Millennials and new-to-cruise passengers are reshaping Royal Caribbean Group’s customer base.
- The younger demographic now represents half of the group’s bookings, showing an 11% increase from 2019.
- There’s a significant 16% rise in first-time cruisers compared to the previous year.
- Repeat bookings have surged, with a 30% rise compared to pre-pandemic figures.
- Royal Caribbean’s investments in unique destinations like Perfect Day at CocoCay are attracting new customers.
Royal Caribbean Group is observing a noteworthy transformation in its customer demographic, primarily driven by millennials and first-time cruisers. In the quarterly financial results call, Jason Liberty, the president, disclosed that millennials or younger now account for one out of every two passengers booked within the first quarter of the year, which is an impressive 11% increase from 2019. This shift underscores the broadening appeal of Royal Caribbean’s offerings among the younger demographic, aged approximately 28 to 43.
The company is also witnessing a substantial influx of new-to-cruise clients, with a 16% increase in bookings compared to the similar timeframe last year. This rise in first-time customers complements the noteworthy 30% increase in repeat customers from pre-pandemic levels, highlighting the growing attraction and retention of Royal Caribbean’s cruise experiences.
Significant credit for this growth is attributed to the strategic investments by the group in their distinct island destinations. The likes of Perfect Day at CocoCay and upcoming projects such as Royal Beach Club Paradise Island and Royal Beach Club Cozumel are cited as pivotal in drawing attention from a broader range of customers. Liberty remarked on the compelling lure these sites have for new-to-cruise passengers, enhancing both onboard and land-based experiences.
Chief Executive Michael Bayley expressed confidence in the company’s strategic direction, indicating that the successful ‘formula’ behind attracting these customers will continue to evolve. He further hinted at the potential expansion into new markets, particularly noting the interest in possibly exploring river cruises. Bayley articulated a clear focus on enhancing the existing core business model while evaluating potential market additions.
Royal Caribbean’s strategic focus on young and new cruisers is evidently reshaping its market landscape.
