OneSpaWorld (OSW) 27th Annual ICR Conference 2025 summary

Business overview and market position

• Operates health, wellness, spa, and fitness services on 199 cruise ships and 49 land-based locations, with cruise operations making up the vast majority of revenue and EBITDA.

• Maintains a dominant 90%+ market share due to a robust global recruitment and training infrastructure, proprietary data, and strong logistics.

• Contracts with major cruise lines typically span five to eight years, providing long-term visibility and stability.

• The business environment in 2024 is described as normalized, with cruise lines operating at pre-pandemic load factors and strong consumer demand.

• Competitors have struggled to match the scale and operational complexity required, leading to market exits or acquisitions.

Demand trends and consumer behavior

• No signs of consumer softness; cruise ticket pricing is rising and booking windows are strong for 2025.

• Discounting is lower than pre-pandemic levels, supporting higher onboard guest spending.

• Services typically reach about 11% of cruise guests, skewing toward higher-tier consumers who have shown resilience.

Financial performance and guidance

• Pre-announced Q4 results exceeded expectations, marking at least six consecutive quarters of beats.

• 2025 guidance incorporates nine new vessels, mostly entering service late in the year, with full-year benefit expected in 2026.

• Land-based operations are a minor drag due to construction delays, but overall division met or slightly beat 2024 forecasts.

• Management is conservative in guidance, but upside is possible if current trends persist and pricing opportunities are realized.