The cruise industry is undergoing a digital transformation, and Royal Caribbean Group is steering the ship with a massive investment in artificial intelligence. In a recent discussion at the Skift Global Forum, Royal Caribbean CEO Jason Liberty revealed how the company is leveraging its âHimalayas of dataâ to revolutionize everything from ticket prices to the number of burgers grilled on board.
AI-Driven Pricing and Revenue Management One of the most significant shifts has been in revenue management. Liberty disclosed that the company manages approximately 15 million price points every single day. Historically, this monumental task was handled by a team of hundreds of revenue managers. Today, however, artificial intelligence drives more than 90% of these pricing decisions, allowing for dynamic and efficient adjustments that human teams alone could not sustain.
Sustainability Through Prediction Beyond the balance sheet, Royal Caribbean is using AI to tackle environmental challenges, specifically food waste. By predicting exactly how much food is needed down to 15-minute intervals, the cruise line has successfully cut food waste on its ships by 50%. âWeâve been able to reduce the waste on our ships by 50% by implementing AI and being able to predict how many hamburgers and other things that every 15 minutes we need to produce,â Liberty explained. With 180,000 passengers at sea at any given moment, these predictive capabilities translate into massive resource savings and a more sustainable operation.
Enhancing the Guest Experience Liberty emphasized that the goal of their AI strategy is to remove friction from the vacation experience without being intrusive. He described the approach as ânon-creepy,â focusing on personalization and seamless service rather than surveillance. The technology helps tailor pricing, communication, and onboard experiences to individual preferences, ensuring that the company can anticipate guest needs before they even arise.
A Wider Industry Trend Royal Caribbean isnât the only player making waves with AI. Carnival Cruise Line has also been active in the space, piloting over 100 generative AI projects. According to Carnivalâs CIO Sean Kenny, current tools include systems that assist travel agents in answering queries and even help ship servers recommend the perfect wine pairings for guests.
Travelers themselves are also driving this change. A 2023 survey by Oliver Wyman found that 56% of recent cruisers had already used generative AI tools to help plan their vacations, signaling that the integration of AI is becoming standard practice on both sides of the gangway.
Conclusion As cruise lines continue to recover and grow post-pandemic, efficiency and personalization are paramount. For Royal Caribbean, the future is data-driven, using advanced technology not just to optimize profits, but to create a smoother, greener, and more enjoyable experience for millions of travelers worldwide.
