Cruise operators Royal Caribbean, Carnival, and Norwegian Cruise Line Holdings are slashing prices for summer itineraries in a bid to fill empty cabins on older ships, according to travel agencies and company websites. The move comes as more vessels are being redirected to popular Caribbean and Alaskan destinations, while avoiding the Red Sea due to ongoing conflict between Israel and Hamas.
Despite boasting record demand and increased revenue on recent earnings calls, prices for cruises departing from the United States this summer are actually cheaper compared to last year, according to data from travel group AAA. In the Caribbean and Bermuda, prices for interior cabins on Royal Caribbean’s seven-day itineraries in June are down 21% year-over-year, with Norwegian and Carnival also offering discounts of 12% and 11% respectively.
Royal Caribbean is also cutting rates for Caribbean itineraries in the third and fourth quarters, with discounts on cruises sailing around Africa instead of through the Red Sea. The company’s newer ship, Icon of the Sea, commands higher prices compared to older vessels, thanks to the interest surrounding the new ship.
With an increase in the number of vessels sailing in the Caribbean and Alaska, cruise fares in these regions are falling this summer due to increased capacity. Interior cabins on Carnival’s Alaskan summer cruises are selling for about 20% less in July and August compared to 2023, while Royal Caribbean’s Alaska trips are 6% and 12% cheaper for the same period in those months, respectively.
Overall, the cruise industry is seeing a surge in demand and profitability, with companies like Royal Caribbean and Carnival setting booking records and raising profit forecasts for the future.