Photo via royalcaribbean.com
Royal Caribbean collects about 20% to 25% of what its guests spend on vacations. Jason Liberty, CEO of Royal Caribbean, told CNBC's Squawk on the Street that the company's stake in Sandals and Beaches resorts and a new river-cruise line are meant to lift that share toward 45% to 50%.
Worries about affordability have not shown up in Royal Caribbean's bookings, Jason said. Consumers are moving their spending from goods to experiences, and cruises still cost far less than vacations on land.
"People are buying less stuff. They're buying more experiences."
Jason runs a company with about 180,000 guests sailing at any given time, and their onboard spending ran above plan in the third quarter.
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Squawk on the Street · Oct 27, 2026
With Jason Liberty, CEO of Royal Caribbean
Key Takeaways
Royal Caribbean beat its own Q3 expectations, by a wider margin on profit than on revenue
Spending is shifting from goods to experiences, and cruises still trade at a large discount to land vacations
The company is a bit over 60% hedged on fuel for 2026, which offsets much of the cost pressure
European bookings dipped on higher air fares, then came back strong into 2027
The Sandals and Beaches stake aims to double the company's share of guests' vacation spending, from about 20% to 25% toward 45% to 50%
1. A Beat on the Bottom Line
Royal Caribbean's third quarter came in ahead of the company's own expectations on revenue and well ahead on profit. Jason credited high-quality demand and guests willing to pay more than a year earlier.
Royal Caribbean's Q3 profit beat its plan by more than revenue did
"We did better than we had expected and significantly better on the bottom line." — Jason Liberty
Spending on board, by the roughly 180,000 guests at sea at any time, also ran above plan.
"We have 180,000 guests spending in real time... spend more than we thought they were going to." — Jason Liberty
