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Cruises

Royal Caribbean Sees a China Slowdown But Other Markets Are Thriving

Hannah Sampson

Photo Credit: Royal Caribbean Cruises said business in Asia has been struggling due to tensions between China and Korea. In this photo, Ovation of the Seas — one of the Royal Caribbean International ships that sails from China — is shown in Singapore.  Royal Caribbean International

Skift Take

As cruise executives often say, having ships all over the world means some areas boom while others struggle. At the moment, China-Korea tensions are hurting Royal Caribbean's business in Asia, but other regions are strong.

Royal Caribbean's China strategy ran into some rough waters as the operator dropped South Korean ports amid tensions between the two nations — but the cruise company is seeing business in other parts the world perk up. In a first-quarter earnings call Friday, executives with Royal Caribbean Cruises said demand for China sailings declined when the operator made itinerary changes swapping in Japanese ports for stops in Korea. The changes, which prompted "a bit of turmoil and uncertainty," came in mid-March as the relationship between the countries grew strained over the deployment of a U.S. anti-missile system in South Korea. Demand has been returning to normal levels, executives said. "There was a slowdown and there was a little bit of confusion in the market because everything had to be adjusted and itineraries had to be changed," said Michael Bayley, president and CEO of Royal Caribbean International

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