Royal Caribbean Cruises Ltd.
Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of December 31, 2025, it operated 69 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.
What does it do?
Royal Caribbean is one of the world's biggest cruise companies, running nearly 70 ships under three brands: Royal Caribbean International (mass market), Celebrity Cruises (premium), and Silversea Cruises (luxury). Think of it as operating floating resort hotels — passengers pay to board a ship, sail to destinations like the Caribbean or Mediterranean, and spend money on food, drinks, excursions, and entertainment along the way. Their newest ships, like the Icon of the Seas, are basically small cities on water, carrying over 7,000 passengers at a time. The company was founded in 1968 and is based in Miami.
Royal Caribbean is the clearest example of the post-pandemic travel boom still running hot — demand for cruises has outpaced pre-2020 levels and pricing has held up despite broader consumer spending concerns. At a $79 billion market cap, it is one of the largest travel companies on earth, and its results are closely watched as a real-time signal for how wealthy consumers are holding up. Investors are also paying attention because the company has gone from near-bankruptcy in 2020 to record profits in just a few years.
How does it make money?
Royal Caribbean makes money in two main ways: ticket sales (passengers booking their cruise) and onboard spending (drinks packages, specialty restaurants, spa treatments, shore excursions, and casino revenue). In 2024, the company pulled in $17.9 billion in revenue, up from $16.5 billion the year before — a growth rate of about 8.5%. Net income — the actual profit left after all costs — came in at $4.3 billion, which is a strong margin for a capital-heavy business that has to fuel, crew, and maintain dozens of massive ships. The company also earns fees from private destinations it owns, like Perfect Day at CocoCay in the Bahamas, which keeps more passenger spending in-house.
Why do investors care?
The core growth story is that cruising is still underpenetrated — only about 3-4% of the global population has ever been on a cruise, so there is a large untapped market, especially in Asia. Royal Caribbean's 'Trifecta' strategy set targets for double-digit profit growth per share, and the company has been hitting or beating those targets. For the thesis to work, consumer spending needs to stay healthy, new ships need to fill up at premium prices, and the company needs to keep paying down the roughly $20 billion in debt it took on to survive the pandemic. If all three go right, there is a credible argument that earnings could keep compounding for several years.
Deep Dive
MemberA full investor briefing on Royal Caribbean Cruises Ltd. — history, leadership, risks, and outlook.