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Onboard spending driving yield growth 

  • RCL posted a solid 4.5% (estimated) net onboard and other yield growth (in constant currency) in Q2.  According to management, excluding the Affinity error, net onboard and other yield would have grown 8.2%.  For comparison, CCL  reported a 0.5% net onboard and other yield (in constant currency) growth in FQ2.
  • As the chart below shows, one of the reasons why RCL could print such a high onboard number is because they have more room to grow, relative to the 2007 peak.
  • RCL’s onboard trend was seen fleetwide as US-sourced customers continue to spend well in the Caribbean and Europe.
  • For now, onboard and other yields will drive the top-line performance of both RCL and CCL as ticket yields are barely growing for RCL and significantly lower for CCL.