Royal Caribbean raised its profit forecasts for the fourth time in a row on Tuesday, thanks to multiple price increases and increased demand for cruises that visit private destinations or cooler places.

The post-pandemic surge of cruise demand continues to be strong, with customers spending their money on experiences aboard, which is boosting growth for operators such as Royal Caribbean, Norwegian Cruise, and Carnival Cruise.

The hotter than usual weather encourages more people to book their summer travel earlier with these operators, for destinations that are cooler, such as Alaska and Utah.

The company now expects adjusted annual earnings per share between $11,57 and $11.62, as opposed to its previous expectations of profit between $10.35 and $11.45.

In premarket trading, shares of the company fell 3%, despite a 57% increase this year.

The company is expecting a fourth-quarter profit per share adjusted between $1.40 to $1.45 compared with estimates of $1.58. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila)

(source: Reuters)