Royal Caribbean Just Posted Record Earnings—And It's All About What You're Doing Before You Board
Royal Caribbean's Q3 2024 earnings reveal a massive shift in cruise spending behavior. Passengers are booking more experiences before they even board, driving record revenues through mobile apps.
Royal Caribbean Group just dropped their third-quarter 2024 earnings report, and the numbers tell a fascinating story about how cruising is evolving in real-time. While the headline figure—$5.20 adjusted earnings per share, crushing expectations—is impressive enough, the real story is happening on your phone right now.
The cruise giant reported exceptional Q3 results in late October, revealing that passengers are fundamentally changing when and how they spend money on their cruise vacations. And it’s reshaping the entire industry.
The Pre-Cruise Spending Revolution
Here’s what’s happening: you’re no longer waiting until you step onboard to book that specialty dining reservation or shore excursion. You’re doing it from your couch, weeks before departure, through your smartphone.
Consumer spending onboard and pre-cruise purchases are “significantly exceeding 2023 levels,” according to the company, driven by what they call “greater participation at higher prices.” Translation? More people are buying more stuff, and they’re willing to pay premium prices for it.
The financial impact is staggering. Royal Caribbean’s onboard and other revenues hit $1.41 billion in Q3 2024, up from $1.21 billion in the same quarter last year. That’s a nearly 17% jump in revenue from everything that isn’t your basic cruise fare.
Your Phone Is the New Purser’s Desk
The shift isn’t just about spending more—it’s about where that spending happens. Royal Caribbean’s mobile app has emerged as what CFO Naftali Holtz calls “the fastest-growing driver of engagement and conversion.”
Think about what that means: the app on your phone is now a more powerful sales tool than the specialty restaurant host at dinner or the shore excursion desk by the gangway. About a third of all onboard purchases are now happening through the mobile app, with pre-cruise revenue bookings up roughly 40% compared to 2023.
This isn’t just convenient for passengers—it’s a game-changer for Royal Caribbean’s business model. When you book that dinner at Izumi or that snorkeling excursion two weeks before sailing, the cruise line locks in that revenue early, can better staff their venues, and knows exactly what inventory they need. It’s a win-win that’s driving record profits.
The Numbers Behind the Momentum
Royal Caribbean didn’t just meet expectations in Q3—they obliterated them:
- Load factor: 111% (yes, they’re filling ships beyond standard double occupancy)
- Net Yields: up 7.9% year-over-year
- Total revenues: $4.9 billion for the quarter
- Net income: $1.1 billion
Perhaps most telling: the company raised their full-year 2024 adjusted EPS guidance to $11.57-$11.62, representing a jaw-dropping 71% growth compared to 2023.
CEO Jason Liberty was confident enough to predict that 2025 earnings per share will “start with a $14 handle”—signaling that this momentum isn’t slowing down anytime soon.
What This Means for Your Next Cruise
The implications for passengers are mixed. On one hand, the mobile app experience is genuinely improving. You can plan more, stress less, and lock in the experiences you want before popular time slots fill up.
On the other hand, those “greater participation at higher prices” numbers suggest cruise lines are successfully getting passengers to spend more than ever before. The ease of pre-booking through an app—combined with FOMO about missing out on limited experiences—is proving to be a powerful combination for driving revenue.
Royal Caribbean is also doubling down on exclusive destinations that drive this spending behavior. They announced expansions including Perfect Day Mexico (opening 2027), Royal Beach Club Paradise Island (2025), and Royal Beach Club Cozumel (2026). These private destinations are designed specifically to maximize that onboard and pre-booked spending the company is so successfully cultivating.
The Bigger Picture
What we’re witnessing is the “retailization” of cruising—the same shift that transformed air travel, hotels, and theme parks. Every touchpoint becomes an opportunity for revenue, and digital technology makes it frictionless.
Royal Caribbean’s Q3 results prove the strategy is working spectacularly well. The question for cruisers is whether this enhanced convenience is worth the undeniable increase in total vacation costs.
One thing is certain: that cruise booking app on your phone isn’t just a handy tool anymore. It’s the future of how cruise lines make their money, and the numbers show passengers are fully on board.
Source: Cruise Industry News - Royal Caribbean Reports Q3 Earnings, Raises Guidance