After a nearly four-year hiatus, Royal Caribbean International will resume cruises for the Chinese market this weekend with plans to add a second ship there in 2025.
Royal's deployment to China marks its return to a key market after leaving in early 2020 due to the pandemic.
Executives said during Royal Caribbean Group's Q1 earnings call Thursday that booking volume and price for cruises in the Chinese market eclipsed that of 2019.
"I think the fact that we've already deployed a second ship into the China market gives you an indication of how well the first ship is doing in the China market," Michael Bayley, president and CEO of the brand, said during the earnings call.
Ovation of the Seas coming in 2025
The Spectrum of the Seas, which debuted in Shanghai in 2019, is currently sailing from Singapore to Shanghai, where it will homeport beginning Saturday; it departs on a four-day, roundtrip cruise to Hakata-Fukuoka City, Japan, later that same day. The Anthem of the Seas will take over for the Spectrum later this year and will be joined by a second ship, the Ovation of the Seas, when it begins sailing from Tianjin in 2025, according to Jason Liberty, CEO of Royal Caribbean Group.
Net revenue from a Chinese passenger is slightly higher than that from an American one, Bayley said a year ago when announcing the line's return the to region.
Royal's sales strategy in China now has a stronger focus on direct sales, Bayley said Thursday. Although many retailers dropped out of business during the pandemic, the brand had already begun investing in technology, resources and people to develop its direct business there, he said.
"Overall, our distribution strategy is proving to be successful. Demand seems very, very strong," he said.
Returning to China will tilt the Royal Caribbean brand to be slightly less North American-centric. This year, 80% of customers were sourced from North America.
No other contemporary cruise line has opted to return to the Chinese market, although other lines carrying international cruisers began calling in China last fall, including Holland America Line, Oceania Cruises, Princess Cruises, Royal Caribbean, Silversea, Viking and Windstar.
Meanwhile, Adora Magic City, a Chinese-built cruise ship, began sailing from there in January.