Cruise line Royal Caribbean International (RCI) was established in 1968. Silversea Cruises is one of the three cruise brands Royal Caribbean International owns.

According to the company, Royal Caribbean operated 60 ships that visited 1,000 ports throughout the world as of December 31, 2020. Azamara, the business's fourth cruise line, was sold in March of this year, and the corporation now only operates three cruise lines.

Its main competitors are Carnival Corp. (CCL) and Norwegian Cruise Line Holdings Ltd. in the cruise business (NCLH). The company also competes with other travel and tourist organizations that aren't directly in the cruise sector. Customers have a limited amount of time and money to spend on their holiday.

Royal Caribbean Cruises' Financials

A pandemic of the COVID-19 affliction severely disrupted the global cruise industry, with many companies closing down for months. In March 2020, Royal Caribbean halted its cruise operations, which it has since resumed in stages, albeit slowly.

Thirty-six of the company's 60 ships are expected to start sailing or announce plans to begin sailing by 2021.

Royal Caribbean has suffered enormous losses during the pandemic due to the significant disruption to its company. Net losses for the second quarter of 2021, which ended June 30, were lower at 1.3 billion dollars than the losses of 1.6 billion dollars for the second quarter of 2020.

Revenues for Q2 2021 totaled $50.9 million, a significant decrease from the $175.6 million in Q2 2020. As a result of the $50.9 million in ticket sales and onboard revenue, the total revenue was $22.8 million. Passenger ticket revenue declined more severely than the other numbers, decreasing year-over-year.

Royal Caribbean Cruises' Business Segments

For example, Royal Caribbean's numerous cruise brands have identical itineraries, cost and revenue components, consumer types, regulatory environments, and other considerations. That's why they're all lumped together in one place.

However, Royal Caribbean breaks down overall income by itinerary across four regions: North America, Asia/Pacific, Europe, and Other Regions (the latter includes South America and Latin America). Additional revenues reported by the corporation include, among other things, cancellation charges, travel protection insurance premiums, tours, and charges for the use of certain port amenities. The corporation did not disclose a breakdown of profitability for each sector.

North America

Cruises in the United States, Canada, Mexico, and the Caribbean are included in Royal Caribbean's North American itineraries. During the second quarter of 2021, Royal Caribbean's North American cruise itineraries generated $11.6 million in revenue or 22.8 percent of overall revenues. Compared to North American revenues for Q2 2020, this is down 54.5 percent YOY. North America was the second-largest revenue-producing area in the second quarter of 2021.

Asia/Pacific

A tour of Asia/Pacific consists of trips to Southeast Asia, East Asian countries, South Asian countries, and Oceania. These itineraries include cruises in Singapore, the Philippines, Thailand, China, India, Japan, Australia, and neighboring countries. ' In the second quarter of 2021, Asia/Pacific itineraries brought in the most money of any geographical region. A total of $19.3 million in revenue was generated in the Asia/Pacific region during the third quarter, representing 37.9% of total sales. According to Royal Caribbean, this region saw the smallest year-over-year revenue loss among all of the company's geographic regions.

Europe

Royal Caribbean offers European cruises in the Nordics, Germany, France, Italy, Spain, and the United Kingdom in the Europe category. The second-smallest geographic region generated $3.8 million or 7.4 percent of total revenues in Q2 2021. No income was reported for Europe in Q2 2020 by Royal Caribbean. This shows the disastrous effect of pandemic tourism in Europe.

Outside Of The United States

The Other Regions category on Royal Caribbean offers cruises departing from South and Central American ports. Only 3.7 percent of overall revenues came from this segment in Q2 2021, with revenues of $1.9 million. YOY fell by 97.4 percent, which was the greatest drop.

Additional Income

Additionally, Royal Caribbean includes a range of additional revenue streams under the "Other Revenues" section of their financial statements. Royal Caribbean charges its affiliates for various services, such as passenger cancellation fees, holiday protection insurance, shore excursions before and after the voyage, and port facility fees. Revenues from other sources were $14.3 million in Q2 2020 or 28.1 percent of the total revenues. The YOY decline in this category was 62.8%, which was the second-highest decline rate.

Royal Caribbean's Recent Developments

It has been long since Royal Caribbean resumed its cruises in March 2020, but the company has made progress. On August 4, 2021, the firm announced that it has 29 ships in service or 42 percent of its capacity. By the end of the month, it expects to run 36 ships, or more than 60% of its capacity, and 80% of its capacity by the end of 2021.

As a result of the previously unmet demand for cruise vacations, Royal Caribbean reported "extremely favourable" customer reactions to announcements of the company's intention to begin sailing. The company reported a significant increase in customer bookings.

Aside from the new ships and services, the corporation has also taken the opportunity to entice clients who the flu outbreak may otherwise put off. In a press release on September 15, Royal Caribbean revealed that the world's largest ship, Wonder of the Seas, will launch in March 2022, offering cruises in the United States and Europe.

A new ship and celebrity relationships for the Celebrity Cruises brand were announced in September 2021. Daniel Boulud, Nate Berkus, and more will be included in Celebrity Beyond's restaurants and interior design concepts. The maiden trip of Celebrity Beyond is scheduled for April 2022.