hey everybody its Bruce here with traveling with Bruce welcome to my
channel today I've got a story today coming out here on July 2 25th 2009 teen
all about Royal Caribbean they just announced and released their second
quarter earnings for the year 2019 and things couldn't be better despite all
the trials and tribulations that a number of cruise lines have had this
year including Royal Caribbean all is well here a couple of bad things that
have happened first of all they lost Cuba the Trump administration forbade
Cruise Lines to go to Cuba out of the US and that is costing Royal Caribbean
amongst other cruise lines a lot of money because those cruises were going
for prime dollars but the good news is the celebrity edge cruise ship you see
right here is bringing in top dollar for Royal Caribbean as Ameri and their other
line luxury line doing very well silver sea is now beginning to deliver serious
profits silver sea was bought by Royal Caribbean last year I think it cost them
two billion bucks and they've been upgrading the ships it's a six star line
and they're gonna make a lot of money on silver sea because of the power of the
marketing department of our Royal Caribbean they will ensure that silver
sea ships will be at full capacity bringing in top dollar per night from
all cabins the other line is Pullman tour which is the discount line they
have in Europe it's doing alright but here's the deal on Royal Caribbean
there's three ways you can make more money one you can increase prices two
you can decrease your costs or three you do both at the same time and that's
exactly what's happening you're looking at photos here of the terminal the brand
new cruise terminal they just opened this last year in Miami this terminal
has added to the bottom line of Royal Caribbean not normal
you don't think about a terminal making a cruise line money because it's a
necessary evil you have to have a embarkation point a demarcation point
but this terminal is allowed Royal Caribbean to increase its efficiencies
with regards to getting people off the ship and on the ship for the next cruise
the turnaround time is as low as ever the efficiency of the turnaround is even
more even more pronounced and an outfit like Royal Caribbean can buy thousands
of lobster tails at a time at a huge discount they can buy just tons and tons
of flour and salt and butter and everything else to make the onboard
funds and treats and doughnuts and cakes and you name it the efficiency of the
salad making is unbelievable what a lot of passengers don't know is a lot of the
food you see on cruise ships is prepared off-site Royal Caribbean among other
large cruise lines have off-site processing centers in Florida where they
do a lot of prep work for the food and it's then loaded onto the ship right
from refrigerated units right into the refrigerated units onboard the ship and
the sous chefs have even less work to do on board the ship it just speeds
everything up and makes everything on a volume basis in other words Royal
Caribbean is prepping food for all of their ships coming in and out of fun
miami-fort Lauderdale and Port Canaveral just to give you an idea even Tampa its
incredibly efficient so the costs go down the profits go up the charges go up
the profits go up it just goes around and around for 2018 the cruise line in
the in the second quarter they made four hundred eighty two million dollars in
2018 2019 five hundred and thirty two million dollars in profits so another 50
million in net profits in 90 days that is a lot of extra money it looks like
for the year expected profits or Royal Caribbean will hit two billion
plus US dollars net earnings this is exceptional we're talking about gross
revenues now around the twenty billion market is exceptional how do you make
more money on reducing costs keep in mind they are now operating the perfect
day at CoCo Key facility and the Bahamas they also have Labadie here and in Haiti
the cruise ships are going to start overnighting later this year and next
year in the perfect day of toko key so the ship instead of traveling a thousand
miles at sea will travel 80 miles to 150 miles at sea to go to a perfect day at
CoCo Key in the meantime you can enjoy all the onboard and amenities obviously
but once you get to the resort island you're staying there the ship isn't
moving it's not burning a lot of fuel to sit and park they'll keep their
generators running obviously for all the air conditioning the lighting the
plumbing and all that but on the island the private island they're making a
killing they're making an absolute fortune by selling passes to the water
rides to the hot air balloon rides and all the other amenities these are huge
money makers of course onboard you've got all your amenities that you expect
from Starbucks - especially restaurants your ice creams your treats it's all
there don't forget the drinks this company is firing on all cylinders so
there you go there's a brief recap of what's happening the phone apps are
working they're making extra money onboard spending is surging the
refurbishment program for celebrity ships is working the ship the ships are
refreshed on Royal Caribbean as well that is working and so you're offering
passengers an area to spend money on board the ship off the ship and just to
get on the ship congratulations to the executives at Royal Caribbean there you
go there's the latest join me Monday nights live 8 o'clock for a live cruise
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push issue a new video and we'll catch you next time everybody take care bye
for now