By Ananya Mariam Rajesh and Doyinsola Oladipo

(Reuters) – Royal Caribbean raised its annual profit forecast on Tuesday for the fourth time this year, driven by strong demand and higher prices for its trips to private destinations, as well as vacations to Europe and Alaska.

Cruise operators have reported that revenge voyages – which boosted bookings following pandemic lockdowns – have now been replaced by a growing trend of travelers seeking vacations at sea.

The company’s shares rose about 1.3% in choppy morning trading, expected to add to this year’s gain of 57% through Monday’s close.

Royal Caribbean said demand for 2025 was strong, with booked load factors consistent with previous years and higher fares.

Brokerage firm William Blair expects the company to see healthy earnings growth of 20% in 2025. “Investors recognize that Royal Caribbean has become a more consistent, higher-yielding business,” said l analyst Sharon Zackfia.

That’s partly because operator Silversea Cruises has led the industry in investing millions of dollars in private theme park-style destinations that boost ticket revenue.

Royal Caribbean expects adjusted earnings per share of $11.57 to $11.62 for 2024, compared to a prior expectation of between $11.35 and $11.45.

“Our exceptional third quarter results and increased expectations for the full year reflect the strong demand for our differentiated vacation experiences,” said Jason Liberty, CEO of Royal Caribbean Group.

The company reported third-quarter adjusted earnings per share of $5.20, compared with analysts’ estimates of $5.03. Total revenue rose nearly 18% to $4.89 billion in the quarter, compared to an estimate of $4.90 billion.

Royal Caribbean warned of the impact of Hurricane Milton and forecast fourth-quarter profit below estimates.

In early October, Royal Caribbean and rival Carnival Corp adjusted their Atlantic region itineraries ahead of Hurricane Milton.

Royal Caribbean expects fourth-quarter adjusted earnings per share of between $1.40 and $1.45, compared with analysts’ average estimate of $1.58, according to data compiled by LSEG.

(Reporting by Ananya Mariam Rajesh in Bengaluru and Doyinsola Oladipo in New York; editing by Pooja Desai and Sriraj Kalluvila)