Cruise Passengers Are Spending More Onboard Than the Lines Expected

Two of the biggest cruise companies reported this week that guests are spending more than they had planned for. Norwegian Cruise Line Holdings said on October 29 that its third-quarter revenue reached $2.9 billion, with GAAP net income of $491 million and earnings of $1.07 per share, and that it beat its own guidance.

The beat came from the top line, driven by close-in demand from guests who put off booking their summer sailings. On the same earnings call the company said it had identified another $100 million in savings, coming from optimizing guest and crew air travel and refining promotional offers, with the benefits phasing in through 2028.

Royal Caribbean offered a similar signal a day later. Chairman and chief executive Jason Liberty said onboard spending has been much stronger than the company thought it would be, and that it is helping drive performance.

Taken together, the two reports suggest that cruise demand has held up even as other parts of travel face fuel-driven price pressure. For travelers, strong late booking and onboard spend can mean fewer last-minute discounts on popular sailings, while the cost-cutting on air and promotions hints at changes to how fly-cruise packages and offers are structured.

Sources: Cruise Industry News (NCLH results), Cruise Industry News (Royal Caribbean)