Americans drive higher fares, on-board spend for Royal Caribbean in EuropeAmericans drive higher fares, on-board spend for Royal Caribbean in Europe

With North Americans comprising a larger percentage of the sourcing than in any prior year, this is driving both higher ticket revenue and on-board spending, evp and cfo Jason Liberty said Tuesday.

'North Americans spend more on the ticket and quite a bit more on the ships,' particularly on shore excursions because a Europe cruise is a bucket-list experience, Liberty told analysts on the company's earnings call.

As North Americans eat up more capacity, Europeans have to spend more to book, Liberty noted.

Both the Royal Caribbean International and Celebrity Cruises brands are experiencing 'great demand' for Europe from North America, RCI president and ceo Michael Bayley said, adding, though, that this hasn't pushed down European sourcing, which he described as 'quite healthy.'

Liberty said stronger demand for Europe cruises is driven by fewer geopolitical incidents and more moderate air costs.

Chairman and ceo Richard Fain wasn't so sure there have been fewer incidents but he said people have become 'a little bit more acclimated to them.' That may not be so good for society, he added, but it's relevant for the cruise business.

Half of Royal Caribbean's capacity is in Europe during the third quarter, dropping to 10% in the fourth quarter.

In 2018, industry capacity is expected to rise 5% in Europe while Royal Caribbean's capacity will be up 9% there.