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Why is Royal Caribbean stock so high?

Royal Caribbean's stock has doubled this year as cruise ticket sales have risen to and above pre-COVID levels.



As of February 2026, Royal Caribbean (RCL) stock is trading at record highs due to a "perfect storm" of record-breaking demand and strong financial performance. Following a stellar 2025, the company reported its highest-ever booking volumes for the 2026 season, with many sailings reaching full capacity months in advance. Investors are particularly bullish on Royal Caribbean's high-margin "private destination" strategy, highlighted by the massive success of Perfect Day at CocoCay and the opening of new Royal Beach Clubs. The company has also successfully de-leveraged much of the debt taken on during the pandemic, allowing for significant earnings-per-share (EPS) growth. Furthermore, the launch of new mega-ships like the Icon of the Seas and Utopia of the Seas has allowed the line to command premium "first-to-market" pricing that far exceeds industry averages. Despite concerns over fuel costs, the overall "cruise boom" of the mid-2020s—driven by travelers prioritizing "experiences" over luxury goods—has made Royal Caribbean a top performer in the consumer discretionary sector, leading to a surging P/E multiple and strong "buy" ratings from Wall Street analysts.

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What is the benefit? $250 Onboard Credit per Stateroom on Sailings of 14 or more nights. $100 Onboard Credit per Stateroom on Sailings of 6-13 nights. $50 Onboard Credit per Stateroom on Sailings of 5 nights or less.

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Largest shareholders include Capital International Investors, Capital Research Global Investors, Vanguard Group Inc, AGTHX - GROWTH FUND OF AMERICA Class A, AIVSX - INVESTMENT CO OF AMERICA Class A, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, Primecap Management Co ...

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Winner: Royal Caribbean Both companies are market leaders in terms of fleet sizes. That said, Royal Caribbean has more ships and they're often larger, which means additional dining, activities and lodging options for passengers.

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The revenue of Royal Caribbean Cruises worldwide bounced back in 2022, following a dramatic drop with the onset of the coronavirus (COVID-19) pandemic. Despite the sharp annual increase, the company's global revenue remained below pre-pandemic levels, amounting to around 8.8 billion U.S. dollars in 2022.

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Factors Driving Growth Shares of Royal Caribbean have surged 72.3% in the past six months compared with the industry's 17% growth. The company has been benefiting from strong demand for its brands' vacation experiences, strong close-in bookings (at higher prices) and the continued strength of onboard revenues.

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Covid-19 shut the industry for the best part of two years, leaving the Big Three — Carnival Corp, Royal Caribbean Group and Norwegian Cruise Line Holdings — under an unprecedented pile of debt that they will be paying down for years. Carnival is $35bn in the hole, Royal Caribbean owes $24bn and Norwegian owes $13.4bn.

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You can expect to pay more for a Disney Cruise than Royal Caribbean, but you'll also be able to enjoy free unlimited sodas and room service.

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MSC Cruises, the world's fastest growing cruise line, has unveiled 150 more itineraries that will set sail during the 2024-2025 winter season.

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