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Royal Caribbean is seeing its China business perk up

Date:2018-08-06 11:20Source: ReadingNumber: Times

Royal Caribbean Cruises said during an earnings call Thursday that sailings in China had “performed very well” — better than expected — in the second quarter. Chief Financial Officer Jason Liberty said the market was booked “nicely ahead” in volume and rate for the rest of 2018 and into next year. A new ship, Spectrum of the Seas, will enter the market in June.

Much of the progress has come from better relationships with travel agents.

In an interview with Skift, Royal Caribbean Cruises CEO Richard Fain said the company has expanded its sales force to work with travel agents in China who may not be familiar with selling cruises or who might just need extra support.

“By investing in that distribution system, we’ve made them more efficient and effective and they’re selling more of our cruises,” Fain said.

The update on China was just one piece of positive news in a good quarter for the world’s second-largest cruise operator. Revenue increased to USD 2.3 billion from USD 2.2 billion the year before, and net income jumped from USD 420 million in 2017 to USD 466 million this year. Adjusted earnings per share of USD 2.27 was far higher than the company’s forecast and Wall Street expectations.

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