Michael Bayley: This is Michael. If you remember, when we first started coming out of the pandemic, and we saw this really strong robust onboard spend, we wondered how long it would last for. And we had different theories about that. It’s just continued to strengthen. And I think all of the investments we made during the pandemic with and our pre-cruise software and our capabilities with the web, really has changed this needle. And we just continue to see incredible strength with the onboard spend and the number continues to improve. So the pre-cruise penetration is now above 60%. We’ve now got 25% of activity occurring on our app, which is something new over the past couple of months. We’ve made multiple changes to the software and our capabilities to communicate with the customer pre-cruise and on cruise.
And the response has been extremely positive. So we see a great deal of strength. We’re very pleased with the performance, and we think it’s going to continue all the way through this year and into ’24.
Jason Liberty: Yes. I just want to just add on a few things. Obviously, as we add more third and fourths, that can weigh a little bit on the average APD on the onboard side. But I think what’s important to point out is that the strength in onboard and the spending, as Michael mentioned, one is obviously the consumer or our addressable consumer is healthy, is sitting on a lot of savings, is searching for experiences and creating memories with their friends and family. But our ability to get the consumer to book earlier is really the main force behind why we’re seeing an increase in onboard activity. So a healthy consumer certainly helps. Their desires and interests certainly help. But also allowing them to effectively get at least a day back of their vacation by being — allowing them to plan what they want to do on the ship as well as shore excursions is certainly creating a great tailwind for us.
And on the ticket side, we expect our ticket yields to continue and APDs to increase. There’s a little bit of always that how we package and how we do things can lead a little bit more into ticket or a little bit more on to onboard depending on how it is with the brand. And also one of the — I think the other drivers on the ticket and onboard side is just whether it’s through e-commerce and other things. We’re taking more and more friction out of the acquisition experience or how the customer shops. And that’s also allowing them to get the vacation of choice that they’re looking for and on the platform or the channel of choice that they choose to go through.
Vince Ciepiel: That’s helpful. And maybe taking a step back, a bigger picture question. If you look at the order book for industry supply growth, looks like kind of this 4% to 5% range in ’23 and ’24, but then falls off in ’25 and ’26. So can you remind us the time line around new ship builds? Is that decel in ’25 into ’26 pretty set? And your take on what decelerating industry supply growth might mean for the broader pricing picture.
Jason Liberty: Well, it’s — I certainly don’t know the plans of our competitors on a new building standpoint. As we had kind of noted in our release, how we expect our business to grow next year by about 10%, then about 5% and then about 6%, respectively. And I think the first thing to point out is, that’s not just one brand in one market, in one destination. So this really reflects our three wholly owned brands and how they’re going to grow in their different segments and also for these ships to be in different parts of the world. If you look at the order book, you do see, as you get into ’27 and ’28, a lighter order book. We believe that Royal Caribbean that the addressable market is underpenetrated, especially in all the different markets that we operate.
