Royal Caribbean Uses AI to Drive Pricing and Onboard Spending

Royal Caribbean Group is tying AI and broader digital tools directly to revenue performance, with CEO Jason Liberty telling investors on the company's April 30 first-quarter earnings call that the technologies are already shaping pricing, planning and onboard-spending behavior. Liberty said 50 percent of onboard revenue is booked before guests board, with most of those pre-cruise purchases made through digital channels.

Royal Caribbean reported $4.5 billion in revenue for the quarter, up 11 percent, and Adjusted EPS of $3.60, ahead of guidance. Net Yields exceeded the company's forecast as close-in demand and onboard revenue increased, while the group carried 2.5 million guests, 12 percent more than a year earlier, on 8 percent additional capacity.

Digital engagement is moving earlier in the trip cycle

Liberty said digital booking penetration has more than doubled since 2019, with most of that growth coming through the company's app. Monthly active app users are five times higher than in 2019, and app adoption is above 90 percent.

The app gives Royal Caribbean a direct channel for functions that affect revenue and operations before and during the cruise, including mobile check-in, purchases of beverage packages, internet, specialty dining, spa services and shore excursions, daily planning, dining reservations and onboard account review.

"Our ships are floating cities where we design and operate every guest touch point across numerous activities for a prolonged vacation period," Liberty said. He added: "We are deploying these capabilities in a disciplined manner, measuring performance, reacting to guest feedback and then scaling what works."

Royal Caribbean Group's portfolio spans 69 ships across Royal Caribbean International, Celebrity Cruises, Silversea Cruises and its 50 percent stake in the TUI Cruises joint venture operating Mein Schiff and Hapag-Lloyd Cruises.

Liberty identified yield management as one area where AI-based models are already in use, including analysis of close-in demand, marketing variables and pricing. Fortune has reported that Royal Caribbean's predictive modeling has also helped reduce food waste by about 50 percent and forecast food needs in 15-minute increments.

Automation extends beyond booking channels

Royal Caribbean's Engineering the Experience video describes collaborative robots used in entertainment venues and service areas, including gantry-mounted robots carrying seven-foot by four-foot LED screens on Quantum Class ships and four robots positioned in the Icon of the Seas AquaTheater.

Behind the scenes, housekeeping robots Bob and Betsy perform assigned tasks, while hull-scrubbing robots on Icon Class ships are used to keep underwater surfaces clean. Royal Caribbean has said moving a ship accounts for half of its energy requirement, and about 80 percent of that movement-related demand comes from friction between the hull and the water.

Fuel costs and geopolitics weigh on the 2026 outlook

Royal Caribbean updated its full-year 2026 outlook to Adjusted EPS of $17.10 to $17.50. The guidance includes higher fuel costs, impacts on Middle East itineraries tied to geopolitical events, lower non-fuel costs and benefits from recent share repurchases.

Mediterranean and West Coast of Mexico bookings slowed in March and early April amid geopolitical developments, higher air costs and flight disruptions, but demand for remaining inventory later recovered to a pace above the same period last year. April bookings overall were ahead of last year.

For the second quarter, Royal Caribbean expects Net Yields to rise about 0.9 percent as reported and Adjusted EPS of $3.83 to $3.93. "We are in the early innings," Liberty said of the AI rollout.