going get we're we balance planning here of mean sheet. have pre our obviously structure and to - committed I it levels financing very as capital builds.

focusing to we and how levels. the get here on balance on back also And so invest as the business expectations begin and XXXX, capital COVID sheet here form ramps up to our up to pre will plan firms we do for that -

Thank you.

it. You got

We have time question. one for more

Your final question is from Credit of Ben Chaiken Suisse.

think how's -- return over I was you that customer mentioned an going? to comment COVID. accelerating new about to versus strength a think cruise. as of Jason, new accelerate we in that this that cruise or Hey, exit, we as understandably didn't just And it Should exist XX.

propensity And to they that returned. itself days what we for turned today, just part. the from cruise days we most early is if Well, certainly you off the basically pandemic see the obviously the looked have at today, of in early have to to in new cruise

helped Perfect have experiences really as our about fleet customers our those on just reminding have leading I places Day marketing incredible efforts at as CocoCay. think amazing can that in like you well the

think that just accelerating. by that to certainly customer over you're course, And being those their has open that's they to back. see to combination surveying And thawing and doing really that all we're out in the quite to activity. I new really We're things booking are you've place. here shows back again, of cruise pandemic now taking the coming led that and coming happy supported

XXXX. bridge ALBDs I perspective. Can end a one by or I just XX% XQ you've more, capacity It's said you is of of new just the return clarify that the fleet I us similar? cruise. you. guess, from And it to then think a was to believe of help Got

Yeah.

I think capacity a the on basis, of first to end close by the we're XX%. quarter,

between similar then it trying a And and just to but connect fully -- number a right, -- ALBDs, or is is there

versus number It's about standpoint a capacity higher X% on points of X% about points it's ships. --

Okay. Thanks.

You got it.

call. day assistance your will be the and participation your all have. for you McCarthy, Shelby, of might for any Michael today, interest by And thank Michael in follow-ups you continued We Company. with for way. available Thank the Okay. all that's you the

clarifying.. for you Thank

Yeah. Thank you.

Royal available of Caribbean. I'm But sales the Cruise, World any for

Okay.

number. given your out You've cellphone

you wish a great care. I all Okay. day safe. be and everybody Take

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

You now disconnect. may