Royal Caribbean International, the world’s second-largest cruise operator, is experiencing a surge in demand as travelers eager to return to the seas book voyages. However, the company is facing headwinds from rising inflation, which is impacting its profitability.

Despite the strong demand, Royal Caribbean’s CEO, Jason Liberty, acknowledged that inflation is putting pressure on the company’s expenses. He highlighted the rising costs of fuel, food, and labor as significant challenges.

While the company is seeing strong bookings and occupancy rates, the increased costs are impacting their bottom line. Liberty emphasized that Royal Caribbean is actively working to mitigate the impact of inflation through various strategies, including price increases and cost-cutting measures.

Despite the challenges, Liberty remains optimistic about the future of the cruise industry. He believes that the pent-up demand for travel will continue to drive strong bookings, and the company is confident in its ability to navigate the current economic environment.

The news comes as the cruise industry continues to recover from the pandemic. While demand is strong, the industry is still facing challenges related to staffing shortages and supply chain disruptions.

Royal Caribbean’s performance will be closely watched by investors as a key indicator of the health of the cruise industry. The company’s ability to manage inflation and navigate the current economic climate will be crucial to its future success.