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The Street
The Street
Business
Daniel Kline

Royal Caribbean Goes Even Bigger in its Battle With Carnival

When Wonder of the Seas began sailing out of Fort Lauderdale in March 2022, the ship claimed the title of "largest cruise ship in the world" from its sister ship, Symphony of the Seas. In fact, Royal Caribbean (RCL) has essentially traded that title from one Oasis-class ship to the next.

Before Symphony, it was held by Harmony of the Seas, Allure of the Seas, and even the original Oasis-class ship, Oasis of the Seas. Royal Caribbean has generally built each new Oasis-class ship a little bit bigger than the last. That's not something overtly noticeable when onboard -- Wonder of the Seas does feel notably bigger than Symphony of the Seas -- but the cruise line clearly wants to be able to claim the "biggest ship in the world title."

Carnival Cruise Lines (CCL) signature brand only has one ship, the Mardi Gras, that cracks the list of the top-15 biggest ships. And while passengers may not feel they're missing anything on a smaller ship (and certainly not one as large as Carnival Mardi Gras, which has an onboard roller coaster) the "biggest ship in the world" crown clearly has value both for marketing and bragging rights.

Now, with its next Oasis-class ship, the sixth of that class Utopia of the Seas, Royal Caribbean will once again claim that title and add some new bells and whistles.

TheStreet

Utopia of the Seas Moves Forward

Oasis-class ships have some unique features including the outdoor Central Park area -- a literal park onboard the ship -- as well as another outdoor area, the Boardwalk, which features the impressive Aquatheater as well as a carousel. Utopia of the Seas will offer both of those and it will be the second Royal Caribbean ship to be powered by liquefied natural gas (LNG).

The company shared some news on that during the hull-laying ceremony for the ship.

As the second Royal Caribbean ship that will be powered by liquefied natural gas (LNG), Utopia will also advance Royal Caribbean’s decades-long commitment to the environment. The ship’s LNG technology will join a lineup of the cruise line’s already-established environmentally friendly initiatives on its ships. From shore power connection to waste heat recovery systems, the applications have been developed and continually enhanced as part of Royal Caribbean’s dedication to innovation and making strides toward a clean-energy future.

Royal Caribbean has opted to keep building ships -- basically one a year -- despite the pandemic and the uncertainty surrounding the cruise industry. President Michael Bayley detailed that commitment at the ceremony

“The keel laying for Utopia of the Seas represents the first milestone of an incredible ship and the next step toward a bolder, thrilling future for Royal Caribbean and vacations,” he said.. “Utopia’s debut in 2024, on the heels of Icon of the Seas setting sail in fall 2023, will build on a new, exciting chapter that is set to redefine family vacations and getaways for all ages in ways we’ll soon reveal.”

Royal Caribbean Has Bet on Big Ships

Both Royal Caribbean and Carnival have placed their bets on big ships (Carnival's next ship, the Celebration will be a sister ship to Mardi Gras). Larger ships offer more to do -- things like water slides, roller coasters, ice skating rinks, unique performance venues, and a stunning array of dining choices -- but they're also limited at to what ports they can visit.

Oasis-class ships are destinations in themselves where you can't experience everything they have to offer on a seven-day cruise.  Royal Caribbean uses many of its largest ships to make stops at its CocoCay private island, a destination that serves as an extension of the ship.  

Royal Caribbean has committed to building big ships (Icon of the Seas will briefly be the biggest ship in the World when it launches). That's a strategy that Carnival has opted to follow, but not quite emulate as it has never tried to build a ship a tiny bit bigger than Royal's last effort.

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