Royal Caribbean: 3 Key Takeaways for Long-Term Investors

On its third quarter 2026 earnings call, held on Oct. 27, 2026, Royal Caribbean (NYSE:RCL) announced a $3 billion investment for a 50% stake in Sandals and Beaches Resorts as it expands beyond cruise operations. Extending into all-inclusive land resorts targets a broader share of consumer travel spending and creates new cross-promotional opportunities across its vacation brands. Three things management said on the call stand out.

1. Acquiring All-Inclusive Resort Stake Doubles Vacation Wallet Reach

Expanding beyond cruises into land-based all-inclusive resorts allows the business to acquire customer spending across multiple vacation types. The cruise line currently capturing 20% to 25% of a guest's annual vacation spending. With nearly one-third of those guests already visiting Caribbean all-inclusive properties, the joint venture capitalizes on existing consumer demand to increase that percentage.

By adding all-inclusive resorts to our ecosystem, we expand our reach to roughly 50% of the vacation wallet.
-- Jason Liberty, Chairman and Chief Executive Officer

2. Booking Volumes Drive Record Advance Sales for Future Sailings

Customer demand for cruise experiences continues to outpace prior years, filling future capacity further in advance and at higher prices. High booking volume builds a strong financial baseline for revenue stability into 2027.

Since the last earnings call, booking volumes have increased in the mid-teens year-over-year, and bookings for 2027 sailings are up in the high teens, demonstrating strong demand as we continue to build a strong base of business for 2027.
-- Jason Liberty, Chairman and Chief Executive Officer

3. Repeat Guest Retention Strengthens Customer Lifetime Value

Connecting brand experiences through loyalty programs keeps customers within the company's ecosystem and encourages more frequent travel. Half of all passengers are returning guests, which reduces customer acquisition expenses and increases lifetime spending.

This year, close to half of our guests were repeat customers, with the balance experiencing our brands for the first time. These new-to-brand guests are becoming loyal repeat cruisers and returning more frequently as the average time between cruises continues to decrease.
-- Jason Liberty, Chairman and Chief Executive Officer

Looking Ahead

Leisure travel demand is accelerating as consumers prioritize experiences, and the business is capturing that momentum across its brands.

Travel remains the number one leisure category where consumers intend to increase spending.
-- Jason Liberty, Chairman and Chief Executive Officer

High guest satisfaction scores, proprietary land destinations, and connected loyalty programs provide durable competitive moats to drive repeat visits while leadership focuses on pricing discipline and capacity expansion. Expanding into river cruises and all-inclusive land resorts secures a larger footprint across the global travel ecosystem.

We go to well over 1,000 different destinations. So having connected loyalty and delivering these incredible experiences should keep our customer inside of our ecosystem.
-- Jason Liberty, Chairman and Chief Executive Officer

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