원스파월드(OSW) 2026회계연도 3분기 실적 발표회: 매출 7% 증가, 가이던스 상향

핵심 요약

• 2026 회계연도 3분기 매출은 전년 동기 대비 7% 증가한 2억 7,650만 달러, 조정 EBITDA는 12% 증가한 3,920만 달러를 기록했습니다. 경영진은 두 실적 모두 지난 7월 제시했던 가이던스 상단을 초과했다고 밝혔습니다.
• 순이익은 2025 회계연도 3분기 2,430만 달러(희석주당순이익 0.23달러)에서 2,820만 달러(희석주당순이익 0.28달러)로 증가했습니다. 조정 희석주당순이익(EPS)은 0.30달러에서 0.34달러로 늘었습니다.
• 고객 1인당 평균 지출액은 가격 인상보다는 서비스 구성 다변화에 힘입어 3.3% 증가했습니다. 경영진은 메디스파, 침술, IV(수액) 치료 및 기타 고부가가치 건강·장수 서비스의 성장을 강조했습니다.
• 사전 예약 매출은 20% 증가해 전체 서비스 매출의 23.2%를 차지했으며, 이는 전년 동기의 21.5%보다 상승한 수치입니다. 선행 예약 건수는 전년 동기 대비 18% 증가했습니다.
• 원스파월드(OneSpaWorld)는 2026 회계연도 연간 전망치 중간값을 상향 조정했습니다. 현재 예상 매출은 10억 3,300만 달러~10억 3,800만 달러이며, 조정 EBITDA는 1억 3,800만 달러~1억 4,000만 달러입니다.
• 이사회는 1억 달러 규모의 신규 자사주 매입 프로그램을 승인하고 분기 배당금을 주당 0.0625달러로 25% 인상했습니다.

주요 재무 데이터

사업 및 운영 성과

1,800만 달러의 매출 증가에는 고객 1인당 평균 지출액 3.3% 증가로 인한 820만 달러, 2026년 신규 선박 건조 및 매출 발생 일수 증가로 인한 700만 달러, 고객 수 증가로 인한 430만 달러가 포함되었습니다.

원스파월드는 분기 말 기준 207척의 선박에서 헬스 및 웰니스 센터를 운영했으며, 분기 평균 운영 선박 수는 206척이었습니다. 이는 2025 회계연도 3분기의 204척 및 평균 199척과 비교됩니다. 회사는 2026년 말까지 208척의 선박과 12곳의 휴양지 리조트에서 센터를 운영할 것으로 예상합니다.

메디스파 서비스는 전년 동기 150척에서 늘어난 157척의 선박에서 제공되었습니다. 경영진은 연말까지 159척 적용을 목표로 하고 있습니다. 써마지(Thermage), 트루스컬프(truSculpt), 쿨스컬프팅(CoolSculpting), IV 치료, 침술, LED 광선 치료를 포함한 고부가가치 상품이 두 자릿수의 강력한 성장을 기록했습니다.

경영진은 메디스파 거래가 일반적인 마사지나 페이셜 트리트먼트보다 3~4배 높은 지출을 창출할 수 있지만, 메디스파는 여전히 전체 총매출의 9.5% 미만을 차지한다고 밝혔습니다. 공간상의 제약과 선상 타 용도 사용의 경제성 때문에 전체 선대에 확대 적용하는 데 한계가 있습니다.

직원 유지율은 81%를 넘어 전년 동기 대비 약 5%포인트 개선되었습니다. 경영진은 숙련된 직원이 더 유용한 추천, 교차 판매 및 업셀링을 이끌어낸다고 설명했습니다.

휴양지 리조트 매출은 일부 호텔 영업 중단 등으로 인해 140만 달러 감소했습니다. 제품 매출은 영국과 이탈리아 사업의 구조조정 여파로 130만 달러 줄었습니다.

회사는 아자마라 크루즈(Azamara Cruises) 및 실버시(Silversea)와의 계약을 갱신했습니다. 아자마라 퀘스트(Azamara Quest)호는 트리트먼트룸, 소매 공간, 메디스파 및 IV 치료 서비스를 추가하는 스파 개보수를 완료했습니다.

경영진 가이던스

경영진은 중간값 기준으로 이번 전망치가 철수 및 재편된 사업을 제외한 2025 회계연도 실적 대비 매출 10% 성장, 조정 EBITDA 13% 성장을 의미한다고 설명했습니다.

2026 회계연도 4분기의 경우, 경영진은 매출액 2억 4,800만 달러~2억 5,300만 달러, 조정 EBITDA 3,200만 달러~3,400만 달러를 예상합니다. 이러한 전망은 동적인 운영 환경을 감안하면서도 올해 들어 지속된 모멘텀과 가시성 높은 파이프라인을 반영한 것입니다.

리스크 및 주요 관전 포인트

• 경영진은 지리학적 정세 불확실성이 올해 초 지중해 지역 예약에 영향을 미쳤으나, 원스파월드가 우려했던 수준의 침체를 겪지는 않았다고 언급했습니다.
• 휴양지 리조트 폐쇄 및 아시아 지역 내 육상 헬스·웰니스 센터 철수로 인해 회사의 육상 거점이 축소되었습니다.
• 다이내믹 프라이싱(가변 가격제) 소프트웨어는 개발, 새로운 운영 절차 및 테스트가 필요합니다. 경영진은 이르면 2027 회계연도 4분기 이전에는 도입하기 어려울 것으로 예상하고 있습니다.
• 메디스파 확장은 선상 공간의 확보 또는 용도 변경에 부분적으로 의존하는데, 이는 객실, 카지노, 바 등 크루즈 선사의 다른 용도와 경쟁합니다.
• 경영진은 2028년 이후 다이내믹 프라이싱이 가져올 잠재적 재무적 기여도를 수치화하여 제시하지 않았습니다.

애널리스트 Q&A 하이라이트

고객 1인당 평균 지출액: 경영진은 3.3% 증가의 원인을 가격 인상이 아닌 서비스 구성, 고객 참여, 소매 제품 연계 판매 덕분이라고 밝혔습니다. 침술, 메디스파 및 장수 서비스는 기존 마사지, 페이셜, 페디큐어보다 거래 가치가 높습니다.

사전 예약 기회: 사전 예약 서비스는 서비스를 제공하는 선박의 약 94%에 적용된 플랫폼을 통해 이용 가능합니다. 경영진은 크루즈 파트너와 협력하여 디지털 노출 및 리소스를 개선하고 있으며, 향후 2년~2.5년에 걸쳐 사전 예약 매출 비중을 30%에 가깝게 끌어올리는 장기 목표를 추진 중입니다.

마진 및 AI: 경영진은 서비스 마진 개선이 서비스 구성 비율 덕분이라고 말했습니다. 현재 AI 관련 추진 사항은 즉각적인 파격적 매출 효과보다는 자동화, 추천 기능, 그리고 관리자가 매출 창출 활동에 집중할 수 있도록 복귀시키는 데 주로 초점을 맞추고 있습니다.

회사의 AI 기반 추천 및 수익률 최적화 플랫폼인 아만다(Amanda)는 188척의 선박에서 작동 중입니다. AVA는 3분기 지원 티켓의 90%를 사람에게 전달하지 않고 처리하여 약 150시간의 직원 업무 시간을 절감했습니다. 세레나(Serena)는 5월 출시 이후 1,287건의 고객 상담을 처리했습니다.

다이내믹 프라이싱: 경영진은 이 시스템이 사전 예약에 먼저 적용된 후 선상에 도입될 것으로 기대하고 있습니다. 가장 빠른 도입 예정 시기는 2027 회계연도 4분기입니다. 목표는 가격을 수요 및 공급과 보다 밀접하게 맞추고 불필요한 할인을 줄여 수익률을 높이는 것입니다.

자본 배분: 원스파월드는 이번 분기 동안 3,720만 달러에 140만 주를 매입하며 기존의 7,500만 달러 규모 승인액을 모두 소진했습니다. 경영진은 우선순위가 사업 투자, 기회주의적 자사주 매입, 배당 및 부채 감축으로 유지된다고 설명했습니다.

실적발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Greetings, and welcome to OneSpaWorld's Third Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Allison Malkin of ICR. Thank you. You may begin.

Allison Malkin

Good morning, and welcome to OneSpaWorld's Third Quarter 2026 Earnings Call and Webcast. Before we begin, I'd like to remind you that certain statements and information made available on today's call and webcast may be deemed to constitute forward-looking statements. These forward-looking statements reflect our judgment and analysis only as of today, and actual results may differ materially from current expectations based on a number of factors affecting our business. Accordingly, you should not place undue reliance on these forward-looking statements.

For a more thorough discussion of the risks and uncertainties associated with the forward-looking statements to be made in this conference call and webcast, we refer you to the disclaimer regarding forward-looking statements that is included in our third quarter 2026 earnings release, which was furnished to the SEC today on Form 8-K. We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

In addition, the company may refer to certain adjusted non-GAAP metrics on this call. Explanations of these metrics can be found in our earnings release issued earlier this morning. Joining me today are Leonard Fluxman, Executive Chairman and Chief Executive Officer; and Stephen Lazarus, President, Chief Financial Officer and Chief Operating Officer.

Leonard will begin with a review of our third quarter 2026 performance and provide an update on our key priorities. Then Stephen will provide more detail on the financials and guidance. Following our prepared remarks, we'll turn the call over to the operator to begin the question-and-answer portion of the call. I would now like to turn the call over to Leonard.

Leonard Fluxman

Thank you, Allison. Good morning, and welcome to OneSpaWorld's Third Quarter 2026 Earnings Conference Call. I'm pleased to share we delivered an excellent third quarter performance. Our results exceeded the high end of our guidance and marked our 22nd consecutive quarter of record year-over-year growth for total revenue and adjusted EBITDA.

Our sustained momentum reflects the durability of our business model, the successful execution of our strategy and our unwavering commitment to deliver memorable experiences for guests of our health and wellness centers at sea and on land. I want to thank our outstanding global team members for their continued commitment to deliver our strong performance. Our strength was broad-based. We saw gains across all key operating metrics, and we set the stage to further expansion by entering into new agreements that extend our long-standing cruise line partnerships, which I'll discuss in a moment.

In addition, our asset-light business model has led to consistently strong and growing free cash flow. This, along with the confidence we have in our near- and long-term outlook, paved the way for our Board to approve a new $100 million share repurchase program and a 25% increase in our quarterly dividend.

Looking ahead, we expect continuation of our strategy to give us our fourth consecutive year of record results in fiscal 2026. Turning to some of the highlights of the quarter. Total revenues increased 7% and adjusted EBITDA increased 12%. At quarter end, we operated health and wellness centers on 207 ships with an average ship count of 206 for the quarter. This compares with a total of 204 ships and an average ship count of 199 ships at the end of the third quarter of 2025. Also at quarter end, our cruise ship health and wellness centers were fully staffed with 4,645 personnel compared with 466 personnel on vessels at the end of the third quarter of fiscal 2025.

The quarter marked continued progress on our key priorities. Let me discuss some of those highlights. First, we continue to grow with our cruise line partners. During the quarter, we entered into new agreements with Azamara Cruises and Silversea. These agreements extended our long-term partnerships and enable us to enhance and elevate spa facilities to broaden the range of services, products and experiences we offer to cruise line guests.

Under the renewed agreement, Azamara completed its first spa refit on board Azamara Quest, adding treatment rooms, a retail space and importantly, a new Medi-Spa and IV therapy services. We remain on track to introduce health and wellness centers on 2 additional ship builds this year.

Second, we continue to expand high-value services and products. These services, including our innovative offerings of Thermage, truSculpt, CoolSculpting, IV therapy, acupuncture, and LED light therapy, continue to drive strong double-digit growth compared to last year.

We remain focused on expanding these services across our fleet while introducing new offerings that address guests interest in longevity and wellness. In addition, we continue to broaden our product range with red light masks now available for purchase on a select pilot group of ships. At quarter end, Medi-Spa services were available on 157 ships up from 150 ships at the end of the third quarter of 2025. We continue to expect to have Medi-Spa offerings on 159 ships by the year-end 2026.

Thirdly, we focused on enhancing health and wellness center productivity. This is best reflected in the continued growth in key maritime operating metrics, including revenue per passenger per day, weekly revenue and revenue per staff per day. In addition, prebooked revenue increased 20% and represented 23.2% of service revenue, up from 21.5% a year ago, and our forward booking position is up 18% compared to the same time last year.

Staff retention reached over 81% at quarter end, up nearly 5 percentage points from a year ago. Experienced staff remain an important contributor to our operating metrics. These team members drive incremental revenue through more effective guest recommendations, cross-selling and upselling. We remain committed to investing in best-in-class training to support productivity and long-term growth in our operating metrics.

Fourth, we maintained our strong balance sheet and continue to generate strong free cash flow. During the quarter, we returned $42.3 million to shareholders through share repurchases and dividends while also reducing debt. Together, these actions advance each of our capital allocation objectives and underscore the strength and durability of our asset-light business model.

In addition, as a further indication of our conviction in our ongoing growth, our Board approved a new $100 million share repurchase program and a 25% increase in our quarterly dividend to $0.0625 per share, which Stephen will discuss further.

In summary, our results reflect our unique experiences in the operations of health and wellness centers on land and at sea. We entered the fourth quarter with positive momentum, and this, along with our strong first 9 months performance, has led us to raise the midpoint of our guidance ranges.

We expect 2026 to represent our fourth consecutive fiscal year of record performance and remain focused on executing our strategy, serving our cruise line and destination resort partners and their guests and creating long-term value for our shareholders. I'm now going to turn the call over to Stephen. Stephen?

Stephen Lazarus

Thank you, Leonard. Good morning, everyone. We are pleased with our third quarter performance with total revenue increasing by 7% and adjusted EBITDA increasing by 12% compared to the third quarter of 2025. Both of these exceeding the high end of the guidance ranges we provided in July. Our results were driven by higher average guest spend and higher volumes, reflecting ongoing innovation in our guest services and products and our continued collaboration with our cruise line and destination resort partners as well as growth in our fleet from new ship builds.

Combined, this served to further bolster our competitive position and deliver consistent growth. Total revenues increased 7% to $276.5 million compared to $258.5 million for the third quarter of 2025.

The $18 million increase was driven by a 3.3% increase in average guest spend, fleet expansion due to 2026 new ship builds and higher volumes, primarily reflecting a 1.8% increase in revenue days net of 2026 fleet expansion and an increase in guest count contributing $8.2 million, $7 million and $4.3 million, respectively.

Contributing to the increased volume and spend was $6.9 million in increased prebook revenue at health and wellness centers included in our ship count as of September 30, 2026. Growth in our Maritime total revenues was partially offset by a $1.4 million decrease in destination resorts, partially due to the closure of hotels where we had previously operated. The decrease in product revenue was driven by the previously announced reorganization of operations in the United Kingdom and Italy, which decreased product revenue by $1.3 million.

Cost of services increased $12.2 million attributable to the $18.3 million increase in service revenue compared to the third quarter of 2025. Cost of products decreased $300,000 attributable to the decrease in product revenue. Administrative expenses were $7 million compared to $4.6 million in the third quarter of 2025. The increase was primarily due to $2.1 million in third-party fees for certain management and logistics services as a result of our previously announced reorganization of operations in the United Kingdom and Italy, pursuant to which services previously performed internally by company staff and related costs have shifted from salaries, benefits and payroll taxes to administrative expenses.

Salaries, benefits and payroll taxes were $8.7 million compared to $8.4 million in the third quarter of 2025. The increase was primarily due to annual merit increases and higher incentive-based compensation after giving effect to the reorganization of operations in the United Kingdom and Italy noted above. Net income was $28.2 million or net income per diluted share of $0.28 compared to net income of $24.3 million or net income per diluted share of $0.23 for the third quarter of prior year.

The increase was attributable primarily to a $3.6 million increase in income from operations and a $200,000 decrease in interest expense net. The decrease in interest expense was primarily attributable to lower debt balances. Adjusted net income was $34.8 million or adjusted net income per diluted share of $0.34 compared to adjusted net income of $30.7 million or adjusted net income per diluted share of $0.30 for the third quarter of 2025. Adjusted EBITDA was $39.2 million compared to adjusted EBITDA of $35 million in the third quarter of 2025.

Turning to the balance sheet. We maintained a strong balance sheet at quarter end with total cash of $32.1 million after repurchasing $37.5 million of our common shares paying $15.2 million in quarterly dividends and repaying $13.8 million of our long-term facility during the 9 months ended September 30, 2026.

Total liquidity, including available under our undrawn credit facility was $80.9 million at quarter end. Total debt, net of deferred financing costs was $70.5 million at September 30, 2026. During the third quarter, we repurchased 1.4 million common shares for $37.2 million, completing the $75 million share repurchase program we adopted in April 2025.

In total, we have repurchased 3.2 million common shares under that program. Our Board of Directors have approved a new share repurchase program authorizing the repurchase of up to $100 million of our common shares, which replaces the program we have just completed.

Our Board also approved a 25% increase in our quarterly dividend to $0.0625 per share payable on December 2, 2026, to shareholders of record on the close of business on November 18, 2026. We remain focused on disciplined capital allocation, supported by our cash flow generation and balance sheet flexibility. We will continue to prioritize investing in the business, returning capital to shareholders through share repurchases and our quarterly dividend and reducing debt.

Before reviewing guidance, I would like to provide an update on our AI initiatives. The first relates to revenue enhancement. Amanda is our AI-powered recommendation and yield optimization platform that provides daily yield improvement recommendations to our managers on board. We are continuing to see favorable results and to enhance this platform, having just added NAD+ and IV therapy recommendations on all 188 vessels where Amanda is in play.

Up next will be success indicators for every recommendation, ranking recommendations by impact as well as post-voyage assessment of strengths and opportunities. Second, we continue to expand our operational AI capabilities. AVA, our virtual assistant supports managers with shipboard operations. During the third quarter, 90% of tickets handled by AVA were closed with no human escalation, freeing up 150 hours of staff time that we can redeploy to generate revenue. We have expanded AVA to more use cases, including maritime labor convention courses, material safety data sheet retrieval and spa equipment knowledge-based search capability.

Up next, we'll be rolling out AVA to all onboard staff and adding inventory and order query capability. Third, on automation, Serena, the guest-facing conversational assistant on our e-commerce platform, has handled 1,287 guest conversations since its May launch. We continue to refine Serena with 28 improvements delivered to date. Up next, we will refine guests return options while maintaining our high customer service standards through seamless handoff to human support and guest satisfaction tracking. We also launched Marina during the quarter to enhance post-cruise customer service with 39 improvements having already been added since launch and up next is enhancement to customer artifact retrieval.

Finally, Claude, our enterprise-wide AI assistant is absorbing a growing share of routine work, being people for judgment and strategic thinking and training on this application continues to be extremely well received. As it relates to guidance, based on our year-to-date performance and momentum entering the fourth quarter, we are raising our full year 2026 guidance at the midpoint of the ranges previously provided. We now expect total revenue in the range of $1.033 billion to $1.038 billion and adjusted EBITDA in the range of $138 million to $140 million. This compares to our previous guidance of $1.018 billion to $1.038 billion and $130 million to $140 million, respectively, and raises the midpoint by $7.5 million for total revenue and $4 million for adjusted EBITDA.

At the midpoint, our guidance represents growth of 10% in total revenue and 13% in adjusted EBITDA compared with actual fiscal 2025 results excluding exited and reorganized operations. As a reminder, fiscal 2025 reported total revenues included $23 million associated with the reorganization of operations in the United Kingdom and Italy and the exit of destination resort operations in Asia, including $5.7 million in the fourth quarter of 2025.

For the fourth quarter of 2026, we expect total revenues in the range of $248 million to $253 million and adjusted EBITDA in the range of $32 million to $34 million. We expect to end the year with health and wellness centers on 208 ships and 12 destination resorts, reflecting the completion of our exit from land-based health and wellness centers in Asia.

Our guidance reflects our confidence in our ability to deliver sustained momentum and the visibility of our growth pipeline while acknowledging the dynamic environment. With that, we will open the call for questions. Maria, thank you. We are now ready for that.

Operator

[Operator Instructions] Our first question comes from Randy Konik with Jefferies.

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Randal Konik

I guess, first, to start off, one metric that really stood out to me in the quarter was average guest spend. It looks like it was up 3.3% in the quarter. And when I looked over the last few quarters, it looks like that metric accelerated about 200 basis points in the second quarter, and that average guest spend metric was the fastest growth it looks like I've seen in 4 quarters. So maybe if you could just unpack what's driving that or the main drivers there? And how do you think about average guest spend growth ahead? I really appreciate it.

Leonard Fluxman

Yes. No, it's a good observation and something that we focus on very, very much every single week, every single day is guest spend, frequency and attachment of the retail product, all which drive higher guest spend. So we're looking at different ways for -- to improve our penetration, Randy, going after, obviously, the best 11% of the guests. But at the same time, focusing on those higher-end services. And quite frankly, when we see the growth in Acupuncture Medi-Spa and our health and longevity services, all which sell at much higher prices than massage or Pedicure all contribute. So it's really, in summary, a mix of business. There's no pricing in that increase. It's more mix of business that's driving it as well as higher engagement and a good retail attachment of products in the third quarter.

Randal Konik

Got it. And I think you mentioned that Medi-Spa is on about 157 ships out of the 207. Is there a way to think about what the average guest spend difference is on -- is in the ships, the 157 ships that had Medi-Spa versus the ships that don't? Just want to get a feel for the differential there. And as you continue to put more of these Medi-Spas on ships over time, it just seems to be more opportunity to drive more spend per guest, more spend per ship, et cetera.

Leonard Fluxman

No, fair enough, Randy, and it's probably something I'm not going to get too granular about because we just don't give that as a reported metric. But look at it this way. On average, you're spending, let's just take the average with Botox and the like. We're certainly seeing the average spend well in excess of $1,500. So you have a group of injections, you have occupancy, you come back to some other Medi-Spa treatments, some of the technology stuff goes for much higher than $1,500. So when you're comparing that to the average ticket in a massage or facial, which is around about, say, $250, $300, you're looking at, in some cases, 3x, 4x on Medi-Spa. But let's not get too far ahead of ourselves. Medi-Spa still has not tipped past 9.5% of our total gross revenue.

Clearly, that's driving a nice mix of business. It's helping a little bit on the margin side. But it's still not going to be on 207 ships, but it's certainly going to be on any of the ships that we can get a retrofit such as the one that we just mentioned, the Azamara Quest, things like that where we can change the configuration and emphasize more Medi-Spa acupuncture space and maybe even look at the gym to capture some of that for some of our IV lounges and any of the new technologies, those will going forward, help stimulate not only the mix of business, but slight and emphasize more of the higher-end treatments that we are able to do right now.

Operator

Our next question comes from Steve Wieczynski with Stifel.

Steven Wieczynski

So I want to ask about the prebooking opportunity moving forward. I mean we're now openly hearing your cruise line partners call out the strength in prebooked onboard revenues. I mean just go listen to yesterday, what Royal said, listen to a couple of weeks ago, what Carnival said on their conference calls, it's very positive. So I guess the question is, have you seen your cruise line partners start to give you more resources or tools, whatever you want to think about it, to make it easier for customers to prebook your services before they come on board? And then also maybe now where you guys think prebooking revenues could get to over time?

Leonard Fluxman

Yes, absolutely. It's also another huge focus as we've been mentioning over the last 2 years or 3 years as we continue to build. Remember, this number used to be like a nice 14%, 15%, bumped up a little bit more. We are definitely getting more time with the cruise lines going through best-in-class on any of the platforms, which is about 94% of the ships that we service and making sure that they see what's good, what's bad, what's not working on their site. And they are starting to add resources because they -- as you say, they're talking about a lot, they see the spend better. So why not focus on it when they're getting just a big -- a nice chunk of that revenue.

So we want to continue to sit in front of them, show them best-in-class, and we're getting baseline with them with respect to -- and I think the meetings that we've had over the last 6 months with the cruise lines focused heavily on how do we improve the prebook is starting to pay off. Where can it get to is your last question? I mean, I've set the target to get to at some point. I'm not sure how soon. But over the next 2 years, 2.5 years, we should try and move this thing up closer to 30%, which if the cruise lines give us the resources, we could probably get there over time.

Steven Wieczynski

Okay. Got you. That's good color. And then, Leonard, I want to ask about the service margin in the quarter, which I think was 18.5%. I mean I think that's the highest level we have seen from you guys on that margin line. So any help in terms of what drove the margin this quarter? I mean, obviously, you called out a couple of things that probably helped there. But maybe where that service margin could eventually get to over time? And I assume some of that is going to be potential AI benefits, which I'm still not sure you're willing to give too much color there at this point.

Leonard Fluxman

Well, let me start with the last part. AI is not necessarily going to be as big a catalyst on boosting revenue just now. I mean what we're doing is boosting automation, giving the managers back more time to focus on day-to-day at the front desk, assisting receptionist do the cross-marketing, rebooking, obviously getting higher frequency. So it's really about automating some of their very, very manual tasks that they have to do in the back office either before the opening of the cruise or during the cruise.

So yes, effectively by having them on the floor more often in front of their staff, it's going to help drive revenue and focus. But in and of itself, it's not transformative. It's just -- I think at the point that we are able to start looking at how we prebook, how we prebook without a discount, how we maximize yield with a proper dynamic pricing prebooking engine, I think that will certainly be accretive to revenue. With respect to margin, it's purely mix that's driving a better service margin there.

And clearly, to the point that's raised is to the extent that we can continue to grow Medi-Spa above 10%, that will have some positive effect on service margin.

Operator

Our next question comes from Sharon Zackfia with William Blair.

Sharon Zackfia

Sorry if I missed this, but where are you at on the thought on timing for rolling out dynamic AI influence pricing?

Leonard Fluxman

Sharon, I don't think we'll have it in play before the fourth quarter of 2027. We have, I believe, selected and gone through an RFP with a vendor -- a couple of vendors. I think we've landed on someone we're comfortable with. So now the hard work comes, which is specking it out and then creating all the new SOPs and how we want it to work. But we're going to be working with a high-quality vendor. And these things take time, and then we've got to test them out there. But that would be sort of the earliest point that we get into play just because it takes time to develop the software.

Sharon Zackfia

Yes. Do you have -- can you give us any kind of context around what you think that could mean for the business in kind of '28 and beyond, whether it's port day utilization or anything that we could kind of start to think about numerically?

Leonard Fluxman

I'd love to Sharon, but I can't. It's just not possible at this point.

Sharon Zackfia

All right, fair. Does that count as my follow-up?

Leonard Fluxman

No, no, no. I'm just like there's no way I can really tell it to you because, let me put it to you this way. if this helps understand why we're doing it. What we have determined, even though we have sort of a manual dynamic pricing system in place where it's really the human in the loop. We have seen days where we ought not to be giving up margin or where we shouldn't be giving up yield on a particular day where, in fact, we could have sold it at full price. And I think that's going to be the differentiator and positiveness that's going to come out of the dynamic pricing, which is going to be truly dynamic based upon supply/demand, and we'll know what the advantage is. I believe it will be accretive for sure.

Sharon Zackfia

Are you still expecting that to roll out for prebooking first and then eventually onboard?

Leonard Fluxman

Correct. Yes.

Operator

Our next question comes from Max Rakhlenko with TD Cowen.

Maksim Rakhlenko

Congrats guys on a really nice quarter. So my first question is just given continued really strong performance sort of quarter after quarter, can you speak to how your conversations with the cruise partners are evolving and the opportunities to get greater square footage, whether it's on new ships or retrofits?

Leonard Fluxman

Those conversations happen as much as possible. We take areas of success, particularly Medi-Spa, IV Lounges, new Longevity Lounges, which are going to come into effect, which we haven't spoken much about, but we certainly had a nod from cruise lines where we will take a portion of new facilities and convert and establish a complete longevity experience for the guests where they'll be able to do a lot of different types of longevity offerings that's in play. That will commence at some point as we get into the new builds that are going to happen. So that's going to be a new trend that we're going to have there as well.

So we're excited about that. But getting Medi-Spa into more and more is always a difficult conversation because is it the highest and best return for the cruise line compared to something like casino or bar, no? As we well know, we're not nearly as big as that. And whether you give up a cabin for that, it's not. It's really just saying which areas of our existing facilities on some of the ships could be better utilized. Maybe it's slightly less relaxation area or the relaxation area now includes an IV Lounge experience or the gym includes that. So we've repurposed some areas. We've added some stretch classes into the gym. So we're trying to get that space utilized as much as possible where we see the opportunity.

Maksim Rakhlenko

Got it. That's super helpful. And then I just want to touch on capital deployment. This last quarter saw you guys buy back a bunch of stock, repay some debt. And obviously, you just increased the dividend by 25%, so sort of hitting on all 3 -- has there been any change around how you're thinking more tactically quarter-to-quarter around those 3 options? Obviously, you've got the new $100 billion deployment that you could use for buybacks coming up. So just curious how we should think about those 3 buckets of capital returns here in the near to medium term?

Leonard Fluxman

We have not changed tactically our thinking around that, Max. Our capital allocation priorities remain share repurchases opportunistically paying and increasing the dividend over time and reducing debt while at the same time, investing in the growth of our business. So how we've been doing it thus far will remain the same in the near term.

Operator

Our next question comes from Gregory Miller with Truist Securities.

Gregory Miller

I'd like to start off asking about the spa menu that you've condensed over the course of this year, at least in some of the cruise lines that have toured. And I'm curious how that's impacted your earnings, if at all. Are you seeing any improvement from a margin perspective? Is it showing up in terms of revenues as passengers choose different service offerings? And are you adding back any services that you removed earlier this year?

Leonard Fluxman

No, we took a long time to sort of look at the data, look at the demand, and we've really come up with what are the best services to put on that menu that are going to have the requisite take rate. And I think we've landed where we need to come to. So I think we're in a good place. Unlikely, we will return any of the old stuff on there unless we see a trend or demand for those services. But I think what we've come back to now is a solid state where it's what we want to offer, and it's certainly what's in demand by the guests.

Gregory Miller

Okay. For my second question, I'd like to ask about any implications to OneSpaWorld from the Royal partnership with Sandals. Is there an opportunity for you to be a part of Sandals spas, if that's of interest to you? Or how do you see overall this partnership impacting your company?

Leonard Fluxman

Well, it would be nice to think that maybe there'd be a conversation at some point in the future, but it's certainly too soon to talk about this. We haven't engaged. But yes, could we certainly help them? Absolutely. Is that something that they want to do? We'll see in the future.

Operator

Our next question is from Assia Georgieva with Infinity Research.

Assia Georgieva

Congratulations on yet another excellent quarter. My first question is more general. With the war in Iran, we clearly had some reduction in demand by North Americans to go to Europe. So I think in our data, we saw basically rotation into the Caribbean, which also was getting a lot of capacity. So would you characterize sort of the summer as a better-than-expected North American summer? And the reason I'm asking this is because next year, we'll have to absorb this capacity that came in this year and some more about 7%, 8% additional Caribbean capacity. So I wondered whether the quality of guests might suffer a little bit when we look out to next year? And also sort of my second question is, what are you seeing over the past month or so as we're getting into sort of the sloppier winter quarters?

Leonard Fluxman

Yes. We certainly -- based upon cruise line commentary and booking commentary with respect to the Mediterranean earlier on this year and some of the commentary was obviously quite negative with respect to how they feel the booking was going. But it turns out that despite all the geopolitical pressure, the Iran war oil, I mean, look how well the cruise lines have performed despite that. Can you imagine without it, how much better they would have done.

We actually did not have a bad Europe. We didn't have a bad Mediterranean, and there were plenty of North Americans out there. And so we certainly didn't see a downtick. We didn't see as much as we feared. Alaska performed well and the excess capacity that was put into the Caribbean started out a little soft, but then it strengthened very nicely.

Assia Georgieva

And does it make sense for us to kind of be viewing the fact that there is more capacity in the Caribbean, which does cater to North Americans who tend to spend more on spa coming in '27, that's a natural tailwind for you in '27?

Leonard Fluxman

It's a huge tailwind. If we love North Americans, that they spend the best on both, yes.

Assia Georgieva

And I think generally, you prefer sort of shorter cruises that attract new to cruise, because the spend there is larger. And I think we're seeing a little bit of a shift towards that in addition to just the pure capacity increase. Is that a fair statement?

Leonard Fluxman

I think you're probably looking at much closer in data than I have. But we're -- the Caribbean, more North Americans cruising here has never -- short cruises -- I mean, a 3-day cruise is much harder than a 4-day cruise because there's less time at sea, the 4-day cruise actually has a day at sea. So we kind of try and market it in the exact same way that we do a 7 days. The 7-day cruise week is by far the best week for everybody, and it's certainly the one that we do the best in.

Assia Georgieva

Okay. Great. This is very helpful. And can I just sneak in a very quick question on average guest spend. That seems to be a metric that we've been using only recently. And there is no way we can -- I can build my model by kind of assuming number of guests by using number of ships and all that. And I don't think that you disclosed the components. You just gave us basically the 1.2% in Q2 and the current 3.3%. Am I missing anything?

Leonard Fluxman

I mean everybody drives the model differently, Assia. I mean if you're just using that metric alone, you're probably not going to get to the right number. You got to look at total births, you've got to look at penetration. I mean we can take this offline and help you sort of formulate your thoughts around your model if you want.

Operator

We have reached the end of our question-and-answer session. There are no further questions at this time. I would now like to turn the floor back over to Leonard Fluxman for closing comments.

Leonard Fluxman

Thank you again, everybody, for joining us today. We appreciate your support and look forward to speaking with many of you at the upcoming investor conferences and wish you a very happy and healthy holiday season. Thank you.

Operator

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.