Royal Caribbean sets its sights on Disney World, Universal Studios

Many people who have never cruised don’t realize that family-friendly cruise lines have a massive advantage over Disney World and Universal Studios.

When you book a theme park vacation, you have three distinct expenses: the hotel or other lodging, park admission, and food. For a family spending a week at Disney World or Universal Studios, theme park admission alone can cost more than booking a four-person cabin on a Royal Caribbean, Carnival or MSC Cruises ship.

Related: Every Royal Caribbean Passenger Must Know About ‘Royal Math’

At Disney World, a basic five-day ticket that can be used from September 7-14 – one of the cheapest times of the year – costs $541.23. This single ticket limits you to one Disney park per day. For a family of four, that’s $2,164.92 and assumes two park-free days on a 7-day vacation.

The same week at Universal Studios actually costs a little more per ticket, and a five-day single-park pass will set you back $596 per person, or $2,384.

Royal Caribbean is offering a seven-night sailing on Wonder of the Seas, its third newest ship, from Miami, where you can currently book an ocean view cabin for four (interiors are sold out) for $2,784. That’s a little more than you’d pay for just the tickets — no lodging or food — for a visit to Disney World or Universal.

Booking an inside cabin for a four-night cruise for two adults and two children from September 9-13 on Utopia of the Seas—Royal Caribbean’s newest ship—will set you back $1,416.68.

Compared to theme parks, this is a really good deal considering what’s included: your cabin plus a huge variety of entertainment and food.

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Royal Caribbean Group CEO Jason Liberty says his company may be offering too good a deal.

Image source: Royal Caribbean

Royal Caribbean is seeing increased demand

While people traveled and spent money, a general economic malaise — perhaps because we’re in an election year — pushed consumers toward value. Royal Caribbean Group Chief Executive Jason Liberty saw some positive signs for his company.

“We continue to see very positive sentiment from our customers, supported by a resilient economy, low unemployment, stabilizing inflation and record household net worth,” he said during the company’s second-quarter earnings call. “Consumer preference continues to shift towards experiential spending, particularly prioritizing travel.”

Liberty also noted another reason it remains bullish on Royal Caribbean’s prospects.

“Consumers have 10% more vacation days compared to 2019 and are using half of that increase to travel,” he added. “In fact, our research suggests that consumers spend more on travel than any other leisure category and plan to increase their travel spending over the next 12 months.

“Cruising remains an attractive value proposition and cruise purchase intent is high and continues to strengthen. Consumer finances remain healthy across all demographics.”

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Royal Caribbean goes short for long

Liberty also outlined some of Royal Caribbean’s strategy when it comes to growing its customer base.

“Putting customers at the center of our orbit has been central to our success and allows us to meet guests for all moments of life, turning the vacation of a lifetime into a lifetime of vacations,” he said.

“A key differentiator for us on this journey is our hardware, where we are constantly innovating. This quarter we received Utopia of the Seas, the ultimate weekend getaway, a makeover positioned to be another game changer for our short Caribbean product. “

Traditionally, cruise lines have used their newest ships for seven-day cruises. By offering shorter cruises on its newest ship, RCL sacrifices short-term revenue in the interest of attracting new cruisers and converting them into long-term customers.

“Our short Caribbean cruise product is an important entry point for those new to cruising and new to the brand, with almost seven in 10 guests targeting these categories and always skewing more towards younger customers,” said he.

“Younger consumers find this product particularly appealing. In fact, approximately 40% of guests tracking this demographic indicated that they plan to book a short vacation in the next 12 months.”

The rate of return for these customers was very high.

“In addition, 90% of guests who cruise our short product plan to cruise again, with approximately half planning to return for a longer cruise,” added Liberty.

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The CEO sees higher prices ahead and says this won’t affect demand for one key reason.

“Our prices continue to rise in 2025 and 2026. And that’s not just in the short product; this is also happening in the ultra-luxury space,” he said. “And I think people say, ‘Well, how can that be?’ I think it’s still a reality that there’s still a 20% value gap in terms of onshore holidays and you get a lot of bang for your buck when you travel with our brands.

Related: Get the best cruise tips, deals and ship news from our expert cruiser