Jason Liberty, the company's President and Chief Executive, said booking behaviours have changed significantly in recent years, with the Middle East conflict continuing to change the way consumers book. 

He said: "Ten years ago we would typically have to discount for close-in demand. Today, we're able to increase our pricing."

The shift helped drive stronger-than-expected second-quarter performance, with close-in demand, particularly for Caribbean sailings, pushing net yields up 1.2% year-on-year.

Liberty said customers are "looking closer in due to flexibility and ease" and are preferring closer destinations to ones further away, adding that some travellers remain "hesitant" about committing to flights well in advance.

'Half our guests are millennials or younger'

The trend is also shaping the group's product strategy, with the company expanding its portfolio of shorter Caribbean itineraries and private destination experiences to meet that demand.

"Half of our guests are millennials or younger now," Liberty explained. "They like to do shorter holidays more frequently, but they tend to spend the same amount of money that they would on a longer holiday."

Royal Caribbean also revealed that its planned Mahahual, Mexico destination project will be delayed as the company "continues discussions" with local stakeholders and government officials. Liberty stressed that the company would continues to work towards a development that will create "long-term opportunities" for the region and Royal Caribbean guests.

The cruising giant also said repeat guest numbers have increased year-on-year, while bookings for both 2026 and 2027 remain at "record pricing" despite consumers waiting longer before making travel plans.

Despite the strong consumer backdrop, Royal bosses acknowledged the conflict in the Middle East has affected on European bookings this year.

Liberty said Europe "was off to an incredible start", but that geopolitical tensions "did curtail to a degree the demand for Europe". He added that, without the disruption, "we would have raised the back half of the year".

The company said the conflict has lasted longer than expected, "influencing consumer destination preferences and resulting in more modest yield growth for Europe sailings this summer".

'A new normal'

However, executives stressed the impact has been concentrated in nearer-term bookings rather than longer-term demand.

"These geopolitical events have had little to no impact on guests that are thinking six months down the road," Liberty said. "They might be a little bit hesitant within 12 months when they're looking at airfare – but that stuff is typically just noise."

He added: "I think that as things get resolved or moved into a different place, or maybe it becomes a little bit more of a new normal, they're then back and focused on what is critically important to them.  

"And building memories and experiences with their friends and family are at the very highest of their priority list."