Royal Caribbean Cruises (RCL) 4 Feb 222021 Q4 Earnings call transcript

Good morning. My name is Shelby, and I'll be your conference operator today. At this time, I would like to welcome everyone to Royal Caribbean Group's Business Update and Fourth Quarter 2021 Earnings Call. [Operator Instructions] I would now like to introduce Michael McCarthy, Vice President of Investor Relations. Mr. yours. is floor the McCarthy,

Good morning, for full joining today you XXXX and business update thank our call. and results for and financial us earnings everyone, fourth year quarter

Liberty, me our our Joining Financial Michael Royal CEO and President Officer; Miami Caribbean in are International. Chief Chief Officer; Naftali here Executive Holtz, and of Bayley, Jason

certain current actual current subject issued Please results Before started, undertake I'd statements to as SEC differ will materially risks as statements these forward-looking morning description making call. A to we factors like from our release These we not number our are get factors. could during earnings based a update are expectations Jason and adjusted with with www.rclinvestor.com. of will do the forward-looking be on and expectations. we'll uncertainties. statements our measures, discussing for to our management's any our cause on be well and at filings refer to to note and this on this of earnings items of a We in reconciliation that recap financial circumstances and website the our overview begin are quarter release the an fourth change. as a all be results, full current and year of environment. our will follow latest update business. update found on defined, available Naftali non-GAAP strategic which can non-GAAP actions booking Also, as up on and

your Jason. to the to turn call We will pleased then call open questions. With I'm for that, the over

CFO. the today organization, to be innovative is fortunate in fleet the Group. the you'll to record legacy that enabled people take very on and I'm at I'm years much Naf, I'm confident humbled remarkable and forward by helm track you incredible know to enjoy very welcome in most industry-leading company's which and already also my of who Naftali of those congratulate the Royal you, good of here want Michael, our for with brands incredible Thank everyone. all Caribbean him. pleased working world includes and morning, to new ahead. our and the you this role with in and building Many new our I'm but don't, I culture. looking as

Our awe-inspiring very and on and mission best has on at Royal been our responsible to doing continues a to and focused Caribbean day. team and our so experience day, see every deliver every It be mission in is the vacation way. simply delivering, completely each

I and such to their window hard-working thank our back in to steadfast their Group, a our healthy another way. people also extraordinary and partners proud XXXX the to for so partners, guests, want our and challenging preparedness and In of have operating thanks incredible their thank million support. service months crew successful for we I it X.X am and year company delivered team marked to throughout shoreside more While employees, I sailing. guests. our both such was a just financial industry, for investors few the suppliers, our capacity for back our the vacations return fleet bring Royal efforts. grateful Caribbean incredible a of and years, and the our brought crew last to and efforts approximately our into of XX% and the to memories partners, want destination than X.X travel also short short

pre-COVID and global get sourcing the return as very At brands, beyond reshaping on most levels swan growing technology platform navigate the leading we and innovative to cost course accelerate. to us back fleet, our a strong we performance successful and soonest. a our secular our As exceptionally this been charting The of and trends, structure our time, expect. positions healthy would through a combination leading the event, same you focused service, we have to black of well to intently demographic footprint, have

me we operations, of been cruising in has providing to the goal Since moment safest vacations resumed Let our to an guest making on experience. service. our world healthy focus return anywhere exceptional the while one a

We a continue to in tangible demonstrate that way. very

small As X.XX%. you about what testing rate fraction since million have large, is This in society it we still heard were restart, at me positivity or positivity symptoms. and X.X for nearly had mild say, carried rate with a asymptomatic cases of the positive guests guests COVID-XX, is approximately X,XXX a all onboard of

and and among among rate mission health a and close our we record safety industry. fulfill expired, the safe their of of Net the providing Promoter for delivering guests can us, provide CDC rate ago, sale A to order Our And demonstrating by expectations. vacations. safety the XXX% confidence protocols of weeks protocols where health our responding our conditional are Scores exceeding prescriptive guests vaccination cruise crew in the effectiveness few our amazing the vaccination overall agency's with rigorous XXX% environment

beyond any continue framework what setting. above consumers provided hospitality and anything Our will and protocols go own to the find in

the engage the health virus. and COVID-XX changing nature CDC We other our with adjust agencies risk mitigation in public to measures look response of to as continue we to the

environment adjusting twists path. our the long-term approach our plans turns We to return in success. constant on a anticipated and recovery to remain healthy nimble focus Our with operating strategy changes on in and our service

variant and is, COVID Since society news have the operations. parts as people aware, positive as board have returned ships low on the an As the well onboard everyone rapidly, our impacted our ships. increase exceptionally we cases in is pre-Omicron levels. our to declining been good most of we now of last experienced in number mid-December, for has weeks, is Omicron that testing several The

we guest In positive cruise. only averaged per have fact, over days, handful a the X cases last of

The timing operational early in as wave not January. of us. period cases, behind declining done, Omicron so painful abating, typical while booking it variant was worst the also the particularly the that begins are is With appears challenges a is

So will it on expect lesser early QX in weigh and, our a performance to we QX. extent, in do

seen we and the in since now have With booking behind the year. of improvement peak week-over-week meaningful in beginning activity the Omicron us, sequential seemingly the

in fact, the bookings to to variant returned we last In demand mind, of sales we With and the levels, wave. recovery activities for subsides. delayed extended extended in that and accelerate and pre-Omicron expect as marketing January, week have our a

profitability return trajectory we While strong delay and intact. recovery will Omicron created to likely our that short-term propelled things a a months, for now will few internationally. some few and season remain summer challenges We confident business remains have domestically our and cruising, robust spring of that secular the past is our towards in pre-COVID with has demand levels. The trends recovering years both experiences great by over

mindset ever. the have coming desire with the stronger seen to of We consumers a being the also travel and reengage pandemic world change than out of with in the

the continue confirms travel than will leisure research increase travel. business fact, traveler organization higher that at In to levels U.S.

of our storied this, and provides to After tailwinds are XXXX XXXX, and a restrictions, for this eager All coupled with easing consumer move we recovery. resilience year. new in travel forward

a come their on ready dreams environment. keen to taking make vacation are people vacation, we and healthy safe in a true are As

approach the bring operations will strong XXXX and historical year expect of occupancy we be as fleet our levels. rest a We transitional into

first a of the return the a second expect due to for and half the half the Omicron loss of profitability year. XXXX net of in We to impact

a welcoming exciting vessels Wonder our new X support new the During key Caribbean for forward These amazing join Celebrity XXXX, pillar additional look we our is This and other ships, to International Seas since that will and ships Royal X our Celebrity recovery. guests to deliver of to Beyond for Cruises. new entered fleet have vacations XXXX.

and is as experience it are these as exceptional profitable quality much are advantage, New setting the our sustainability energy We our maintain strong competitive to strong our an innovate focused extraordinary financial demand, for important And on innovative and ships recovery performance. hardware just more improves efficient. driver continuing foundation a growth. of remain and important, long-term customer that product

a and allocation the reshaping structure rigorous on cost relentless our During had have we capital focus framework. pandemic,

strategy environmental rely well alternative to accessible and stewardship activities goals. and support the governance-focused across financial and yields focus Climate areas. We shipyards and we net performance central remains partnerships decarbonization and that we announced strong reducing technologies. our suppliers that culture been continue financial our as have and stewardship fuels and innovation propel realized and to emissions Corporate social ships, as expect soonest. easy, will of develop for as zero We our the progress of profitability priority to combination transition and to decades. ambitions, return with comprehensive our higher Last we on pre-COVID our change be beyond another to and growing metrics new environmental, quarter, to not achieve governments, our to will will key our

months, choice they week, reflect the Foundation XXX% Forbes rates Glassdoor. to and Index, last equality. in practices earned Corporate we an corporate Campaign by which Additionally, and Rights employer named proud commitment of past were relate our recognitions on and workplace These are policies employees. score few of our Equality a we're And LGBTQ+ to that the Human we

tells our cash record incredibly is earnings that of and flow. strong, you All and track revenue, growing this model of we business a have

and balance success pre-COVID Our and grow that, added our our we levels. ROIC. unchanged: margins, To for recover yields, to is formula enhance sheet profitability returning

formula, effective both Perfect very the best to Day I future footprint, it and sourcing With will I'm about global the of experiences on our the all, about with Caribbean sea a very CocoCay, technology winning destination at and in And I that, and the land. fleet excited industry, have Group. and in platform that the recovery, brands confident Naftali. segments, We most of Naf? Royal best team, innovative am nimble each turn over the like a of at leading most exclusive

Thank you, Jason.

the success. my onboard first like Officer and and $X.X financial The and revenue full core to my that net continued I on full year In mainly restarting to possible effort half and company the position fourth expectations, year. $X.X for turn improvements. our soon from I remarks, quarter impact to our company the while the XX performance QX with energy reported results to will take I note more to and It this flywheel to XXXX. metrics is sailing important for strong billion to and better the were of begin Financial operations, in positioning better of internal for building pre-COVID adjusted our morning, factors the role. levels we am share for the we operations the suspension an Before results for recovery to results of management. continued cost on XXXX I quarter, would the fourth as accelerated itineraries long-term This second XXXX. Chief the in factors discuss into fourth cruise tremendous how load a our continuing reflect year than the billion efforts, the sales accelerate quarter performance as on now will resume due were for returning for loss I the energized the the return, Load quarter all back marketing XX% ships half. our month-over-month and bringing and the successful focus

pleased we in fourth incredibly made are have progress the with We the quarter.

total load grew QX from to in to in Our XX% XX% close factors QX.

to of onboard fourth XX% contributed the in XXXX. per in total turned the cruise quarter to Cash In fourth quarter. positive revenue ships addition, from the flow passenger continued revenue our gross operating day strong compared increase a

industry operations. Now as and our caused factor expectations period. I capacity variant would The over short-term travel Omicron like the load coming to disruptions well as to the discuss

sailings As has expectations APCDs safety made of fleet several exceeding financially first our we a planned the decision ensure we up Jason plan our to matching prudent health operate mentioned, in and the in cancel our QX and approximately bringing way. or quarter. just focus to guest in XX% experience crew, guests in X.X capacity. With million to and the operations restarted been vacation or since We that about mind, of the

first expect We positive. ships the that be flow operating will quarter in cash

March season. the the and we delivery load quarter. introduced capacity cancellations, will Due before itineraries U. core will on in heading Wonder impact in summer further S. the Seas. of within of be bookings with Our of increase factors following the the the quarter, Omicron of on to QX near-term for to incredible at to month-over-month Wonder Mediterranean the from the the approximately end the expect improvement market XX%

rest the bring fleet lucrative time to to in for the expect our season. also summer of We service back

in the our expect increase to load factors levels and to steadily continue month-over-month quarter. We historical approach third

to season, China, offer of the we our we and time. both respect winter key cruises our cruising, redeployed summer While Australia. anticipate and open for cruising it With the planned continue in destinations, China Australia in remain markets. market. we capture in we in the closely vast other China its We for to growth to majority remains for to monitor billion our $X closed with early opportunities the ended January. Shifting ships balance We $X.X XXXX long-term that optimistic to key excluding can liquidity, in issuance sheet. year X we remaining the We billion completed have

have us continue We trajectory. to liquidity ample to recovery our allow

reestablished sheet. markets successfully During billion or XXXX, we and debt and managing improving access secured focused We unsecured the refinanced debt. our coupon on of high guaranteed balance to $X.X

Our In $X X/X% the plan billion to debt. early near-term improvement plan and proceeds these at sheet to continue efforts coupon, refinance with XXXX. is X January, issued balance to we we throughout use

our leading actions cost to have margins. In reshape with our focus improving on a addition, we taken take further pre-COVID structure to continue and numerous

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

Now environment on I'll the our XXXX an and update provide demand sailings.

Black last have and from For quarter. new in our positive culminating continued fourth bookings the quarter were from we up this quarters, improve biggest-ever compared XX% Weekend in Cyber Friday more the trajectory, X the the seen quarter to to Bookings U.S. third the next. in several Bookings than fourth the quarter

marketing As for support in strong we demand the our 'XX. to book brand business programs of we 'XX restarted generated and QX,

from variant as first of their slower in and the the meaningful booking spreading near-term were we As But activity the activity have booking improvement positive cancellations began guests beginning December, of the the Omicron year, seen before in the second experienced holiday half for cruise. testing we both over period week-over-week many higher 'XX. and

faster at Second half booking a been recovering activity has pace.

that, to up. begun Omicron a has beginning rapid have as variant, activity to the Similar decline, improvement are pick to experience the with addition to we period. In cancellations in our seen over Delta cases booking same

load to is From impact a the In at fact the in booking levels. remain historical been on ranges without expected are trajectory pre-Omicron factors U.K., curve, January, half in within but aligned half year this of Omicron of our last are for The the week weeks. the of with prices, below our which book have ahead and in factors. has bookings Load improvement second that as both higher sailings historical several the returned on further cumulative load first FCCs. ranges factors for anticipated standpoint, with

the Omicron December XX was Our billion, related about $X.X increase customer over balance. of significant in both improvement the deposit to which of the balance deposit million an as revenue $XXX quarter-over-quarter past customer and of recognition, quarter cancellations despite reduced

with deposit entire capacity. only December was by we less customer it of is driven the have X% the first lower at balance sailings quarter Our XXXX, the than end where difference

FCCs, Of bookings XX% our approximately same cruise for Our to is related of to customer at deposit QX the XX% balance than redeemed thus the future balance Approximately credits. far. sailings related been is in customer forward higher XXXX. deposit time have

to outlook turning XXXX. Lastly, for the

have operations ramping reach everything Omicron and of costs expect the the EBITDA up late we flow in and to the about booking impact I cash progress and made said operating positive environment, spring. the we variant, the Given still

a will call question-and-answer expect net With profit I half of the for a year. of the session. that, second to first for We the operator loss open a our XXXX half ask and for the

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

about comments. your booking I wanted to ask

load expected I your second think half lower in I historic. is wave that still it it's still season to are above. was see think that But positive the volumes obviously than understood and new historic

going next because historic the ahead do of sort half of below, quantification the Omicron rate the wave historic would could expect -- I you been -- fallen you slowly have if factors of had how you I with first concern the move of maybe be is. a wonder through that later there or still even wave bit guess the within we load expect, we're give think in of load start the given at little maybe historic some to ranges? to us month disruption, second if month I the do on still

I'll and, Robin, talk good start of to course, you. to off

think an of consumer impacting quarter. just make quarter the Omicron the our just talked related while the bit much little impact on the that. June for, while I that Omicron in think I and bookings I year. a psyche was on first all around concerned in of timing is we as We demand point our didn't and focused And would you call second terms of and of first the impacting it it, cancellation, -- the to and itself of was in really really too see certainly

think activities expectations factor we of the back and in -- had confident that load I like it look that standpoint. expected on on what year half we've the includes is booking remain we to the based So to, on our going a seen,

Okay, but I your great. you, And started have the I I both have do should Naftali, have said roles. by to should way, that. with new follow-up, in congrats, a

represents just does FCC of not Sorry. I quantify a you to I But talk And clarify. of wanted a discounted as for if On automatically but amount, had it's cruise so you about dollar FCCs wanted And at somebody represents a words, there. think the mean it was represent it as But is -- know are to that know in because And bonus then redeemed I date? your their later that XX%. that to a fair that about question a just also to FCCs. what that? it or say other not moved kind the kind seems discount point rescheduled fair just said FCCs discount canceled just percent I If that people that this XX% or amounts being -- FCC? didn't that, and a follow-up, a booked about price. real lot you like FCCs, the of are could what was

Yes, I think that's right.

application that planning vacations. Shift of I same FCCs in go general, before, relatively that they most to well. the they balance were typically same of they shifting on going, XX% think zone the and what the on that of the that, a quarter them. the just periods in the that they're they're arw been part, Lift we time or to FCC to program of their And think which have has for planning program, want in guests, & later vacationing want then call year And be go time I most that -- cetera. and our on that would the value our they were lifting They to and when just et a later, working around

And Naftali. it's Robin,

as to it just And new and your both with pleased quarter, we've question, X-X, last we're Just is as answer in bookings. XX%. well progress redemption very the that, seen

next Steve Your Wieczynski question from of is Stifel.

or giving year. year. positive you So question. for I'm But for I with earnings the sure last the guidance about quasi-guidance I'm full talked understand but to you'll a you're start going quarter, being not not, not answer it

you're year first half saying losses, Now the still will half of generating back positive. going be

year long-term so variant you all for long-term far? the the targets for guess then even do is, over or the part helping So second occurred through full term, possible guidance wind you still this whether being up stuff or the that? us think question to positive I still have the that contemplate the And headwinds of is or like it's about think with business long prospects that contemplating, question guys that's did either

Omicron. would first like an say up gives question, that So based that of on I Steve, we're organization the off event an not

quarter on kind improve quarter we year. bookings But here pretty we I first profitability but So little those of each it a efforts on the negative each the lot in to that every we're first kind bit the on we certainly first can positive, weighs how beginning on side. of taking that And of XX-plus quarter. pain. will our start of it and in, of quarter, certainly sailings will here and there mean, the every maximize second the heavily to and Omicron standpoint. weigh and has be of been heavily focused a whether and the second as quarter come the are the all will profitability cancellations we're a onto quarter earnings dictate and on ensure

to past said of I looking getting we and provide We question my great on in the load this we our with one. we is I are and So business -- believe -- in return that's will On kind great historical impact we comments, of terms it factors And COVID are quarters two, the great get as of overall terms certainly our in question out and to focused and the as patterns, COVID. brands healthy ships. past and start it we're relates long-term levels business service. to overall And our as on answer business. do a great up programs metrics predictable come we to believe to and the

we're in state So are feel wait going that our that predictable until before I quarters to think but more of bit a providing I little about and a guidance. we're predictable good

folks got you. I removed of mandates mandates don't assume because COVID waiting guys be I And how are on what then those think or want to Okay, to by about out still I question, testing do are guess And there mask changing for is, and eliminated. or second that that either there board? cruise mean you the

to So think do some removing what do then those give are bookings confidence you and And you guys that the ultimately will watching start think to do mandates? you or demand? you of what what would

mean, that. we many of I obviously, and we it's -- COVID. perceived I now consideration terms we require and customer start the And is positive where to And the for a restrictions. obviously, of with Brits during many it's what I place new home. that we're in mean, the moving in U.K. customer see how returning that ways, that's Steve, of believe example, a don't in we've as is have ease perceives and think the the But protocols seen to Michael. is Yes, for normal. now destinations are to the countries return effectively U.K., that these the no to a belief protocols almost them testing. going beginning There's time some to

and more the that in the last decrease following of we not kind the over are Sweden also of believe weeks. week with of think the see positivity we also, that in but is I coming our this only believe to really Denmark same a in we'll much see And U.S. Certainly, and and states Omicron more move path, going that certain significant, we're into ships. onboard we more positive environment. now

I it into we environment, of CDC. the think is what start, exist as removing our simpler become protocols we'll we'll and with many see get for and that that working start easier customers. again, will We'll today, the

Just that our or as then either million people's month, and around visit raises International you Royal anxiety XX as visit so see of reference, obviously, website customers our can XXX,XXX decreases, And a healthy decreases. around point raises number of Caribbean or section every sale and that.

we're positive quite about this. going So with feeling we're where

also and We believe that also positive in that the future, will downgraded X, Level the the not-too-distant X will right CDC step I Level think direction. be to another be in

our you our guests the safety just Yes. health know frequently, this And and priority. add, of are mean, crew I say it which our we because Steve, I'll quite #X as and

the what or So this has others. by been the have asked protocols the a science well that and following by beyond in CDC is the and are CSO of upon lot we're place we

our our -- based of making kind science protocols, that, off we're the following at and ensure of and we're changes again, crew help guests So are that our to safe we're all times. to

question Andrew of is Your of Bank Didora from America. next

would clearly at going was when to impact about had But Your XQ. restart. marketing Any does We spend we the delay I any higher, mean here, there, spend and helpful. your half -- XXXX? first sort Can costs levels cadence record the is of the there the of provide seen in levels be just given and you G&A the record be in elevated will color? marketing in knew can stay Omicron think these color think, we've terms of that

Thanks, Andrew.

yes, did, So typical in And marketing quite seen we and strong to bookings demand and and that generated QX are that the as as a that, we why that's good elevated. about noted, spreading, wave in started how those season very about We've Omicron brand and cultivated efforts see we've seen. while, marketing. to started we our really receptivity you you the we're spend are adjust. going sales to continue really thinking we we've thoughtfully Also so will thought the within after

you go will to range. would a We eventually think of a as more historical back what

that's a think key point. I

you be forth, that marketing and are of that's pattern Our were market our we terms as of modeling about -- activities should considering kind how going similar well in we're behavior so what thinking forth. very pre so And you your and as to kind actually of of how kind as to tempo you is COVID. that in is what

kind have kind did kind being that to I expect us we of to Just make of that point capacity behavior. But should in you of typical more than just XXXX. we mindful, would return

on wait to a kind here. to give of your question, all bit more kind cost long-term you just have it. then little got wanting ships more I you -- of revenue my clarity to on I there's particularly until guidance a the return think would appreciate as Okay, a your bit certainly more clarity situation, And little follow-up bit side, service

market. then just costs general puts inflation So of utilization the us taking your system, you to as of there relative the -- of of have full and in there's in to there Can kind puts think help be fleet? I begin get during takes XXXX could pandemic terms and been some like back where you about out to your unit ex-fuel cost the the are know

and what jump in Well, start I can -- I'll certainly just here. think Naf off

transitory expectation time. hoping more and gain here cost in were is -- here per to us efficient, efforts made start we've which for more The XXXX. Our -- costs to we here, evaporate margin the get our cost you APCD over considering as will around for

as absorbed -- the that being some -- be And transitory a look be per by example So also think quarter believe we a and short-term short-term you these of manage. being elements. at the lot some able savings, cost lot inflationary effectively are things of by that you're of saying, we'll absorbed and to to where what of is we as that our food an cost the costs

have last And structure since to to XXXX just add our to fleet cost joined couple focus have the as we've had years. of the also in we Yes. in the we ships that that new reshaping that, in addition had X

as the the fleet very margins. up, and positioned So are factors and to perform load build comes improve back we well

there. just Sorry, follow-up last X

do you costs get kind to think your of pre-pandemic back levels? can So nonfuel longer-term unit

We do.

do. We

next question of Ben Credit Your Chaiken Suisse. is from

factors about guys with 'XX. COVID, line of You in I quarter third talked pre load think being

that for be to is XQ say like you X Just bit apart, And quarter? in pick reach in normal a normal. you'd the XQ, way should a I this -- just little did or XQ know follow-up. then

QX. In

bookings? that like process are you make sailings simply points on like Okay. the basis Is XQ of us just And example? comfortable in percentage then or to there thought can assumption? I way -- Is you're to with approximate it in for you looking how what mind, booked help you data for guess, currently any the a with pace at that

us we're the very deposits around that to what year, of was customer we But relative factors. QX Yes. return those is provides going load to guiding booking numbers the confidence the for activities especially at back us confidence in be it Well, half seen typically on closely, what something that the we've this Naf's to historical we're going XXXX, not to that it's the or obviously, brings commentary and that we those whether point. know but

we're it's based hope, is based the So of best seeing to off that of not patterns continue that it's perspective patterns on off the our are today that going on.

the how people are it back lower like really with And of -- it pent-up not I just about opportunities spend, of you particularly is demand? booking That's more has think the and so part more this and us guys ships wait there's of do making on a to is how you line? guess, this in think packages? you 'XX? Is view helpful. it should to the in could spend been up? has that some persist kind do I'm onboard having just then strength in Or occupancy how half help X change which strong. Or

And Ben, and, we just we've shocked. it's wish absolutely very initially really -- back in operations spend. I it's think just that positive. continued. the I July, by kind really, can of were Michael. U.S. knew. delighted been the onboard you we tell I initially we out But of it's started was when mean, It I surprised

simply across I factors of we've just are probably board So seen wrong load you're revenue people it spend created think it's that think far I in that single a people where not But nearly the every more. stream. in spending -- lower helped more environment different category kind every single

is And also pleased significantly our the really in technology ever investment been over XX we've started higher past come our penetration We pre-cruise really that's pre-cruise are with before. the months. it's with than to online what seen

very and much lower. debt We in card rate higher credit the positive 'XX savings know in we're back was and So was a 'XX, significantly environment.

do think highs. Score being our brands on we at ships Net that of seen So record are We've and people happy. Promoter all

a happy spending and all frame got lot opening of their we've So the They're customers place. up that mind. happy in of literally they're wallets over

pleased very So seeing. with we're what we're

it's think just area, the is the to by you're category whether booking room think significantly. is I consumer that's other spend dimensions. Difficulty] just it's overindexed booking every that's all know consumer how the on by or gift whether it's the is more historical more an little how dimension inside When state them Family volume, pocket, area. a Effectively, it, that of bit. I of their that's much example, just a revenue quite is it is in add how whether consumer Ultimate then And of on their forth, [Technical much much And as so how X that's seeing talks of it mix, casino, suite, don't the just the of F&B color bit in and with whether the Yes. Michael shop, much spa, outperforming money it's -- you when about categories, but to I look

items get they …all you board. on that's before listed just

lot our to Ben. so. year right, Yes, the ability to the software our mean, pre-cruise a past customers level market or of sophistication I over and that's of quite improved directly is

I play in that So does role key think this. a

And for conduct so Yes. only ability but talked business to not that book and about being COVID following onboard and pre-cruise also our lot or pre had our us a to replacing us it spend, manage includes from yield easier with know, Ben, we you platform as forth. time, some our we were our which e-commerce for

invest very that's these so continued prepare to again, area for definitely for improvement. ourselves opportunity under another to we And an where margin times difficult have been

X And good piece on point news. just this of final wonderful

onboard incremental of and of spend quite rule is pretty a an pre-cruise every of some much a thumb, thumb that's spend, been As $X of time. true rule $X.XX for that's worth

from Katz Your of next is Jamie Morningstar. question

couple guys. a picture of questions you have I bigger for

the had of not easing you or places and can you're items from talked constraints any whether that's First, supply chain I in you past, problematic? the unpack different or seeing? food know sourcing still about different

sure. Yes,

back lanes main So X a but the because so our of we It's levels lot the have move impacts it's aligns with that But and the at have not we that we or these of our in Obviously, is down have shipping come some somewhat and to shipping food our cost XXXX commodities. on begin things which us contracts to beginning part, items on all anticipated what fuel. had side, costs we food very kind fixed forth. the it COVID longer-term have, and in of had anticipated. pre our also a other really of well for seen inflation areas to and we direction most the is now right lot suppliers here, as definitely

And so to we've change those we've patterns, those start to see update a been which in patient been seeing. we until

a looks guys the certain there road can that what a Genting like. then maybe curious reopening I'm Kong flux? has now opportunity China we become think what to change And Hong set Are is we talk little hurdles you bit Okay. then bit? to about in that need to And clear?

has a downs. It's and on what's happening opportunity. and our to to form, great had much it we to some been in and and We've we've Yes, relates I And same Genting years wonderful China long had We've stay for Jamie, the it had Michael. there. thoughts, some journey. very path. our incredibly ups particularly productive equally see years. true seems us challenging question. been It's mean, it's a as obviously,

that -- news are us, There's China. of positive Olympics belief after we've be that there we're will the waiting. So behind a coming out more

some both of market Wonder the and response the we put and of One we've to of in Seas happened has ship. of the the the the what obviously, in Oasis positive class been delighted of incredibly demand of in with Wonder of newest of our the the and latest market. summer, redeployed our ago. selling one out which Europe the China terms And American has in European redeployed market Wonder things is that ships been we Seas, is, that time the actually capacity course, we've and And of Seas how been was And Wonder markets the both into the out has we American strong. the seen

to efforts has market. there out redeployment of lining a So silver been the China

of I to China think huge and opportunity. China in we're amount and we perspective of upside China we're long-term is going make a and work, our see

our be our we again, for some be exiting are portfolio, to has an does more shifted. it opportunity have Genting the to what going China teams opportunity positive. opportunities. become we become to continue for journey think We and in going the is, part always could our as think of very to appetite already point, planning But a think our not news starts those more at and as I important is the us. Asia strategic stage And are soon leveraging positive, which

Your question Goldman Stephen is next Sachs. of from Grambling

Maybe up Steve's earlier and Naftali Congrats earnings potential. on Jason on longer-term the question following the roles. on

contemplate As the of may the big a to exogenous of just headline you a to impacts earning and/or environment? normalized in XXXX, factors base we have us hit back that build we number remind off look can as of some

large to lot sailings of XXXX. a think Bahama a impacted Grand of write-off mean, And have impacted would XXXX anything, due that relative were From would it besides number. there Bahama little If one-offs some to weren’t income XXXX. bit memory, don't final net there of lot Grand that did that our Shipyard. from a Steve, elements an helped impact a have we I I with Shipyard, have

customer. one color the trends new-to-cruise with at booking new-to-cruise we the then how customer? questions the of core Is cruise either get Got of passenger who look for provide the in other type are canceling? just evolving cancellations, of is you any kind any really change on it. of around customers core And anything discern terms you versus there And when are you what happened versus can from can

almost as came came we was went exactly customers. Steve, is of Delta, saw week bookings was of into seeing we're we now proxy week saw Michael. out out the same and we kind when a -- dropped Delta, good what increased by of anxiety -- is what fact, which really when it's we in We we as it, from

week really bookings started take and our started week, those levels, bookings to in clear of exceed off. by vacation was we out to quarter moved as fourth As it And into and and by return year, Delta, come started both was volume we that the month, rate, to to XXXX bookings of a in mode. month started everybody last

and at the jump Delta. came of we started heavily to new-to-cruise we at I'm our As again, would to it relates even talking loyalty and that. when was, back and in it I back Loyalty levels. beginning, about X led say, normal and But weeks when new-to-cruise then X we've to look out And loyalty, started to way seen data. lagged, new-to-cruise the to skewed certainly out

is we course, new of is of out already that great product, consideration that the a very got Royal is significant an incredibly the pristine new particularly for to got short other have we’ve for of place generating brand demand and Perfect we've know, hardware, American new-to-cruise. products, premium we’ve product which with and in popular the in got The destination, And which is of -- appealing course new-to-cruise. we a as Day, condition with lot and is new-to-cruise

what's is now to is, going but view and back, as happen is we exactly it's that's this come variant. our new-to-cruise we feel that coming of So lagging out latest

was vast of in either tested on more just one with in of or cancellation on for December, positive second canceling COVID shift And early terms somebody majority this around the of the part who And bookings COVID. who them before the less that's one's did question story cancelling. for easier an their getting the people their The family -- trends, were one. majority And your from traveling your late Yes. or sailing people into intuitive to future January an but periods, cancellation customers led of the the activity. tested in we positive that consumer and

provide of between some think press CapEx a even you release, if this Maybe initial but had more spend year, it on give next is split I more we some And if as this and question, detail then of maintenance us not slip helpful. but color. maybe can year, the towards in. have can kind housekeeping just in the this may That's you a ships. new And of little could you

sure. Yes,

we the And are Seas, some So as is in taking roughly we this Celebrity future already we of Beyond. year towards capital also expect release, to that We the X, progress X have we Wonder other billion and the Remember X of said took have deliveries. expenditures. $X.X payments deliveries.

the -- And future other the making invest the on on that, but really maintain we we, X we been about in -- are thoughtful -- also as sure part to how of and have really we number. the disciplined hand, years throughout capital majority in come. stability, invest hand, we our those of significant financial you and in So as know, that

and will year. this for be a and you ships, should So it just the newbuild that that expect is of lot

And I that this, delivery as well Steve, have to the delivery or a all we'll you financing Beyond whether of we just newbuilds, which the committed the took take as know as but all future, of just reminder, know in Wonder them.

Wolfe of question from Wightman Fred is next Research. Your

expectations disruptions between variants peak sort hoping trough big future bullet informs speed that you far, how I any pipeline. differences that and just the down could the was whether maybe that's you your just of sort the of of for Delta that Omicron sort that's to come recovery whether saw, of and so the point booking summarize

think, think big everybody to Delta just managing it ability I and the I was manage exceptional our the like it. spread between exceptional. is situation, Omicron our difference wildfire, I operational did job us. teams really was like the mean, and impact I experiencing -- to protocols an mean, which our

was of issue. more So an I think it operational

over as recovery closer an I coming said, on sailings a more seeing it. we're a think more upcoming had think what just we bookings side, on spread and pause out then or impact bookings Delta quarter. Omicron little in saw focused bit to Delta as -- while the Omicron similar couple Michael of -- was on of and it terms that, a similar first I did, add of term quarters also relates than really a I shorter of in would more

testimony of on crew just it the for X% take that But positivity that and to with was was in asymptomatic on the other protocols. did this and them all I the I except statistic add protocols, CDC I share of I for it Omicron wanted the all their of Interestingly, is fast impact of on sweep that of Delta. the X as positivity, extremely versus period, with to have the symptoms. these to crew just mentioned, And our the fleet. worked fleets XX% to to continued the in effective. to remarkable ways. was industry was Omicron through out many mean, of operation our the certainly really point the incredibly just effectively the this quarantine. were we was you. quality But X, fact share Jason operate that period But mild crew during think, all to the observation is of

If eligible, getting all they're environment of builds of I Which on think the our boosted. crew they're vaccinated.

make doing, is on cruising And that ensuring here sure I are focused safest that you all efforts have. to so experience the best think, we're we could

it sort bit pre-Omicron guys but just the right march more you Makes along booking little than as sounds build little bit bit back they're just It some up a U.K. the give us they've on but also that into you of And a of continued booking like out sense. sense detail? getting trends, a that you could as could the makes U.S., that alluded to farther to? far little trends

right. to variant becoming the kind significant spike, the a or U.K., the that's that's When I way it's head the Omicron upwards. into Fred, quite behavior again, to case, country kind the what similar. out very the the fairly we're really mean, a very over positivity line we happened kind bookings seeing very a in rate in with the of similar U.K. what -- the in the the bookings a ahead market as more more drops, -- the it's market it continues And the starts U.S., saw what of it's The region and international accelerate you to we've seen then peak, booking this market. And the be of in or regardless us. as see it's for which you to the of in Yes, of goes the market, of Yes. U.S. typical. rate continue as start all opposite as the direction. now infection of you because we in is increase. U.K. -- Delta extension of led a soon -- And And market, the rate And get activity sudden, returning. to drop, seems see

of have it that down. soon quite lot market, back come a we literally started out saw to drop So to as of as things start and we volume

of Vince Your next question is Ciepiel Cleveland Research.

Revenue day help Curious with us ticket the remains on relative up XXXX an low quarter. to basis if prices in double you saw understand cruise just could fourth digits. per what apples-to-apples you

but don't or curious can look where that kind ahead, they're pricing alternative were ticket of that of kind prices are so. your versus you of over land-based gap resorts I at at think far year maybe XX%, next the that other and close You now XX% vacations or how the short-term rentals ahead, some

in jump first. I'll here

in of terms it improvement revenue, in onboard. it the in you you in see So see ticket,

is getting part is point. very term. is think, a important the be in term us we to to other think now key consistent environment, operating to see -- I us demand Having operators doing that also which in this for And is that a which is I to at that to consistent think what similar short have to And we opportunity you are there. the what just of the we're trends have demand and getting operating environment, think, having consistent that, consistent here this others seeing. short me, land-based

experiences vacation just similar you're you're you land-based about. you of out when Now it seeing to what and look and at half further like that QX at, and some back you look said, the I QX talked QX, on of seeing trends

XX then item think look 'XX. ton they're And only The Great. I to IFO, it per MGO up, X housekeeping XX% almost on price it, I XQ, call guide if was fuel. of and ahead for XX. And at

compares attributable more how maybe XXXX So mix, your you MGO? little you some to to for mix I XXXX? burning expensive that increase, think that is burned remind of what in us that expectations bit maybe maybe and a that Can higher

Yes.

have months, it's over we couple market low over year. of so the up a more that should from skewed of us, these -- actions. we're prices in from we but MGO, little right bit bit the hedged a also -- term, of XXXX. little And fuel our throughout a benefiting some normalize reminder, that from be towards as obviously you're prices that the short for the So half are fuel mix just would the And last

-- next Your

time have for We question. X more

Securities. is Your Truist Patrick final question Scholes of

October, press if remarks since prepared expect already, to In well of season wave a now did give pre-Omicron could bookings back turnout 'XX beginning apples-to-apples, normally as should us for back above you the be wondering, booking January, Certainly, little XXXX far levels. in levels. pre-Omicron versus color. more you as November pace? a you apples-to-apples to your comparable I bit about and back How they talked we're was release,

month, up had week, pre-Omicron our Omicron reason commented Omicron of society. the we levels out into Naf They obviously, forth. that we Well, is Then extended which present we in accelerating, in so were where pre right? and quite were was steam bookings every his time period every pointed picking were why as and where remarks, a January,

early especially backwards part is so of And terms relates and The to our levels it volume, of the about the Omicron. as bookings getting went through in QX. January the elevated pre-Omicron, you the point back here to just the QX month of cases build pre-Omicron of showing despite in

here our your to seen Now pre-Omicron. forth, the was the of we are of getting really being expect it of relative we on balance would And it, the levels point side on booking -- that's and the we've for we the marketing reference that then other just to we activities around dip and And pop next where and on a volume you just side year. kind journey comment that of back continue, to Omicron. booking -- -- to we're how in the on and so give as wave the

pre I as in October, we early I talking XXXX say misread release. – guess comparability last pre pre-Omicron or of When are November pre Omicron press the levels, year? you Okay.

But Monday Friday, remember seen The Cyber were that the and accelerated good Black a latter. we've pace. into Weekend we as going

we So best -- and weekend there. had the

I okay. did Okay, correctly. read it

your for call assistance, will of for you very participation I Michael with and you available Shelby, in thank day. all might be have, all great today. for We a follow-up you and you interest company. any wish the the Thank

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

now may disconnect. You