Royal Caribbean Sees More Last-Minute Bookings, Plans Loyalty Changes

Royal Caribbean's passengers are definitely spending. Its plans to improve how its loyalty program and co-branded credit card reward guests may fuel future growth.

Royal Caribbean Group said that booking rates have accelerated since April, driven by last-minute reservations.

"Our second quarter results exceeded expectations mainly driven by stronger-than-expected close-in demand," said CEO Jason Liberty in an earnings call. "Bookings have accelerated since the last earnings call, particularly for close-in sailings."

The company delivered over 2 million vacations in the quarter, a 10% increase year-over-year. Half of its customers were millennials or younger.

The results let the Miami-based cruise giant raise its annual profit forecast on Tuesday, banking on resilient demand for its luxury destinations as the cruise operator reported its second quarter with the highest margins in about 20 years.

"We continue to see engaged and excited consumers with roughly 75% intending to spend the same or more on leisure travel over the next 12 months," Liberty said.

"At the same time, more than half of consumers tell us they are booking closer to their departure date than they used to. And for the peopl