Royal Caribbean International will resume cruises to the China market this weekend after a nearly four-year hiatus and plans to add a second ship in 2025.
Royal's deployment to China marks its return to the key market after a pandemic-induced withdrawal in early 2020.
Cruise bookings and pricing in the Chinese market surpassed 2019 levels, Royal Caribbean Group executives said in a first-quarter earnings call on Thursday.
“The fact that we have already deployed our second vessel to the China market is an indication of how well our first vessel is performing in that market,” Michael Bailey, the brand’s president and CEO, said on an earnings call.
Ovation of the Seas launches in 2025
Spectrum of the Seas, which debuted in Shanghai in 2019, is currently sailing from Singapore to Shanghai, where she will be homeported starting Saturday. Later that day, she will depart for a four-day roundtrip cruise to Hakata-Fukuoka, Japan. Anthem of the Seas will acquire Spectrum later this year, and a second ship, Ovation of the Seas, will join her when she sails from Tianjin in 2025, according to Jason Liberty, CEO of Royal Caribbean Group.
“The net revenue we receive from Chinese passengers is slightly higher than the net revenue we receive from American passengers,” Bailey said when announcing the route's return to China a year ago.
Royal’s sales strategy in China is now more focused on direct sales, Bayley said Thursday. While many retailers have closed during the pandemic, the brand has already started investing in technology, resources and people to develop its direct business, he said.
“Overall, our distribution strategy is proving successful. Demand appears to be very, very strong,” he said.
Returning to China will mark a slight shift for the Royal Caribbean brand away from its North American focus, where 80 percent of its guests this year are from.
While other modern cruise lines have not returned to the China market, other operators operating international cruise lines, including Holland America Line, Oceania Cruises, Princess Cruises, Royal Caribbean, Silversea, Viking and Windstar, began calling in China last fall.
Meanwhile, the Chinese-built cruise ship Adora Magic City began sailing there in January.
