By
Rebecca Lambert |
Royal Caribbean Cruises chairman and chief executive officer Richard Fain has pledged to eliminate last-minute discounting as part of a new move to improve the integrity of the company’s pricing model.
Speaking during the company’s first quarter earnings call, Fain said Royal Caribbean would no longer be offering big discounts on cruises in the days running up to departure.
The policy, which started in March, aims to get customers out of a “used-car salesman” mentality.
The measures come amid reports that commercially the year is turning out as expected for the company, with strong booking trends and yield growth for all major products.
“It is gratifying to post another strong quarter with both revenues and expenses exceeding expectations,” said Fain. “Despite ongoing volatility in the currency and fuel markets, our Double-Double program remains solidly on track.”
Overall booking volumes during the first quarter were higher than last year. Caribbean itineraries enjoyed particularly strong demand, and bookings were also up year-over-year for Europe and China itineraries.
The company added that demand for China remains strong and bookings have been outpacing expectations despite the significant capacity growth in the region.