When Jason Liberty, executive vice president and CFO Royal Caribbean Group was asked the question, “What occupancy does Royal Caribbean Group need on its ships to be at a break-even point for cashflow”, according to a report by Cruise Industry News he said, “Somewhere between 35% and 50%, depending on the ship”.
He added on the company’s second quarter earnings call, “The ships are accretive to us around that 35% to 50% mark,” and “And obviously, the newer, larger ships are closer to 35% and older, smaller ships are closer to that 50%.”
Ramping up operations in the last few months, Liberty also said that after a few weeks of getting ships up and running, they get to occupancy levels “in which the ships are accretive to our overall cash position.”
An edited report from Cruise Industry News by John Alwyn-Jones, Cruise Editor, Global Travel Media and Global Cruise News.
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