Royal Caribbean, Canyon Ranch in SpaClub Deal

Zacks

Celebrity Cruises, one of the six cruise brands of Royal Caribbean Cruises Ltd. (RCL) has entered into a partnership with Canyon Ranch, a leading spa and wellness brand. Per the deal, Canyon Ranch will offer SpaClub services onboard 10 Royal Caribbean Celebrity ships.

This deal will mark the debut of SpaClub services and treatments on Celebrity ships. The SpaClub services include spa, beauty salon, wellness and fitness amenities that will likely cater to the demand of Celebrity passengers.

Celebrity Ships sail to various destinations across all seven continents. Apart from the spa services and other amenities, this premium brand offers its guests luxury "AquaClass" accommodations.

Driven by these factors, the company recently posted strong fourth quarter and 2013 results with earnings and revenue beating the Zacks Consensus Estimate and both up year over year. Increased onboard and other revenues and solid close-in demand in Europe and Asia backed the results.

It is difficult to survive in such a competitive industry without offering additional services and lucrative offers. Carnival Cruise Lines, a Carnival Corp. (CCL) brand also offers continuous product enhancements, attractive promotions and varied entertainment options for its guests. As a result, it was successful in creating a one-month reservation record by making net bookings of more than 565,000 during this period.

Royal Caribbean holds a Zacks Rank #1 (Strong Buy). Some other stocks worth considering in the leisure and recreational services sector include Carmike Cinemas Inc. (CKEC), and ClubCorp Holdings, Inc. (MYCC). Both these stocks carry a Zacks Rank #2 (Buy).

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