RCL - Earnings call transcript Q1 2021 | Royal Caribbean Cruises Ltd.

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Operator

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 Business Update and First Quarter 2021 Earnings Call. [Operator Instructions] I would now like to introduce, Chief Financial Officer, Mr. Jason Liberty. Mr. yours. is floor the Liberty,

Jason Liberty

Thank you. joining first thank for everybody earnings Good today for morning us and and our call. you Shelby. business quarter update

Michael very Chairman Joining and International; actually our Investor Chief Fain, Carola's are of Mengolini, and our President This me Executive Royal, her call best Richard Carola wish thank her Officer; Relations. Bayley, Vice sincerely just want with to really love. of us Caribbean as lots last all all with she efforts President CEO, and of is her we retiring. the And is I and for

So, Carola. thank you,

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

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

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

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

Richard Fain

all consistent and and Jason, joining you of over you, your and many support thank help thank Royal Carola Caribbean. you the for call years for Thank

we anchor. sitting suspended mark sailings to keep painful of still XXXX and the to most in it's know, seeing in all of pass ship You March since X-year been beautiful our

However, that our The I'd in change significant some with and comment of quality the the of mentioned. a has just improvement CDC. positive been developments to the big dialog on the like dramatic extent we've

Furthermore, mid-July. that possible not be to to and all resolved. emphasize mean and But us we a area undertaking helps said significantly always receive does better not a a would details we we night. very advance the better high be about cruising exchange that like a and leads there operation. regard have letter and could the can of a pathway I scientific will important in More and outcome. go a to and of and clear restart elsewhere, have to increased and immediately I in to efforts vacuum. As all The and in its cautious this It the knowledge information also perspective need these the provided Nevertheless, quickly. an we need achievable of those. to does caveat would resolved this are well and has appreciate more understanding recently CDC healthier others very in now in really We see better order that concerns vaccines complex the in only the effort. for many important be the of this be science. the order near issued a hopes takes and that full sale advances many future. account communication healthy that items future is still in restart manner night be great the we this Last CDC and recent by really is addressed cruising last to into multiple us medical We in amplifications of the forward - this safe to believe constructive that and details of clarifications conditional the

restart we get hopeful books back weather long this full our process of the deliberate. swing in and take manner. and to very of the gradual in business to restarting, advance, and desire a and the safe see for Furthermore, reopening value constructive that the it but will some be part about machinery both time cruise While a the are is so in CDC's indicates communications, indicates good healthy it

industry a are right. before, common the do said this the and I goal we in share determined As both CDC to cruise

One discussion CDC Cruises with Asia has Europe. points our we've been from data and meetings strongest of the in in collected our the these that

we cases. over earlier, been XXX,XXX and XX mentioned has all as this experience of vaccines. without only with a passengers availability positivity the carried emphasized rate of X.XX% have As of having COVID-XX successfully That's XX? we've

many with Our as already life goal cruise doing to been ship, pleased can control similarly does so we are in has and to us main throughout our USA. circumstance. CDC really resume treat are we the to We've demonstrated letter an safely other this industries intention make environment, similar street reflect we where do businesses that are the and to other to now eager pandemic to a ability

this going addition to other in are positive particularly the In activities on. there development U.S.,

October. with unbelievable class brand along joined have International Moon, course Silver For Caribbean course, month, Apex our And to with example, example hear strengthen end Odyssey of been additional fleet about more amazing three financial security to steps there the Silversea, guest the and of quantum for each even position the Jason. taken And such has last to experiences. of ships, Seas Celebrity and ensure and safety, till from current going from you're season most now technology ships we've new also Quantum we that sailings newest Seas demand our Singapore Royal on the further that for we've the our extended of now our of there

people. our lines, work got is always commitment see Before once the that have and I guests of trust to the within It's our our these all have of like months months we're past advocates acknowledge XX who our COVID-XX. over and the successful and and want thank cruise of I'd people energy our Group, Over strongest investors been always living the us. dedication and describe also of travel work to to who endurance feel I -- we our also with partners us over work their been this with test. real again Everyone hard for through made a pandemic, but with the and commitment uncertainty. passed and that suffered have during who our people has their grateful We're for test has agility. grateful to have people been working

on of now all ES&G directly also social other is healthy the governmental a right responsibility. return we're our to service. environmental While what and to doing areas in We're constraints a position lot focusing and on including

inclusion Of standing. the will active long new sustainable course not diversity challenges engagement the we isn't on we reduction, to is what meet we support that strongly to reflecting destinations, have From how need aggressive this ES&G our plan us. what's our doing, But for of partnership focus after the it's future. get for we been to believe the commitment next progress to Fund emission for the with Wildlife agenda to and World ready on

And but want to intensified in Jason. microphone future You with take I'll initiative to calls you aware back opportunity the this about to that, make Jason? this will I focus hear turn more this

Jason Liberty

you, Thank Richard.

an I times. for our the reported first again for want This across dedication we share efforts like unprecedented performance. morning to during loss $X.X XXXX. start or to I Before thank per quarter our the Richard, will now teams and of their quarter adjusted billion start enterprise $X.XX of tireless whole first these I discuss net

U.S. type to by the news spin. While reporting the by Furthermore, of is starting CDC, it quite is of encouraging. in to service to results are be about painful, our of these the excited that fact the flywheel as continues resumption little relates little we latest the

delivered of are additional vacations to protocols and quarter the activities over working our the our Royal on begin diligently teams startup guests ships to operations XX During XX,XXX first through Cruises summer. International needed Caribbean memorable an and on brands. Moreover, we this TUI health Hapag-Lloyd XXXX,

call. is While by deposit also we they are pressure put burn even has been some was short improvement customer larger This 'XX in our disproportionate the related the an that compared deposit versus morning also few sold the as months ago, driven Azamara the December last our that latest reflects FCC's balance, our at just balance. balance balance $X.X reduction activities approximately was encouraged which these to versus are to additional term. cash by this shared issuance improved demonstrating XX% of customer more the brand, new the a this, $X said of which versus today bookings related this associated extremely balance of At billion is to FCC's. the XX% quarter. about deposits Moreover, of in very our with approximately first of point time our our encouraging on Having billion end customer deposit the the

shift we’ll our quarter. during liquidity to actions remarks Now the our

you know These been billion us a discipline. since innovative have a strong assets than helping of fleet highly more and of raise March As and ourselves in new attributes world-class we leading brands having all capital $XX.X on pride industry instrumental year. financial with history last and and

we are programs debt balance million principal we this our starting proceeds in debt, U.K. two enhance are March. quarter cumulative maturity we lenders two due amended was XXXX to during and the commercial will and for XX billion. quarter, approximately capital unguaranteed this highlight the investment related end, guaranteed debt XXXX we we extended of this profile. totaling constructing first continued unsecured unencumbered Connected in that manage Altogether position months. the of $XXX To $X debt liquidity journey of which approximately sheet. to with and with our $X.X in the down facilities on I to executed to due paid successfully were paper During since back gross that efforts by our our facilities amended we maturities refinancing grade billion, raises an

Now, which to monthly crude as was to restart slightly the suspension not expenses higher quarter of note first assumed When mainly was it movements. by It pertains expenses, restarting previously Overall, burn excluding some burn This the and new does health cash protocols $X.X as previously that related a important we was to million, in that any range. return burn to the liquidity. $XXX expenses the during billion previously were the the include average to range. driven announced was quarter, approximately announced ranks service in related cash prolonged which in with cash is closed operations. operations announced available status with line our of of the the it

offsets cash the but the globe operations related previous layup the to extremely burn we customer this momentum estimate the generated and very and that around previously be ships I the revenue kept of consistent news, with the expected reason, the environment latest ships. our that by not rate for current for with expectations or from that will As deposits returning come mentioned, burn new I in we highlight encouraged are remains and providing are basis. relative the restart a fluid on are is

it quarter on maturities I'll negotiations you million our providing export on least start credit billion $X.X and facilities for pertains I and are of of know scheduled billion and addition Now, update outlook mentioned, the facilities also debt in as and is of debt our by of through the maturities for amortization capacity. amendment extensions we to deferring the respectively. I $X.XX as all $XXX previously of these top XXXX covenants our summer at an the principal to our business I completed now XX the financial of many third our the mind waving XXXX. that will end remainder XXXX update and to this After

first guests Israel experience months the ships of U.K., Over for These newer the and in have sail Celebrity represent to a isles itineraries our Seas Greek the of in Europe. in and season last extended Six for will These ever. three summer XX% two service we have Europe the Silver Europe for Asia return Moon global from three U.K. fall. through to the Odyssey and the fleet the across our opportunity the capacity Apex will guests XXX announced of the sailings Singapore U.S., these to and our have brand ships ships the now for nine the Caribbean, time the season. Quantum Seas offering of

for and to the addition, will Bermuda. the to continue local the U.S. from Perfect Singapore these itineraries from sailings our market Martin top amazing CocoCay. NASA, Quantum Caribbean offering In private Day ships Cruises offer three of cater Island market. at call Seas on of St. will departing this, Many On of will

this been of Now remain November. to summer entire safe, vessels ships and have regarding additional to to they Islands the sensible since We operating two Cruises have unit the announced three addition ship's Canary resumption out forward additional that across of our this fleet. two announcing thoughtful return JV, a in of look sailing the committed financially and cruising past

Now, launched October cruising for bookings. were the Because I saw pent-up our hoped of demand these - and the When will and immediately in provide we an Quantum true deployment. the same new confirmed of update Singapore. we sailings would our that in first in markets on set when Seas expected be of we that of we the for XXXX expectations other open

nicely. our up XX% load for After Europe very expected than sailings revenue we and been our for in for June booked the both more three and are result, of as weeks Caribbean less revenues have and have ships, levels of booking building already September about a factors sales sales. through and We pleased pricing with

We January to initial approximately when I March factors levels compared mimic with and bookings we and XX% December. marketing shared activities, and demand expect lower to that and November accelerate load in January earnings more bookings continue received ramp sales last February by over start new a On Despite exceeded in up and call, our to operations time. XX%. our gradually

continue In of and utilize addition guests the program. & Lift Shift to bookings, take new advantage to FCC's

is cruise booking higher with resumption half both on second Now including dilutive future pricing overall, of bookings the cruising impact is in activity XXXX anticipated these credits. the and excluding the than of line XXXX our and of for

up book XXXX is pricing I and half book the in the the factors but Regarding window load including of booking impact remains first well. ranges sailings, early it FCC's dilutionary When provide XXXX. historical our for is much versus on XXXX of share too still detail, business to that will as the nicely within

also related our the by for very optimistic ships. flywheel up ships open close and existing feel new a turning to I is onboard pricing incredible the enjoying While the prepared are to I and are our a see portion ask of guests for will that, eager to we future that improvement this fleet. more the vacations up question-and-answer around With is start for saying globe thrilled our We more again. will session. about call and Shelby

Operator

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

Robin Farley

monthly difficulty] - Have there a of of question [technical about it wanted understand out then month allows maybe And months, on with restart? can typical into three restart, I lay-up just would but the you difficulty] clarification just we and and lay-up be that? restarting is what layup, you. that of kind what expenses costs the if return non ship, that the just restart for follow-up with is for obviously you in trying about heading go way, forward get sort is my on Thank as versus the much service then passengers how the versus to great that [technical is - just and ship to if seems to that vaccinated news U.S., difference per then cost think restart per a lay-up separate timeline it say,

Jason Liberty

broke So think the question, It we first is I'm got question, it. Robin, of of amazing on XX% most it. about which don't up I an sure

costs. I'll state. our of as Yes, you side, asked. comment really cost in course, a question. kept re-ask relates in just hear - And it of on ships lay-up can part to the you actually we we've we warm have didn't first then actually your So generally what real tuned the our quick and

and service of might why by is the we as our we to it able back relates and movement kind we're things at ships, are vaccinations be take still very might reasonable consideration costs as those other and that a on ramp do be fluid, guiding into itinerary return that expeditiously But we that testing itinerary. need So the maybe part them That to be as as which cost. to we crude would different not equation. restarted up, of ships and that to

ready that, on we're to What being revenues that these being spending, of kind same you yet - is at not as are launching we're very So as we're would I thoughtful guide course, of getting very focused we to we're sure that. And tell that the and time, customer that associated very the are ships, also it. we're about we're deposits that. make with

we your you of can so it So the just ask there pause hopefully let hear and question, answer. a part and give I'll thoughtful you first

Robin Farley

Great. me Well, better. hopefully, hear bit can a little you

to news first the good obviously, overnight. just question, very On I wanted understand,

of it the restart passengers, of a time that unvaccinated be is there how you of can with a the that forward there frame, for is Thanks. the frame time but to out For separate kind interpret ship frames that today a will vaccinated different time vaccinated go timing? have be ships will two U.S., that fully mix and

Michael Bayley

Robin. It's Hi, Michael.

gotten expectation commented, in we largely yesterday fundamentally, There you're modifications evening. meet would late commentary and that they've that there crew But correct. simulated pathway for CDC for on you. cetera, And of two threshold be One close have a that we've the vaccinated mean would some these what and Richard defined. pathways. wouldn't a voyage, comments that be clarify planning. yes, et be to will and the to received really requirement And vaccinated the there As protocols a guests and different

and wouldn't of - there a requirements. a timeline threshold And and faster meet have be wouldn't that then it's different set ships protocols reason, route. for would that different So a whatever for

of way a simple, not simplifying. two fundamentally, there's that's So path It's ways. that but

Richard Fain

other you make just about just There's completely two divergent are And what this - think of have we did. as that nice this. both think as in different got. a that you But been about who Obviously, we situations think areas under are don't still in lot society, is the have in letter as than there is of processes. I uncertainty are, Michael I CDC And these don't that you treat should vaccinated clear effect, people vaccinations. reemphasize, viable where pathways there need to

Jason Liberty

are something that, but And very the that think the add coming, was mean really acknowledgment think positive. to I is knew to it's very vaccines transformational exceedingly just we it's all helpful. I I

Operator

is Stifel. next Steve from question Your of Wieczynski

Steven Wieczynski

going is answer yourself going getting is, for here. second CDC to know third mean, question a mean, your to look So question, of some this - you mandates thresholds percentages? do the I my board kids CSO and that you if calling do think to part be be But cause part outlook to be be it right, able And for for do travel for panic of during XX% frame. to The is those CDC's getting the component. that When if it's with bunch be like the achieve? fun then potential the the you - How of the base? seems three-part are won't been be a that difficult customer don't Bahamas able on first kids at could you you crew might And reading time that easy think kid to will cautionary the accounted hopefully you're those going I'm questions question so I be prepare XX% some out. laid first to of of passengers have I - is, vaccinated, to. under

Michael Bayley

the or a on guidelines guideline. XX% mandate XX%, - remember, and so Steve, it's

know will told cruise. been threshold, surveys pathway. So and from don't XX% they can be that meet that of customers to us, they're vaccinated since you meet January, our there's have have either or threshold, over when who've of We booking vaccinated customers there's already our - different that you and

that's So since January.

customer skew certainly older you et with an for saying, course, started vaccinated. percentage quite et group people I'm older, And getting of the vaccination cetera, age the there's overwhelming, the increases base, Mainly cetera. are first, started, because, So just our it when as significantly.

vaccination and our certainly I flu, I many reasons mandate voluntarily we they're offer to we vaccinated? don't For want our we're or you for won't crew crew for and all, flu that our with will the rates COVID. survey members crew, was get vaccines vaccinated the vaccinated?" of the how to, the natural XX% years. And through get of stay the year typically, the many, religious we've getting interestingly, every - crew, for to of crew for our - the And that We at year, months say think reasons in I'm around crew response and and for year, understand is surveyed flu. "Yes, positive getting been surveys members, to the had vaccine. it's out, terms And that's place we in or from do health mid-XX%. been We crew some willing flu vaccinated? over doing vaccinated." we some crew just somewhat They we just you that of get touch end members, we Are for first ago, of and used there's And we belief last years communication. "Have in or you beginning So saying, in the for sent vaccinated many of going going various it vaccinate event. people forms a asked think this our for been to Crew take

kids XX at that. are kids, this quite count, and that number. that a percentage now will a by vaccinations told drop I a to know speaking, count, lot a the eligible We and total our think And relatively population that guest kid under. encouraged And we're children, and months and under, But as have been over. our XX, next look think we weeks We've we the coming the we that is kids On kid then for of and what and the limit age carry small XX of obviously, likely you. it's XX for take obviously in phase.

discuss last study out, different to the And anyway. do So these of have CDC modifications concerned late We we're overly not pointed these not with in night. understand as and nuances. all we're again, by sit, Richard received discouraged But that. and really this we with

Steven Wieczynski

you. Got Okay.

Richard Fain

And just that which of ought Steve, it not. make do clear full which of some vaccination are - cruises, some we I been have and operating requiring we've to and announced think

this think consider a And we much that approach, CDC have so, dual it with at we taken. as the looked pathway constructive I has

Steven Wieczynski

online Okay. Got you. from next And start If And here, timeline second continue of to there, then the Jason. can American you North sometime the question, you bring and ships correct couple is, cruising over back enough over at months. this is position adequate where an sit do is feel meaning extended feel you like period of you point, question time. you The with current liquidity your comfortable today? guys

Jason Liberty

and and are the we and that's in at same the like water customer of feel strong here getting the focus in so we're back the booked coming think I course deposits start on position liquidity time, is a forth very in. ships real as the we occurring revenues

balance and we're and to opportunistic ways at and carry we good think be sheet remaining also very course, of improve I forth. looking negative our So to feel so and

actions of in overall, make that but we prudent I So, to feel very sure think we've a taken we're like shrink. a Steve, position

Operator

question next of Your Morningstar. Jaime from comes Katz

Jaime Katz

so sale there sufficiently is feel of is across any scrap across really curious the if you some then, on ship and percentage anymore of forward to it. given these overlaying constraint the that the you how going the you're on good been helpful? have That be consideration comments the of sort fleet now on ability Thanks. or the deals constrain that then might getting staff the as workforce India of there industry industry recently. of that would I'm have you whether is from if comment many And the fleets

Richard Fain

one allow from our Michael fleet then we've Jamie. do good of But about we've we good understanding in about of for of first always the and is cash even a in way sell still make some or can the will it the we the to are sure. crew fit some Yes, terms kind for ship as the think invest mix as take ships, approached scrap ships opportunistic to brand, relates I'll if these past, But some the ships. fleet or that and the fit good we brand fit really our for good ships just whether that heard we're sold a sold, we ship and a is I brand always typically this a for flow look about in positive. in ship overall, not, a sure if the but the you've and it's We us year. feel say really this, India. we've

And to for strategic it's convinced them, part be has ways it us to but to with right so for reason the so. us do

Michael Bayley

And Jamie.

or On what you beginning activities over the cruise accruing an out. we to understand around week the India this we work suspend our various will crewing world beauty, traveling very There the situation The relates is to of has up. in how the Indians in did particularly countries from model accrude Yes, that almost multiple so. literally of in and is temporarily so with restrictions we have as from XXX this mean countries India. I over the past occurring India as it been what's through unfortunate travel placed on course

India, India from countries come from world. employees have Some like populations but who have of we countries significant to come many around volume large other the

been to change have obviously we of we do accruing pretty employees ability us and work crew are with for many many, we in confident obviously months based will we in India the and all loyal but circumstances. super coming what's about out this the the So happening upon who've many sympathetic have because years,

what's discouraging occurring is So robust. in India, but our model very

have. we the model by encouraged we're So that

Operator

Brandt from question Your JPMorgan. of Montour next is

Brandt Montour

saw on positive on And good CDC, I questions. taking and morning Hi, I obviously, the may. everyone the today more if say thanks my for one back news

say, let's boggie. the have outside at specific what CSO what capacity you'll end you or the still hours for XX this say, we've you about versus overnight What changes sailing in change ultimate of vaccination place biggest best so the With guess was And you? saw this far of biggest think the the for the your summer ago? outside, does talked change

Michael Bayley

Hi, Brandt.

commented unable first realistically agency things. of of additions and the constructive with the two in elements relates to that statement, as wasn't CDC encouraging very allowed the I the vaccine. that that executed because or opening particularly we and talk As What past and the in CSO occurring industry group existing what's to representing departments over really to was the very It of but Richard corrections been crafted. think CSO about many multiple last of CDC with that we've beyond the difficult the inter-governmental with night the saw really unrealistic government, of was dialog all, or - few it it dialog was weeks the many what elements which his challenging many different with of is be very very, to one and the

Brandt. I of just are things. last in and just one thing then in clearly So of resulted the Caribbean of I this major that mood the foundational positive with speaking many, element this. Thank vaccines constructive that's so colleagues simply think And also that for any into and you But all was there's certainly our some Royal night. the heard say industry change being many night that wouldn't late of the game the dialog

Brandt Montour

Okay, that's helpful.

just occupancy and the Just would Is to follow-up capacity your be those of about of what of would XX% sort summer on on sort the Singapore it are that's that's for what load for and sailings of a vaccination total around target sort doing would what bookings if and in revenue. how a you is that's with Jason, clarify, that mentioned of of of sort sailings sailings so target what sort of of sailings second in I that that that thinking to-date and of reconcile expected you're do me? and be not quick think non-vaccination part then be then sort and that just range load, for you you're your that's

Jason Liberty

to going Israel was is of these our turning those of being it terms we've turning to what Bahamas we of start would and forth. what and to course whether in what been hopefully in load we've or thoughtful about expected relating in be be we're factors had kind the off or statement it Yes, sailings so we're whether so conversations we've are of or and really expectations very the most what negotiated

that lot decisions that we all a as So we have in can of we've way those our an news announced I But really about. of a in is a sailings pursuing as of And believe the that our Richard that will in three guarding if, can and making as and do the to saw here that safe is we continue diligent we This that improving is place are it evolving story. from U.S. lights are long are, take position encouraging talk which Michael think boards. the this guests But operate our outside the experience an obviously CDC. financial incredible in can sure guiding kind manner, that

Operator

next from is of Your question Stephen Sachs. Grambling Goldman

Stephen Grambling

and the couple the I and next forward turning reasonable pull to we capacity of a have been retirement. future dispositions growth, guess look growth years over net of increases. ship What is guess of I effectively as any capacity of range

So we forward? maybe expect going last should

Michael Bayley

growth I the going industry-wide around the last Well, where commented X% probably was call, first is on I which rate, X%. probably think be around overall to as

less going you're see to there. growth So

growth we planned online. sell be our for some the and I to have think there to are opportunity I off ships based program capacity our online out done. to is, because manage grow I fleet. it continue us, retirements. our might basis. we on say just us, laid I and say an the fleet that would but about is How thoughtful for that of it's it's focus expect we much part, fleet new our and are in for what too most opportunity as think and we a of operate story, if arises, and kind invest relates be we to that to feel our that would we've the we've plan ships, into on the retirement kind the introduce how done pre-COVID it that the accelerated Again, be ships wouldn't opportunistic cadence business coming in to of today retirement coming I business wouldn't just

Stephen Grambling

any and net from new in be on ships yield in new cost impacting how of us a buckets color the mix and see perhaps mix changes ships improvements of that or how cruise of give Can and/or improvements related permanent efficiency net excited for the you may structure. any follow-up you appears basically changes big costs cost the And opportunity operate? you

Michael Bayley

to come with profile the fuel higher Yes, revenue our a are have the we've much this wedding and taken as and the quite yield also ensure I same a And improve comes the implementing we as term to efficient, our our on well, capacity generate want new we've of of mix we've on, experience identified in cost inventory cost have and think last is action time on obviously we I but protected. our about employee I experience I this margins. looked implemented is the capacity, make structure onboard guest just and that also weight also, opportunities come sure add, I so the actions order so cost use call they is on new along time, we that would more mean, several our we standpoint. they especially out talked talked in to about this protected, And a that then during bit we - we at at structure, think are because the

make coordinating of a a and with just enterprise automation margin this better wide comes to so decisions. through And lot better that's

Stephen Grambling

more Cruises approach think of you follow-up two are about kind just I between type those open. Are structure as quick potentially seeing one between the the any Just cost vaccine then differences you dual those can guess only and that in CDC? and

Michael Bayley

what but way lot and and a to of more there Steven, this, with our is we vaccine again but profile, I cost time need a Hi, Michael. way Yes, it's little mean and non-vaccines there work is through bit different with protocols There there be scale. cost, averaging slightly of think a you work we requirements there's will and really to is more do have so. that through I more our but testing need and

is So looking of trying and the looking our understand and down to at it teams and news all great it plan. we're in this

think the have I coming clarity weeks. more So and days in we'll

Operator

Paul from is question Golding Macquarie. of next Your

Paul Golding

don't marketing I take as term then was you Thanks itinerary levels U.S. of some I for XX% wasn't given the that setup. is maybe saw around XX% new XXXX if homeport. to for reason I homeport if there structural structural number, wondering know wondering was is something Caribbean strong, you cited seems and about much guess, there there whatever a something anything opposed And I U.S. but savings around structural Are near booking rate question. was mix able the be decided question demand U.S. for that so to I you're if XXXX to second one as is wondering, FCC you've there or savings the medium my in port the costs it would look Thanks. low marketing? despite like? was I versus outpaced homeport there are there robust the there home season what mix for to,

Jason Liberty

Yes.

to our result savings to versus side are application. first different think the - the piece think different around us bookings not I percentage really demand, can part, and really there of activity then commentary of on mix of turning similar cost the most And of clear kind on on some is in world. I profile always play of the tell types to We where Again coming very that time bookings it, a as bookings see on FCC's kind is the to stats also sales relates a for a testing to been differential. demand is it's which generate able is type in taking think it is in forth, is marketing and it really the the try bookings and early as fees the vaccinations, if the encouraging XXXX. I of very of and those you as what's broader around think cost in the versus around So we've strong there really one port that relates but I us will profile marketing so some side that the kinds days, it new overall. about for all of new really for to ports application it's the will

more of to I think, deliver ability locations four then to get it's those classification our about those and locations our experiences. turn passengers

Paul Golding

so much. thanks Great,

Michael Bayley

Hi, Paul.

to February, that And we one wave then in March we strong wave a year had in ‘XX. so of real second the and off wave we a of internally-based, and wouldn't having understanding going starts really ‘XX We Just wave, of into to our and on peak obviously what wave March then we week in this bookings year. have came year this last certainly get wave used this or in we've of month so March was XXXX, a through we And and our of happen period. at a was March sales in looked with the equaled and in really and normally But year, compared this it as January volume always bookings with sometime comment dropping didn't run then marketing. in peaking wave wave March. historically which

started certainly the was point number, to March that in quite instead coming investment was amazing sales But and was, the we volume ironically, that way an what marketing so to So of XXXX. invested I this that month January that impressive. below is, we mean of wave during in and was see

I rate I and investment, know going debts, with U.S. optimistic on go market our that the consumers that X.X the the they behind $XXX worst vacation. mean The I U.S. card much us by that had to been and that increasingly So surveys billion little future, we we've that in told demand with trillion. to are pent-up consumer demand. mean is increased is the with about down them interesting tell credit it's by an is a fact occurring seeing - believe we savings so very speaks what in we're think which the

is interpret think what statistic unleashed we demand positive be I going to we about that's going that speaks March, so for be And is particularly one and to think for up 'XX. amazing pent incredibly

Paul Golding

is I the on so the that bookings obvious there seeking efficiency color the or much. around like volumes the the but that my think the there, Thanks I on so medium-term consumer color is wondered out appreciate experience it that seems and if my for Thanks some line. question point was I

Operator

Wolfe Your Research. Badishkanian next question Greg is of from

Frederick Wightman

the Fred in for February totally actually a to some bookings now bookings was Wightman those you do versus of are CDC here of on where taking I Have about January, that March, commentary super helpful. get prospects just a domestically? given than dialogs and Greg. the in recently, just as place Michael's it's for restart the you it's on wanted XXXX change July sequentially far on SKU up potential comments means think guys, more stronger just the seen improving XXXX that the the as what Hi follow in XXXX with

Michael Bayley

seen year. for ‘XX, past holding for U.S. We're then for with rather certainly the we're of over what demand year true products the tend introduced porting And quite pleased into into seeing. and robust. more Caribbean, we've June Well, that which few in the products about I And those outside the is traditionally and been we've mean those products. the weeks is to see certainly the multiple June which we we've quite spoken demand towards are than the heading that moving month from we next SKU natural. things were heavily bookings the is home current

Richard Fain

add just to to it. I of just a Yes. think And couple comments

in that recently sailings to of similar out year bookings and have the As skewing gravitated so what pretty you a of at typical actually have forth. expect you have so they've announced North the is and book and a while had more say XXXX obviously XXXX been guests the have comments the a see the markets, to that because vaccination either Bahamas, would older, activity obviously percentage you would plan on especially in the and of American Israel earlier we forth, markets U.K. bit we little what bit the they vaccinated. booking or terms commented getting little the our vaccinated of

think looks a and propensity and lot So behaving that it and savings so like we it's credit debt, people's is different saw are statistics said, get behind. think There's our it's, the pre these relates to like to as Michael I COVID. vacation there in I worst card people it's very of clear as far thinking XXXX out and back

Frederick Wightman

on And teases next touch what that, helpful. to might prospect for of year. this might mechanics to happen clarifications the of that the make need steps I'm hear would how return the could That's if Alaska the then just that to realistic you be wondering sort and or release that you be?

Jason Liberty

Yes.

place a So a Alaska because of that's stop specifically in course season. with Canada respect slightly complex throughout has one put to until the

try the is at I lot period of are think CDC the yet bookings reason cruises place read in and the existing confusing been a some for is just of – we're reading think still thing a think we're on And which or sufficiently we lot about and many of I I be little I working momentum issues they And passenger fluid read also be of be a factors need but think XXXX. There on so services both one and vessel want. is complex we I these stops. one some to protocol? have there we end will what But reason review specifics allow lot into the there comfortable What other. to restart least into way put respect in are think much that feeling The will talking be given is and too they to the the have with There to from where bit both. the is to we don't careful it go a going sailing, or need of and order We up. So order. technical uncertainty, the too will that's waiver on season. resolved can't a uncertainty. to demand. that Canada at Alaska to the to And particularly would others where surely are it are But odds a have going think are when bookings. hope, working these I lot while have situation. pent-up taken be in that a of high this we're we the

all the it's in that will obviously we much to specifically the it's while make do read with more these encouraging there working be specifics that hopeful in calm of But season XXXX, and be of things to to in ways. that going to but down time think about of and for able we're is terrible until Canada I Alaskan these solve XXXX be We Alaska, encouraging factors. into think two to. it's these certainty very issue either we're optimistic as and each for the are all is to other think and where leading to one difficult we'll with happen we I

Operator

Your next Patrick of is from question Truist Scholes Securities.

Patrick Scholes

CDC the complete that could in Phase this for step your is in at to next the looking moment what's complete opinion, Phase is realistic the that you appears it Question, XA? timeline which you XA think

Michael Bayley

I Patrick, can't and Hi give you week, so like weeks a firmly days.

actual previous as interpret if for for again a we requirement I and be revenue process then simulation. understood we effectively first you're think your there last the cruise will night XX-day in and no sailing a notification and for voyage And is notification received XX-day subsequent been process the vaccinated removed. planning the for on highly what simulated

have and up. ready so, soon And lined vaccinated everything as your highly port you a cruise as literally can plan

get your best cruise within try and to can request will response to You days. their submit your five they

see and improved the timeline process quite that can you So the has significantly.

ship obviously, the vaccination is process. there and accruing then the of think process I So, the

So, realistic. think mid looking I very I July we still this But night clarify, been working to last stated a is is think July, received last I to again and lot towards a night. that's commitment to is we saw got that based realistic looking and Rich's think we've [ph] upon what after the we very that mid target been all what but

Operator

final Our question...

Michael Bayley

So we question have time, be great. that’s will yes yes final

Operator

is of Research. Cleveland Your final from Ciepiel question Vince

Vince Ciepiel

of mentioned being in that maybe factors light capacity you be maybe had question, thanks just keep if my as taking Hi, it should itineraries new XXXX XXX% those mind ahead, any to should of curious or XXX% in be sounds peak a are mix running that good for you bit we occupancy levels XXXX there make the that or a impact yield, perspective comparable XXXX offsets yield? some the in are a XXXX XXXX, of pricing to tailwind. would comparability not the might back to yields from versus might or getting there that But XXXX even

Michael Bayley

the tonnage too I our a but I to of negative most for timing. going really the think is year older depends of said getting something really here on early Michael the change build but the make is next deployment we of going necessarily into the up, as to a not as early XXXX. into XXXX builds really is really there the fleet as or structurally begin to think summer to really part start business in significant of some as part, getting I capacity on the in which additional it's brand higher Azamara Structurally, was kind of kind the how versus rid sale it yielding average, is that's

Vince Ciepiel

X.X a as uncertainty at think a I Richard that and of quarter and a deposits, mentioned, for And from one ways stable the when situation, point. severity your but still they at of been at they've billion, follow-up you were look the away X.X number

for that's curve booking it year bit. seems a bit that the and lengthens to for half a think the to kind as So curious of of takes confidence if a and what you delever second returns of those as a hopefully rebuild, it key path helping in well, part is there this like

Michael Bayley

plan where back and it's that count that clarity those into terms for soon I is Yes, now provide move deployments and think be back for I to of building consumer building is looking we're hopefully it's of - and clarity to ships now gaining I is up of several as a the are first and in standpoint. deposit mean this but vacation evaporate and that obviously going service, on so, confidence level - I able are on some which think us to the experience because been quarters, on they're barriers coming confidence, customer it's stable think building think ships a when we coming up exactly and to for are of beginning lot I can so their are and they beginning to on

Richard Fain

healthy. today your Vince. the questions wish available all Thank please participation have, as So, in all company. the always and you and all be with day for your thanks we call, might interest will a today assistance for for and and you Shelby great thank any stay day we follow-up Carola everybody you

Operator

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

Royal Caribbean Cruises (RCL) 29 Apr 212021 Q1 Earnings call transcript