Royal Caribbean Cruises (RCL) 25 Jul 242024 Q2 Earnings call transcript

Good morning. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Royal Caribbean Group Second Quarter 2024 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 joining today you and second quarter thank our for XXXX us everyone, earnings call.

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

of circumstances differ Before started, our are of materially with uncertainties. on morning as based refer do forward-looking management's to from our change. expectations and description I'd could current as to filings note factors. be these and expectations. we as earnings will factors are Please we forward-looking These to undertake the statements results our number a statements to any actual get not subject this release A risks making for We SEC issued during update well statements like to that this cause call. current

discussing Also, website on Unless as reconciliation otherwise, are and a a adjusted we financial found all adjusted we will constant our are non-GAAP be be measures, earnings basis. which metrics release. defined, in can our on all certain of state non-GAAP currency items and investor

of Naftali will overview and business. XXXX. a begin providing with current will environment quarter, second strategic follow updated the a the on Jason outlook for the update call recap booking our our by and

then open will We the call questions. for your

to Jason. pleased over I'm call that, the With turn to

second quarter the good and Michael, and morning, everyone. our I results you, outstanding to upward Thank our proud trajectory am continued business. of share

to experiences momentum Demand the saw for in our robust. the you incredible continue leading deliver press our continues. release morning, this brands As be

XX months achieved we early. result, Trifecta a As

year are we guidance. are We a reinstating and raising our dividend, full

pathway would share invested years created announced we triple-digit performance per program the we adjusted X capital base per said financial camp. and the X-year Trifecta, deliver adjusted return than double-digit earnings in a to we teens. call internally what EBITDA APCD, that We ago, back Less on

all X trailing trifecta months we the have basis, delighted XX of share to achieved ahead XX-month a goals I'm Today, that on schedule.

impact a when midyear. With X.Xx Trifecta In allocation were addition, quarterly now include that growth focus our and to the our always a Capital new are continue leverage $X.XX dividend in that the ships supplement we reinstating a of we sheet by below shareholder per our capital excluding to share. our to broaden of delivering dividend returns our of on accomplished balance and strong position, value. excited is been competitive be delivered long-term key pillar will strategy as have

Caribbean our financial dedication Royal team efforts to and reaching I ensure best helped us while results. responsibly the passion, will driving Trifecta continue exceptional Their want entire thank for their to to deliver commitment. experiences Group accelerate the path vacation to and

it. is go our beyond we getting Trifecta are as well started milestone, ambitions an just important but

of as We rapidly are trillion excited the in opportunity by front vacation seek we the $X.X growing to greater us take a large from market. share

yield people to and leading is underlying growth this formula powerful world for the moderate and capacity moderate a plan to of grounded set in success: our proven all. a cost in Our at of and foundation on the well global the execute capitalize growth, strong discipline on strategies, best brand opportunity

to on our moving Now results.

already exceeded elevated expectations. our quarter second The

but for the all outperformance our robust which onboard This, heavily only success the seen revenue also environment engine, up have strength We to commercial and an booking coupled pricing setting the not contributed in which incredibly across with quarter. in us is pre-cruise key spend, periods, earnings itineraries, by influenced for in drove outperformance and quarter. second continued the the is our future

the XX.X% guidance. year, guest timing basis which satisfaction almost million quarter X Yields scores. above quarter, second to our compared XXX was points the vacations last In approximately second exceptional grew we of delivered The at revenue in favorable elaborate of few and in considerably results with adjusted combined about details minutes. Naftali higher more guidance. in costs will quarter that $X.XX an a than second resulted outperformance was our EPS approximately

The earnings the for translating strong of the year. environment higher into expectations balance demand revenue is and also

outpaced pricing the increasing points guidance, left compared staterooms to year the basis we for yield throughout full XXXX consistently year quarter per despite our now all expectations growth leading by that adjusted to we are significantly grow and and July key last sell share higher fewer We have XXX prior bookings XX% expect year-over-year. entire into second to products. earnings fact to have

across approximately growth The robust, products. driving who represents be our all consumer to continues year North of key American strong XX% this yield sourcing

performing strength our Alaska power since last for European to the have earnings expectations we and addition increased In exceptionally and experienced Caribbean, to growth. leading than call, expected are in well, pricing summer itineraries yield greater

Our bases guests. global nimble highest and quality successfully the to capture model, segments attract consumer and with sourcing our the and their yielding appeal position sourced segments, in coupled new from brand's us allows younger leading respective across demand

yield is year track XXXX be momentum, with another to strong expect net We such double-digit earnings exceptional XX.X% of full on XX.X%. significant and growth growth year yield With now to growth.

performance commercial Our and growth outlook private onboard are and environment, with of leading pricing yield revenue a destinations is ships, apparatus. from combined our continued accelerating driven new existing strong by the

be of revenue now yield continues increased the half and growth half to We expectations. growth our which moderate in of our mid-single-digit the back expect XXXX second to yield above year, typical the deliver expectations for

of Just in XXXX. increase XX% the on reminder half top back this is versus as of yield XXXX a approximately that

basis is last year. and to margins continue adjusted over $XX.XX earnings expected between higher XXX also and EBITDA We expect than higher $XX.XX higher be to with margins points EPS that and

which for return. yield superior to growth moderate ahead, remain formula strong lead and cost executing margins, our focused on capacity proven As profitability controls, success, growth, we and enhanced we moderate look financial

our and see low economy, inflation net high bolstered We sentiment stabilizing continue to very household a customers worth. by a from unemployment, positive record resilient

that more vacation Consumer days compared increase XX% on of have towards prioritizing spend preference are continues they travel. to and Consumers with towards to to particularly shift XXXX using half experiences travel.

the that travel remains to suggests to strengthen. that research more spending and on proposition months. Cruise our and in spend their next intend XX intent fact, any are high continues consumers attractive purchase is and leisure than travel other category cruise In value increase an they

Consumer age expected healthy The more XX% of time non together. not the of demographics. only also X remain trillion by also wealth, to retirement over the to XX% $XXX holds trillion XX% baby wealth generations spend than traveling their on other on The across $X reaching and is to travel, next generation are to more retirees XX to million decades, they boomer grow of expected research, take financials transfer boomers but U.S. number of baby Based our XXXX. vacation including retirees.

We active across transfer from wealth that real-time are already multigenerational travel brands. and our benefiting through

and traveler today, and length this than gain younger generations, to XX% in of continues trip a pace leisure at This time younger, customers from X leisure are every travel also share that behaviors faster any within and to Their is increase generation. category. base Our customer And allocate benefiting compared on a to vary time millennial X more than intend the other needs travel across type. younger. our or they research shows any that of XXXX millennials attractive and other

So generations these the cruisers. extremely well experiences next our of brands with differentiated incredible offered resonate by

market ecosystem. we customers is growing, and addressable are more attracting into Our our vacation

are into are versus Once translating the meaningfully same earlier per on time, last us APDs and engaging guests more year, higher in significantly seeing stronger onboard experiences year, than the double and higher digits New-to-cruise customers last booking quarter and higher rates. of onboard repeat booked, up we rates with and quickly buying are second spend. both satisfaction at

our orbit of us of to vacations. moments, a success vacation are been at A and differentiator Putting for has constantly this to a the lifetime of our of life's key center lifetime customers meet allows we where guests the our journey us hardware, into is for on critical all transforming innovating.

getaway, of Utopia to of shift short Seas, positioned delivery changer the game a weekend took we quarter, Caribbean our the another for product. be ultimate This

nearly customers. in cruise and new-to-brand for always guests Our and entry and skewing categories point more XX new-to-cruise Caribbean short an is X younger towards product with important these following

product this consumers Younger appealing. find particularly

fact, XX our cruise of guests product with XX% short Moreover, planning on in again return that demographic guests to short half book indicated this a who approximately months. to of intend roughly vacation sail a cruise. for who XX% to next they the intend In follow have in longer

the to Ray which launched fleet. the mix rest than segment. guests younger introducing Nova continues the Silver the class attracted have last redefine of Silver Ray, also ultra-luxury higher and We Since Silver Nova of a year,

mid-XXXX. ships We and XXXX, late Caribbean's Xcel, debuting have new Celebrity Star the Seas which launches exciting Celebrity of Cruises, lineup on order, of an in Royal in including

XXXX. The class class ship XXXX Oasis in Icon seventh and third the in ship

our Royal XXXX portfolio CocoCay perform taking private and reaching from Cozumel, Royal lead to exciting important milestones industry to Beach we and new in on uniquely XXXX. land-based Beach Perfect in continue on Island experiences Club Club our and in well, Mexico us continue alternatives. Paradise new Day also continues with the share We position ships experiences These destinations. vacation to exceptionally are opening at of opening

loyal guests our over base. enrollment relationship our brands in than our on launched, double brands customers apps. have our even step making rewarding who X months vacation compared fan and guests, more a dream increase we Notably, on family program utilize book make the positive and in making is of sail, they more from just our within for Once features seamless. important significant purchases guests feedback are board. XX% pre-cruise our this deepen Enterprise integrating an planning since launch our our of than with we to across all As brands, Loyalty only more of Match those before In purchases new quarter's spend Status they staying their and enhancement travel of and our program XX% seen

strategic vision, We vacation committed see mission our ambitions best our planet, energizing the the decisions innovation. communities and experiences accelerating to daily, sustainability our responsibly. sustaining to the future supporting help Finally, and inform deliver financial our remain

emissions Our collaboration. recent More than through XX Summit catalyze reaching the solutions underscores Seas alternative shipbuilders technological XXXX providers technology convened energy Maritime to in and fuels. necessary to Decarbonization commitment net-zero by and Utopia of our advancements and shipowners, industry-wide onboard

solutions. in We this scalable, our important step industry are quality environment and and unifying optimistic about an for sustainable advancing fostering

us vacation exceptionally from dividend. our well our to lifetime In we With business pleased summary, while customers and sets for the our rapidly growing up take strong medication our and value perform shareholder very financial as long-term are and creating we we trillion seek delivering well, to performance, the proven share This Trifecta reinstating a platform, strong achieving market. experiences early continues $X.X with our strategies, results. are

to will the that, with Naf? Naftali. over And I call turn

and morning, results. Jason, Thank quarter second reviewing start everyone. by good you, I will

compared outperformance strong share another share share per by our favorable expectations, that exceeded driven to delivered of key $X.XX across midpoint earnings of brands our of teams the $X.XX. is revenue as adjusted approximately across as Our timing better performance expenses. our $X.XX itineraries The per guidance leading in and resulting well per

second up rates increase driven finished yield were XXX.X% that and yield the Load drove the products new basis close-in double-digit We growth, by quarter the factors with growth XXX XX% remaining both in hardware. approximately Caribbean were existing the a demand with for XX.X%. outperformance growth All strength in net points had key Europe of and to with contributed by quarter. the from that yield and

The the negative is our favorable of expenses offset billion fuel, gross Adjusted during stock in given $X.X the currency. to was excluding of significant second cost NCC price our favorable margin guidance was EBITDA than impact X.X% EBITDA compensation stock timing compared the and of quarter. performance more constant appreciation that by driven XX%. increased

As $XXX also delivered quarter. below double-digit targets carbon achieved year-end. second Jason was basis on we by our XX% trailing ROIC our to as to XX-month were the intensity and of above a the adjusted impact triple-digit are we our the Trifecta when of target our excluding delivered X.Xx adjusted ships above slightly midyear, target get double-digit target, reduction the and of track teens EBITDA mid-teens new $XX.XX EPS that target. consistent close Leverage APCD, with very per We in end on mentioned, our

capacity and to continues last our yield This for the destinations. and ahead pricing and The volume. Our across year Caribbean XXXX in year for very booked and all position of markets and products the up remains makes strong approximately both volume higher outpace third and rate by strong the by hardware driven booked XX% ships supported is our existing quarter. and on is rate both new in private XX% growth product

an strength for full increase sailings. resulted XX% in during record accounts in and Europe and XX% Europe year position for it in pricing, is third and in expectations for continued of the our the volume Europe in quarter. our both capacity rate booked a revenue

quarter. X% XX% in third Our summer Alaska season and capacity the year represents full of

increased in market. last have Like the leading product. yield seen earnings result for growth of upgrading have Europe, this increased as year call, a we our for demand expectations our this hardware We since capacity strong the to

Now increased guidance The compared for expected is up the year let like-for-like to first CocoCay's comp well the XXXX. first opening about by such as growth driven for half. for XX.X% power just amount Net me and is for talk for The year. same And factor be full makes XXXX. pricing when the increase about catch-up pricing easier adjusting as load to the in to onboard influenced the both guidance The expectations are structural of and in our the XXXX. XX.X% half timing quarter higher hardware yield revenue. the in changes, the yields each by new cadence for yield is of

to be Full cruise excluding costs, to X%. up year expected costs. fuel, moving approximately net are Now

points up our cost noncash last in stock by earnings metric Our significant is the stock-based the XX guidance is to driven prior call. since increase higher the given and compared basis price compensation entirely

stock very the the anticipate our of at in few in fuel year, of metrics days XX% quarter. quarter, fourth which quarter We compensation the a the rates. and third have for with $X.XX We market on more significantly fourth are for weigh together billion but cost expense, we dock expense hedged below will dry timing

$XX.XX EPS to adjusted our raising are to We guidance $XX.XX.

our color earnings to provide of on progress more little want a guidance. the I

by other increasing guidance our the for of by rest of quarter is are demand the the About and business better for the pricing driven driven half outlook the year. $X.XX second year. is increase close-in We half by and

mentioned, the is we of second which shifting I half As timing into $X.XX about the the had back quarter, cost year. in

to compared APCDs XX.X quarter. Now up to guidance. million of operate X.X% third We are the XX.X% costs, on to $X. that expect is discuss expected be to of up last be I the cruise adjusted share earnings during quarter Net our to and yield year. yields per quarter growth will X% plan be top third are Net $X.XX into fuel, to account, X.X% Taking a all XXXX, we excluding this X.X%. to to for expected

ended in our to quarter We sheet. Turning balance the with billion $X.X liquidity.

of this goal performance strengthening to the in progress that balance capital the towards below delivered of Better as allocation second investment-grade quarter excluding is disciplined new leverage the significant our within making the metrics. been sheet us our reduce target end have leverage We midyear, and ships when level of allowed X.Xx impact of were range.

We continue to sheet. opportunistic expense reduce refinancings pursue interest an balance proactively to unsecured pay debt achieve and maturities, to and down plan manage

around to down During balance that remaining the second restrictions debt the quarter, of us allowed paid our holiday remove any capital we return.

in As initiated per dividend saw today, release also share. you the $X.XX of we press a quarterly

remain our and on we closing, and In our executing on strategy delivering committed mission. focused on

open to session. call the will for ask I operator that, the question-and-answer With a

with Our comes line from Instructions] Wieczynski question of the Steven Stifel. first [Operator

solid another here. beat pretty on Congratulations,

could if about are investors embedded guess. sequential fourth yield and is showing bookings briefly, of and/or think the of touch But anything from add to slowing, I'm just X% load guessing at of patterns the this bookings Jason next from for function rest a indicate the decline lower I on been for think -- if there's little the quarter getting, bit there? is 'XX. morning well? year feedback is guys Naf, the yield on color any -- the was So a last you any but it's material guide -- I booking that the not a on then in you essentially And possibly say, in XXXX quarter year about as I we're there this would factors would and guidance of kind changes more year, very fourth of more being maybe full also we

of on grown back yields the since Steve, the starting so off first XXXX. maybe I half Obviously, our year. just significantly think have

half the yields our of the versus up XX% back So XXXX. are year,

year, half our our mentioned, of the the very ahead of think, we And curve as been so and bullish. But about is we of feel business up. back the how I commentary back terms have bringing I think you strength of in still

last were And load the to our relative year. so normalized of load back factors our in year, factors last pretty half

yield you're the is all that improvement price. really, So and in seeing by QX QX being driven really

lot we but it's And so reason and really XXXX, pay first, typically to continue not the I as more, only to think don't -- these strong demand. When increase it's a July, a why talk think we willingness indication the about manage so that build we prices XXXX. about

early. We in we're now we we're a bookings more place is it XXXX. the for are So than that release taking XXXX in mentioned where for

So talk strength it pricing and and the about very much increasing, pricing on applies XXXX we that the in to commentary beyond.

very good. We're load it's is increasing just trends the the to and position book I note to that think strong are factor for So important again we done. we see. But feel XXXX, in continue up is very pricing a recovery that

operating are factors. at We load full

it think account that into also have to 'XX. yields needs XX% improved the by I versus take over

it's in So think, story industry, to like-for-like point the to. a necessarily I not

moderate our QX very that is XXXX. in we in and The above. described we're you're to think I formula yield typically good really starting of to of pointing which of the to what that pricing at of a like X% what think to I the is pattern and see yield that, growth, still X%, half continues back around profile accelerate. And we that elevated is show as success the So end to top year compared feel about

controlling if -- change profile significant way, our and what profile. is us, for growing business in we're see that feel our margin step continued change we you yields earnings significant think disciplined return step growing significant in our accretion, cost, I moderately so a And our

It second was changes, it And that in terms half period but the in pretty we of said an add lot the remember, your X with XXXX. first growth. that thing through in Steve, in didn't remarks, structural I'll just open. year, the of ago. XXXX, about right, it had half a comp, of prepared other one I because and more also opened It's have my CocoCay years easier consistent

Coast. it Ovation, would home questions Jason, around deployment of at recent question, change of the I And move. in are might on with thoughts West what this as as that investors thought? Second think or profitable ship porting concerned China any a the market the just gotten taking be move bunch helpful. the domestic out right be about this your just now? China, essentially way We've strong any not there there as to be around maybe previously would But Or would color you more have market it's is the time

the And the and is about ambitions the of feel market. grow choices. It Coast to we're Steve, operating in make. in months market, got West it's Michael. well market good of -- great reached the seeing at out it of We're we as American know, China started you And have these It's having We the Shanghai ago. in choices for long-term U.S. of performing we strong kind a China this good has market. not I in Spectrum, where this potential position to very levels very changed we've good still the few the we in believe hasn't course, all.

which the about put the year we is the so well. performing West economy think about the ago in ship a been exceptionally sixth you in Coast California If world. Navigator, or as has largest

market. Ovation and made doesn't of should should upon based there. deployment it kind maximizing into see quite really into choice, moving deploy any So but way California, Tianjin announcing China that the from opportunity performance, or with deploy decision we you'll future we we the think away We're in we're And the committed I we'll into be we in indicate faced to that the China. this more

Brandt the Montour with Barclays. question comes Our next of from line

announcement on morning. this the dividend Congratulations

of all question. X% the Can price. on The comps, question -- answer. your you you And the How is us following you and first know embed algo? yield the it's I how versus like like-for-like tougher just to embedded sort on So that think fourth which that's guidance, what Steven's that? about help generally the compare the is understand -- within implied in easier have to maybe quarter, up does like-for-like that longer-term

first, is like-for-like ships growing Yes. than meaningful, the be I in overall what the And It's as if faster anything, they're hope well. our all Well, typical new so larger. Brandt, would is comment, is would algorithm. denominator on, but much actually, come

So But on just it's the it. of I a crushing profile, obviously yield is is the Utopia successful, Icon overall unbelievably smaller our percentage mean, denominator. impact

And as the more So our think into also that just part us really, I wallet. commerce of reading which pre-cruise guests breadth to and what you're like-for-like what's is ticket, that onboard the activity is story our but of share which not is X% happening is for shifting experiences, of growing. And engine that that a power our of it's of getting increases onboard. forward, in booking is also fuller more spend resulting a have

seeing? look Great. super just you 'XX shorter-term earnings brands, I the sort some end bookings And all when at follow-up, heard comments as are a somewhat the -- in, seeing lower to helpful. for made ships, apologize your land-based but I'm you're coming sensitivity pricing Royal a older season, you brand data, anything at any sensitivity. Caribbean -- have starting softer itineraries, that hotel your forming and your what you're land-based question, curious, your base pricing at from then operators other we on of see this That's versus

We a Yes. XX,XXX, taking XX,XXX have XX,XXX, -- opportunity on day. we of bookings obviously the

for just these we're further the there to vacation so window planning they're on our continues guests of pattern, seeking pay You're group going more seeing there to register there's to the a continues somewhere the extend, experiences And might in ring isn't pretty -- incredible ships. every type be hear to see increase. much know booking cash that the I world our break out, in to their every but willingness second some

with at be? into that just you of I to how short well, get pricing a shielding our our value with XX% that is of vacation. a noise land-based brands. into our as whether you buck when look that And for Brandt, some think continued And just there's that value whether look well, land-based the I think, it's trends continues at at it's reality the gap space on I say, you're it's a it can happening in still hearing potentially XXXX the lot side. increase still happening the board, to not we from it you well. And us, people is operators. But gap that's us you traveling the -- think XXXX. for look that's by you're ultra-luxury that product, market, And whether bang from and on that So whether see it's by product, whether acceleration or -- ticket just pricing

inventory we this some or too is managing, going well because have that at there's in really fall the booked, reality lot booked opportunity that Now as year, under of us, optimal XXXX. or you're into -- to but also -- well is sell too, probably to you we and that booked is pricing of less a half we're back never we're for which

comes Cleveland question Ciepiel of next Vince Research. from Our line the with

you're this on targeting of very you're the boarding naming basis, back party that you type guess kind to I just comments, the of this and I ship from focus. a in question mean opening getting clear on at this sea it's touched go-forward the Utopia So moment biggest your a get away it's kind ceremony, strategy inaugural and of from on

about imagine more So bigger And sailing a decisions week getaway in what probably vacation how I being of to that icon type shorter years do can you this ahead? this. allocating you as make to long development a you like the Florida the as that's little South family-oriented new driver islands opposed close talk see bit hardware private something with towards some a experience? of your unlock But a

your the kind of question a question. answered and Well, question, a it's in lot great of you

when the the moved single the on. demand. are many family we It's right, some new-to-cruise. to cruise the brand, changed on-ramp time product fortunate Royal for to the we've get that . We multigenerational we some which we that a really just few that cruise a started longer our is touched CocoCay at we strategy very in years amount it for of And the product the product you And on of that significant seen stimulate years is investment the we've We're of to our short of ago know less the past logical of known a with purchase. is market. and every And think short for business new-to-cruise we've and For we on our It's up the that of much product. scale segment of time. It's higher found volume significantly much ships brands. than aggregate growth that couple days. reasons, in over development I very size Perfect got only and got you short easier investment can Day quite that for We've segment. product large you a

and and the the Net up which a It's Port really, market, we into great to energy, revenues are new being with product and of park, knocking just maybe seen strong. on is to terms strategic very with brand and out it and of in pleased work it. a it on guests what is Utopia drive customer in Orlando. But the significant. take a literally decision class five, that very certainly, think Orlando is we I as Utopia package we've trip years we're Promoter a some as market, the Oasis for to outstanding offering Utopia, what it the placing Scores, to only started the onboard high the what seen against we're see satisfaction, was onboard revenue the And very well We're we've second the to exceptionally ago it booking product, in easy it's week trip a customer been Orlando product, to that Canaveral demand of put has

put upswing a we that experienced right know see they've that in best So foot Utopia. and with can brand if then that what we we'll forward, product repeat to significant get we our of because

market And of Icon think customer a that also can Port we We've in Perfect strong certainly, be going the they're got offer is to Day. when into good, to and to X-day really booking of down soon the range it. of Canaveral the products you and Seas, Star which

very Just we're -- factor, now around is at just Icon as load XXX% currently with sideline high headline, is sailing delighted a customer which satisfaction.

short have Utopia growing our strategy add just see with that life intentionality. are think guests of vacations. and understanding Yes. but we younger of because but of that at that you whether hyper-focused of and around Celebrity, that happening just I multiple at that brands consumer can you're our and overarching each commentary sure the in great to different I the looking to I matches and demand. that to our half multiple And Vince, meet us consider I these whether I an goal the a you think guess. But And think a it's of address and And really in having our is goes generations, of our of Silversea. today hard points category, segments, tomorrow trying consumer kind make category, generation our looking experience in though in are I'm with Icon, lifetime the that different young collect example guests to now with is myself to And you on seeing experiences see Utopia with people are the you're trying there. that these see with our of to the I that mean guests what's not

helpful. That's it. Got

So XXXX like. and Utopia, millennials the on Question Michael the of like yield it Bayleys world, the setup. sounds

into you when when the think But a number you've drivers mentioned Xcel this Star there also that yield bit denominator end, Club, Royal Beach have for of on of you another be like-for-like be could the growth. much seems is you tail incremental then to And like larger now. the you've of half a got supportive this year to Utopia, I year, XQ little you coming, have next think asked at like-for-like. about you

you additional larger we or next other do How the like-for-like thinking is So to year these an like-for-like that? factors driver? be yield expect about still should be accretive

full like-for-like. to up Beach do at I something Club make that Royal perfect. Yes. will Well, year Star definitely or is would typically the very ramp our that a year, next year, will year Xcel improvement the contribute operationally will the that as the end as a be year half of year to the very, full you back will as itself to certainly I towards of -- half and it's think sure and yield a point of be Utopia, well when we of

way, And us. what that onboard spend contributor benefits more And a are -- new our a so it it capacity XXXX XXXX. But -- be the activity. I expect yields XXXX, meaningful as, think the we're in those like-for-like Club is the to and to is think driver well the in pricing Xcel in be as by be in will certainly, that seeing that of we probably Royal Beach I will than

Our with next of the JPMorgan. Boss Matt comes question from line

quarter. another on Congrats great

targets hit, getting cited just that you're all you So Trifecta your today started. Jason, with

seeing XXX So XXXX. terms above maybe points EBITDA that could to means Where based what you're trends in basis you us that from share exit the opportunity. customer global here? XXX on this margin Naftali, maybe then multiyear see you just do margins on new going market today? elaborate And of year,

this. about on with talked But you're internally, when base Well, the Trifecta, I -- camp. even getting so we've all we started, think just -- as familiar it talked the and comment very about and

take we've strength, And financial So anybody back to our see we've drives formula cost you full discipline, but business. returns and doing here getting laps. you significant just It's in talked moderate our about We're full business. it, if with of won't what We've the the now business, victory it announced yield growth like health. we're it. hitting for of our growth, discipline hit margin

and that Bahamas land-based come forward in the the like in the the in Club are You combine Royal Beach Mexico, power the that Beach to with the things Royal earnings going and of Club returns you the see here business. the

X% think drivers. significant you ourselves margin if in on do change when about execute our is make next. It's in we half setting our at that. sure cost like is I on we yields XXXX, think of X% those in And change what's we million. just about, So now how look $XXX

your than costs, continuing growing your growing you're to a faster significantly if So faster you're your you're than lot to deliver grow and yields costs or that's going return. of margin

I trying competitors. -- how so a we're real $X.X where chasing private we are we Utopia we're we share Icon going this what well, to -- those more land-based things to that more the will differentiate point our can -- trillion that because operating again, vacation and of we're is Xcel, in gap sure I ourselves our market. chasing doing is cetera, like and choice. And drive vacation that really et to add cruise when make would growing the power do think if much not business, there's and and land-based from And a like that consideration earnings and do What in that shareholders. to we and like significant further we Nova and and and close we're with consumers grab more further other vacation that's what to is and The we chasing returns that's and are that clear destinations, leverage

-- And the one Matt, question your guess the on margin. I on

much kind focused you and than very were executed have margins change going forward. last we've we're of because growth. So in see X to we happy And continuing our the higher and our doesn't on was the with That obviously this can way XXXX. formula years, profitable

said, higher new market. Jason amazing it. business continue we and to billion see that while trillion win to $X.X share this opportunity $XX grow great doing about margins. expand with obviously and an consumer We the experiences, So That's we to And want new opportunity, ships, think new to continue the grow initiatives, as as revenue. category, a the as from

go $XX of is X% is -- NCCx yield of $XXX million, back And X% net to revenue said, I'll Jason is what million.

So you on company to flow, bigger can much creates there's grow free see runway today. We're that a if the we that continue on cash more margin this a much continue also right? formula lot itself, business, the of and

for our just will allocation that So capital expand well. as opportunities

of comes Our with Cunningham line Research. the Melius Conor from question next

that return see back. maybe returns, And as that you to just as of the that -- think additional just you additional here? avenues stick start of But balance Or just on? repurchases before you sheet to are shareholder curious how like the you think how answer Obviously, think function about to additional dividend that about great that and share maybe steps up about Board is a Is on had. it it's targeting optimization time? thinks you and from so about

course, Board these Conor. always of decisions. are Sure. And things Well, thanks,

I and our think historically, our on have that reflects the into dividend now the focused been I that we zone, ourselves doing. both metric zone, used balance gotten credit have we've we think And sheet capital that suspect really kind to time. dividend both forms shareholders. on things of that other like And those both repurchasing growing I return of those over focused share would things we be would to of and

X.Xx in a the and a make dividend, dividend opportunistically We've and is ultimate of reflection is dividend but keeping buy our X.XX debt-to-EBITDA the side, of, the X.Xx zone. time. So amount on shares that I the we over think, goal sure that again, reached to have competitive think ourselves I to to back

the always and opportunities, the balance done of we, the We add right? first So with we obviously We I'll -- where our capital. zone -- this want foremost, not is reduce to reduce There's are unsecuring And that cost just sheet. maturities. in sheet balance still our continue manage target. is within to obviously,

strong us So sheet we're to work reinstate the dividend but to the in just do, business. to grow position some that a we very have allows definitely balance and continue

booking relative year? strategy But year about to opportunity have differently. curve to you it again. the on your does like Did you It anything helpful. to be next management or optimize seems That's Okay. And to your approach ask it feel change expect as year like next how maybe you then given there's -- didn't this sorry comment you it, you additional this yield just XXXX the for ask a that? table year necessarily what booking little left wasn't to

sure. Yes,

we where we that see about obviously in today, that you could beginning are beginning the higher think of in guide had We're the points I were than the the we in year year. the plus basis our in right? So expectations to XXX of

an acceleration of and demand reflection a that's really So price. acceleration in

going into clearly, table is, from left we on takeaway were Wave. booked we your some money So the that and too

trends, inform take a we and the management revenue management price very decide revenues Now very how how is what's those looking system, historical team, on when. to happening much sophisticated in and take sophisticated that at to market, we a on is have we

be in think probably a debate I And for again, so our always this terms periods. book we on plus -- different of where or percentage always position and us, minus it's is cross should X as points

course, or that. to of is And in record say our ultimate this record not that goal here we're

that less is book of a type to our do bit revenue. very we optimizing what our that's or little and in make or could it well revenue. same bit position each and our be are, that and day, more to a we optimize Our every the maximizing goal tools little that's and just again, cross And ultimate here the year sure

Farley of Our Robin line next from the comes question UBS. with

ship. It's so like So like order. ship great potential mind X-part kind ask a new your Utopia don't of looks I'd that But question. a to about next

of and First secondly, the ship that than book you have previously? that you'll may there also potential right? classes are some you're help going the you but. of driving could new York, what in new hardware your cities of X pandemic, with like these reach, increase for source what is we would this markets we before XX it having unofficially of talk that drive, about your may be newer realize that Because handle longer-term I that a of seen not allow out maybe term order where market, to markets quantify ship thinking percent of big seems with some if market may had port Miami, some smaller sort been than sort see those you markets do new or drive. for larger within that you feel Are but ordering new Is then is other have kind cruise market sites quantify that you a kind had the now, you years. be some you percent last us have question, the can't wonder something to new can X penetration? of better of X would that sort years, that think than clearly longer If some your And other class Can of what a ships drive go about a you've would New you there's smaller some be to like to driver or have kind ships do? And today. that me I to about further

thanks question. the Robin, for

with seeing Silver you're and they're et you're Utopia with different different as Icon, we deployments going all a good that growth very remind as always feel segments we're order book. and in subscribed just first, to So line sight our being course, and day. seeing into cetera, disciplined fleet, the it's every business. different we into each our And of of adding have markets capacity of on And where Ray, our and

footprint ship in and the the cruise longer we cetera. thinking always business, you're our emissions burn, be term to fuel and but doing thinking terms of what you're longer orders, or environmental further can growth not term, et reduce course, in we that just your in cruise the of So business also and

designs So X of a heard and like in business with this you about is making. ships longer-term talk years which Icon, the us

just years So this doesn't couple out. a happen of

ships and deployments of We're is we we our have our we and of always to XX have I as those experiences through brands. look segments classes, we are designing our segments kind confident be path always years. important very take think -- classes and that very that's for about also long we're all be think demand in thing of I consideration in of ships could they disciplined going also XX, feel business. And So very believe and you the of those whether on they and our brands growth ability course, to a are each confident specifically of other larger, in next that reaching that think really globally way. very small, sourced runway about brands a the when ship generate feel could pick globally We a orders

end ships them you're getting market. not ships can some smaller is the about it's at I just around comes to drivable sometimes looking our platform our of less ships, ships are designing that of this to will about when are the most It's and think deliver and and into experiences destinations their ships. go. keep out the life. And have that on. maybe your in so want to It's also build different And ships, little trying more think to sourcing the that we're some size world. referring go ship guests go smaller X,XXX some our to of replacing of footprint probably We to further will our more the ships the and reach we I And same guests diversify always can flexible the to about kind more bit looking do spread how brands we about question It's the matter. market, potentially today of older and which more replace destinations a about bespoke we size go those where where unique those eventually of

Mizuho. with Chaiken Ben of line the from come will question final Our

relative going Meaning quick guests With is to Paradise Island, Paradise then CocoCay different itinerary? your or follow-up. CocoCay? And how are to today? are different is you customer Or Island a a similar? it positioning a future And this this

as a when Beach incredible exactly experience. Club on for are are seeking our beach. an Ben, experience Caribbean. positioned to It's what They they looking the the It's customers Yes, it's another Michael. experience. it's go

short So particularly product Club. Day, Perfect Beach well fit It very it's a will Caribbean the Royal into for market.

a You the Day. spend day then can And next you day, spend Beach in Club. day in Perfect the a can

as we've And going online. got kind product. totally for product, -- will not often it Beach strong Perfect more think product call -- be into longer Beach it's goes as they well. Club Day, we're including Clubs we set for than the and as a our [indiscernible] often itinerary combination perfect. And Perfect demand may come to of of that the deployed into like including very the Day We've see So it short

also long So well fits product and with well a it short and very Perfect fits into very it's that extremely product. really Day, complementary

to same So the exactly we going really brand. and same And Perfect are think huge the a exactly success. as it's be the demographics for the the Day

ancillary or imagine about then And versus Paradise how spend, CocoCay you different ticketing helpful. than Very will think do be as similar? you

Perfect to think experience other there's that's can differences Perfect is go entire and going the very have many to amount the the entire we purchase you Beach then it's experience. be Beach experiences for the you goes gas. there's In Whereas the Day, the because Because experience complementary we spend, -- available some a as similar. you There the day huge of when when there terms of full the elements are Club Whereas of Day, is to purchase. and it's an that Club experience, experience well. ship it's guest, but guest the choose

price ticket So Club. a into Beach to there's literally the enter

Naftali I remarks. his for conference back closing to will turn the

you for Thank any We Michael all a and available everyone We you. interest. participation will wish your follow-up. thank day. great be for

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

may disconnect. You now