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Royal Caribbean raises annual profit forecast on steady demand

File photo: Royal Caribbean logo and stock graph are seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration/File photo Acquire Licensing Rights
Oct 26 (Reuters) – Royal Caribbean Group (RCL.N) raised its full-year profit forecast on Thursday, backed by higher ticket prices as well as steady demand from affluent customers for leisure travel.
Shares of Miami, Florida-based company were up 4.3% at $86.35 in premarket trading.
After months of being hindered by pandemic-related restrictions, cruise operators are now reaping the rewards as travelers gravitate to cruises that offer a range of fun activities under one roof and are cheaper compared to taking a land-based holiday such as that to a theme park.
This has given Royal Caribbean and its competitors the ability to further hike up itinerary prices, especially in North America and Europe, as occupancy levels now approach pre-pandemic levels.
The cruise company said occupancy in the third quarter was 109.7%, up from 105% reported in the second quarter.
The company expects annual adjusted profit between $6.58 and $6.63 per share, compared with its earlier forecast of $6.00 to $6.20.
Reporting by Granth Vanaik in Bengaluru; Editing by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles.

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