Royal Caribbean’s Stock Soars 300% as Younger Travellers Fuel Cruise Boom
Royal Caribbean Cruises has seen its stock surge over the past five years, rising by more than 300%. The company’s success comes as younger travellers increasingly choose cruises and all-inclusive holiday packages. This shift in demand has helped push the share price of this stock market darling up by 111% since late 2019, far outpacing competitors like Carnival.
The company’s growth reflects changing travel habits. Younger generations now view cruises as an appealing option, boosting bookings and onboard spending. Passengers are also reserving activities and extras earlier than before, increasing revenue per trip.
Royal Caribbean stands out as a premium choice in the cruise market. Its larger ships, unique attractions, and extensive entertainment programmes set it apart from rivals. This reputation has allowed the company to charge higher rates, with 2026 bookings already exceeding last year’s prices. Financially, the company remains strong. Its stock has climbed over 22% since the start of the year, and it currently pays a quarterly dividend of $1. Unlike Carnival, which faced activist investor pressure from Carl Icahn between 2022 and 2025, Royal Caribbean has operated without major external interference. However, risks remain. Rising fuel costs, inflation, or higher interest rates could slow future growth. The stock also trades at higher price-to-earnings ratios than Carnival and Norwegian Cruise Lines, which may affect investor sentiment.
Royal Caribbean’s future performance hinges on sustained demand from younger travellers. If enthusiasm for cruises continues, the company could maintain its upward trajectory. But economic challenges and market conditions will play a key role in determining whether its growth remains steady.
