Cruise ships are getting bigger and bigger.
Royal Caribbean has been leading the race, as all seven of the largest ships in the world are under its namesake flag. The cruise line also has two more ships in its Icon class, which currently consists of Icon of the Seas, the world's largest cruise ship, and one more ship in the Oasis class.
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MSC Cruises has the eighth-largest ship in the world, the MSC World Europa, which will soon be joined by the MSC World America, another ship that should crack the top 10. That cruise line has also hinted at plans to get even bigger and perhaps even challenge Royal Caribbean. (LCR) for the title of largest ship.
Carnival Cruise Line (CCL) Carnival has also joined the fray, having recently revealed plans to build its largest ships yet. The three ships on order, which belong to a new, as-yet-unnamed class, are due for delivery in 2029, 2031 and 2033. Carnival also has two more Excel-class ships on order and has publicly said it is not considering creating any new small ships.
“We have no plans to build smaller ships. It’s not cost effective, it’s not affordable and it’s not something that will attract new cruisers,” Carnival brand ambassador John Heald wrote on his facebook page.
Royal Caribbean has, however, openly acknowledged that it has at least talked about the idea of a new class of smaller ships. Talks about what cruise line executives have called the “Discovery class” have been vague, but CEO Jason Liberty spoke in depth about the idea during Royal Caribbean’s second-quarter earnings conference call.
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Royal Caribbean CEO points to a need
During the call, Liberty shared some of its company’s overall approach to new ships.
“Of course, another thing that I think is important when you think about ship types, whether they're small or large, is that you also have to take into account that we have ships that are getting to 30 or 35 years old. So part of this is not just about us wanting to build ships of the same size, smaller ships, but also about replacing ships that will eventually reach the end of their useful life,” he said.
The company’s two smallest classes, Radiance and Vision, are approaching what would be considered old age for a cruise ship. Jewel of the Seas, the youngest of those classes, first sailed in 2004, making it a relatively spry 20-year-old class, but Grandeur of the Seas, the oldest ship in the Vision class, has been sailing since 1996, making it a 28-year-old class.
Smaller ships can sail more diverse itineraries than larger ships.
“We are looking at acquiring smaller ships that will likely replace some of those older ships. It's not so much about the supply market, but more about where those ships can go. It's about taking them to some of the more unique and tailored destinations to further diversify our presence around the world,” Liberty added.
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Destinations are key for Royal Caribbean
Royal Caribbean is also aware that some traditional cruise destinations, including some in Europe, are considering limiting the size of ships that can visit them.
“We now travel to around 1,000 different destinations and the number is growing. We try to spread out where our guests go, although the size of the ship can sometimes be important. I think our brands are always designing the most flexible platform to deliver the experiences our guests are looking for,” Liberty said.
The cruise line’s largest ships, including the new Utopia of the Seas, have largely positioned themselves to take advantage of Royal Caribbean’s private island, Perfect Day at CocoCay. Royal Caribbean’s top-rated destination, CocoCay is one location the cruise line plans to develop.
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“Perfect Day at CocoCay continues to perform exceptionally well and we are reaching important milestones with the opening of Royal Beach Club Paradise Island in 2025 and the opening of Royal Beach Club in Cozumel, Mexico in 2026. These new experiences uniquely position us to continue to gain market share against land-based alternatives,” Royal Caribbean International CEO Michael Bayley shared during the call.
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