After a long pause of nearly four years, Royal Caribbean International has announced that it will resume cruises for the Chinese market this weekend. This marks a significant step for Royal Caribbean as they plan to add a second ship to the Chinese market in 2025. The decision to deploy to China again comes after the cruise line left the market in early 2020 due to the pandemic.
During the Royal Caribbean Group’s Q1 earnings call on Thursday, executives revealed that booking volume and prices for cruises in the Chinese market have surpassed the levels of 2019. The Spectrum of the Seas, which initially debuted in Shanghai in 2019, is currently sailing from Singapore to Shanghai. The ship will call Shanghai its homeport beginning this Saturday and depart on a four-day roundtrip cruise to Hakata-Fukuoka City, Japan. The Anthem of the Seas will take over for the Spectrum later this year, with a second ship, the Ovation of the Seas, planned to join the fleet in 2025.
According to Michael Bayley, president and CEO of Royal Caribbean, the decision to deploy a second ship in the Chinese market indicates the success of the first ship in the region. Bayley had previously mentioned that net revenue from a Chinese passenger is slightly higher than that from an American passenger. With a stronger focus on direct sales, Royal’s sales strategy in China has evolved over time. Despite challenges faced during the pandemic, the brand has invested in technology, resources, and people to build a direct business in the region.
Returning to China will not only boost Royal Caribbean’s presence in the region but will also make the brand less North American-centric. Currently, 80% of Royal Caribbean customers are sourced from North America. While several other cruise lines have started calling in China since last fall, no contemporary cruise line has decided to return to the Chinese market. The arrival of Adora Magic City, a Chinese-built cruise ship, in January further highlights the growing interest and potential in the Chinese cruise market.
Royal Caribbean International’s decision to resume cruises in China reflects a positive shift in the industry post-pandemic. With strong demand and successful deployment of ships, the brand is poised to make a significant impact in the Chinese market and expand its global footprint.