Royal Caribbean Cruises (RCL) Q3 2026 Earnings Call: Q&A Summary

Q: Matthew Boss from JPMorgan asked if there is any moderation in multi-year prospects for cruise and whether confidence remains high in capturing a greater share of the growing $2 trillion-plus total vacation market.

A: Jason Liberty, Chairman and Chief Executive Officer, answered that he sees no moderation, noting that cruise represents a small fraction of a fast-growing travel space, and expressed strong confidence in future performance and market share gains driven by high guest satisfaction, brand leadership, and new product offerings.

Q: Steve Wissink from Stifel asked whether the projected $20 earnings handle for next year excludes items such as Sandals, buybacks, and debt refinancings, and also requested details on the development opportunities for the 1,000 acres of undeveloped land owned by Sandals.

A: Jason Liberty, Chairman and Chief Executive Officer, confirmed that items like Sandals timing, share buybacks, and debt refinancings are not factored into the current baseline statement for next year. Naftali Holtz, Chief Financial Officer, and Jason Liberty added that the 1,000 acres of beachfront land include adjacent properties for room expansions as well as greenfield development opportunities to grow the footprint self-funded by cash flow.

Q: Vince Ciepiel from Wells Fargo asked for clarification regarding the high teens booking metrics mentioned for next year and whether underlying pricing dynamics are up.

A: Jason Liberty, Chairman and Chief Executive Officer, explained that the commentary reflects elevated demand and higher booked positions at higher rates, indicating that customers are willing to pay more for future travel.

Q: Benjamin Chaiken from Mizuho asked about the overlap between Royal Caribbean guests and all-inclusive vacations and the current penetration rates between Sandals and Royal Caribbean.

A: Naftali Holtz, Chief Financial Officer, and Jason Liberty, Chairman and Chief Executive Officer, stated that there is significant overlap and room to grow, noting that keeping customers inside the ecosystem through connected loyalty and new offerings like river cruises and all-inclusive resorts yields higher margins and long-term lifetime value.

Q: Meredith Jensen from HSBC asked about opportunities outside the Caribbean, specifically regarding year-round deployment in Europe and developments in Asia like Japan.

A: Jason Liberty, Chairman and Chief Executive Officer, and Michael Bailey, President and CEO of the Royal Caribbean brand, highlighted that 46% of the business is outside the Caribbean, noting strong global demand, over 100 destination projects in progress, and increased capacity moving into the Asia Pacific corridor and Australia.

Q: Robin Farley from UBS asked if Sandals land-based resorts could expand outside the Caribbean, where hundreds of millions of synergies would stem from, and if ownership could increase beyond 50%.

A: Jason Liberty, Chairman and Chief Executive Officer, stated that while expansion outside the Caribbean is possible, the immediate focus is growing within the region, and explained that synergies will come from revenue management, loyalty connectivity, analytics, and purchasing scale.

Q: Brandt Montour from Barclays asked whether strong close-in booking trends indicate a bifurcation in the consumer base or a behavioral shift among lower-priced contemporary itineraries.

A: Jason Liberty, Chairman and Chief Executive Officer, attributed close-in booking strength to shorter itinerary product mix, a younger demographic that travels more frequently, and stronger-than-anticipated onboard spending, demonstrating overall consumer resilience.

Q: Conor Cunningham from Melius Research asked about the pricing spread relative to land-based vacations and moving parts for net yields next year.

A: Jason Liberty, Chairman and Chief Executive Officer, noted that cruise yields have historically lagged land-based travel and that rising land prices provide a positive tailwind of strong consumer willingness to spend on travel.

Q: Vince Ciepiel from Cleveland Research asked how the Icon class ship is being received in the Texas market and about Western Caribbean deployment planning.

A: Michael Bailey, President and CEO of the Royal Caribbean brand, responded that Icon is receiving exceptional feedback and response from travel partners as the best product entering Texas, supporting strong load factors and high Net Promoter Scores.

Q: David Katz from Jefferies asked for clarification on whether the immaterial contribution guidance for Sandals excludes future synergies and cannot be fully assessed until the transaction closes.

A: Jason Liberty, Chairman and Chief Executive Officer, confirmed that contribution depends on the closing date in early 2027 and that synergies will materialize over time rather than all on day one.