carnival cruise stock vs royal caribbean

Carnival Vs Royal Caribbean Stock: Which Is Best?

Carnival Corp ( NYSE:CCL ) and Royal Caribbean Cruises Ltd ( NYSE:RCL ) stocks sank in 2020. When widespread global travel restrictions were enacted some cruising vessels were stuck out at sea without a port. This caused complete chaos in the $150 billion industry, as grounded cruise ships became the first symbol of COVID-19’s effects.

But with the economy slowly reopening, cruise lines are starting to test the waters. Investors wanting to dip their toes in debate between Carnival vs Royal Caribbean stock.

It seems government policies to reopen economies hinge on mass vaccinations, which are still in the early stages. Both Pfizer ( PFE ) and Moderna ( MRNA ) showed efficacy that resulted in emergency authorization use of their vaccines in several countries. This gives investors hope that travel will return to normal. Both airlines and cruise operators are working hard to make ships and vessels safe.

Is it enough to keep these stocks afloat?

Is Carnival Stock A Buy?

Carnival stock dropped from a 52-week high of $51.94 pre-pandemic to a low of $7.80 in the aftermath of the crash. The stock since recovered to the $20 range upon late November and December’s announcements of positive COVID-19 vaccine results from both Pfizer and Moderna.

The company had offered an attractive dividend yield of 9.20 percent when it was paying shareholders. The $0.50 quarterly cash dividend payout was suspended for the pandemic, and the last payment was paid March 13. It’s unclear if or when it will resume.

Both the company’s revenue streams (ticket sales and onboard purchases) were strangled. Third quarter earnings reports showed $31 million in revenue , a 99.5 percent year-over-year drop from $6.53 billion in 2019.

Still, the company has strong cash reserves of $8.2 billion, and stay-at-home orders in 2020 caused an increase in bookings for 2021. This gives Carnival bulls reasonable hope that it’s a value Buy for the rest of the year. But is it stronger than Royal Caribbean?

Royal Caribbean Reported A Massive Loss

Royal Caribbean stock also dropped from its pre-pandemic highs. It sank from $135.32 to a low of $19.25 per share. 

It had an annual dividend yield of 4.2 percent. However, it also suspended quarterly cash payouts in 2020, with April 6 as its last payment date.

The company reported a net loss of $1.2 billion in the third quarter of 2020. This was adjusted to a $33.69 million loss and fell far short of analyst expectations. This caused the stock to struggle a little more than Carnival to recover and could be a signal of weaker future growth.

Still, RCL share price is higher than from the onset of the pandemic. Should the economy recover, both cruise lines have a chance to avoid insolvency. When the economy will bounce back or if it ever will look like it did before remains unclear, and that creates risk for investors.

Are these stocks just sinking ships?

Carnival Faces Enormous Challenges

Cruise lines were hit harder by the coronavirus outbreak than airlines because of the customer experience. Flights being grounded didn’t leave anyone stranded in the air. But over 300,000 people , including 50,000 workers, were stranded at sea aboard cruise ships as government travel restrictions closed global ports.

These companies are facing more problems than the average industry because many of their staff remained stuck at sea for months. Several voiced concerns in the media and apprehension about returning to work. This includes ship captains, kitchen and bar staff, and entertainers.

Carnival had $770 million monthly cash burn in the third quarter of 2020, which it hopes to drop to $530 million during the holiday season as it finds ways to monetize its resources.

Much of this monetization is in the form of decommissioning ships and selling the pieces as scrap. Cruise companies may be in for a longer recession than they think.

Royal Caribbean In A Cash Crunch?

Like Carnival, Royal Caribbean faces issues with shrinking its fleet and fighting a public relations nightmare. By October, it held a secondary stock offering and senior convertible notes sale to raise $1 billion in liquidity to pay high daily operating costs.

While its ships are grounded and unable to take passengers, they’re costing over $250 million each month. The longer travel restrictions stay in place, the longer the company is losing money. It’s a global problem every country is treating differently, and it’s not just cruise lines that are dependent on the income.

Around the world, excursion companies are without income. You don’t spend the entire cruise on the ship – they stop at different ports for passengers to get off and experience the local culture. That tourism sector is shut down and may not be easy to pick back up in third-world countries that may not recover as quickly as the U.S.

Royal Caribbean Vs Carnival Stock: The Bottom Line

The cruise industry is one of the worst hit from the global pandemic. Cruise lines were effectively shut down, and a massive fleet was stranded at sea when global seaports closed. The problem lasted for months, and it affects more than those on board.

Still, the cruise industry is doing its best to ensure a safe cruise experience moving forward. It’s slow to reopen and minimizing fleet sizes to maintain costs.

Any investment in the cruise industry is a risk, as the ships and port excursions both got strangled. If the third-party vendors at ports are no longer able to survive, it could put the companies at risk even if they do recover. That’s a problem the airline industry doesn’t necessarily have.

There are rocky waters ahead, but if you can stave off seasickness, there could be profits to be made in the long run.

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Royal caribbean vs. carnival: quick comparison chart.

Decide which line is best based on costs, food, onboard entertainment and other key factors.

Royal Caribbean vs. Carnival

Courtesy of Royal Caribbean International

Royal Caribbean International and Carnival Cruise Line have quite a bit in common.

Trying to choose between Royal Caribbean and Carnival for your next cruise? Check out the comparison chart below, then read on for more details.

Winner: Royal Caribbean

When it comes to fleet size as well as the features available on cruise ships, Royal Caribbean has an edge over Carnival Cruise Line. That's because Royal Caribbean already has 28 ships in operation, including its incredible Oasis Class, Quantum Class and Quantum Ultra Class ships. Oasis Class vessels like Allure of the Seas , Symphony of the Seas , Wonder of the Seas and Utopia of the Seas are some of the largest in the world – and Royal Caribbean Group is constantly rolling out new, even bigger cruise ships with better amenities and new features. For example, the new Icon of the Seas (scheduled to debut in 2024) plans to have the largest water park at sea, the largest swimming pool at sea, and a range of over-the-top cabins and suites for families of all sizes.

Meanwhile, Carnival currently operates 25 different vessels with a few more on the way. Newer ships like Carnival Celebration and Carnival Venezia aren't as large and grand as Royal Caribbean ships, nor are the brand-new vessels the company is planning for late 2023 and 2024. For example, the new Carnival Jubilee that is set to begin sailing later in 2023 will have 15 passenger decks and capacity for up to 6,631 guests, compared to 18 guest decks and 7,600 passengers on Icon of the Seas.

Read: The Largest Cruise Ships in the World

SBW-Photo | Courtesy of Royal Caribbean International

Comparing cabins across cruise lines as a whole isn't an easy feat, mostly because companies tend to offer larger suites and cabins with a better layout on their newer ships . You'll therefore likely have a nicer cabin on one of Carnival's newest vessels compared to an older ship from Royal Caribbean, and of course the opposite is also true. Cabin sizes and layouts also vary widely across the vessels of both brands, and that's true even for basic interior, ocean view and balcony cabins.

That said, Royal Caribbean still comes out ahead in this category, since the line boasts more square footage in some of the most basic cabins as well as more over-the-top luxury accommodations, especially for families.

As an example, most inside cabins on Allure of the Seas feature 172 square feet of space, whereas Carnival Celebration's inside cabins are slightly smaller at 158 square feet. Meanwhile, the largest suites on Celebration are the Carnival Excel Presidential Suite, with 1,120 square feet of space including the balcony, and the Carnival Excel Aft Suite, which has 861 square feet of interior and balcony space. Compare those options to the Sky Loft Suites on Allure of the Seas, which feature 1,132 square feet across the room and balcony, and the spacious two-bedroom AquaTheater Suites with 1,595 square feet including the balcony.

Book a cruise on  GoToSea , a service of U.S. News.

Winner: Tie

Food options vary widely across vessels within any cruise brand, and this is especially true with Royal Caribbean and Carnival. For example, older ships from both cruise lines offer fewer specialty dining options overall along with the main dining rooms and buffet options cruisers come to expect, whereas newer ships from both lines feature a lot more unique and innovative options.

When you view the cruise dining options from both lines, you'll quickly find that both Carnival and Royal Caribbean pull out all the stops when it comes to food. For example, Carnival ships include a range of eateries from large and expansive buffets to main dining rooms to unique offerings like Big Chicken, Guy's Burger Joint and BlueIguana Cantina. Meanwhile, specialty dining on Carnival vessels features options like teppanyaki, Emeril's Bistros at Sea and Guy's Pig & Anchor Smokehouse.

Royal Caribbean ships feature convenient buffets and main dining room experiences, as well as included options like pizza kitchens, noodle bars and casual fast food. Specialty dining on Royal Caribbean ranges from the brand's Chef's Table experience to Johnny Rockets' burgers and shakes to innovative fine dining at Wonderland.

Drink packages

Both Carnival and Royal Caribbean offer drink packages that cruisers can purchase as part of their vacation to get a more all-inclusive feel . Then again, the value of these packages depends on how much you drink over the course of your trip. Also note that the cost of drink packages across all cruise lines can vary depending on the ship, itinerary, travel dates, length of trip and more.

Royal Caribbean comes out slightly ahead in this category because the line offers three tiers of drink packages for guests with different needs. Choose from the Classic Soda Package; the Refreshment Package, which includes soda along with coffees, juices and even milkshakes at Johnny Rockets; and the Deluxe Beverage Package, which adds in beer, cocktails and wine by the glass. Meanwhile, Carnival offers just two different drink packages: the Bottomless Bubbles package, which covers soft drinks and juice, and the Cheers! drink package, which adds in spirits and cocktails, beer, wine by the glass, specialty coffee, energy drinks and more.

Read: Cruise Drink Packages: Your Options by Cruise Line

Onboard activities

Analyzing onboard activities across cruise lines isn't always easy – you really have to break down this category by ship for a true comparison. When you do that with Carnival and Royal Caribbean, you'll find that both lines offer fun activities for all ages, from onboard water parks to hosted games, casinos and more.

That said, Royal Caribbean does take things up a notch in this category, especially on the line's newer ships. Some Royal Caribbean vessels offer escape rooms, surf simulators, zip lines, game shows and over-the-top water parks with incredible slides for thrill-seekers. For example, Freedom of the Seas boasts huge onboard waterslides, glow-in-the-dark laser tag, mini-golf and more. Don't forget about Icon of the Seas with its massive water park and pool offerings in the works. Meanwhile, standout activities on Carnival ships include Family Feud Live, onboard water parks and the thrilling SkyRide.

Compare Royal Caribbean cruises on GoToSea .

Live entertainment

The quality of cruise ship entertainment varies widely based on the quality of the talent booked for individual ships. Both Carnival and Royal Caribbean offer their share of live music and entertainment, including performances by bands and singers, karaoke, and piano bars. Meanwhile, both lines also boast their own theaters on every vessel, which often feature Broadway-style shows, singing and dancing, comedy acts, and more.

Royal Caribbean comes out ahead in this category since its vessels feature award-winning musicals like "Hairspray," "Mamma Mia!" and "Cats." The open-air AquaTheater on Oasis Class ships also wows guests with incredible diving feats, stunts and aerial acrobatics. Some Royal Caribbean ships even have onboard ice skating performances and ice games.

Explore cruise deals on  GoToSea .

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Kids programming

Courtesy of Carnival Cruise Line

Winner: Carnival

Both cruise lines have kids clubs that cater to younger guests of all ages, with each one offering supervised care so parents can drop the kids off for some alone time or a quiet dinner on the ship. However, Carnival stands out slightly in this category due to the six different clubs offered across the fleet for children and teens between 6 months and 17 years old. Carnival also offers supervised Night Owls services for kids 11 and younger, which lets parents get out and have some late-night fun for an extra charge.

Royal Caribbean offers four kids clubs for children ages six months to 12, along with a separate club for tweens and teens . Supervised child care is available for free during the day, and you can opt for paid care after hours as well.

Read: The Top Cruises for Babies and Toddlers

Adults-only offerings

Both cruise lines offer their share of adults-only spaces and things to do, from onboard casinos to luxurious spas to bars that offer cocktails and live entertainment at all hours of the day and night. Carnival and Royal Caribbean also offer adults-only areas on some of their ships.

On Carnival, for example, cruisers will find the Serenity Adults-Only Retreat for sailors 21 and older with extra space and comfortable chairs for relaxation, along with its own bar nearby. On many Royal Caribbean vessels, on the other hand, the onboard Solarium for ages 16-plus has its own pool and extra space to find peace and quiet.

Carnival's Serenity relaxation area is included for guests. While Royal Caribbean's Solarium is typically also included, on certain sailings there is restricted access by fare class.

Read: The Top Adults-Only Cruises

Shore excursions

Getty Images

Shore excursions offered by cruise lines are largely operated by third-party companies and are often the same across brands. Both Carnival and Royal Caribbean boast a broad selection of excursions in destinations around the world, from snorkeling and scuba tours in the Caribbean to city tours, horseback riding, cooking classes and more.

Both cruise lines offer private and custom tours you can book through your ship as well.

Compare cruises on GoToSea .

Private island experiences

Royal Caribbean and Carnival each have their own private island in the Bahamas , which is included in most itineraries to this part of the world. These private islands provide a fun beach escape for families to enjoy, whether you want to relax in the sun or take part in some of the available activities.

Royal Caribbean's private island, called Perfect Day at CocoCay, is the more impressive option due to everything it includes: a heart-thumping water park, its own wave pool, a zip line, a hot air balloon experience and overwater bungalows you can book for the day, among other offerings. Meanwhile, Carnival's Half Moon Cay has a unique beached pirate ship to explore – but fewer amenities overall.

Note that both private islands have plenty of beach space for guests to spread out and relax, as well as restaurants and bars. You can also book excursions on both private islands, which include activities like snorkeling and water sports.

Read: The Top Cruise Line Private Islands

Comparing costs across cruise lines can be tricky since fares and available sales vary throughout the year, as well as based on the vessel booked, the cruise itinerary, the number and age of travelers, and more. To get an idea of who wins on price, we looked for two similar cruises on comparable ships from Carnival and Royal Caribbean, then priced out an option for a family of four with two children ages 8 and 10. For the purpose of this comparison, we used seven-night eastern Caribbean cruises on Carnival Celebration and Royal Caribbean's Wonder of the Seas, both of which began sailing in 2022.

The Carnival Celebration itinerary from Miami stops in Amber Cove, Dominican Republic; San Juan, Puerto Rico ; and St. Thomas, U.S. Virgin Islands . By comparison, the Wonder of the Seas sailing leaves from Port Canaveral, Florida, with stops in Philipsburg, St. Maarten ; San Juan; and Perfect Day at CocoCay in the Bahamas.

The chart below shows the total cost (including taxes and fees) for a family of four in January 2024 in both an ocean view and a typical balcony cabin across both cruise lines. Note that, for the purpose of this comparison, we selected the least expensive room option in each category.

Read: How Much Does a Cruise Cost?

Why Trust U.S. News Travel

Holly Johnson is a professional travel writer who has covered cruises and other family travel for more than a decade. She has cruised more than 30 times across most of the major cruise lines and has ventured on itineraries around the world. Johnson used her personal experience and research expertise to curate this cruise line comparison.

You might also be interested in:

• Cruise Packing List: Essentials for Your Cruise
• The Best Cruise Insurance Plans
• The Top Cruise Lines for Solo Travelers
• How to Find Last-Minute Cruise Deals
• The Top Kids Sail Free Cruises

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Royal Caribbean vs. Carnival: Which big-ship cruise line should you choose?

If you're considering a cruise with Royal Caribbean or Carnival Cruise Line, you're looking at an affordable big-ship experience with lots of activities.

These two companies are the largest in the cruise industry, each with two dozen ships carrying millions of passengers a year. They are popular for a reason: Their ships offer something for everyone, from kids to seniors.

Let's go head-to-head, Carnival versus Royal Caribbean, to highlight their similarities and differences and help you choose the line that's right for you.

For more cruise news, reviews and tips, sign up for TPG's cruise newsletter .

Size of ships

Both Carnival Cruise Line and Royal Caribbean have two sizes of megaships. Their smaller ships carry 3,000 to 4,000 passengers; their larger ones are huge and carry more than 5,000 guests. Royal Caribbean wins the battle of size, with five of the world's largest ships — including Wonder of the Seas and new Icon of the Seas, the two largest cruise ships afloat.

Related: The 8 classes of Carnival Cruise Line ships, explained

Royal Caribbean's largest classes — Oasis Class and Icon Class — are so big they are divided into neighborhoods. Oasis Class ships feature a Central Park with real trees and a Boardwalk area with a carousel, slides that drop multiple decks and a special theater for high-diving shows.

Not to be outdone, Carnival's largest ships — Mardi Gras, Carnival Celebration and Carnival Jubilee — are divided into zones, such as Mardi Gras' French Quarter with a live jazz club.

No matter the size, all the ships of both lines qualify as floating resorts, with onboard casinos, pools, live entertainment, elaborate spas, lively dance clubs, lots of bars — and crowds.

Related: The 6 classes of Royal Caribbean ships, explained

Cabins and suites

Both lines cite with pride their price range for all vacationers, but you'll notice each excels in a different accommodation area.

Royal Caribbean is a better option if you want a huge selection of cabin categories. The cruise line offers everything from tight inside cabins with virtual balconies (an LED screen that looks like the ocean) to fancy two-story loft suites . Its largest ships have the most room choice, and you can book suites with views of the high-diving show or the ships' Royal Promenade, Central Park or Boardwalk areas. The soothing decor is like a Marriott or Hilton hotel, nice and slightly upscale.

Related: Everything you want to know about Royal Caribbean cabins and suites

Carnival wins for the size of its standard cabins, which are the largest in the industry. The decor is typically bright and casual. Specialty cabins on select ships include Family Harbor cabins, with access to a shared family lounge, and Havana suites, with daytime access to a private pool area. The newest ships have more suites than earlier vessels.

Related: Everything you want to know about Carnival cabins and suites

Food and drink

When looking at dining options on Royal Caribbean versus Carnival, Carnival has the edge for abundant included offerings, and Royal Caribbean leads with its number of extra-fee specialty restaurants .

Carnival fans will tell you the food on board is great, and most travel writers will agree the line shines in this area — including extra-fee options, such as impressive steakhouses and JiJi for Asian cuisine. Carnival's lineup of free eats is impressive — headlined by poolside burgers by Food Network star Guy Fieri, but also including Mexican, barbecue, excellent Italian-style pizza and Shaq's fried chicken.

If you like Indian cuisine, you are in for a treat with delicious vegetarian dishes on the main dining room menu each night. On select ships, Carnival has its own New Orleans bistros by Emeril Lagasse and breweries where the drink is accompanied by Fieri's barbecue (for a fee).

Most of Royal Caribbean's free food is found in its Windjammer Marketplace ( the buffet ) and main dining rooms, the focus again on normal cuisine you'd expect to find at a hotel. Ships offer a variety of extra-fee restaurants, with specialties ranging from sushi to steak . A shining point in these alternative venues is Jamie's Italian, in partnership with British celebrity chef Jamie Oliver. You also can pay for a burger and milkshake at Johnny Rockets on Royal Caribbean's larger ships.

Related: The ultimate guide to cruise ship food and dining

Kids activities

Both cruise lines have well-established programs to keep your kids happy, so you can get some downtime to relax and do grown-up things. Both lines host more than a million children a year. The camp-like programs include age-appropriate activities like arts and crafts, movies and sports and cool clubs for tweens and teens.

Royal Caribbean's Adventure Ocean program (for ages 3-12) includes an opportunity for kids to become Certified Jr. Adventure Scientists. There are also Royal Babies and Royal Tots options for those travelers with infants and toddlers, and cool hangouts for tweens and teens.

Carnival's Camp Ocean program (for ages 2-11) has some activities designed to educate kids about the ocean. Carnival also has a partnership with Dr. Seuss that includes encouraging children to read the classic books and get to know the characters in a participatory parade, during story times and at an extra-fee Green Eggs and Ham Breakfast hosted by the Cat in the Hat. Tweens and teens have separate lounges with video games, comfy seating and versatile spaces for games or dancing.

Related: 5 best cruise lines for families

Onboard attractions

Active cruisers take note: Royal Caribbean is an innovative company and pushes the envelope on activities. All the cruise line's ships have rock climbing walls, and many have FlowRider surfing simulators .

Among the activity choices on various ships are ice skating rinks, carousels, zip lines, miniature golf, laser tag, escape rooms, waterslides , simulated skydiving setups, a 10-story thrill slide called Ultimate Abyss , a mechanical arm that lifts a London Eye-style pod high above the ship for views and other mind-blowing features. The larger the ship, the more onboard activities you'll find.

Carnival can't quite compete in this department, but its ships don't lack things to do. It's known for its WaterWorks water parks with multiple waterslides and splash areas for little kids, as well as for Bolt, the first roller coaster at sea (found only on Mardi Gras , Carnival Celebration and Carnival Jubilee).

On select ships, you will find outdoor ropes courses where you can walk a plank off the ship (while in a harness), a top-deck ride involving pedaling a hanging recumbent bike, miniature golf, Imax theaters and indoor trampoline parks.

Related: The 10 wildest attractions you'll find on a cruise ship

Entertainment

Royal Caribbean and Carnival take different approaches to onboard entertainment as well, though you'll never be bored on either line.

Royal Caribbean produces real Broadway shows (albeit shortened versions), such as "Grease," "Hairspray" and "Cats" on its biggest ships. Select ships feature innovative performance spaces; you'll find outdoor shows starring acrobats and high-divers at the line's AquaTheaters and ice skating shows at its ice skating rinks.

Multimedia shows in high-tech Two70 theaters on the Quantum Class ships feature performers and robotics. A popular late-night hangout spot is the Boleros salsa dance club.

Carnival also excels at live entertainment, but its style is different from Royal Caribbean's. Instead of Broadway musicals, it offers 35- to 45-minute high-tech Playlist Productions, featuring singers and dancers performing to original compilations of familiar tunes. Carnival puts a big emphasis on comedy; the line's Punchliner Comedy Clubs host more than 27,000 live performances a year, which makes Carnival the largest employer of comics in the world.

Carnival also puts together its own live bands and musical acts — whether jazz, rock 'n' roll, show band or classical — that entertain at various bars and public areas throughout its ships.

While both lines offer a roster of games and contests — think Battle of the Sexes, the Newly (and Not So Newly)wed Game and some version of an adult scavenger hunt — Carnival has shipboard versions of the popular show "Family Feud." It's also known for audience participation games around the pool and rollicking music trivia.

Related: Which cruise ship activities should you book ahead of time?

Who is on board?

Carnival's focus is affordable contemporary cruising for everyone, with an emphasis on fun. Its "Fun Ships" provide a casual and carefree experience; the crowd consists mostly of American, young and young-at-heart adults and their families. A lot of people come aboard looking for fun times — but don't think it's a haven for debauchery. It's still a family cruise line.

Since Carnival sails from many U.S. ports, you'll find that a high percentage of cruisers on board hail from nearby states and have driven to the ship — meaning different ships can have different vibes and passenger bases.

Royal Caribbean's crowd is a mix of international travelers and those from North America, including couples, families and singles from all walks of life. You'll find night owls on Royal Caribbean, too, though the crowd is a tad more upscale and less rowdy than on Carnival. That's partly because Royal Caribbean ships have a higher percentage of expensive suites on board and attract travelers who can afford to pay for that type of luxury.

Itineraries

Carnival ships mostly cruise in North America, with voyages in the Caribbean, Bahamas, Bermuda, Alaska, Canada/New England and the Mexican Riviera (from California). The line offers limited sailings in Europe.

Related: The 5 best destinations you can visit on a Carnival ship

Royal Caribbean puts much emphasis on North America — the Caribbean, Bahamas (including the line's own extravagant private island, Perfect Day at CocoCay ), Alaska, Canada/New England and the Mexican Riviera — but also sails several regions in Europe. Its ships can be found in other international destinations, such as Australia, New Zealand, China and Singapore.

Related: The 5 best destinations you can visit on a Royal Caribbean ship

Bottom line

As a first-time cruiser, you can't go wrong with either Royal Caribbean or Carnival Cruise Line. Pick Royal Caribbean if you are looking for innovative attractions and a slightly more upscale atmosphere. Choose Carnival if you want great food and to have a blast in a casual environment at a more affordable price.

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Carnival, Royal Caribbean, and Norwegian Cruise Line are in a fierce battle for domination in the cruise industry — here's how they stack up

• Carnival Corp , Royal Caribbean Cruises , and Norwegian Cruise Line Holdings are the three dominant players in the cruise industry right now.
• Together, they accounted for nearly $6 billion in profits and over 70% of the cruise market in 2018. 

With demand for cruises expected to grow this year, the three companies will continue to battle for new customers.

• Visit Business Insider's homepage for more stories.

Carnival Corp , Royal Caribbean Cruises , and Norwegian Cruise Line Holdings are the three dominant players in the cruise industry. Together, they accounted for nearly $6 billion in profits and over 70% of the cruise market in 2018. 

Read more: The 10 nastiest cruise ships of all time

But Carnival, Royal Caribbean, and Norwegian are not identical. Each operates at a different scale that is reflected in their financial performances and market capitalizations.

This is how the cruise industry's three biggest companies stack up.

The companies reported the following full-year profits in 2018:

• Carnival: $3.2 billion
• Royal Caribbean: $1.8 billion
• Norwegian: $954.8 million

Number of passengers

The companies had the following number of passengers in 2018:

• Carnival: 12.4 million
• Royal Caribbean: 6.1 million
• Norwegian: 2.8 million

Market share

The three companies were responsible for the following percentages of global cruise-industry revenue in 2018:

• Carnival: 39.4%
• Royal Caribbean: 20.2%
• Norwegian: 12.6%

Source: Cruise Market Watch

Market capitalization (as of June 2019)

• Carnival: $33.36 billion
• Royal Caribbean: $25.36 billion
• Norwegian: $11.46 billion

Median annual pay for employees

Each company's median employee earned the following in 2018:

• Norwegian: $20,101
• Royal Caribbean: $19,396
• Carnival: $16,622

Number of employees

• Carnival: Around 154,161 (as of October 31, 2018)
• Royal Caribbean: Around 77,000 (as of December 31, 2018)
• Norwegian: Around 33,200 (as of December 31, 2018)

Number of ships

• Carnival: 104 (as of November 30, 2018)
• Royal Caribbean: 60 (as of December 31, 2018)
• Norwegian: 26 (as of December 31, 2018)

Number of cruise lines

• Carnival: 9
• Royal Caribbean: 6
• Norwegian: 3

How much their CEOs make

The three companies reported the following annual compensation for their CEOs in 2018:

• Norwegian: Frank Del Rio — $22,593,061*
• Carnival: Arnold Donald — $13,515,884
• Royal Caribbean: Richard Fain — $12,422,715

*For accounting reasons, Del Rio's 2018 compensation includes a 2017 stock award. Without the 2017 stock award, Del Rio would have earned $14,873,324 in 2018.

How old the companies are

• Norwegian: 53 years
• Royal Caribbean: 51 years
• Carnival: 47 years

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Royal Caribbean vs. Carnival: Which Is Right For You?

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Table of Contents

Fleet size and type

Onboard activities, family atmosphere, destination availability, loyalty program, carnival vs. royal caribbean recapped.

Both frequent and first-time cruisers are sure to recognize brands like Royal Caribbean or Carnival. As two popular cruise lines in the U.S., both have plenty to offer passengers who are looking for sun, fun and adventure.

But which is better, Carnival or Royal Caribbean? Or is there much of a difference? The answer lies in where you want to go and the kind of experience you want to have.

Depending on what you’re looking for in a cruise vacation, the Carnival Cruise versus Royal Caribbean debate has fans on both sides of the aisle (or should we say pier).

Here’s a thorough comparison so you can decide between Royal Caribbean or Carnival.

Winner: Royal Caribbean

Both cruise lines have many ships in varying sizes, including several new and elaborate ships. 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.

Royal Caribbean's fleet

Royal Caribbean has 27 ships, with more on the way. While ship size isn't always a deciding factor on which is better, Royal Caribbean tends to have larger ships with flashier amenities. In fact, Royal Caribbean has five of the largest passenger ships in the world based on gross tonnage and passenger capacity.

Its largest ship at the moment, Wonder of the Seas, weighs 235,600 gross tons and can carry more than 9,000 passengers and crew members. Its oldest ship is the Grandeur of the Seas, which launched in 1996. Its ships range from accommodating 2,400 up to nearly 7,000 guests.

Carnival's fleet

Carnival has 23 ships in its fleet with more on order. Its oldest ship is Carnival Sunshine, which made its first sailing in 1996.

Its ships range in size, hosting around 2,100 to 5,200 guests. Carnival Celebration is the line’s largest and newest ship with a gross tonnage of about 180,000 tons and space for over 5,200 passengers. 

» Learn more: How much does a cruise to the Bahamas cost?

Winner: Carnival

This is hard to compare because the cost varies depending on the date you’re traveling and where you’re going to. Like airlines and hotels, demand can vary, which means the price does, too.

Other factors that can influence price are holiday periods, cabin type and advance purchase time. 

In general, both lines compete in the same space. While other cruise lines like Seabourn, Regent Seven Seas and Silversea may specifically target the upscale sector, both Carnival and Royal Caribbean offer a wide range of price points.  

Royal Caribbean pricing

Given the wide range of cabin types, including high-end suites and typically more elaborate decor, it’s not uncommon to see higher prices with Royal Caribbean. 

When searching for a three-night Bahamas cruise departing from Miami in August 2023, Royal Caribbean is offering a cruise for $403 per person for an interior cabin, not including taxes or fees. A suite will run you $609 before taxes and fees.

This price point is higher than Carnival for the interior cabin, but lower for the suite.

Carnival pricing

When it comes to Carnival or Royal Caribbean, the prices hover in the same range — although on many dates and itineraries, Carnival tends to underprice Royal Caribbean.

For a three-night Bahamas cruise, also departing from Miami in August 2023, Carnival has interior rooms starting at $274 per person before taxes and fees. A suite costs $786 per person before taxes and fees.

» Learn more: Are cruises all-inclusive?

Both lines offer a range of accommodations, from inside cabins to top-notch suites with luxurious extras.

This category would otherwise be a tie were it not for some of the unique features that Royal Caribbean has added on its newer ships on both ends of the pricing scale.

Royal Caribbean cabins

In the interior cabins of its newer ships, Royal Caribbean has added real-time, virtual balconies that provide the sensation of having an actual balcony (without the breeze or temperature, of course). This is a unique way to balance price with experience, but of course, nothing can replace a real balcony.

On the high end, some of its newest family suites have in-room slides and game rooms spread across two floors. 

Carnival cabins

Like its competitor, the cruise line has something for every budget. It doesn’t have the same bells and whistles as Royal Caribbean offers, though.

» Learn more: Is cruise travel insurance worth the cost?

Both lines offer plenty to keep you busy without ever needing to leave the ship. These include a daily itinerary of events from contests, game shows, live entertainment and casino specials.

While not every ship has every type of amenity, both lines do an excellent job of creating variety. Royal Caribbean wins this category because of its additional and unique activity offerings.

Royal Caribbean's onboard activities

What gives this line the win in this category is that it has special amenities that others don’t — like the FlowRider surf simulator, where guests can try their hand at a free surf lesson.

Simulated skydiving, ice skating, trapeze lessons, escape rooms and rock climbing walls add to the fun. Don’t miss the SeaPlex, which has plenty of indoor activities like roller skating, basketball courts and bumper cars.

Royal Caribbean is one of the largest producers of live entertainment. Each year, it runs more than 13,000 performances, surpassing Broadway and London’s West End combined. This includes those conducted in or under the water at the cruise line’s AquaTheater, specifically built for aqua acrobatics in the world’s deepest pool at sea.

You’ll also find the world’s tallest viewing deck on a cruise ship, according to Guinness World Records.

Carnival's onboard activities

The family-style activities on this line range from pools with waterslides and kids’ clubs to playgrounds, ropes courses, mini golf and basketball courts.

Carnival also has plenty of evening entertainment from musical productions and Broadway-style shows to headlining entertainers and comedians. There are game shows, like Family Feud, that guests can be a part of for added fun.

The Carnival Mardi Gras and Celebration ships offer rides on the first roller coaster at sea, and three ships have the SkyRide (aerial biking).

If you’re sailing with the family, both cruise lines offer kids' programs, swimming pools and waterslides. Also, both have private islands in the Bahamas with pools and water parks.

On board, the mix of other passengers can determine the overall experience, but both cruise companies do an excellent job of offering fun for all ages. Carnival wins this category for its more laid-back atmosphere and the number of children-specific activities.

Royal Caribbean for families

Perfect Day Island at CocoCay is Royal Caribbean’s expansive private island with water activities, dining areas and plenty of beach. It also has the region’s largest wave and resort pools.

Back on board, young guests can explore the adventure science lab or a 3D puppet show.

Royal Caribbean has so much that knocks it out of the water on the unique onboard amenity front, but most activities are geared toward all ages. When it comes to youth-oriented variety, it generally offers a bit less.

Carnival for families

Half Moon Cay is Carnival’s private island with horseback riding in the sea, a mock pirate ship, water activities, villas to rent and a coastline with lounge chairs.

The Seuss at Sea program offers fun for young travelers, including costume parties and themed breakfasts with their favorite Dr. Seuss characters. Even the spa has treatments for teenagers seeking a little pampering.

There’s also a NASA-inspired space program for kids, an IMAX theater and a thrill theater that simulates being on hair-raising roller coasters.

» Learn more: Family vacation planning tips I learned on the fly

Winner: Tie

Both cruise lines offer excellent dining options that span a global palate profile, but if you’re looking for specialty dining, Royal Caribbean has more options.

Still, if you’re looking for variety, it’s hard to tip the scale in favor of either brand — although Carnival deserves props for offering more well-known food options without an extra fee.

Royal Caribbean food

It's hard to go hungry on a Royal Caribbean ship because of its numerous dining options and specialty dining choices. One area where it falls short is name recognition, with fewer celebrity chefs lending their brand to its onboard eateries. Jamie Oliver is one, and a familiar favorite is Johnny Rockets. Carnival still has more specialty venues.

Carnival Cruise food

This brand is well-known for its tasty food and celebrity partnerships with names like Guy Fieri and Emeril Lagasse.

If the names mean nothing, the brand may still resonate, with partnerships like Guy’s Burger Joint and Guy’s Pig & Anchor Smokehouse. Many of these celebrity chef and specialty dining venues are complimentary, unlike those on Royal Caribbean.

Both lines deploy their fleets on substantial itineraries in many parts of the world. Interesting options include both the Panama Canal and trans-Atlantic crossings.

Royal Caribbean itineraries

The route map for Royal Caribbean ships is widespread, covering the Caribbean, Mexico, Alaska, Hawaii, Europe and Australia, among other places.

It has a large number of North American departure points. The line even offers a South Pacific sailing that visits places like Vanuatu and New Caledonia.

Carnival itineraries

Carnival does a lot of Caribbean and Mexico itineraries from more than a dozen North American ports of call. It also sails around the world, including to eclectic places like Papua New Guinea and Greenland.

» Learn more: The best credit cards for family travel

Both cruise lines offer plenty to do after the sun sets — from live entertainment and karaoke to dance clubs and comedy hours. But Royal Caribbean has a greater number of head-turning evening activities to please night owls.

Royal Caribbean nightlife

From sublime jazz club vibes to thumping nightclub venues, Royal Caribbean offers several options for after-dark entertainment.

Among its offerings are Playmakers Bar & Arcade, which pairs drinks with arcade games, and Boleros, a Latin-themed nightclub with music, dance and cocktails. Most spectacularly, many ships have robotic bartenders that can prepare special cocktails at the touch of a button and a bar that levitates within the inside of the ship.

Carnival nightlife

Live music is available in many venues, but it’s the DJs in the nightclub that keep things busy late into the night.

There are also piano bars and spots to take free dance lessons. Havana Bar mixes in some Cuban flavor to cocktail hour while the tiki bar switches the theme to a South Pacific atmosphere.

Overall, however, the after-hours entertainment just seems less flashy and sophisticated.

» Learn more: 6 cruises where you don’t need a passport

Both lines offer loyalty programs with substantial perks depending on your status level. Those who aren't members of the program can still opt to pay extra for those perks.

Still, it’s better if you get perks for free as part of the loyalty program. In this realm, Royal Caribbean wins — it has a reciprocal partnership with sibling companies like Celebrity that can increase the benefit opportunity.

Royal Caribbean loyalty program

Special onboard events, discounts and benefits are available for members of Royal Caribbean’s loyalty program, the Crown & Anchor Society. The number of perks rises based on the status you hold.

Members earn status by sailing often with Royal Caribbean. The program also offers a status match if you have elite status on Celebrity cruises, making it easier to attain status.

Using the Royal Caribbean Visa Signature Credit Card can also help members inch closer to a free cruise or onboard discounts via the points they earn.

Carnival loyalty program

Carnival’s loyalty program — cleverly dubbed the Very Important Fun Person Club, or the VIFP Club — operates in a similar manner. The more points you earn and the more often you cruise, the more perks you get.

A great way to earn points is with The Carnival World Mastercard , but with few non-cruise perks, it’s not the best option to use when making other purchases.

VIFP Club’s scale is smaller, since it doesn't provide reciprocal perks on other sibling brands. This is an immediate drawback when comparing the two, but it still makes sense to join the program if you sail often with Carnival.

Is Royal Caribbean or Carnival better? Assuming both cruise lines can fit your date, destination and amenity preferences, Royal Caribbean comes out ahead. This is particularly true if your budget can accommodate the higher cost for interior cabins and/or you aren’t traveling with kids. 

Meanwhile, more price-sensitive solo/couple travelers may prefer Carnival. It offers ample specialty dining and activity options, not to mention a good experience at a generally cheaper price point. While suites are more expensive for traveling families, the entertainment available to young cruisers is hard to beat.

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• News for Royal Caribbean Cruises

Royal Caribbean Stock (NYSE:RCL): Undervalued and Outperforming

Royal Caribbean ( NYSE:RCL ) stock has extended gains from the past year after beating estimates in the first quarter of 2024 . The cruise giant is benefiting from post-pandemic trends in experienced-based holidays and currently looks undervalued. The stock is trading at 13.6x forward earnings, which are expected to grow by around 17.8% annually throughout the medium term — leading to a price-to-earnings-to-growth ratio under 1.0x. This is why I’m bullish on the stock.

Royal Caribbean Reported Solid Earnings

Royal Caribbean Cruises reported a strong first quarter, with non-GAAP earnings per share (EPS) of $1.77 and revenue up 29% year-over-year. This represents an earnings beat of $0.44 versus the expected earnings of $1.33. Revenues were just 1.03% better than the expected $3.69 billion.

Passenger demand was high, with a 107% load factor, and profitability increased significantly. The load factor being over 100% reflects a situation whereby additional guests are added to each room, taking the guests per room above the stated capacity. A third or fourth room guest is often kids sharing with their parents.

Management gave the following positive appraisal: “The first quarter was tremendous, sending us well on our path to a year that is significantly better than we expected just a few months back. Wave season combined with a record-breaking introduction of the revolutionary Icon of the Seas resulted in consistently robust bookings at much higher prices than 2023.”

The company had previously highlighted that the Icon of the Seas — the world’s largest cruise liner — which entered service in January, was generating plenty of interest and bookings. The 364-meter ship can carry 7,600 passengers at maximum occupancy.

Looking ahead, the company raised its full-year outlook, projecting continued growth in net yields and adjusted EPS, reaching $10.70 to $10.90 — an increase of $0.80. This raised guidance “includes [a] $0.10 headwind from fuel prices and currency exchange rates as well as $0.17 benefit from the refinancing we completed in the first quarter,” management said in the Q1 earnings call on April 25.

Net yields are expected to increase by 9% to 10% in constant currency and as reported. This strong guidance reflects confidence in the cruise industry’s recovery and Royal Caribbean’s ability to deliver strong financial results.

Royal Caribbean’s Improving Financials

Royal Caribbean has embarked on a three-year program to improve its financial performance, and it’s progressing well. When I previously reported on Royal Caribbean, management said that it was likely to hit two of its three goals in 2024 — that’s one year early. However, in its earnings call, the company said that all Trifecta goals would be completed in 2024. The company said this would allow it to refocus on new, more ambitious, medium-term goals.

Part of the company’s financial improvements relate to refinancing and the paying down of debt. During the first quarter, Royal Caribbean refinanced $1.25 billion of its most expensive bonds with a new unsecured note, allowing the company to save 500 basis points or $56 million of annual interest expense. Moving forward, Royal Caribbean hopes and expects to reduce its leverage ratio to just under 3x by the end of the year.

RCL Stock Looks Undervalued

Royal Caribbean stock is currently trading at 13.6x forward earnings. That’s by no means expensive, and it actually represents a discount versus its peers. It’s also worth highlighting that Royal Caribbean’s earnings are expected to grow by around 17.8% annually throughout the medium term — that’s the next three to five years.

In turn, this leads to a forward price-to-earnings-to-growth (PEG) ratio of 0.76x. The PEG ratio is calculated by dividing the forward price-to-earnings (P/E) ratio by the expected growth rate for the medium term. Looking forward, Royal Caribbean’s forward P/E ratio falls to 11.7x in 2025 and 10.2x in 2026.

Is Royal Caribbean Stock a Buy, According to Analysts?

Royal Caribbean stock is rated as a Strong Buy based on 10 Buys and two Hold ratings assigned by analysts in the past three months. The average Royal Caribbean stock price target is $150.67, with a high forecast of $174.00 and a low forecast of $115.00. The average price target implies 5.1% upside potential. Given the recent outperformance, I’d suggest that analysts may revise their targets upwards in the coming months.

The Bottom Line on Royal Caribbean Stock

Royal Caribbean is outperforming analysts’ estimates and reported a stellar first quarter with a considerable $0.44 earnings beat. The company is experiencing a wide range of tailwinds originating from strong post-COVID booking patterns and interest in the world’s largest cruise vessel — the Icon of the Seas.

From a valuation perspective, Royal Caribbean also looks attractive. It has a Strong Buy rating, trades at just 13.6x forward earnings, and has a PEG ratio under 1.0x. Sadly for me, this isn’t a stock that my UK-based brokerage — and the UK’s largest brokerage — offers me access to.

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12 Major Differences Between Royal Caribbean and Carnival Cruise Line

While there are a lot of cruise lines out there, when it comes to the United States, two main players come to mind: Carnival Cruise Line and Royal Caribbean.

That’s for good reason. The two cruise lines are by far the most popular in the country, with millions of cruise passengers sailing on their ships each year. In fact, they are the two lines that we’ve personally sailed the most, so we have a lot of direct experience in how they compare.

If you’ve never taken a cruise… or you’ve only sailed with one cruise line or the other… then you’d be forgiven for thinking that both Carnival and Royal Caribbean are exactly the same.

While both lines do have a lot of similarities, there are also some major differences.

Anyone that is loyal to either Carnival or Royal Caribbean would tell you as much. To be sure, you’re bound to have fun on either company’s ships, however, if you want the real scoop on how they differ, we’ve laid out some of the major differences below.

Cost of Royal Caribbean vs. Carnival

Want to sail affordably? Both Royal Caribbean and Carnival offer affordable vacations. If you want to sail the more inexpensive cruise line, however, then you’re better off with Carnival according to our analysis.

About a year ago, we analyzed dozens of cruises from both cruise lines departing from three of their most popular ports. Carnival and Royal Caribbean both sail from Miami, Port Canaveral, and Galveston, which gives an ability to compare prices across the lines with similar trips.

When looking at the fares for each sailing in July (the peak of the cruise season in North America), we found that Carnival’s fares are less expensive on average.

According to our analysis, cruise fare for a 5-night trip aboard Carnival was about $50 cheaper per person during our search than what was seen on Royal Caribbean. That lower average pricing also held no matter the cruise length.

(Note: Royal Caribbean’s 7-night average in our analysis includes trips aboard Icon of the Seas. This ship features prices considerably higher than other ships.)

Now keep in mind that this doesn’t mean your cruise will automatically be less expensive on Carnival or more expensive on Royal Caribbean.  What you pay for a cruise depends on a lot of factors, including when you sail, the specific ship you choose, and the route you take. But in general, you can figure that a Carnival cruise will run less than a similar one on Royal Caribbean.

Bottom line: When it comes to cost, Carnival is usually cheaper to sail than a similar trip on Royal Caribbean, but prices for specific trips will vary.

Size of Ships

While both cruise lines have ships ranging from older, smaller vessels to brand new mega-ships, Royal Caribbean and Carnival’s vessels definitely differ. Royal Caribbean is well known for having the largest cruise ships in the world. And while Carnival’s ships can be of comparable length, the overall size of Royal Caribbean’s biggest ships is noticeable.

Consider that Royal Caribbean’s Wonder of the Seas is nearly 1,200 feet and carries more than 5,700 guests at double occupancy. And that’s just one of several in it Oasis-class fleet. Overall, it has a gross tonnage of 237,000 tons. 

Today, Icon of the Seas takes over as the largest cruise ship in the world and comes in at more than 250,000 gross tons. All told, the top six largest cruise ships on the planet belong to Royal Caribbean .

Carnival Celebration, Jubilee, and Mardi Gras, Carnival’s largest ships, have a gross tonnage of 183,000, or about 75% of the size of Royal’s largest ship. And this is just one example. When it comes to size, Royal Caribbean ships definitely have an edge.

Of course, with larger ships you can pack a lot more onto the vessel. While both cruise lines take advantage of all the space on their ship, you’ll see below that there are major differences in activities and entertainment between the two cruise lines due partly to the ship size.

Bottom line: If you want to travel on the biggest cruise ships, then Royal Caribbean is the clear winner. It sails the largest ships in the world, and the fleet as a whole is on average larger.

Activities & Entertainment

You might not realize it, but the vast majority of your time on a cruise is actually spent on the ship. Even on days in port, the ship is normally docked for only about eight hours. That means the activities and entertainment on the ship are important to the fun you’ll have.

Good news — both cruise lines offer constant entertainment. In fact, we find that the entertainment like evening shows, comedians, onboard contests, evening game shows, casino gaming and more are very similar between the two lines. (Though we do have to acknowledge the Aqua Theater shows aboard Oasis and Icon-class ships as unique to Royal Caribbean.)

But when it comes to activities on board, we think Royal Caribbean and Carnival are very different.

Royal Caribbean definitely seems more innovative with the things to do on the ship. Newer ships include the world’s tallest slide at sea, bumper cars, ice skating, a surf simulator, escape rooms, and even an observation pod that can take you up and out over the water on some ships. Icon of the Seas debuts a full-fledged water park with six slides.

Carnival offers plenty of fun things to do as well, but it’s typically more of the classic things to do on a cruise ship, like mini-golf, movies, pools, and jogging tracks (which Royal Caribbean also has).

That said, Carnival is moving in the direction of Royal Caribbean. For instance, Mardi Gras and Carnival Celebration and Jubilee have the first-ever roller coaster at sea , and the cruise line is the only one to have an IMAX on some of its ships.

Bottom line: While the entertainment on board may be similar, the activities on Royal Caribbean are more innovative in our opinion. 

Ports of Departure

One of the biggest benefits to the growth of the cruise industry? As cruise lines grow their fleet, they are able to add more cruises — including from smaller ports.

Are you near a major cruise port like Miami or Galveston ? The good news is that you have your choice of either cruise line. You’ll find both lines in any port with heavy cruise traffic.

If you are close to a smaller cruise port like Mobile, Jacksonville, or Charleston, then you’ll be glad to know you still can sail aboard Carnival. Royal Caribbean is catching up in this regard, sailing from spots like Baltimore and New Orleans.

What’s so nice about sailing from smaller ports is that it means more people can cruise without the added expense of flying. The added cost of plane tickets on top of a cruise can be burdensome for some people who would otherwise set sail.

Bottom line: Carnival offers up trips from a number of smaller ports. Yes, trips from smaller ports are usually aboard smaller and older ships, but we think any cruise is better than no cruise.

Space Ratio

One complaint that many people have — especially with the size of modern ships — is that there are too many people. Well, that’s just become a fact of life on cruises, but where there is a difference between the two lines is how much space those people have on the ship.

There’s no perfect measure of this as ship design can have as much to do with the elbow room you feel than anything. But we like to use something called the space ratio . This is simply the gross tonnage of a ship divided by the occupancy at double occupancy. Essentially, this is how big a ship is per passenger.

In that regard, there’s a marked difference. Royal Caribbean ships consistently measure in the low 40s in this segment, no matter whether a ship is new or old. Carnival has a few that measure in the 40s, but most are around 34-37, meaning a significantly smaller size per passenger.

In other words, if you’ve felt that Carnival feels more cramped, it might not be your imagination.

Bottom line: If you want more elbow room, then Royal Caribbean generally offers more space than Carnival on their ships.

Drink Package Rules & Pricing

On a cruise, alcoholic drinks are a big business. It’s not unusual to pay $7-9 for a beer, or $11-14 for a cocktail. At those prices, the bar tab can add up quickly.

To help passengers budget, cruise lines have drink packages . The packages allow you to pay one set daily price and then you can get what you want, without worrying about the bill.

There are differences, however, between Carnival and Royal Caribbean when it comes to these packages. 

First, Carnival’s CHEERS! package is less expensive than what you’ll usually find on Royal Caribbean. Carnival charges around $60 per day (if bought ahead of the cruise), while Royal Caribbean uses dynamic pricing where the price depends on your specific cruise. However, in general you can expect it to be more than what Carnival charges.

As well, Carnival has a 15-drink limit over 24-hour period for alcoholic beverages (non-alcoholic drinks are unlimited), while Royal Caribbean makes no mention of a limit.

Bottom line: Both lines offer drink packages, but Carnival’s rates are normally lower than Royal Caribbean. As well, Carnival makes an explicit limit of 15 alcoholic drinks per 24-hour period.

Atmosphere on Board

While it’s hard to explain, Carnival and Royal Caribbean just have a different “feel” to most passengers. It’s purely anecdotal, but you’ll hear many say that Carnival has more of a laid-back party atmosphere.

Want to have a margarita and dance in conga line around the pool? Let’s just say, there’s good reason that Carnival is known as the “Fun Ships.” In our experience, folks on both cruise lines love to have a great time, but seem more outgoing on Carnival.

To us, Royal Caribbean has more of a luxury feel. That’s not to say it’s stuffy (far from it), however, it feels more subdued than Carnival. There are still plenty of chances to party, but we think there is simply a slightly different feel on Royal Caribbean.

Either way, you’ll have plenty of fun.

Bottom line: Both ships have a fun atmosphere and are similar, but the vibe on Carnival is a bit more “outgoing” than what we’ve found on Royal Caribbean.

Costs on Board

When you cruise, you should really think of having two different costs for the trip. There’s the cruise fare, which is by far the biggest bulk of what you’ll spend. But then there is also the spending you’ll do on the ship including things like drinks, wi-fi, excursions, specialty restaurants, and more. 

The good news is that this spending is optional. If you don’t want to spend anything on the ship, you don’t have to. But if you do spend, then you’ll likely find that Carnival is less expensive than Royal Caribbean. 

For instance, specialty cocktails on Royal Caribbean were recently seen at $14 per glass. On Carnival, they run more in the $10-12 range.  The same goes for the drink package, discussed above. It’s less expensive on Carnival.

We will say that since the pandemic and the rise in inflation Carnival’s prices seem to be creeping up to match Royal Caribbean. For instance, the highest-tier Internet on Carnival is now up to $25 per day if bought on the ship. Still, at this point we’d say that Carnival generally offers lower prices around the ship.

Bottom line: In general, the prices on Royal Caribbean seem higher than what you’ll spend on Carnival. 

Worldwide Sailings

Are you a Royal Caribbean fan, but also love to travel the world? In that case, you are in luck. The cruise line has trips sailing everywhere from the United States to Asia to Europe. While most trips are from the U.S., there are a number of other options if you are a fan of the cruise line but want to experience somewhere new.

In comparison, Carnival is more focused on the United States with their sailings. Outside of a handful of trips in Europe, there isn’t much available that isn’t based in the U.S. The one exception is Australia. Carnival does offer some trips from Brisbane and Sydney for Carnival fans in the southern hemisphere. 

Bottom line: Royal Caribbean offers more sailings from a variety of spots around the world. Carnival is mainly U.S.-focused, although Australia is well-represented in their sailings.

Private Destinations

For years cruise lines have had private islands. These islands had largely been the same, offering some restaurants and shops, but the big draw being white-sand beaches with beautiful water. These spots offer snorkeling, beach activities, kayaking, and other beach activities.

However, that’s changed with the recent renovation of CocoCay by Royal Caribbean. The cruise line spent $250 million to completely transform the place from a sleepy tropical island to a full-blown destination. Today CocoCay features a full waterpark with one of the tallest slides in the world, a massive freshwater pool, restaurants, and tons more. 

Carnival does have its own private destinations that are a lot of fun (Grand Turk, Amber Cove, among others), but they aren’t the same league as what CocoCay can offer as far as things to do. However, that will be changing. The cruise line has broken ground on Celebration Key, a new destination in The Bahamas , scheduled for 2025 that will be even larger than Royal Caribbean’s offering.

Bottom line: Royal Caribbean’s CocoCay gives it the lead in private islands and marks a big difference with Carnival. In the coming years, however, Carnival is set to debut a massive private destination of its own that should be on par.

Dynamic Pricing

If you are a budgeter, then one of the frustrating things you might encounter is dynamic pricing on Royal Caribbean. With this type of pricing, there isn’t a set cost for something like a specialty restaurant or drink package. Instead, the price will vary based on the specific cruise you take. So you could sail one cruise and see one price, but a completely different price the next time you sail.

Royal Caribbean has dynamic pricing on many things. For instance, the cruise line adjust prices on drink packages. And admission to Thrill Waterpark on CocoCay has also been higher or lower (including some prices of more than $150!) depending on the individual cruise.

Not having a set price can make it tougher to budget before you buy your cruise as you won’t know the price of some items on the ship until you are booked. 

Carnival, on the other hand, has more traditional pricing that doesn’t change from trip to trip (at least right now). So even if you haven’t booked, you’ll have a good idea of how much things will cost on the ship.

Bottom line: Royal Caribbean has prices that can vary from cruise to cruise while Carnival has more traditional pricing based on our experience.

Food Offerings

What’s a cruise without food? This is one area that the cruise lines differ a little bit. You won’t go hungry, and both offer tasty options. Where the difference lies is in your free versus paid choices.

In our opinion, Carnival has more and better “free” options. One of the most popular places on the ship is Guy’s Burger Joint — a tasty fresh-grilled burger with seasoned fries. If you want to eat there, it’s free. As well, there is also BlueIguana Cantina, Pizzeria del Capitano and a few other places where you can grab a bite (ChiBang!, Big Chicken, the deli) without any additional charge. And some spots that charge for dinner also have free lunch options.

Royal Caribbean definitely has free places to eat (larger ships tend to have more free options), but in our opinion the freebies outside of the buffet and dining room seem to be more snacks than meals. Meanwhile, the cruise line seems to focus more on specialty restaurants that charge extra. And those specialty restaurants tend to lean more toward fancier, high-end eats than Carnival.

Bottom line: While both lines won’t leave you hungry, in our opinion Carnival offers more tasty free options that are included in your fare.

Frequently Asked Questions

Is Carnival better than Royal Caribbean or vice versa? Like most preferences, the decision of which cruise line is better is subjective. Many people are steadfast fans of one ship over another — and won’t hear anything otherwise. In our opinion, both offer an experience that’s about 80% the same. It’s that other 20% that may sway you one way or another. Like big ships with lots to do? Royal Caribbean may be for you. Like more free dining options and a fun atmosphere? You’ll enjoy Carnival.

I have the choice between a Royal Caribbean cruise and a Carnival cruise. Which should I pick? If you have two cruises — one from each cruise line — that you are choosing between, then it’s a good problem to have! To help you decide, we’d suggest taking into account a few items like the ship ( we think newer is better ), the cost, and the ports of call. The good news is that you’ll have fun on either line.

What about a different cruise line like Norwegian? You might realize that Carnival and Royal Caribbean are not your only choices. There are a number of cruise lines out there. In terms of larger lines, Norwegian is one of the other options for many passengers. If you want to know more about it, you can read the differences between Carnival and Norwegian or the differences between Royal Caribbean and Norwegian .

Have more questions about sailing Royal Caribbean or Carnival? Let us know in the comments below.

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We’re gold members on Carnival. We’re accustomed to everything Carnival so we’re not usually surprised by little things around the ship… depending on ship size. On the Horizon, a dip in the pool is really nice and a lot of fun. On the Paradise, there isn’t 1 square inch available all day. People stay in the pool ordering drinks and beer from there… one good thing, there’s never a line to the bathroom!

One big difference between Royal Caribbean and Carnival is the rewards are much better for repeat cruisers on Royal Caribbean. I’m Platinum on Carnival and Diamond on RC (they also match on Celebrity to Elite status). Diamond Lounge or four free drinks any time of day at almost any bar, some free internet, free photo and a few other extras.

We leave Sat on RC! We usually do Carnival! So far I am not impressed one bit with RC! You have to make reservations for all shows and they are already booked out, before boarding! We were assigned to 2:00 pm boarding, so that means when we get onboard and are able to book the leftover show times won’t be much left! How disappointed that we paid for 2 rooms with 4 guests and this what you get! Even with the anytime dining the first time available for dinner was 8:45 pm! So we changed to early dining! It’s sad that you have to have everything planned out that far in advance the whole week to get a spot! With Carnival you just don’t have this!

I hear you. But with the shows, you can arrive early and without a reservation almost always still get in! Enjoy your cruise on Royal, we did!

how often does the entertainment change? like comedies? and other shows ? while i loved everything on royal caribbean if i went again in the next 6 months i would want to see something different.

We tend to try all kind of different cruise lines. But we end up cruising with Carnival more often (not something by choice, just because we live close to Long Beach port). Something significantly different in our experience with Carnival is their cruise directors. We always remembered the names of cruise directors on Carnival ships, they worked so hard to entertain and take care the guests. They were fun. On the contrary, we took multiple Royal, Celebrity, NCL cruises, we rarely saw the cruise directors, in many cases, we didn’t even know they had one on the cruise.

Carnival cruise line is all about taking your money, we recently took a cruise for 8 days and had 4 islands when booked but only stop at 1. They allowed us to board the cruise ship with staff having Covid19 and of course it spread to passengers, so for 6days we’re at sea giving a credit of $100 onboard credit per room. I have been trying to contact Company and no response as well as I filed a complaint with no response I’m a gold card traveler with Carnival and this was my final cruise with them.I learned something that cheaper is not always better. Royal Caribbean had a similar issue and they gave their Passengers 50 percent of their money back and 50 percent off their next Cruise. I want to feel like I’m appreciated too for being a loyal customer, so Royal Caribbean here my family come!!!

Thank you Tanner. This was a very informative article. I’ve been sailing on Carnival Cruise Lines for the past 15 years and this year my husband decided to change to Royal Caribbean just to get some variety. We will set sail in April and I’m looking forward to it. However, I did notice when booking the cruise how they try to encourage you to pre-purchase all the extras. So we opted to wait and see if the complimentary offerings are going to be enough. If not, we will know next time if it would be worth that extra money. Again, I do appreciate articles like this one that help consumers make good decisions about how to spend their time and money and get the most out of it. God Bless.

Glad you like it. If you have specific questions about what is included, let us know. In our opinion Carnival has more things included in your fare — most specifically we feel like there are more included food options.

Is there a drink package that can be purchased for alcoholic and non alcoholic drinks on RC

Absolutely. You can get a soda package or an alcoholic drink package.

Those replying about Royal Caribbean seem to have had very different then I have. I have been on almost 60 different cruise with Royal and all have been excellent. We have NEVER had an excursion leave late either so not sure what that one person was experiencing. The venues to eat on there larger ships are very impressive. On the Oasis class ships they have Central Park Cafe where you get to make your own salad or choose from hot sliced roast beef sandwiches and put au jus and horseradish if you want. For fun they have ice skating, 2 Flow riders for surfing, rock climbing, giant water slides. They have a water show where you sit and watch a complete water show with divers from 100 ft up doing various tricks. Their promenade deck is amazing, and they have a Central Park area with trees and all. From the promenade you can sit at the rising tide bar and literally go from deck 5 to deck 8 as your bar rises in the air. They have all the characters from Dreamworks for the younger sailors. The WIndjammers has plenty of various food to select from. The Solarium is for those who do not want children around them at the pool but these ships have many pools for all ages and desires. The kids pool has water cannons and other things for the kids to play with. Oh forgot it even has zip lining. I have been on so many ships with my kids and without, we have locked in on Royal due to the variety of things to do on board. Sometimes we do sail Celebrity which is also owned by Royal. Just my two cents. Enjoy, YOLO!!!

I loved Carnival , caring staff and nice food service. They even serve vegetarian meals.👍🏼

How much does it cost for children under 17 on each ship.

The age doesn’t make a difference in the price charged. However, if traveling as a third passenger in a cabin, there is a discounted rate.

The quality and variety of food on Royal Caribbean seems to depend on the size of the ship, sometimes. It is only as good as the chef’s they have and the space they have. That being said, we’ve been on a ship with approximately 1200 passengers and the food was wonderful. We were recently on a ship of approximately 3200 passengers and the food varied greatly between the buffet, the main restaurant and the specialty restaurants.

The layout of the ship was terrible and the buffet was very small for the number of passengers. The buffet variety tended towards junk food with very little healthy food and very little variety from day to day. The traditional dining menu did not seem typical of what we’ve had in the past. We have cruised since 2006, mainly on RCL, but have cruised on Holland America, Celebrity and Norwegian. We cruise at least once per year, but often twice per year. This year was extremely disappointing on a number of aspects.

This post would go too long if I posted what happened with everything so I will just touch on some of them; distance from ship to boat into Venice was further than told, much too far for older people to walk without having to get someone to get them a wheelchair; suddenly notified of a fee to take the boat back & forth to Venice at the last minute.(on top of the walk back to the ship), even if you have an excursion, told if you have an excursion to Venice you would be picked up and returned to the ship, NO, picked up yes, returned, NO.

Dropped of the full distance away where the other boats pick up and drop off which is the full walking distance,(again,too far for older people-which we are not-& I managed, but I was using a cane due to an injury). We arrived back at the ship 2 days in a row and asked them to send a wheel chair for 2 different people. The days weren’t over yet.

The new “Key” wasn’t what the website described, not totally worth it, most staff doesn’t know what it is and what it covers. NO staff knew where the seating in the theater was. Some excursions were not as described AT ALL. We are typically pretty easy going travelers. We do a lot of our travel planning on our own. We don’t expect a lot. The gathering of passengers in the theater (or wherever) is a “royal” pain.

No excursion left on time. One left 30 minutes late, none of it was because of late clearance, as we had already heard that the ship was cleared and people were cleared to go ashore. It is waiting on late passengers. When we first cruising we went directly to the buses and boarded ourselves. Once the bus was full and the departure time arrived, if everyone wasn’t there the guide would talk to the shore excursions, we would wait 10-15 minutes and go.

People are always late because they know that the excursion will wait for them for such a long time. We don’t go on as many excursions because of this anymore. We can do our own thing, get a taxi and see more and not wait on anyone for the same cost or less. The late people don’t even rush anymore. The ship was tired and the washrooms were not kept up. Two “quiet adult only spaces” were directly below shuffle boards that use plastic pucks. Incredible noisy. It was a wonderfully peaceful place when no one played shuffle board. It could be again if they used the original pucks that are quiet. We typically do not complain but this trip was absolutely terrible.

Honestly, I think most Carnival ships are beautiful (especially the Dream, one of my favorites) However, the picture of the ship chosen was the Valor which is one of the strangest and, in my opinion, ugliest ships in the fleet. The design makes very little sense and the decor is strange and unattractive. I think that was not the best representation for Carnivals ships, just my opinion.

Valor is definitely… unique. That said, even on other Carnival ships that may be a bit more modern there’s still a different feel compared to Royal Caribbean.

When I cruise, I really love live bands. Weather it would be pop, country,or whatever.i enjoy listening and dancing to the music.For me, if I knew that they were having a band, I certainly would be more enticied to choose that particular cruise line, for my cruise.

Justin B – some of those items you mentioned are NOT free. The Windjammer cafeteria is free, and most of the smaller second restaurant (Solarium) is free, but they charge extra for the lobster and (I think) the lamb chops. The drinks here are expensive and they even charge for soda, which I find strange as it’s one of the cheapest things to produce I could go on and on but I will say for those on any type of budget to watch yourself closely with Royal Caribbean and check your bill (for their extra “surprises”) with RC Guest Services. They are absolutely horrible at upwelling and misc nickel and dime charges.

Source—sailed on Ovation of the Seas

Organization the hospitality on Royal is priority, their staff makes sure you are comfortable and well taken care off. It’s a very warming welcome and their cocktails drinks consist with alcohol not juice and ice. Royal Carbbean take good care of their Ship when it come to cleaniness and top of it all well organize especially in the buffet when you dont know when the lines start. Payless dont expect more hospitality is key.

Royal has free burgers hot dogs a fries as well in the huge free buffet called windjammer, also free pizza buffet and more. Symphony of the seas has both plus a mexican food buffet with burritos, tacos, quesadillas, nachos and cheese etc. They also have free ice cream machines. I feel your food comparison is wrong because they have a pretty good selection of free food as well as fancy dining (lobster, steak, fancy desserts etc) that is free every night with a reservation.

you seem to have been on Royal before how about drink package on Royal the one on Carnival isn’t that good as for as for alcohol.

Royal Caribbean allows you to bring non-alcoholic beverages as carry-on items on boarding day. Non-alcoholic beverages may not exceed 12 standard (17 oz.) cans, bottles or cartons per stateroom. Milk and distilled water brought on for infant, medical, or dietary use are permitted.

Thanks for the comment. This is a brand-new policy from the cruise line. We’ll look to update.

Carnival is the same

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What i wish i knew about my cruise cabin before i sailed, hotels with cruise shuttles for every major port in america, 107 best cruise tips, tricks, secrets, and freebies, 39 useful things to pack for your cruise (including 17 you’d never think of).

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Royal caribbean cruises ltd. (rcl).

• Previous Close 138.21
• Open 139.59
• Bid 142.90 x 1200
• Ask 142.86 x 1300
• Day's Range 139.40 - 143.29
• 52 Week Range 73.93 - 143.62
• Volume 2,536,065
• Avg. Volume 2,819,438
• Market Cap (intraday) 36.865B
• Beta (5Y Monthly) 2.53
• PE Ratio (TTM) 18.25
• EPS (TTM) 7.85
• Earnings Date Jul 25, 2024 - Jul 29, 2024
• Forward Dividend & Yield --
• Ex-Dividend Date Mar 5, 2020
• 1y Target Est 158.59

Royal Caribbean Cruises Ltd. Overview Travel Services / Consumer Cyclical

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

Full Time Employees

December 31

Fiscal Year Ends

Travel Services

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Performance overview: rcl.

Trailing total returns as of 5/6/2024, which may include dividends or other distributions. Benchmark is S&P 500 .

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Statistics: RCL

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Research Analysis: RCL

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• Underperform

People Also Watch

Meet the Norwegian-owned cruise challenger to Carnival and Royal Caribbean that just raised $1.54 billion

Viking had humble beginnings. 

The now-listed cruise line was once just a venture by “two guys with two mobile phones and four river ships,” as the company’s CEO, Torstein Hagen, puts it in Viking’s prospectus .

But a lot has changed in 27 years. Now, the Norwegian-owned, Bermuda-based business has a staff of 10,000 catering to guests with a taste for the finer things in life. 

The cruise operator, which made its name in European river tours, launched its initial public offering at the New York Stock Exchange on Wednesday. It raised $1.54 billion , according to Reuters, making it the biggest listing in the U.S. this year. 

Viking rebounded strongly after the COVID-19 pandemic decimated cruise travel and its public listing comes as luxury consumers are spending more on travel and less on shopping. Some of Viking’s competitors, such as Carnival and Royal Caribbean, have seen record demand for cruises—opening a world of opportunity for the smaller company.    

Viking’s beginning

Viking was founded in 1997 by Hagen, who controls most of the company with his daughter, Karine Hagen.

From the start it aimed to give travelers an immersive experience in local cultures as they toured in one of its four river vessels. In the past three decades or so, Viking has expanded its fleet to 92 ships offering three types of experiences via rivers, oceans, and expeditions.

The company has also benefited from some savvy marketing plays: It sponsored PBS Masterpiece series, such as Downton Abbey , and offered themed trips linked to those shows. 

Between 2015 and 2023, Viking’s revenue grew at a compound annual rate of 14.4%, outpacing the rest of the cruise industry in the river and luxury ocean segments during this period, the company said in a public filing .

Viking has carved its strategic niche among older, well-off customers, a group it believes is “underserved.” These are not boozy party boats, and there are no kids allowed. 

“Our target demographic has greater financial stability, which can make them more resilient to economic conditions and more willing to invest in high-quality travel experiences,” Viking said. 

And that’s the space it hopes it can dominate, with the help of its IPO funds.

The Viking founder and road ahead

Hagen didn’t enter the world of cruises till the 1970s. 

A physics major in school, Hagen earned an MBA at Harvard University before entering management consulting. He dabbled with entrepreneurship a few times before finally succeeding, Bloomberg reported .

When business for Viking’s river cruises, its first service, began to pick up, Hagen expanded to offer journeys worldwide—from expeditions in Antarctica to river cruises in Vietnam. 

Viking is on an expedition of its own now that its shares are traded. Last year, the cruise line hosted close to 650,000 guests and generated $4.7 billion in revenue, up by almost 50% from 2022. Its underlying profits were $1.1 billion for the same period, according to Viking’s prospectus.

The cruise company is still much smaller than rivals like Carnival, Royal Caribbean, and Norwegian. But it’s a global leader in some segments, such as luxury ocean cruises. 

Following a strong open, Viking’s market valuation has reached more than $10 billion, putting Hagen’s wealth at $5 billion. As the appetite for luxury travel builds , Viking is ready to ride the wave. 

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Is Trending Stock Royal Caribbean Cruises Ltd. (RCL) a Buy Now?

Royal Caribbean (RCL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this cruise operator have returned -0.7% over the past month versus the Zacks S&P 500 composite's -4.2% change. The Zacks Leisure and Recreation Services industry, to which Royal Caribbean belongs, has lost 7.4% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate Revisions

Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Royal Caribbean is expected to post earnings of $2.65 per share for the current quarter, representing a year-over-year change of +45.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +15.3%.

The consensus earnings estimate of $10.83 for the current fiscal year indicates a year-over-year change of +60%. This estimate has changed +10.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $12.42 indicates a change of +14.7% from what Royal Caribbean is expected to report a year ago. Over the past month, the estimate has changed +5.9%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Royal Caribbean is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue Growth

Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Royal Caribbean, the consensus sales estimate of $3.98 billion for the current quarter points to a year-over-year change of +13%. The $16.25 billion and $17.57 billion estimates for the current and next fiscal years indicate changes of +16.9% and +8.2%, respectively.

Last Reported Results and Surprise History

Royal Caribbean reported revenues of $3.73 billion in the last reported quarter, representing a year-over-year change of +29.2%. EPS of $1.77 for the same period compares with -$0.23 a year ago.

Compared to the Zacks Consensus Estimate of $3.68 billion, the reported revenues represent a surprise of +1.24%. The EPS surprise was +35.11%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Royal Caribbean is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Royal Caribbean. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

To read this article on Zacks.com click here.