After a long break of almost four years, Royal Caribbean International is all set to resume cruises for the Chinese market this weekend. The plan includes adding a second ship in 2025, marking a significant return to a key market that the cruise line left in early 2020 due to the pandemic. Executives revealed during Royal Caribbean Group’s Q1 earnings call that booking volume and prices for cruises in the Chinese market have exceeded even the levels of 2019.
Michael Bayley, the brand’s president and CEO, emphasized the success of the first ship deployed in the China market by mentioning the subsequent deployment of a second ship. The Spectrum of the Seas, which originally debuted in Shanghai in 2019, will now be sailing from Singapore to Shanghai, making it the homeport starting this weekend. The Anthem of the Seas is expected to take over for the Spectrum later this year. Additionally, the Ovation of the Seas will join the fleet in 2025 from Tianjin, as announced by Jason Liberty, the CEO of Royal Caribbean Group.
In a notable shift, Royal Caribbean’s sales strategy in China now focuses more on direct sales, according to Bayley. Despite the challenges faced by many retailers during the pandemic, the brand has been investing in technology, resources, and people to enhance its direct business in the region. This approach seems to be paying off, as Bayley highlighted the strong demand and success of the distribution strategy.
Returning to China with a more direct sales-focused approach will signify a shift in Royal Caribbean’s brand towards being slightly less North American-centric. Currently, 80% of the customers are sourced from North America, but the re-entry into the Chinese market will likely diversify the customer base. Interestingly, no other contemporary cruise line has made the decision to return to the Chinese market yet, making Royal Caribbean International a pioneer in this regard.
While other cruise lines catering to international travelers started calling in China last fall, Royal Caribbean International stands out by being the first to make a full-fledged comeback to the region. The introduction of Adora Magic City, a Chinese-built cruise ship, further adds to the competition and choice available for cruise passengers in the Chinese market. With a strong focus on direct sales and a proven distribution strategy, Royal Caribbean International seems poised for success in its renewed ventures in China.