(Reuters) -Royal Caribbean forecast its annual profit largely above Wall Street expectations on Tuesday, betting on higher cruise bookings to private destinations as well as premium voyages to the Mediterranean and the Alaskan region.

Shares of the cruise operator were up 3.5% in premarket trading.

The popularity of sea-based vacations has surged lately with cruise operators investing millions of dollars in introducing new ships and private-destination travel itineraries packed with excursions, beaches, bars and restaurants.

Analysts noted that Royal Caribbean in particular, has seen strong demand for CocoCay, an amusement park-like private destination in The Bahamas.

"2025 is shaping up to be another great year, with expected adjusted earnings growth of 23%," Royal Caribbean Group CEO Jason Liberty said.

The company expects full-year adjusted earnings per share of $14.35 to $14.65, compared with analysts' average expectation of $14.41, according to data compiled by LSEG.

Its fourth-quarter revenue rose to $3.76 billion from $3.33 billion a year earlier. Analysts on average had expected $3.77 billion.

Royal Caribbean posted quarterly adjusted earnings of $1.63 per share, topping estimates of $1.50.

(Reporting by Ananya Mariam Rajesh in Bengaluru and Doyinsola Oladipo in New York; Editing by Shinjini Ganguli)