Royal Caribbean’s Casino Royale Sparks Agent Frustration as $440M Trading Volume Pushes Stock to Top Daily Volume

Royal Caribbean (RCL) rose 0.53% on August 15, with a trading volume of $440 million, as concerns over its Casino Royale program intensified. Travel agents expressed frustration during a Q&A session aboard the Star of the Seas, highlighting how casino-comped cruises are eroding their commissions. Agents noted that clients often cancel pre-booked reservations to claim casino offers, significantly reducing their earnings. Royal Caribbean's leadership acknowledged the issue, emphasizing their commitment to addressing the imbalance while maintaining the casino program as a key revenue stream for onboard spending. CEO Michael Bayley indicated the company is exploring partnerships to better align interests with travel advisors.

The casino program, separate from Royal's Crown and Anchor loyalty system, rewards gamblers with annual cruise certificates and perks like free drinks and discounted internet. While beneficial for cruisers, the process for agents to book these offers is cumbersome, with some opting to avoid them altogether. Agents also raised logistical challenges, such as losing group booking recognition when clients switch to casino reservations. Royal Caribbean's Vice President of Sales, Vicki Freed, assured agents that the company is "starting from scratch" to re-evaluate the program, citing past adjustments like making Swim & Tonic an adults-only space as examples of responsiveness to agent feedback.

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