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Royal Caribbean Group RCL Stock Quote

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Morningstar‘s Stock Analysis RCL

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Economic Moat

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Improving EBITDA Growth Set to Persist at Royal Caribbean With Full Fleet Deployed

Jaime M. Katz, CFA Senior Equity Analyst

Business Strategy and Outlook

| Jaime M. Katz, CFA |

Travel constraints and coronavirus hesitancy are receding, so consumer behavior about travel and social distancing have returned to normal for Royal Caribbean, leading to positive operating cash flow and EBITDA at the business. The redeployment of the fleet is complete, and cruise operators have successfully implemented health protocols to ensure the safety of the cruising population (as evidenced by a lower positivity rate than on land). With virus restrictions largely in the rearview mirror, Royal Caribbean should see modest pricing gains as it digests bookings paid for with future cruise credits and takes new reservations. On the cost side, some health protocols and cruise resumption costs could reman high in near-term spending, but should pare back in 2023, aiding profitability.

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Key Statistics RCL

Company Profile RCL

Business Description

Royal Caribbean is the world's second-largest cruise company, operating 64 ships across five global and partner brands in the cruise vacation industry, with 10 more ships on order. Brands the company operates include Royal Caribbean International, Celebrity Cruises, and Silversea. The company also has a 50% investment in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises, allowing it to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. The company completed the divestiture of its Azamara brand in the first quarter of 2021.

Contact
1050 Caribbean Way
Miami, FL, 33132
T +1 305 539-6000
Industry Travel Services
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 85,000

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