1 00:00:02,360 --> 00:00:06,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:06,920 --> 00:00:09,160 Speaker 2: Now to another stock moving big time today. 3 00:00:09,240 --> 00:00:11,840 Speaker 1: Yep, we are talking about Royal Caribbean Cruises shares a 4 00:00:11,840 --> 00:00:14,880 Speaker 1: writing quite a wave higher, up about thirteen percent, more 5 00:00:14,880 --> 00:00:18,160 Speaker 1: than thirteen percent at their high, almost fourteen percent, in fact, 6 00:00:18,400 --> 00:00:20,560 Speaker 1: hitting a record intraday, up the most in more than 7 00:00:20,600 --> 00:00:23,279 Speaker 1: two years. It is the top gainer in the S 8 00:00:23,320 --> 00:00:26,600 Speaker 1: and P five hundred, and it's lifted the entire group 9 00:00:26,640 --> 00:00:29,479 Speaker 1: because Norwegian and Carnival also top gainers in the S 10 00:00:29,520 --> 00:00:32,320 Speaker 1: and P five hundred. This is coming after Royal Caribbean 11 00:00:32,520 --> 00:00:35,960 Speaker 1: reported a full year profit forecast that blue past expectations 12 00:00:36,120 --> 00:00:39,000 Speaker 1: as cruise demand continues to ramp up. They're also talking 13 00:00:39,080 --> 00:00:42,080 Speaker 1: about getting into another area of the cruising world. For 14 00:00:42,200 --> 00:00:45,280 Speaker 1: more on the outlook and what's driving metrics, we welcome 15 00:00:45,360 --> 00:00:48,120 Speaker 1: the President CEO of Royal Caribbean Group. He is Jason Liberty. 16 00:00:48,280 --> 00:00:50,839 Speaker 1: He joins us from Miami, Florida. Jason, it's great to 17 00:00:50,880 --> 00:00:52,919 Speaker 1: have you here with us. How are you. 18 00:00:55,640 --> 00:00:57,880 Speaker 3: I'm doing great, Carol, and thank you and Tim for 19 00:00:57,920 --> 00:01:00,720 Speaker 3: having me today. Obviously it's a it's a great day 20 00:01:00,760 --> 00:01:03,640 Speaker 3: on the share price, but it's a great representation of 21 00:01:03,720 --> 00:01:07,120 Speaker 3: another incredible year here at the Royal Caribbean Group and 22 00:01:07,319 --> 00:01:09,360 Speaker 3: a really strong outlook for twenty twenty five. 23 00:01:09,480 --> 00:01:13,200 Speaker 1: Tell us what surprises you about the consistency in demand 24 00:01:13,440 --> 00:01:16,360 Speaker 1: and the optimism that you are seeing, certainly in the 25 00:01:16,400 --> 00:01:19,520 Speaker 1: cruising world and what comes to demand. What's surprising you 26 00:01:19,600 --> 00:01:22,240 Speaker 1: in how the strength the strength that you are seeing. 27 00:01:24,880 --> 00:01:26,920 Speaker 3: Yeah, well, I think I think there's a few things 28 00:01:26,920 --> 00:01:28,800 Speaker 3: that I would point to. I mean, certainly, we have 29 00:01:28,840 --> 00:01:32,559 Speaker 3: a lot of great demographics on our side in terms 30 00:01:32,560 --> 00:01:35,840 Speaker 3: of more millennials coming into the space, multi generational travel, 31 00:01:36,280 --> 00:01:38,280 Speaker 3: a lot of active wealth transfer, and we see that 32 00:01:38,400 --> 00:01:39,959 Speaker 3: more and more, which has been a surprise to me. 33 00:01:40,520 --> 00:01:44,360 Speaker 3: Just how much multigenerational travel where you have the patriarch 34 00:01:44,400 --> 00:01:49,120 Speaker 3: and matriarch of the family paying for generations. I think 35 00:01:49,160 --> 00:01:51,200 Speaker 3: that's been a little bit of a surprise. And there's 36 00:01:51,200 --> 00:01:54,760 Speaker 3: also been just a continued flight to quality. We've invested 37 00:01:54,800 --> 00:01:56,800 Speaker 3: so much in our ships and our brands and our 38 00:01:56,840 --> 00:02:00,000 Speaker 3: destinations for so many decades. We're really now seeing these 39 00:02:00,080 --> 00:02:04,120 Speaker 3: flowers bloom as we see consumers who are very healthy, 40 00:02:04,280 --> 00:02:07,000 Speaker 3: you know, they have great balance sheets, they have great jobs, 41 00:02:07,640 --> 00:02:10,360 Speaker 3: and they're high paying jobs. Having this flight to quality 42 00:02:10,360 --> 00:02:12,880 Speaker 3: for our brands and for our destinations. 43 00:02:13,040 --> 00:02:14,920 Speaker 2: When you talk about that flight to quality, break that 44 00:02:15,000 --> 00:02:17,000 Speaker 2: down for us, where there's strength in the business and 45 00:02:17,200 --> 00:02:19,400 Speaker 2: where you're seeing particular strength and if there are any 46 00:02:19,400 --> 00:02:21,160 Speaker 2: areas where you're not seeing strength. 47 00:02:22,960 --> 00:02:24,959 Speaker 3: Yeah, well we're really we are actually seeing strength in 48 00:02:25,000 --> 00:02:28,280 Speaker 3: all markets that we source from. We're also seeing strength 49 00:02:28,360 --> 00:02:30,360 Speaker 3: for all the different places that our ships go, whether 50 00:02:30,400 --> 00:02:37,919 Speaker 3: that's in the Caribbean, Alaska, the Northeast, Europe, Australia, Southeast Asia, China. 51 00:02:38,160 --> 00:02:40,280 Speaker 3: We're seeing strong demand kind of across the board, which 52 00:02:40,320 --> 00:02:43,200 Speaker 3: is I think really great. We're also you know, seeing 53 00:02:43,240 --> 00:02:47,400 Speaker 3: again elevated spend on our ships, and that's really across 54 00:02:47,400 --> 00:02:49,000 Speaker 3: the board. A lot of it is in the gaming, 55 00:02:49,720 --> 00:02:54,839 Speaker 3: the beverage area, on the culinary side, spa short excursions, 56 00:02:55,000 --> 00:02:56,919 Speaker 3: so people are really looking to make sure that they 57 00:02:56,960 --> 00:03:00,440 Speaker 3: grab the experiences that they want to have and there 58 00:03:00,480 --> 00:03:02,600 Speaker 3: and there, and they're and they're willing to not only 59 00:03:02,800 --> 00:03:04,280 Speaker 3: pay a little bit more money for that, but they're 60 00:03:04,280 --> 00:03:07,119 Speaker 3: also willing to have more repetition of that, and that's 61 00:03:07,120 --> 00:03:09,400 Speaker 3: how they're expanding the memories that they're building with their 62 00:03:09,440 --> 00:03:10,200 Speaker 3: friends and family. 63 00:03:10,360 --> 00:03:12,720 Speaker 1: How much is that wrapping up, Jason, that is something 64 00:03:12,720 --> 00:03:14,680 Speaker 1: that I've seen throughout the cruise industry that it's not 65 00:03:14,760 --> 00:03:16,800 Speaker 1: just about buying the ticket to get you on the ship, 66 00:03:16,840 --> 00:03:19,200 Speaker 1: but it's about what you do once you're on the 67 00:03:19,280 --> 00:03:23,119 Speaker 1: ship and possibly go off to other destinations. Those bookings, right, 68 00:03:23,760 --> 00:03:25,840 Speaker 1: that add to the experience, but they also add to 69 00:03:26,639 --> 00:03:28,840 Speaker 1: your revenue line, right, and your profit line. 70 00:03:30,919 --> 00:03:33,399 Speaker 3: Yeah, that's exactly right. One. I think that we we've 71 00:03:33,400 --> 00:03:37,080 Speaker 3: gotten a lot better, whether it's you through AI or 72 00:03:37,080 --> 00:03:40,800 Speaker 3: other other disruptive tech to really take friction out of 73 00:03:40,840 --> 00:03:42,880 Speaker 3: the experience of shopping with us, whether that's on the 74 00:03:42,920 --> 00:03:45,880 Speaker 3: ticket side, whether that's also on the on board side. 75 00:03:46,000 --> 00:03:47,600 Speaker 3: And what we're doing is we're able to enhance the 76 00:03:47,640 --> 00:03:49,320 Speaker 3: experience so they can do all the different things that 77 00:03:49,360 --> 00:03:52,360 Speaker 3: they want to do. And then in reality, while it's 78 00:03:52,360 --> 00:03:55,800 Speaker 3: still very frustrating to me, while there we're increasing share 79 00:03:55,840 --> 00:04:00,000 Speaker 3: of wallet, we're still a very significant discount to land 80 00:04:00,080 --> 00:04:03,160 Speaker 3: based vacation. And so for us, like we we focus 81 00:04:03,200 --> 00:04:05,400 Speaker 3: a little bit less on what's happening with our cruise competitors. 82 00:04:05,720 --> 00:04:07,320 Speaker 3: We're trying to take a larger share of the two 83 00:04:07,400 --> 00:04:12,000 Speaker 3: trillion dollar marketplace and travel leisure, and for us, having 84 00:04:12,000 --> 00:04:14,560 Speaker 3: the experiences that our guests want to do, and also 85 00:04:14,600 --> 00:04:16,120 Speaker 3: being able to make it easier for them to shop 86 00:04:16,160 --> 00:04:18,240 Speaker 3: with us is winning for us. 87 00:04:18,520 --> 00:04:21,440 Speaker 2: The pace of bookings this year relative to last year. 88 00:04:21,480 --> 00:04:23,800 Speaker 2: What does that tell you about demand where we're you know, 89 00:04:23,839 --> 00:04:26,280 Speaker 2: when we're a little over a month past what is 90 00:04:26,320 --> 00:04:27,920 Speaker 2: referred to in the industry as wave season. 91 00:04:30,200 --> 00:04:33,120 Speaker 3: Yeah, so you know, the past couple of years, you know, 92 00:04:33,160 --> 00:04:35,080 Speaker 3: wave has been elevated, not just for us, but also 93 00:04:35,120 --> 00:04:38,320 Speaker 3: for the entire industry, and we're seeing we're continue to 94 00:04:38,320 --> 00:04:41,839 Speaker 3: see those waters rise here on on on the on 95 00:04:41,880 --> 00:04:44,840 Speaker 3: the wave season. So we're seeing record booking weeks, we're 96 00:04:44,839 --> 00:04:48,760 Speaker 3: seeing elevated pricing, and we're seeing a consumer that is 97 00:04:48,800 --> 00:04:51,320 Speaker 3: not only willing to pay a little bit more money 98 00:04:51,360 --> 00:04:54,520 Speaker 3: for their vacation experience, but they're also looking to book 99 00:04:54,560 --> 00:04:57,599 Speaker 3: further out. So the booking window is continuing to extend, 100 00:04:58,240 --> 00:05:00,320 Speaker 3: and they're also doing more and more pre cruise booking 101 00:05:00,400 --> 00:05:03,120 Speaker 3: activities for the activities that happen on the ship and 102 00:05:03,160 --> 00:05:04,760 Speaker 3: off the ship to make sure they get the vacation 103 00:05:04,880 --> 00:05:07,800 Speaker 3: experience that them and their family and friends want to have. 104 00:05:08,440 --> 00:05:10,719 Speaker 1: Are you surprised by it? You've been doing this a while, Like, 105 00:05:10,760 --> 00:05:12,719 Speaker 1: are you surprised by the pace of demand. 106 00:05:15,720 --> 00:05:17,279 Speaker 3: Well, I have been doing this. I mean I've been 107 00:05:17,279 --> 00:05:18,640 Speaker 3: in the sea for a little over three years, and 108 00:05:18,680 --> 00:05:20,480 Speaker 3: of course I was the CFO before that, so I've 109 00:05:20,480 --> 00:05:22,800 Speaker 3: been in the industry a while. Certainly you're seeing an 110 00:05:22,880 --> 00:05:29,000 Speaker 3: elevated demand for experiences. So clearly, coming out of COVID, 111 00:05:29,520 --> 00:05:34,280 Speaker 3: you've seen a few different changes in behavior, one of 112 00:05:34,320 --> 00:05:38,479 Speaker 3: which is very comfortable booking and interacting through technology, so 113 00:05:38,520 --> 00:05:40,760 Speaker 3: we're able to take friction out of that experience. But 114 00:05:40,800 --> 00:05:44,279 Speaker 3: you're also seeing just a trade by a lot less stuff. 115 00:05:44,320 --> 00:05:46,719 Speaker 3: We want to buy experiences. We really appreciate the time 116 00:05:46,720 --> 00:05:48,800 Speaker 3: with our friends and family, and we want to make 117 00:05:48,800 --> 00:05:51,440 Speaker 3: sure that that time that we have is one that 118 00:05:51,800 --> 00:05:55,719 Speaker 3: is not only exceptional, but it's also with somebody who 119 00:05:55,760 --> 00:05:57,520 Speaker 3: we trust will deliver that for us. And I think 120 00:05:57,560 --> 00:06:00,520 Speaker 3: we have that trust. We value that trust with our 121 00:06:00,560 --> 00:06:01,720 Speaker 3: customers each and every day. 122 00:06:01,760 --> 00:06:03,000 Speaker 1: All Right, we want to talk a bit more about 123 00:06:03,000 --> 00:06:05,480 Speaker 1: the business. But you know, Jason, we've been asking everybody 124 00:06:05,520 --> 00:06:08,240 Speaker 1: who comes on a CEO or anybody who runs an institution, 125 00:06:08,360 --> 00:06:11,760 Speaker 1: a company, an organization, Uh, the dynamics and the backdrop 126 00:06:11,920 --> 00:06:14,960 Speaker 1: anything that could be impacted by policies out of the 127 00:06:14,960 --> 00:06:17,880 Speaker 1: Trump administration, anything coming out of government, and I think 128 00:06:17,920 --> 00:06:20,640 Speaker 1: about you know, we've talked about various policies that could 129 00:06:20,720 --> 00:06:24,960 Speaker 1: lead to inflation, tariffs, you know, on possible goods that 130 00:06:25,360 --> 00:06:29,400 Speaker 1: could increase costs, immigration, the impact on the labor force. 131 00:06:30,000 --> 00:06:33,240 Speaker 1: So I'm just curious. You guys are floating cities, your 132 00:06:33,279 --> 00:06:37,640 Speaker 1: massive ships, so you you know, the dynamics of kind 133 00:06:37,640 --> 00:06:40,919 Speaker 1: of the economy of the US economy certainly impact you. 134 00:06:41,000 --> 00:06:43,680 Speaker 1: So I'm just curious anything in particular that could come 135 00:06:43,720 --> 00:06:46,080 Speaker 1: out of DC that you're watching very closely. 136 00:06:48,640 --> 00:06:51,240 Speaker 3: Well, look, I think we're we as we always have. 137 00:06:51,320 --> 00:06:54,400 Speaker 3: We're going to work very closely with the administration. But 138 00:06:54,560 --> 00:06:56,800 Speaker 3: I think I think what we're looking for is a 139 00:06:56,839 --> 00:07:00,600 Speaker 3: healthy and happy consumer. And I think as long as 140 00:07:00,640 --> 00:07:04,279 Speaker 3: the consumer has confidence and their spending and and and 141 00:07:04,320 --> 00:07:07,240 Speaker 3: of course they seek great vacation experiences, which we think 142 00:07:07,279 --> 00:07:10,520 Speaker 3: they're going to do, I think we feel very bullish 143 00:07:10,600 --> 00:07:15,960 Speaker 3: about the future spending behavior of our customers. The other 144 00:07:16,000 --> 00:07:17,720 Speaker 3: point that I would just add, which I think also 145 00:07:17,720 --> 00:07:21,560 Speaker 3: brings us great comfort on whether if costs do rise 146 00:07:21,600 --> 00:07:24,520 Speaker 3: in some form or fashion or there is inflation, is 147 00:07:24,520 --> 00:07:27,000 Speaker 3: that point I made earlier that there is a significant 148 00:07:27,040 --> 00:07:29,440 Speaker 3: gap to land based vacation. There's a lot of value 149 00:07:29,880 --> 00:07:33,400 Speaker 3: for the consumer and in our different vacation products, and 150 00:07:33,440 --> 00:07:36,119 Speaker 3: that's a good hedge for us if there is any 151 00:07:36,440 --> 00:07:37,960 Speaker 3: any any type of change in the winds. 152 00:07:38,440 --> 00:07:40,640 Speaker 2: How are you guys doing it controlling costs right now? 153 00:07:40,640 --> 00:07:42,600 Speaker 2: Specifically when it comes to labor, are you are you 154 00:07:42,640 --> 00:07:44,360 Speaker 2: getting all the employees you need and where are you 155 00:07:44,400 --> 00:07:45,080 Speaker 2: getting them from? 156 00:07:47,320 --> 00:07:51,400 Speaker 3: Yeah? Well, most of our our employee base our international crew, 157 00:07:52,080 --> 00:07:56,360 Speaker 3: So we're not really that impacted by rises on the 158 00:07:56,360 --> 00:07:59,240 Speaker 3: wage side, you know, short side. Certainly like every other company, 159 00:08:00,080 --> 00:08:03,920 Speaker 3: you know, there's there's inflationary pressures that can impact your wages. 160 00:08:04,320 --> 00:08:06,720 Speaker 3: For our shore side and our corporate offices and so forth, 161 00:08:07,440 --> 00:08:09,000 Speaker 3: we actually are you know, our cost guide for this 162 00:08:09,120 --> 00:08:11,520 Speaker 3: year was for us to be flat to up one percent, 163 00:08:12,320 --> 00:08:14,360 Speaker 3: and we've been able to do that by really managing 164 00:08:14,360 --> 00:08:18,000 Speaker 3: our supply chain, leveraging the scale as our business grows, 165 00:08:19,000 --> 00:08:20,800 Speaker 3: and having a team that wakes up every day and 166 00:08:20,800 --> 00:08:23,200 Speaker 3: says how do we do it better? And and doing 167 00:08:23,240 --> 00:08:26,160 Speaker 3: all that and making sure we're enhancing the guest experience 168 00:08:26,280 --> 00:08:29,080 Speaker 3: and we're not cutting the guest experience because we feel 169 00:08:29,080 --> 00:08:30,520 Speaker 3: that it's it's you know, it's important for us to 170 00:08:30,560 --> 00:08:33,200 Speaker 3: live up to our marketing and our reputation each and 171 00:08:33,240 --> 00:08:33,600 Speaker 3: every day. 172 00:08:33,760 --> 00:08:36,840 Speaker 1: Jason, Could any of that supply chain be impacted by tariffs? 173 00:08:39,840 --> 00:08:43,000 Speaker 3: I don't think so, you know, because we source a 174 00:08:43,080 --> 00:08:45,480 Speaker 3: lot of the things that we source are are are 175 00:08:45,760 --> 00:08:47,800 Speaker 3: really from here here in the US. We're not really 176 00:08:47,880 --> 00:08:51,079 Speaker 3: expecting any any any tariff impact. But you know, we're 177 00:08:51,080 --> 00:08:53,959 Speaker 3: watching it, just like we're watching other things on more 178 00:08:53,720 --> 00:08:55,560 Speaker 3: and more in terms of how it would impact our 179 00:08:55,960 --> 00:08:58,839 Speaker 3: customer less so how it's going to impact our cost space. 180 00:08:59,240 --> 00:09:01,880 Speaker 2: What about when it does come to that international labor pool, 181 00:09:02,200 --> 00:09:05,400 Speaker 2: Are there concerns about a crackdown on immigration affecting the 182 00:09:05,440 --> 00:09:09,480 Speaker 2: way that employees on your ships are able to be 183 00:09:09,640 --> 00:09:12,480 Speaker 2: on your ships when they're docked in the US. How 184 00:09:12,520 --> 00:09:13,160 Speaker 2: do you handle that? 185 00:09:15,679 --> 00:09:18,440 Speaker 3: Yeah, well, it's obviously something that we're always looking into, 186 00:09:18,480 --> 00:09:21,320 Speaker 3: but I don't think that's a very high risk. We're 187 00:09:21,360 --> 00:09:25,200 Speaker 3: an international maritime organization. Our crew or international maritime they're 188 00:09:25,240 --> 00:09:28,720 Speaker 3: really focused on being on the ships. So you know, 189 00:09:29,160 --> 00:09:31,040 Speaker 3: obviously we watch it and we try to manage it, 190 00:09:31,080 --> 00:09:33,520 Speaker 3: but we don't see that as a high risk in 191 00:09:33,600 --> 00:09:35,800 Speaker 3: terms of any policies that can come forward. There. 192 00:09:36,040 --> 00:09:38,000 Speaker 1: Hey, listen, we want to talk about you guys getting 193 00:09:38,000 --> 00:09:39,840 Speaker 1: into the river cruise market before we do. So you 194 00:09:40,040 --> 00:09:44,480 Speaker 1: talked though a lot about destinations and experiences for those 195 00:09:44,480 --> 00:09:47,319 Speaker 1: who get on ships. You guys have had great success 196 00:09:47,600 --> 00:09:51,040 Speaker 1: with Cococae, private island destination that's in the Bahamas specifically, 197 00:09:51,360 --> 00:09:54,920 Speaker 1: how could Perfect Day Mexico, which is another such destination, 198 00:09:55,080 --> 00:09:57,520 Speaker 1: kind of drive some of that onboard spending that you 199 00:09:57,559 --> 00:09:59,760 Speaker 1: were talking about a little bit earlier and ticket prices 200 00:10:00,040 --> 00:10:02,040 Speaker 1: when it opens in twenty twenty seven. 201 00:10:04,679 --> 00:10:06,319 Speaker 3: Yeah, So I would say a few things about the 202 00:10:06,360 --> 00:10:09,360 Speaker 3: destination experience. So you take as you gave an example 203 00:10:09,800 --> 00:10:12,199 Speaker 3: of Perfect Day of Cocoka, which by the way, is 204 00:10:12,240 --> 00:10:15,679 Speaker 3: the highest rated, has the highest net promoter score of 205 00:10:15,720 --> 00:10:18,520 Speaker 3: any other destination we go to in the world. Because 206 00:10:18,520 --> 00:10:21,480 Speaker 3: we do an exceptional job of delivering thrill and delivering chill, 207 00:10:22,120 --> 00:10:25,480 Speaker 3: but we're not able to deliver that experience to all guests, 208 00:10:25,520 --> 00:10:28,320 Speaker 3: all all guests in the Caribbean, and so Perfect Day 209 00:10:28,320 --> 00:10:31,600 Speaker 3: in Mexico will allow us to not only ensure that 210 00:10:31,640 --> 00:10:34,719 Speaker 3: every especially on our Royal brand, has at least one 211 00:10:34,720 --> 00:10:37,000 Speaker 3: Perfect Day when they're in the Caribbean, but it's also 212 00:10:37,040 --> 00:10:40,160 Speaker 3: going to expand the catchment area of areas like Texas 213 00:10:40,240 --> 00:10:42,960 Speaker 3: and west of the Mississippi, which will have an easier 214 00:10:42,960 --> 00:10:45,920 Speaker 3: way to get to places like Galveston where they can 215 00:10:45,960 --> 00:10:50,360 Speaker 3: go in and have a Perfect Day. We're also adding 216 00:10:50,440 --> 00:10:53,360 Speaker 3: royal beach clubs which will also expand the experience in 217 00:10:53,400 --> 00:10:57,280 Speaker 3: places like Nasa, Bahamas and also and case them melt. 218 00:10:57,600 --> 00:10:59,520 Speaker 3: So what we're trying to do is gain continue to 219 00:10:59,600 --> 00:11:02,880 Speaker 3: enhance the experience offering. We see ourselves as as an 220 00:11:02,880 --> 00:11:06,400 Speaker 3: experience organization with really a vision of you know, what 221 00:11:06,440 --> 00:11:09,600 Speaker 3: we've always been done great is delivering delivering the best 222 00:11:09,679 --> 00:11:11,360 Speaker 3: vacations in the world, and we want to be able 223 00:11:11,360 --> 00:11:15,520 Speaker 3: to deliver a lifetime of those vacations over somebody's life. 224 00:11:15,559 --> 00:11:17,440 Speaker 1: And I just want to make sure I heard correctly. 225 00:11:17,480 --> 00:11:20,040 Speaker 1: But in terms of Perfect Day Mexico specifically driving on 226 00:11:20,080 --> 00:11:23,079 Speaker 1: board spending and ticket ticket prices when it opened, can 227 00:11:23,120 --> 00:11:26,439 Speaker 1: you give us any kind of color on that or specificity. 228 00:11:28,600 --> 00:11:30,520 Speaker 3: Absolutely, you know. I think one of the surprises when 229 00:11:30,520 --> 00:11:33,319 Speaker 3: we when we open Perfect Day at Coco Ka is 230 00:11:33,360 --> 00:11:36,600 Speaker 3: not only do we get high demand to go to 231 00:11:36,640 --> 00:11:38,959 Speaker 3: the island and people were willing to pay for things 232 00:11:39,040 --> 00:11:42,040 Speaker 3: like water parks and overwater cabanas. But we also saw 233 00:11:42,120 --> 00:11:45,000 Speaker 3: ships that touch Perfect Day in Mexico got elevated pricing, 234 00:11:45,640 --> 00:11:47,120 Speaker 3: and so we expect that's going to be the same 235 00:11:47,120 --> 00:11:49,760 Speaker 3: thing here is when you deliver the destination and the 236 00:11:49,840 --> 00:11:52,480 Speaker 3: experience mark, guests are willing to pay for that, and 237 00:11:52,480 --> 00:11:55,320 Speaker 3: that's what we expect to occur in Mexico. It's also 238 00:11:55,320 --> 00:11:57,000 Speaker 3: what we expect to occur with our Royal beach clubs 239 00:11:57,040 --> 00:11:59,800 Speaker 3: as well as well. You know, we'll deliver an experience 240 00:11:59,880 --> 00:12:02,760 Speaker 3: that far superior to what is currently being offered in 241 00:12:02,800 --> 00:12:04,079 Speaker 3: those in those different destinations. 242 00:12:04,120 --> 00:12:05,680 Speaker 1: I'm just gonna say I'd like some thrill and chill 243 00:12:05,760 --> 00:12:07,719 Speaker 1: right now, because I'm tired of cold New York. I'm 244 00:12:07,720 --> 00:12:08,400 Speaker 1: just going to put that. 245 00:12:08,360 --> 00:12:10,800 Speaker 2: Out there, all right, sign up, Carol. Speaking of. 246 00:12:12,600 --> 00:12:16,840 Speaker 3: Available, available, no no, I woud say it's available and 247 00:12:16,840 --> 00:12:19,160 Speaker 3: I'm happy. I'm happy to help you book a cruise. 248 00:12:19,320 --> 00:12:21,040 Speaker 2: Well, let's let's talk about what's going on in the 249 00:12:21,160 --> 00:12:23,199 Speaker 2: river cruise market. I mean, my in laws are back 250 00:12:23,200 --> 00:12:25,280 Speaker 2: from a river cruise this fall. My sister's back from 251 00:12:25,400 --> 00:12:27,960 Speaker 2: river cruise, both of those with different companies in Europe. Now, 252 00:12:28,000 --> 00:12:31,960 Speaker 2: you guys are getting in through the celebrity business. Why now. 253 00:12:34,679 --> 00:12:36,920 Speaker 3: Yeah, well why now is you know, we've been seeing 254 00:12:36,960 --> 00:12:39,120 Speaker 3: for some time, you know, a growing trend with our 255 00:12:39,160 --> 00:12:43,080 Speaker 3: guests that they're looking for additional vacations, not a substitute 256 00:12:43,080 --> 00:12:45,800 Speaker 3: for going on a cruise, but additional vacations. And when 257 00:12:45,840 --> 00:12:47,680 Speaker 3: we look at what are those additional vacations that they're 258 00:12:47,679 --> 00:12:50,160 Speaker 3: going on, one of the things that we've seen arise 259 00:12:50,200 --> 00:12:53,199 Speaker 3: in is on the river side. And so as we 260 00:12:53,280 --> 00:12:56,280 Speaker 3: again seek to deliver a lifetime of vacations and we 261 00:12:56,320 --> 00:12:58,960 Speaker 3: want to leverage you know, all the having a single 262 00:12:58,960 --> 00:13:04,079 Speaker 3: loyalty program, great reciprocity across our different brands, we're enhancing 263 00:13:04,360 --> 00:13:07,800 Speaker 3: the flywheel and we're investing in that flywheel so that 264 00:13:08,480 --> 00:13:10,800 Speaker 3: we can get more reps out of our guests. And 265 00:13:10,840 --> 00:13:12,360 Speaker 3: so we had to listen to what our guests are 266 00:13:12,400 --> 00:13:14,560 Speaker 3: looking to do, and we have to be focused on 267 00:13:14,600 --> 00:13:17,040 Speaker 3: how do we keep our customer in our ecosystem. And 268 00:13:17,080 --> 00:13:19,360 Speaker 3: one of the ways of doing that is is expanding 269 00:13:19,360 --> 00:13:22,400 Speaker 3: the offering. And we think River is you know, it's 270 00:13:22,679 --> 00:13:25,840 Speaker 3: it's similar, it's it's sotly not exactly the same as 271 00:13:25,880 --> 00:13:28,400 Speaker 3: as an ocean cruise, and we think we can elevate 272 00:13:28,840 --> 00:13:32,880 Speaker 3: that vacation experience significantly, not just on the ship in itself, 273 00:13:32,880 --> 00:13:33,800 Speaker 3: but also on land. 274 00:13:34,480 --> 00:13:36,080 Speaker 1: So where are you going to go with those cruises? 275 00:13:39,000 --> 00:13:41,680 Speaker 3: Well, it's gonna start off. You know, we've ordered you know, 276 00:13:41,760 --> 00:13:45,920 Speaker 3: ten ships so far and it is an initial order 277 00:13:46,679 --> 00:13:49,360 Speaker 3: and those ships will be in Europe, but our expectations 278 00:13:49,400 --> 00:13:51,120 Speaker 3: will continue. We'll grow it in Europe and we're also 279 00:13:51,200 --> 00:13:53,480 Speaker 3: going to grow it around the world. We have a 280 00:13:53,480 --> 00:13:56,439 Speaker 3: massive global footprinm We go to a thousand different destinations. 281 00:13:57,160 --> 00:14:00,320 Speaker 3: We source from all over the world, and there's a 282 00:14:00,320 --> 00:14:04,960 Speaker 3: great opportunity to match those guests also on the river side. 283 00:14:05,080 --> 00:14:06,840 Speaker 1: All right, kenn Of lead with there. Listen, Jason, thank 284 00:14:06,880 --> 00:14:09,599 Speaker 1: you so much, covered so much ground and really appreciate 285 00:14:09,640 --> 00:14:12,800 Speaker 1: it joining us to talk about the business and the outlook. 286 00:14:12,880 --> 00:14:16,000 Speaker 1: Jason Liberty folks there, he's President, chief executive officer of 287 00:14:16,080 --> 00:14:18,280 Speaker 1: Royal Caribbean Group, joining us from Miami, Florida.