New cruise ships traditionally sail weeklong itineraries because that's the best way to maximize revenue.
Demand for Royal Caribbean's newest ship, the first-of-its-class Icon of the Seas, has been strong. The world's largest ship has been sailing weeklong trips out of Miami since it launched in January.
Essentially, every trip has been sold out as people wanted to experience Royal Caribbean's (RCL) latest innovation.
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That has also generally been the case when any cruise line introduces a ship. Customers want to sail on the latest and greatest ships, and the cruise lines can sell those trips at a premium. And with Icon of the Seas that may be amplified because it's an entirely new class with many innovations.
Royal Caribbean, however, will break tradition in mid-July when it introduces Utopia of the Seas. The cruise line will not be maximizing revenue with its new ship by sailing one-week itineraries.
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Instead, it will be using Utopia of the Seas for three-day weekends from Friday through Monday and four-day sailings from Monday through Friday. That bold decision gives up short-term revenue in order to accomplish greater goals.
Image source: Royal Caribbean.
Royal Caribbean wants to deliver the 'ultimate weekend'
Royal Caribbean paved the way for Utopia of the Seas to manage three- and four-day sailings when it moved the Oasis-Class Allure of the Seas to Port Canaveral to sail those same itineraries.
That was the first time the cruise line had used a top-tier Oasis-Class ship to routinely sail shorter itineraries. The cruise line essentially bet that it could win over new customers by exposing them to cruising on a short sailing.
Using Utopia of the Seas for short cruises doubles down on that bet. The cruise line is likely giving up revenue because demand for Monday-through-Friday sailings is generally lower than that for seven-day sailings or Friday-through-Monday weekends.
Essentially, the cruise line has decided that it's more valuable to win new customers by putting its best foot forward. Using Utopia for weekend sailings will do that, and the cruise line is betting that those new customers will convert to repeat cruisers.
Those sailings will all stop at Perfect Day at CocoCay, the cruise line's private island, which has consistently been its top-rated destination. That's something Royal Caribbean International CEO Michael Bayley talked about during his company's first-quarter-earnings call.
"People want to sail on the ships that go to Perfect Day," he said. "...And you add on Utopia, which is a brand new Oasis-Class ship, which was going straight into the short product market out of Port Canaveral.
"The demand we've seen for, for example, Utopia sailing to Perfect Day has been extraordinary. So we think we've got the formula figured out. And our plan is to continue to evolve and develop that formula over the coming years."
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Utopia of the Seas is an evolution of the Oasis Class
While Utopia of the Seas will be the sixth Oasis-Class ship, it's not a copy of its predecessor, Wonder of the Seas. Instead, it's an evolution of the class with some new features.
Its five-pool pool deck, for example, will include a new dining option, the Spare Tire, a food truck located at poolside. This option will enable people to get something to eat without having to dry off and head inside to the buffet or El Loco Fresh.
Utopia of the Seas will also have a new version of the Ultimate Abyss, the longest dry slide at sea, which will span 259 feet and 10 decks.
In addition, the ship will add an entirely new kind of restaurant — Royal Railway: Utopia Station.
"Vacationers can add another destination to their getaway, and the 20-plus dining options on deck, with a first-of-its-kind experience," the cruise line said on its website. "From the Wild West to far-flung destinations, the new venue combines adventure, food and technology to transport travelers — by 'train' — to any place and time period."
Royal Caribbean will also move the popular Izumi sushi and hibachi restaurant to Central Park and has added a takeout window with to-go sushi and ice cream in unique cones. The cruise line will also add a new bar on the Royal Promenade.
"Pesky Parrot, the new Caribbean tiki bar, sets the vacation tone with its island vibes and fruit-based cocktails made with rum, tequila and gin, alongside frozen drinks," the cruise line added.
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