Royal Caribbean Cruises Ltd. (NYSE:RCL) Q4 2023 Earnings Call Transcript

Michael Bailey: Yes, we see the huge opportunity with the direction that we’ve taken in terms of this combination of phenomenal, land based, curated destination experiences, like Perfect Day, the Royal Beach Club in Nassau, and Icon class. So I think our direction, our mindset is very much focused on the future and further development of that kind of product experience that we know absolutely resonates with the customer.

Jason Liberty: Yes. And Jamie, I think just to add, we are very purposeful in our actions. We’re very purposeful in the segments in which we are operating in. We think we operate in segments where the level of quality demand significantly outpaces the current supply. There’s obviously constraints inside the yards in terms of the ability for anyone to grow at a fast pace, but we expect in the future to continue to invest in our business. We expect to continue to invest, as Michael said, in destinations and also in the growth of our fleet. But it’s going to stick generally to that formula of moderate yield growth, good cost control and moderate capacity growth over time.

Jamie Rollo: I’m just surprised, given what you’ve seen, which sounds much better than expectations, you’re not changing anything, even for the existing ships. Is there nothing you might be doing with some of the vision or radiance class ships or maybe putting some of the successful features of Icon on some of the sort of maybe Quantum or Oasis -class? Anything there?

Michael Bailey: Yes. We’re always modernizing. We have Allure coming up and the actions we took on Oasis. Some of the learnings on Icon is going to be in the modernization of allure of the seas. We’re always updating our ships to make sure those ships stay relevant. It doesn’t move like the CapEx number potentially or maybe it’s not as exciting today as we’re talking about Icon and Hideaway, et cetera. But we’re always investing and bringing a lot of the learnings, probably not just on an experience standpoint, but also on a sustainability standpoint so that our fleet stays relevant and competitive.

Operator: I’ll now turn the call back to Naftali Holtz, CFO for any closing remarks.

Naftali Holtz: Thank you, Operator. We thank you all for your participation and interest in the company. Michael will be available for any follow-up. We wish you all a great day.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.