Inside cabins for Oasis sailings in the second quarter of 2010 are selling for a 77% premium, on average, to those on other Royal Caribbean ships. While still huge, that's down significantly from the 112% premium Royal Caribbean has been getting for inside cabins on Oasis during the first quarter.
Inside cabins for the initial sailings of the ship in the fourth quarter of last year sold at a stratospheric 142% premium to those on other Royal Caribbean ships. But as noted, the first few sailings of any new ship tend to be priced at a significant premium relative to later sailings.
Data show Royal Caribbean is getting the highest premiums for Oasis' inside cabins -- a factor, no doubt, of the relatively small number of inside cabins on the ship. While the line is getting a 77% premium for Oasis' inside cabins in the second quarter, for instance, it only is getting a 60% premium for oceanview cabins during the same period. Oasis' balcony cabins, meanwhile, are commanding a premium of just 32% over the rest of the Royal Caribbean fleet for the second quarter, the firm says.
Oasis to continue to generate strong premiums throughout most of 2010, but the trend in pricing for the ship is clear. Expect Oasis' premiums to drop significantly over time, as has been the case with other recent new ship introductions.
Wall Street may be over-estimating how well Royal Caribbean will do in the second quarter, noting that excluding Oasis the company's net yields -- a measure of how much the company makes per cabin -- could be down for the period as the much-anticipated ship steals business from its sisters.
It appears that Oasis is cannibalizing the rest of RCL's fleet, according to the firm's data. Most telling is the impact to (Royal Caribbean's) Freedom class and (sister line Celebrity Cruises') Solstice class ships, which have seen their premiums decline significantly since the launch of Oasis.
Royal Caribbean's three Freedom class ships have had their premium versus the rest of the fleet shrink to 12% for the second quarter of 2010 as compared to 27% during the third quarter of 2009 — the last full quarter prior to the launch of Oasis
