Royal Caribbean Cruises Ltd. (RCL): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of one of the world's biggest cruise operators, Royal Caribbean Cruises Ltd., and honestly, what you'll find in their late-2025 Business Model Canvas is a masterclass in scaling premium experiences. This isn't just about filling ships; it's about deploying roughly $5 billion in capital expenditures for game-changing hardware like the Icon-class while projecting revenues near $17.768 billion for the year, all fueled by exclusive destinations and a powerful three-brand portfolio. If you want to see exactly how they balance massive debt service costs against high-margin onboard revenue streams and lock in shipbuilding for the next decade, you need to see the full breakdown below.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Royal Caribbean Cruises Ltd.'s (RCL) growth engine-the external relationships that make those massive ships materialize and keep the balance sheet stable. These aren't just vendor relationships; they are deep, multi-year commitments that secure capacity and funding for the next decade.

Shipbuilding Capacity and Long-Term Commitments

Securing shipyard slots is critical when you're planning a fleet expansion that involves some of the world's largest vessels. Royal Caribbean Cruises Ltd. has locked in capacity with key players for years to come.

The long-term shipbuilding agreement with Meyer Turku through 2036 is a cornerstone of this strategy. This framework agreement secures Royal Caribbean Group's rights to build at the Finnish yard through the next decade. To be clear, Meyer Turku has built 25 ships for Royal Caribbean Group since the mid-1990s. Under this latest deal, Royal Caribbean Group confirmed an order for Icon 5, scheduled for delivery in 2028, subject to financing, and added an option to build Icon 7, in addition to the previously announced option for Icon 6. This continues the production pipeline that saw Star of the Seas sail in August 2025 and Legend of the Seas scheduled for Summer 2026, with Icon 4 due in 2027.

The company also relies on other key shipyard partners like Chantiers de l'Atlantique for new vessels. This French shipyard is responsible for building both Oasis-class and Celebrity Cruises' Edge-class ships. For instance, Royal Caribbean International began construction on its seventh Oasis Class ship in October 2025, set for a 2028 debut. Separately, Chantiers de l'Atlantique is building the sixth Edge Series ship for Celebrity Cruises, Edge 6 (or Xcel 2), also slated for delivery in 2028.

Here's a quick look at the confirmed new builds tied to these yards:

Shipyard Partner	Brand/Class	Confirmed Delivery Year	Status/Notes
Meyer Turku	Icon Class (Icon 5)	2028	Confirmed order, subject to financing
Chantiers de l'Atlantique	Oasis Class (Seventh Ship)	2028	Construction started October 2025
Chantiers de l'Atlantique	Celebrity Edge Series (Edge 6)	2028	Sister ship to Celebrity Xcel

Strategic Alliances and Joint Ventures

Beyond the physical construction, Royal Caribbean Cruises Ltd. partners for operational excellence and market reach. The strategic alliance with Lloyd's Register (LR) for maritime safety and efficiency is a significant example. This partnership involves the transfer of class for more than 25 cruise ships to LR, covering expert classification, risk management, and technical consultancy services.

In terms of brand portfolio diversification, the joint venture with TUI AG for TUI Cruises (Mein Schiff) remains a key part of the structure. This is a 50:50 joint venture based in Hamburg. TUI Cruises, which also operates Hapag-Lloyd Cruises, took delivery of Mein Schiff Relax, the first of the new InTUItion class, in February 2025. Furthermore, TUI Cruises has contracts with Fincantieri for two more sister vessels scheduled for delivery in 2031 and 2032.

The structure of the TUI Cruises partnership involves shared strategic direction, as evidenced by the following:

• Ownership split: 50% TUI AG, 50% Royal Caribbean Cruises Ltd.
• Fleet segment: Premium volume.
• Newbuilds: Two InTUItion class ships due in 2031 and 2032.

Financing Partnerships for New Assets

Financing these multi-billion dollar assets requires strong relationships with financial institutions. As of December 31, 2024, Royal Caribbean Cruises Ltd. stated that all ship orders have committed financing in place. Capital expenditures for the full year 2025 are expected to be approximately $5 billion, largely tied to this order book.

You saw this in action with the financing for the seventh Oasis-class ship. A credit agreement finalized on March 28, 2025, secured a US dollar-denominated term loan upon delivery in Q2 2028. The full debt volume closed at €1.45 billion ($1.58 billion), backed 100% by Bpifrance Assurance Export. The interest accrues at a floating rate of Term SOFR plus 0.85% per annum. More recently, on October 1, 2025, the Company completed a registered public offering of $1.5 billion aggregate principal amount of 5.375% senior unsecured notes due 2036 to help finance the upcoming delivery of Celebrity Xcel.

Key financing details as of early to late 2025 include:

• Total 2025 CapEx guidance: Approximately $5 billion.
• Oasis 7 Loan Volume: $1.58 billion (€1.45 billion).
• Oasis 7 Interest Rate: Term SOFR plus 0.85%.
• October 2025 Notes Offering: $1.5 billion.
• Lenders in Oasis 7 financing syndicate: Nine institutions, including JP Morgan, Bank of America, BNP Paribas, BBVA, Citi, HSBC, SMBC, Societe Generale, and Santander.

Finance: draft 13-week cash view by Friday.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Key Activities

You're looking at the core engine driving Royal Caribbean Cruises Ltd.'s performance in late 2025. These aren't just vague goals; these are the massive, capital-intensive actions that define their competitive edge right now.

Designing and constructing game-changing, innovative cruise ships.

The activity of bringing new, massive hardware online is central. Royal Caribbean Cruises Ltd. expects to take delivery of Star of the Seas in late August 2025 and Celebrity Xcel in November 2025. The Star of the Seas, sister ship to Icon of the Seas, has an estimated capacity of 5,610 passengers and measures 248,600 Gross Tons. Capital expenditures for the full year 2025 are projected to be approximately $5 billion, predominantly tied to this new ship order book. As of June 30, 2025, the total cost of ordered ships for the Global Brands stood at roughly $12.1 billion. This continuous hardware refresh is designed to drive pricing power and yield expansion.

Here's a snapshot of the newest additions impacting 2025 capacity and design focus:

Ship Name	Brand	Expected Delivery Year	Estimated Capacity
Star of the Seas	Royal Caribbean International	2025	5,610
Celebrity Xcel	Celebrity Cruises	2025 (Q4)	Data Not Specified
Mein Schiff Relax	TUI Cruises (Joint Brand)	February 2025	Data Not Specified

Operating a global fleet and managing complex maritime logistics.

Managing the global deployment and logistics for the entire fleet is a daily operational feat. As of February 12, 2025, the company operated 67 ships, though capacity growth suggests a higher number by mid-year. Capacity increased by 6% year-over-year in the second quarter of 2025. This operational scale directly impacts financial metrics like Net Cruise Costs per Available Passenger Cruise Day (APCD). For the full year 2025, Net Cruise Costs excluding Fuel per APCD are forecasted to be flat to up 1.0% in Constant Currency. The company is also actively managing its balance sheet, having reduced total debt to $19.503 billion as of June 30, 2025, down from $20.604 billion at the end of 2024. That's smart financial housekeeping amidst massive capital deployment.

The operational results for Q2 2025 show the scale of the business:

• Total Revenues: $4.538 billion
• Passenger Ticket Revenues: $3.199 billion
• Onboard and Other Revenues: $1.339 billion
• Net Income Attributable to RCL: $1.21 billion

Developing and managing exclusive private destinations globally.

Exclusive destinations are a key differentiator, creating a flywheel effect that justifies premium pricing. The Caribbean region now accounts for 57% of Royal Caribbean Cruises Ltd.'s total deployment for 2025, with capacity in that region rising to 63% in the fourth quarter. The company is investing heavily here; non-new ship related capital expenditures for 2025 include $1.6 billion for private destinations under development. This includes the acquisition of the Costa Maya Port in Mexico and adjacent land for $292 million in July 2025. The first Royal Beach Club Experience is set to open in late 2025 on Paradise Island, Nassau. The success in this area is showing up in regional yields; Caribbean yields in Q4 2025 are projected to be up 37% compared to 2019 levels.

Sales, marketing, and yield management across three core brands.

Yield management, which is essentially maximizing revenue from available capacity, is performing well, even with significant capacity additions. Net Yield growth in Q2 2025 was 5.2%, evenly split between the impact of new ships and the existing portfolio. For the full year 2025, Net Yields are expected to increase between 2.5% and 4.5% as-reported. Ticket revenue makes up the foundation, accounting for about 70% to 71% of total revenues, but the remaining 29% to 30% from onboard spending is a substantial financial contributor. The company is seeing strong pricing, with booked load factors in WAVE season (early booking period) in line with prior years but at higher rates.

Enhancing the digital guest experience with AI and personalization.

The commitment to the digital experience underpins the ability to personalize and manage yield effectively. The entire fleet is equipped with Starlink for enhanced connectivity, supporting the investment in digital capabilities aimed at improving customer experiences and operational efficiencies. While specific AI spending figures aren't public, the focus on digital is clear, as evidenced by the need to manage complex derivative hedges, which generated a gain of $181 million in Q2 2025 due to foreign exchange swaps performing well. This sophisticated financial hedging is a digital/analytical activity that directly protects the bottom line from currency volatility.

Finance: draft 13-week cash view by Friday.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Key Resources

You're looking at the core assets Royal Caribbean Cruises Ltd. relies on to run its massive global operation as of late 2025. These aren't just things they own; they are the engines that generate revenue and create competitive separation.

The fleet itself is the primary physical resource, constantly being refreshed with the newest, largest vessels. As of February 12, 2025, Royal Caribbean Cruises Ltd. operated a total of 67 ships across its brands. This fleet is anchored by the latest innovations, like the Icon Class, with the Star of the Seas debuting in August 2025, joining the world's largest ship, Icon of the Seas. The Oasis Class continues to be a powerhouse, and the Edge Class is expanding for Celebrity Cruises, exemplified by the launch of Celebrity Xcel in November 2025.

The company's commitment to future capacity is substantial, reflected in its forward-looking capital planning. As of June 30, 2025, the total cost of ordered ships for the Global Brands stood at approximately $12.1 billion. This pipeline secures growth well into the next decade, including plans for a seventh Oasis-class vessel and a fifth Icon class ship, both expected in 2028, plus a new, beyond-Icon class ship being developed. The company's financial footing supports this growth, showing liquidity of $7.1 billion as of June 30, 2025, which comprised $0.7 billion in cash and cash equivalents and $6.4 billion in undrawn revolving credit facility capacity.

Here's a quick look at the scale of the physical assets and near-term capacity commitments:

Resource Metric	Value / Detail	As of Date / Context
Total Ships Operated	67	February 12, 2025
Total Liquidity	$7.1 billion	June 30, 2025
Future Capital Commitments (Ordered Ships)	Approx. $12.1 billion	June 30, 2025
New Ship Delivery (2025)	Star of the Seas (Icon Class), Celebrity Xcel (Edge Class)	August 2025, November 2025
New Ship Delivery (2026)	Unnamed Icon Class Ship	Spring 2026
New Ship Delivery (2028)	Seventh Oasis-Class Vessel, Icon Class Ship 4, Celebrity Xcel Sister Ship	2028

Beyond the ships, Royal Caribbean Cruises Ltd. owns unique, proprietary experiences that lock in customer preference. The Perfect Day at CocoCay private island experience is a key differentiator, and the portfolio is actively growing. In July 2025, the company acquired the Costa Maya Port in Mexico and surrounding land for $292 million. Furthermore, the company is launching a new concept, the Royal Beach Club Paradise Island, set to open in late 2025, which will operate more like a premium shore excursion with an admission cost.

The strength of the overall business is also vested in its diverse brand structure. This portfolio allows the company to target different market segments effectively. The key owned and operated global brands are:

• Royal Caribbean International
• Celebrity Cruises
• Silversea Cruises
• Celebrity River Cruises (launched January 2025, with an initial order of 10 ships planned for 2027)

Royal Caribbean Cruises Ltd. also holds a 50% joint venture interest in TUI Cruises GmbH, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises. That's a lot of brand equity to deploy.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Royal Caribbean Cruises Ltd. over other options, especially as the fleet gets bigger and more specialized. The value proposition is built on scale, innovation, and exclusivity, all while trying to keep the price competitive with land-based resorts.

Innovative, Large-Scale Onboard Experiences (e.g., Icon-class Neighborhoods)

Royal Caribbean Cruises Ltd. delivers experiences at a scale land-based vacations struggle to match. The Icon-class ships, like the in-service Icon of the Seas and Star of the Seas (which entered service in 2025), are the world's largest, weighing in around 248,663 Gross Registered Tons (GRT).

These vessels are designed around eight distinct neighborhoods, offering over 40 eateries and entertainment venues. The sheer size allows for unique, record-breaking attractions.

Feature Category	Icon Class Detail	Metric/Count
Maximum Guest Capacity	Total People Onboard (Max)	Nearly 10,000 (7,600 passengers + 2,350 crew)
Stateroom Count	Total Cabins	2,805
Water Attraction	Category 6 Waterpark Size	17,000-square-foot
Ship Structure	AquaDome	Largest glass and steel structure on a cruise ship

The Suite Neighborhood spans 60,924 square feet. Also, more than 80% of all staterooms can accommodate 3 or more guests.

Diverse Vacation Options from Family Adventure to Ultra-Luxury

The portfolio spans from family-focused mega-ships to the ultra-luxury segment via its brands. The Icon-class specifically targets families with dedicated areas like the Surfside neighborhood.

For the high-end segment, the Suite Class offers lavish cabins and upscale amenities. The company is also expanding into river cruising with the launch of Celebrity River Cruises.

Exclusive, Curated Private Destination Experiences (e.g., Royal Beach Club)

Royal Caribbean Cruises Ltd. is creating exclusive, land-based extensions of the cruise experience. The Royal Beach Club Paradise Island in Nassau opens on December 23, 2025.

The company expects this single destination to host approximately 1 in 3 of the roughly three million guests Royal Caribbean brings to Nassau annually. This is a curated, high-satisfaction alternative to historical port options.

Feature	Royal Beach Club Paradise Island Detail	Metric/Count
Area Size	Total Acreage	17-acre area
Bars	Total Bars / Swim-up Bars	7 bars / 3 swim-up bars
Pools	Total Swimming Pools	3 swimming pools
Pricing (Starting)	Day Pass (Unlimited Bar/Dining)	Starts at $139.99 per person
Premium Pricing	Ultimate Family Cabana (Day Rate)	Sold for $10,000

The Ultimate Family Cabana includes day passes for up to 12 people and features a private bathroom and a spiral slide. A second Royal Beach Club is scheduled for Cozumel in 2027.

Strong Value Proposition Compared to Land-Based Vacation Alternatives

Consumers are prioritizing travel, and Royal Caribbean Cruises Ltd. positions its product as a superior value. Executives noted that customer satisfaction scores are actually higher than any other land-based vacation.

The price differential remains a key selling point. While the gap has narrowed from previous highs, land-based vacations still cost significantly more. For instance, data from late 2022 showed land-based options were about 40% more expensive than cruises, up from 20% pre-pandemic.

The company is focused on closing this gap by offering compelling new hardware and destinations. For 2025, Royal Caribbean Group expects 23% adjusted earnings growth, driven by strong demand and yield management.

Commitment to Sustainability with Tri-Fuel Capable New Ships

Royal Caribbean Group has a formal decarbonization strategy, Destination Net Zero, targeting net-zero emissions by 2050.

Key milestones supporting this value proposition include:

• Achieved a 6.8 percent reduction in carbon intensity, passing the halfway mark for its double-digit reduction target by 2025.
• Commenced construction on Celebrity Xcel, the world's first tri-fuel methanol-capable ship.
• Icon-class ships utilize cleaner-burning LNG and fuel cell technology to lower emissions.
• Implemented the first at-sea waste-to-energy systems on board Silver Nova and Icon of the Seas.

The company is also exploring biofuels and has confirmed successful biofuel trials using 'drop in' percentages without engine modifications. Finance: draft 13-week cash view by Friday.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Customer Relationships

Royal Caribbean Cruises Ltd. focuses its customer relationships on deepening engagement across its entire portfolio, using loyalty as a core economic moat.

Unified loyalty programs across all brands to encourage repeat travel.

The combined loyalty programs-Crown & Anchor Society, Captain\'s Club, and Venetian Society-for Royal Caribbean, Celebrity Cruises, and Silversea Cruises, respectively, have over 26 million enrolled members worldwide. Status matching, effective since May 2024, encourages cross-brand bookings within the Royal Caribbean Group ecosystem. Loyalty members who sailed in 2024 accounted for nearly 40% of bookings.

Here are key performance indicators related to loyalty and digital adoption as of mid-2025:

Metric	Value/Rate (as of late 2025 data)	Context/Period
Loyalty Member Share of Bookings	Nearly 40%	2024 bookings
Loyalty Member Spend vs. Non-Members	Spent 25% more per trip	Observed behavior
Total Loyalty Program Members	Over 26 million	Worldwide enrollment
Mobile App Bookings Growth	Doubled	So far in 2025
Onboard Purchases via Mobile App	Nearly 50%	Q2 2025
Customer Deposits	$6.33 billion	As of March 31, 2025

Data-driven personalization and frictionless digital planning.

The company is installing a new travel platform centered around the customer identity rather than the cabin. Digital channels are seeing accelerated use; bookings in the mobile app have doubled so far in 2025. Loyalty members are more inclined to book via the app.

Direct engagement via pre-cruise purchase programs.

The success of pre-cruise engagement directly impacts onboard spending. In the second quarter of 2025, approximately half of the total onboard spend was booked before the sailing. Furthermore, three out of four guests made pre-cruise purchases to reserve onboard experiences in Q2 2025. Guests who book these experiences pre-cruise spend two-and-a-half times more than those who do not. Total onboard and other revenues for Q2 2025 reached $1.339 billion.

High-touch, personalized service for premium and ultra-luxury segments.

The strategy includes brand elevation to capture higher-margin revenue streams. The launch of Celebrity River Cruises, a premium offering, involves an initial order of 10 ships planned to sail in 2027. Full-year 2025 Net Yield growth is projected between 3.5% to 4.0% (constant currency). The company raised its full-year 2025 Adjusted EPS guidance to a range of $15.58 to $15.63, representing approximately 32% year-over-year growth.

You can see the direct financial impact of these efforts in the rising customer deposits, which stood at $6.33 billion at the end of the first quarter of 2025. Finance: review the Q3 2025 Net Yield growth of 2.8% as-reported against the full-year target by Wednesday.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Channels

The distribution and sales channels for Royal Caribbean Cruises Ltd. are multifaceted, designed to capture demand across various consumer preferences, from fully self-directed digital bookings to high-touch travel advisor relationships, all amplified by proprietary destination experiences.

Direct-to-Consumer channels, encompassing the website and mobile application, are performing extremely well as of January 2025. Royal Caribbean Cruises Ltd. is seeing a significant shift toward digital transaction completion for ancillary purchases. For instance, approximately 50% of onboard revenue during the third quarter of 2025 was booked pre-cruise. Furthermore, nearly 90% of those pre-cruise purchases were completed through digital channels. The company delivered 2.5 million vacations in the third quarter of 2025, a 7% jump year-over-year. The Caribbean region accounts for 57% of the company's deployment for the full year 2025.

The global network of third-party travel advisors and agencies remains a critical component of the distribution strategy. As of late January 2025, CEO Jason Liberty noted that travel advisors were delivering meaningfully more bookings compared to the prior year. Projections indicated that the share of bookings from travel advisors was predicted to return to 2019 levels by 2025.

Onboard sales offices facilitate future cruise bookings directly with guests who are already enjoying a Royal Caribbean Cruises Ltd. vacation. This channel benefits from the high satisfaction environment, which supports the company's overall yield growth. The company's Net Yields rose 2.4% in constant currency during the third quarter of 2025.

Exclusive physical destinations serve as powerful anchors in the channel strategy, driving both direct bookings and itinerary premiums. Perfect Day at CocoCay is a prime example of this channel's success. The company expects this destination to welcome approximately 3.5 million guests in 2025. Itineraries that include a stop at Perfect Day at CocoCay generate a ticket premium of about 15% above comparable Caribbean cruises. Guests visiting the island spend an average of $100-150 per day on experiences. Cleveland Research Center estimates that Perfect Day at CocoCay will generate $600 million in revenue in 2026.

Royal Caribbean Cruises Ltd. is actively expanding this destination channel. The Royal Beach Club Paradise Island is set to open, with expected volume around 1 million to 1.5 million guests when fully operational. The company announced the Royal Beach Club Santorini, which will increase the land-based destination portfolio from two to eight by 2028.

Key Destination Channel Statistics:

Destination Channel Asset	Projected 2025 Guest Volume (Approximate)	Projected 2026 Revenue Estimate	Itinerary Yield Premium
Perfect Day at CocoCay	3.5 million guests	$600 million	15% ticket premium
Royal Beach Club Paradise Island (Nassau)	1.0 million to 1.5 million (fully operational volume)	Not specified	Not specified

The company's overall capacity for the full year 2025 is expected to grow by 5.5% compared to 2024.

• Digital pre-cruise purchases account for nearly 90% of those transactions.
• The Caribbean accounts for 57% of deployment for the full year 2025.
• Total revenues for the third quarter of 2025 were $5.14 billion.
• The company delivered 2.5 million vacations in the third quarter of 2025.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Customer Segments

You're looking at the core groups Royal Caribbean Cruises Ltd. (RCL) targets across its portfolio of brands as of late 2025. The company uses a multi-brand strategy to capture distinct parts of the leisure travel market, which is a smart way to maximize reach.

The flagship brand, Royal Caribbean International, anchors the business with its focus on families and active travelers. This segment is the engine, known for seeking comprehensive vacation experiences packed with entertainment. The average age of passengers on this brand hovers around 40-55 years old, and they are heavily represented by families with children. Furthermore, Millennials, families, and active cruisers are currently over-indexing on cruise travel specifically.

Celebrity Cruises targets a more upscale demographic. This group consists of affluent and sophisticated travelers, often including couples and empty nesters who prioritize premium experiences and a refined onboard atmosphere. The introduction of Celebrity River Cruises in early 2025 shows an effort to capture more intimate, culturally enriching travel demand, building on the success of ships like the new Celebrity Xcel expected in late 2025.

Silversea Cruises serves the top tier: the ultra-luxury and expedition travelers. This segment demands the highest level of service and exclusivity. The performance of ships like Silver Ray contributes to the overall capacity mix for 2025.

A key growth driver across the ecosystem is the influx of newer guests. New-to-cruise customers saw a double-digit increase compared to 2023. Industry-wide, first-time cruisers accounted for 31% of passengers in 2025. For Royal Caribbean International specifically, the short Caribbean product acts as a crucial entry point, where nearly seven in 10 guests are new-to-cruise or new-to-brand, often skewing younger.

Here's a quick look at how the brands fit into the overall capacity and market position as of the end of 2024/start of 2025:

Brand	Primary Customer Focus	Fleet Size (Ships as of 12/31/2024)	2025 Capacity Deployment Focus
Royal Caribbean International	Multi-generational families and active travelers	29 (as of August 2025)	Caribbean deployment expected to be about 57% of total capacity
Celebrity Cruises	Affluent and sophisticated travelers	Part of the total fleet of 68 ships	Expanding with new hardware like Celebrity Xcel delivery in Q4 2025
Silversea Cruises	Ultra-luxury and expedition travelers	Part of the total fleet of 68 ships	Contributes to overall capacity, with Silver Ray mentioned in 2025 deployment

The entire Royal Caribbean Group fleet totaled 68 ships as of December 31, 2024, offering an aggregate capacity of approximately 166,900 berths. The group is aiming for a 5.4% capacity increase in 2025 compared to 2024.

You can see the demographic focus reflected in the overall market penetration data, though this is industry-wide:

• North America market penetration rate in 2024: 6.01%
• CLIA projected global passengers for 2025: 37.7 million
• RCL brand market share by passengers in 2025: 27.0%

Finance: draft 13-week cash view by Friday.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Cost Structure

You're looking at the major drains on Royal Caribbean Cruises Ltd.'s cash flow for 2025. The cost structure here is dominated by massive upfront investments and high, unavoidable operating expenses. It's a capital-intensive game, plain and simple.

The biggest single bucket is High capital expenditures (CapEx) for new ships. For the full year 2025, Royal Caribbean Cruises Ltd. expects CapEx to be approximately $5 billion. This spending is mostly tied up in the new ship order book and land-based destination initiatives. To be specific, the non-new ship related capital expenditures are expected to account for $1.6 billion of that total. You should know that future capital commitments for ships on order are estimated to be around $12.1 billion.

Next up is the variable but significant cost of keeping the fleet moving: Fuel expenses. The projection for the full year 2025 fuel expense is $1.14 billion. Royal Caribbean Cruises Ltd. noted they are 66% hedged at below market rates for the year, capitalizing on current low fuel rates by executing hedges for upcoming years at favorable rates as of the Q2 2025 call. The annual average cost per metric ton of the hedge portfolio for 2025 is approximately $482.

Then there's the debt you carry to finance those big assets. Debt service costs involve scheduled maturities. As of December 31, 2024, the scheduled debt maturities for 2025 were reported as $1.6 billion. However, a more recent report as of June 30, 2025, showed the scheduled debt maturities for the remainder of 2025 were $0.8 billion.

The day-to-day running of the ships falls under Variable cruise operating costs. These include things like food, crew payroll, and port fees. For the second quarter of 2025, specific variable costs were:

Cost Component	Q2 2025 Expense (Approximate)	Change vs. Q2 2024
Total Cruise Operating Expense	Just under $2.3 billion	Up about 6 percent year-over-year
Food Costs	Up $21 million	Increase
Crew Payroll	Up to $329 million	From $313 million
Onboard Expenses	Up to $262 million	From $244 million

For the full year 2025 outlook, Net Cruise Costs (NCC), excluding Fuel, per Available Passenger Cruise Day (APCD) is expected to increase approximately 0.5% as-reported.

Finally, you have to spend to get people in the door: Marketing and selling expenses. These fall under Selling, General, and Administrative (SG&A) expenses. For the fiscal quarter ending September 30, 2025, Royal Caribbean Cruises Ltd. reported $522 million in Selling and Administration Expenses. For the second quarter of 2025 specifically, marketing, selling and administrative expenses rose to $508 million, up from $466 million the prior year. The trailing twelve months (TTM) SG&A expenses ending September 30, 2025, were $2.265B.

Here's a quick look at the key expense metrics we have for the recent quarter and projections:

• SG&A Expenses (Q3 2025 Quarter Ending): $522 million.
• SG&A Expenses (TTM ending September 30, 2025): $2.265B.
• Fuel Expense (Full Year 2025 Projection): $1.14 billion.
• CapEx (Full Year 2025 Expectation): $5 billion.
• Scheduled Debt Maturities (For remainder of 2025 as of June 30, 2025): $0.8 billion.

Royal Caribbean Cruises Ltd. (RCL) - Canvas Business Model: Revenue Streams

The revenue streams for Royal Caribbean Cruises Ltd. are fundamentally split between the core cost of passage and the high-margin ancillary spending that occurs once guests are onboard or at a destination. This structure is the engine of the business model.

Passenger Ticket Revenues form the bedrock, representing approximately 70% to 71% of total revenues, based on recent quarterly filings. This stream is directly tied to capacity deployment and pricing power, measured by Net Yields. For instance, in Q2 2025, Passenger Ticket Revenues reached $3.199 billion out of total revenues of $4.538 billion for that quarter.

Onboard and Other Revenues are the high-margin component, making up the remaining 29% to 30% of the total revenue base. These revenues include everything from beverage packages and specialty dining to shore excursions and gratuities. In Q2 2025, this segment contributed $1.339 billion to the total revenue.

The overall financial expectation for the full fiscal year 2025 reflects this strong top-line performance, with analyst estimates projecting annual revenue to hit $17.768 billion. This projection underpins the confidence in the company's ability to manage costs and drive profitability, as evidenced by the full-year 2025 Adjusted EPS guidance being set in the range of $15.41 to $15.55.

It is important to note that a significant portion of the revenue collected from guests is not retained as pure profit but is passed through to cover operational necessities, such as port expenses. These mandatory charges passed directly to guests are substantial. For the second quarter of 2025 alone, port costs and fees charged to guests totaled $318 million.

Here is a summary of the key revenue components and related financial metrics:

Revenue Component	Approximate Percentage of Total Revenue (Based on recent filings)	Q2 2025 Reported Amount (USD)
Passenger Ticket Revenues	70% to 71%	$3.199 billion
Onboard and Other Revenues	29% to 30%	$1.339 billion

The revenue generation is also supported by operational efficiency metrics:

• Projected annual revenue for 2025: $17.768 billion
• Full-year 2025 Adjusted EPS guidance range: $15.41 to $15.55
• Port costs and fees charged to guests (Q2 2025): $318 million
• Q2 2025 Total Revenues: $4.538 billion

The continued strength in demand, reflected in a record load factor of 110% in Q2 2025, helps Royal Caribbean Cruises Ltd. maximize revenue capture across both primary streams. This high occupancy allows the company to drive Net Yield growth, which was projected to be 3.5% to 4.0% for the full year 2025 in constant currency.