Are you planning a cruise for summer or fall? Brace yourself for a shock
Are you looking to take a cruise between now and the end of the year? We have some bad news: You might have a tough time finding a cabin — at least if you want a specific type of room on a specific ship.
Bookings for cruises have been on fire for months, pacing at record levels. As a result, nearly nine of every 10 cabins available for 2024 sailings are already booked, the top executive of one of the world's biggest cruise companies revealed Thursday.
"We only have about 12% load factors left to build for the year," Jason Liberty, Royal Caribbean Group CEO, noted in a conference call with Wall Street analysts, using a term that refers to the percentage of cabin space that is available on ships.
Liberty said bookings for cruises accelerated in April beyond an already blistering pace set in the first three months of the year. The surge occurred despite a rapidly dwindling amount of open cabin space for 2024 sailings.
"Bookings have consistently outpaced last year throughout the entire first quarter and through April, even though we have significantly fewer staterooms left to sell," Liberty said.
Royal Caribbean Group is the parent company of Royal Caribbean, the world's biggest cruise line, as well as Celebrity Cruises and Silversea Cruises. It also owns a partial interest in Germany-based cruise brands TUI Cruises and Hapag-Lloyd Cruises.
Liberty was only referring to Royal Caribbean Group brands when making the comments about bookings. But other cruise companies, including Carnival Corporation and Norwegian Cruise Line Holdings, have reported similar strength in bookings in recent months.
As one of the biggest cruise brands in the world, Royal Caribbean Group also serves as a bellwether of sorts for the industry when it comes to booking strength.
The result: soaring cruise fares
With demand for cruises at record levels and cabin supply quickly disappearing, cruise lines have been able to raise prices significantly in recent months on top of sharp price increases throughout 2023.
During Thursday's conference call with Wall Street analysts, Liberty said the bookings that customers at its brands made during the first three months of the year were "at much higher prices than 2023" fares.
Liberty also noted that yields at Royal Caribbean Group brands for cruises that customers took during the first three months of the year were up 19.3% as compared to the same months in 2023. That was nearly four percentage points higher than the company was predicting just a few months ago.
Related: 6 ways to get a deal on a cruise
Yield is a measure of how much money cruise lines make per passenger.
"The first quarter was tremendous, sending us well on our path to a year that is significantly better than we expected just a few months back," Liberty said.
Liberty attributed the strong growth in bookings and pricing in part to the line's rollout of the record-size Icon of the Seas in January, which has been a huge hit. He also noted strong bookings and pricing across the entire fleets of its brands for all key itineraries.
Both new ships and older ships are in hot demand, Liberty suggested, with demand particularly strong from North American travelers. Roughly 80% of all Royal Caribbean Group bookings this year have come from North Americans — an unusually large percentage.
The company is also seeing a surge in first-time cruisers, a category known in the industry as the "new to cruise" market.
"Our addressable market is expanding, and 'new to cruise' continues to grow, increasing 16% year over year," Liberty said. "These guests are discovering our differentiated vacation experiences and are increasingly returning to us as we see repeat rates over 30% higher compared to 2019."
Liberty also noted the company was drawing more younger customers, including a growing number of millennials.
"Millennials and younger generations have gained 11 percentage points share compared to 2019, and today almost one in two guests are millennials or younger," he said.
Cruise bookings are surging in part because vacationers are seeing the value in cruising as compared to other types of vacations that involve land travel, Liberty suggested. Liberty and other cruise executives believe cruises are priced significantly below the level of land resorts on a like-for-like basis, even after the sharp increases in cruise fares over the past year.
"Despite our ability to narrow the gap [in pricing] to land-based vacations in the last 12 months, cruising still remains an exceptional value proposition," Liberty said.
Also driving cruise bookings is the fact that a strong economy has consumers feeling flush and willing to spend on vacations, Liberty suggested. He noted that consumer sentiment is high, "bolstered by resilient labor markets, wage growth, stabilizing inflation and record-high household net worth."
In addition, "consumer preferences continue to shift toward spend on experiences, particularly priority for travel," he said.
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.