The Oasis of the Seas is hurting pricing for other ships owned by Royal Caribbean Cruises Ltd., according to equity research firm Majestic Research.
Celebrity Cruises' Solstice-class and Royal Caribbean International's Freedom-class cruise ships have experienced price cannibalization with the introduction of the Oasis, according to the Majestic report.
In a note to investors, Matthew Jacob, Majestic leisure analyst, said that pricing for the Freedom-class ships was 7% higher than RCCL's other ships in the first quarter of 2010; during the third quarter of 2009, the last full quarter prior to the Oasis launch, the Freedom-class ships had a 27% price premium over other RCCL vessels.
The Solstice-class premiums declined to 30% in the first quarter of 2010, down from 68% in Q3.
"While some investors are expecting Oasis to have a halo effect, lifting bookings across all RCCL ships, it appears that the ship is actually cannibalizing the rest of RCCL's fleet," Jacobs said.
Jacobs also said that Oasis pricing was dropping quickly.
"The Oasis is garnering initially high premiums for the quarter because of the honeymoon period accompanying the launch of a new ship," Jacobs said.
"We expect the ship to continue to generate strong premiums throughout most of 2010; however, we expect Oasis' premiums to drop significantly over time, as we have seen with other recent new ship introductions."
The Majestic research indicates that during the first quarter of 2010, the Oasis is getting premiums of 102% for interior cabins compared with the rest of the RCCL fleet, significantly less than the 142% premium those cabins get in the fourth quarter of this year, during the Oasis' inaugural month of sailings.
But, according to the same research, the new-ship premium does last.
In the first quarter of 2010, tickets on RCCL ships built since 2000, which comprise 52% of the fleet, are priced at a 15% premium to the company's average ship.
And the Celebrity Equinox, which debuted over the summer, is getting a 34% premium on starting ticket prices on inside cabins compared with the rest of the RCCL fleet.