Royal Caribbean Builds Luxury Momentum With Beach Clubs and New River Product
In its Q3 earnings call, Royal Caribbean pointed to resilient luxury demand, strong pricing, and early traction on beach-club and river expansion.
Photo: Courtesy of Royal Caribbean
Royal Caribbean’s third quarter landed mostly on the right side of expectations and, more importantly for the high end, signaled that premium and ultra-luxury demand still has legs.
The group posted adjusted EPS of $5.75 on $5.14 billion in revenue, raised full-year guidance to $15.58–$15.63, and acknowledged some near-term weather and Haiti-related noise that pressured the stock pre-market. The takeaway beneath the market jitters: pricing remains firm, load factors are high, and the company is doubling down on products that resonate with upscale guests.
Two moves matter for luxury planners. First, the destination strategy keeps widening the gap between brands that control the experience end-to-end and those that don’t. Royal Beach Club Santorini will open in summer 2026, joining Paradise Island and the “Perfect Day” playbook with a Greece-specific twist.
Expect the mix to skew toward paid shore-x and day-club revenue rather than pure ticket lift, but itineraries that pair a Beach Club with a Perfect Day-style call are already testing stronger demand. That dynamic protects yield even as more capacity chases the Caribbean and Med.
Second, the river pivot under the Celebrity flag is real. The company reported back in September that priority bookings sold out in just six minutes, and most bookers were loyalists who had crossed over from ocean rather than existing river cruisers.
That’s a clean read on appetite for higher-spec product in traditionally capacity-constrained European corridors, and it puts competitive pressure on incumbent luxury river operators whose hardware or soft product is aging. For clients who bounce between big-ship suites and all-inclusive river cruises, the draw is brand trust and the promise of better-than-standard staterooms and outdoor space.
Looking to 2026, executives sounded upbeat: steady pricing strength, disciplined costs even with new beach clubs coming online, and earnings that could top $17 per share, barring higher fuel and tax expenses.
Translation: little incentive to discount premium cabins on marquee ships or on itineraries anchored by owned destinations. Caribbean supply is rising, yes, but Royal says it’s manageable and that differentiated hardware and private calls are sustaining pay-up. For the luxury set, that suggests continued scarcity on the highest-demand sailings, not fire-sales.
One small but notable signal for top-tier cruisers who collect status across brands: a forthcoming “Points Choice” feature will let guests apply loyalty points to their preferred Royal Caribbean Group brand regardless of where they sailed. That eases cross-shopping within the portfolio (Royal, Celebrity, Silversea) and subtly tightens the fence around big spenders who might otherwise drift to Regent or Seabourn.
“We are a growth company,” said CEO Jason Liberty, and right now that growth is most obvious where luxury travelers feel it: newer ships, controlled-access beach days, and a river product that’s getting immediate traction.
Overall, if you’re mapping high-end cruise for 2026, assume sustained pricing power on suite categories, tighter space on Europe and Caribbean programs tied to owned destinations, and fresh interest in river from ocean-loyal clients who want a familiar brand promise on the Danube and Rhine.
