RCCL to Do Some Belt-Tightening

Royal Caribbean Cruises Ltd. is expected to downsize its staff and make budget
cuts, according to industry sources.

Credit Suisse Bank analyst Scott Barry said sources had confirmed that RCCL would implement “broad-based, shoreside expense reductions of up to 25 percent in response to operational challenges, including skyrocketing fuel costs.

Barry said a 25 percent reduction in shoreside costs could deliver about $200 million
in savings.

“While this target appears aggressive, we believe material savings can be
achieved without impacting the customer experience,” Barry wrote.

According to sources, the company aims to trim payroll by 10 percent and is asking
staff to reduce expenses.

RCCL will report second-quarter earnings next week, and the cuts are expected to
be announced in advance of its earnings report.