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Royal Caribbean Bets Big on AI to Enhance Margins & Guest Experience
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Key Takeaways
Royal Caribbean is embedding AI across pricing, booking and onboard guest experiences.
RCL said over 90% of guests use its app, with half of onboard revenue generated pre-cruise.
RCL is using AI, loyalty programs and digital tools to improve margins and customer retention.
Royal Caribbean Cruises Ltd. (RCL - Free Report) is increasingly leveraging artificial intelligence and digital technologies to strengthen profitability while elevating the guest experience. During its first-quarter 2026 earnings call, management highlighted how AI has become deeply embedded across the company’s operations, from pricing and booking systems to onboard personalization and customer engagement.
CEO Jason Liberty noted that digital booking penetration has more than doubled since 2019, with mobile app usage surging fivefold over the same period. More than 90% of guests now use the company’s app, while over half of onboard revenues are generated before passengers even step onboard. This shift allows Royal Caribbean to personalize vacation planning, encourage pre-cruise spending and improve operational efficiency.
The company is using AI to build what Liberty described as a “unified intelligence layer” that supports guests throughout the entire vacation journey, from trip discovery and booking to onboard services and post-cruise engagement. Management believes this integrated ecosystem gives Royal Caribbean a competitive edge because its ships operate like “floating cities,” creating large-scale opportunities for real-time optimization and data-driven decision-making.
AI is also helping the company improve margins. CFO Naftali Holtz said Royal Caribbean continues to identify efficiencies through technology, supply-chain improvements and smarter operational management without compromising guest satisfaction. These initiatives contributed to better-than-expected first-quarter costs and expanding EBITDA margins.
As Royal Caribbean expands the loyalty ecosystem, enhances digital engagement and deploys AI-driven efficiencies, it appears well-positioned to sustain strong earnings growth while delivering increasingly personalized vacation experiences.
How Rivals Are Using AI to Compete With Royal Caribbean
Two of RCL’s peers, Carnival Corporation Ltd. (CCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , are also investing heavily in digital transformation and AI-driven tools to improve profitability and customer engagement, making technology a key competitive battleground in the cruise industry.
Carnival has been expanding the use of data analytics and personalization tools across its brands to drive onboard spending, optimize pricing and streamline operations. The company has also focused on improving mobile app capabilities and digital guest services to reduce friction during the travel journey. These initiatives are aimed at improving Carnival’s operating efficiency and enhancing customer satisfaction, much like Royal Caribbean’s integrated AI ecosystem strategy.
Meanwhile, Norwegian Cruise Line is emphasizing advanced revenue management systems, personalized marketing and digital booking enhancements to attract younger travelers and boost repeat bookings. The company has also invested in onboard technology to improve guest convenience and operational productivity.
However, Royal Caribbean appears to hold an edge due to its highly integrated ecosystem, strong mobile adoption and broader loyalty infrastructure. RCL’s ability to combine AI, digital engagement, loyalty programs and destination experiences may help it widen margins and deepen customer retention faster than peers.
RCL’s Price Performance, Valuation & Estimates
Shares of Royal Caribbean have declined 16.9% in the past three months compared with the industry’s 6.3% decrease.
RCL Stock’s 3-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, RCL trades at a forward price-to-earnings ratio of 14.5, below the industry’s average of 15.53.
RCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RCL’s 2026 earnings implies a year-over-year uptick of 10.9%. EPS estimates for 2026 have decreased in the past 30 days.
EPS Trend of RCL Stock
Image Source: Zacks Investment Research
RCL stock currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
Royal Caribbean Bets Big on AI to Enhance Margins & Guest Experience
Key Takeaways
Royal Caribbean Cruises Ltd. (RCL - Free Report) is increasingly leveraging artificial intelligence and digital technologies to strengthen profitability while elevating the guest experience. During its first-quarter 2026 earnings call, management highlighted how AI has become deeply embedded across the company’s operations, from pricing and booking systems to onboard personalization and customer engagement.
CEO Jason Liberty noted that digital booking penetration has more than doubled since 2019, with mobile app usage surging fivefold over the same period. More than 90% of guests now use the company’s app, while over half of onboard revenues are generated before passengers even step onboard. This shift allows Royal Caribbean to personalize vacation planning, encourage pre-cruise spending and improve operational efficiency.
The company is using AI to build what Liberty described as a “unified intelligence layer” that supports guests throughout the entire vacation journey, from trip discovery and booking to onboard services and post-cruise engagement. Management believes this integrated ecosystem gives Royal Caribbean a competitive edge because its ships operate like “floating cities,” creating large-scale opportunities for real-time optimization and data-driven decision-making.
AI is also helping the company improve margins. CFO Naftali Holtz said Royal Caribbean continues to identify efficiencies through technology, supply-chain improvements and smarter operational management without compromising guest satisfaction. These initiatives contributed to better-than-expected first-quarter costs and expanding EBITDA margins.
As Royal Caribbean expands the loyalty ecosystem, enhances digital engagement and deploys AI-driven efficiencies, it appears well-positioned to sustain strong earnings growth while delivering increasingly personalized vacation experiences.
How Rivals Are Using AI to Compete With Royal Caribbean
Two of RCL’s peers, Carnival Corporation Ltd. (CCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , are also investing heavily in digital transformation and AI-driven tools to improve profitability and customer engagement, making technology a key competitive battleground in the cruise industry.
Carnival has been expanding the use of data analytics and personalization tools across its brands to drive onboard spending, optimize pricing and streamline operations. The company has also focused on improving mobile app capabilities and digital guest services to reduce friction during the travel journey. These initiatives are aimed at improving Carnival’s operating efficiency and enhancing customer satisfaction, much like Royal Caribbean’s integrated AI ecosystem strategy.
Meanwhile, Norwegian Cruise Line is emphasizing advanced revenue management systems, personalized marketing and digital booking enhancements to attract younger travelers and boost repeat bookings. The company has also invested in onboard technology to improve guest convenience and operational productivity.
However, Royal Caribbean appears to hold an edge due to its highly integrated ecosystem, strong mobile adoption and broader loyalty infrastructure. RCL’s ability to combine AI, digital engagement, loyalty programs and destination experiences may help it widen margins and deepen customer retention faster than peers.
RCL’s Price Performance, Valuation & Estimates
Shares of Royal Caribbean have declined 16.9% in the past three months compared with the industry’s 6.3% decrease.
RCL Stock’s 3-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, RCL trades at a forward price-to-earnings ratio of 14.5, below the industry’s average of 15.53.
RCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RCL’s 2026 earnings implies a year-over-year uptick of 10.9%. EPS estimates for 2026 have decreased in the past 30 days.
EPS Trend of RCL Stock
Image Source: Zacks Investment Research
RCL stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.