Royal Caribbean Blog

Will cruise ships scheduled to sail from Florida ports be forced to redeploy to other states because of new Florida law signed by Governor Ron DeSantis?

On Monday, Governor DeSantis signed SB-2006 that among other things, bans Covid-19 vaccine passports in the state.

The ban prohibits businesses, schools, and government agencies from requiring people to show documentation certifying COVID-19 vaccinations or post-infection recovery before gaining entry.

The bill takes effect on July 1, 2021.

This new law will replace the executive order he signed in mid-April that does the same thing in the interim.

The Governor is a strong proponent of cruise ships being able to restart, but also feels private businesses should not be able to require customers get a vaccine.

In a recent interview, he shared this sentiment, "I'm very supportive of getting our cruise lines back up and running.

"We think they should be able to sail. But we also don't think that they should be able to require your personal health information in that regard."

Royal Caribbean has not officially decided if it will require its cruise ship passengers to get a vaccine as a matter of fleet wide policy, although it is requiring the vaccine for select ships that will be restarting cruises outside the United States this summer.

Moreover, the U.S. Centers for Disease Control announced last week it would allow cruise ships to restart sailings sooner if they have at least 95% vaccinated cruise passengers.

Royal Caribbean International President and CEO Michael Bayley indicated it would be possible for some ships to start cruising under the vaccinated approach, while others could pursue restart under the Conditional Sail Order rules without a vaccine requirement.

Last week, Mr. Bayley spoke about these options, "There'll be really two pathways, one pathway for vaccinated crew and largely vaccinated guests that meet the threshold that they've defined. And that would mean that there wouldn't be a requirement for a simulated voyage etc, and there would be a different expectation on protocols and planning. So it's a faster route."

"And then for ships that wouldn't wouldn't meet that threshold for whatever reason, there would be a different timeline and a different set of protocols and requirements."

"So fundamentally that there's two pathways. It's not that simple, but that's a way of simplifying."

On March 1, 2021, Royal Caribbean Group Chairman and CEO Richard Fain reitterated no decision has been made yet on if Royal Caribbean will require its guests to be vaccinated in order to cruise.

Mr. Fain is a major support of the vaccines, and believes they are the fastest and best method to get Covid-19 under control.

"Whether we will require vaccines of all of our guests on all of our ships hasn't been decided yet, but we are prepared to go where the science leads us."

Rival cruise line Norwegian Cruise Line Holdings Ltd. (NCLH) believes by requiring vaccines of every single person onboard its ships initially, in addition to comprehensive protocols including universal COVID-19 testing, is the key to way to get its ships back into service faster with approval from the U.S. Centers for Disease Control (CDC).

Included in Royal Caribbean's first quarter 2021 results are the company's balance sheets, which provide insight into what happens to a company largely still shutdown.

Financial disclosures like this are rarely interesting, but I found a few noteworthy facts and figures that really stood out as interesting, and things that do not get mentioned during an earnings call or elsewhere.

Here are the most intriguing bits of information in Royal Caribbean's past quarter that I think are worth noting.

Royal Caribbean made more money on drink packages, WiFi, and excursions than cruise bookings

Prior to the cruise industry shutting down, the real source of profit for Royal Caribbean was not ticket sales, but all the extras guests would buy, and that trend still remains today.

In the first quarter, the company made $21 million on "onboard and other revenues", while selling $20 million in cruise fares. 

Compare that to the first quarter of 2020, when they sold a billion dollars in ticket revenue, and $655 million for the add-ons.

Clearly, customers really like their drink packages and onboard internet, and spend plenty before the cruise to purchase them.

Royal Caribbean lost $300 million less than last year, but made 98% less revenue

Everyone knew Royal Caribbean would lose a lot of money again this quarter, but what is amazing is how they managed to lose less money this year compared to the same time in 2020, but with significantly less revenue.

Royal Caribbean Group lost $1.1 billion in Q1 2021, while losing $1.4 billion during the same time in 2020. However, the company only made a fraction of the revenue they did in 2020.

In the first quarter this year, Royal Caribbean took in $42 million in revenue, compared to $2 billion in revenue in Q1 2020.

So how did they lose less money this year despite a gap in cash coming in?

Essentially, in the time since, Royal Caribbean has cut back on spending considerably.

In 2020, the company had an operating loss of $1.3 billion from cruise operating costs, but just $809 million for the same time this year.

Royal Caribbean Group is averaging $300 million cash burn per month.

Just over 55k guests sailed

It is easy to focus on the U.S. cruise market, but across its brands, Royal Caribbean Group still had cruises for over 55,000 passengers this quarter.

The sailings included not only Quantum of the Seas from Singapore, but also TUI Cruises and Hapag-Lloyd Cruises.

Interestingly, the statement for the quarter lists 41,209 passengers carried, but during the call with investors, Royal Caribbean Group Chief Financial Officer Jason Liberty noted the figure was 55,000.  These sheets can sometimes be prepared a few days early, and stats like this can changes slightly.

It is staggering to think about the difference in this year versus last, when 1.2 million guests sailed.  

Occupancy was at just 37% for this year, compared to 103% for last year.

The good news is many more will start to sail soon, with a total of 11 ships resuming service across all brands this summer. The tail end of Royal Caribbean Group's second quarter will include at least two new ships resuming service in June.

Lots of deposits for cruises remain

Cruises or not, people are still booking cruises and keeping their money with the company.

Mr. Liberty said the company was "very encouraged" by the customer deposit balance, which as of last week was approximately two billion dollars.

This improved balance has been disproportionately driven by new bookings versus the issuance of more future cruise credits (FCC).

Approximately 45% of Royal Caribbean Group's customer deposit balance is associated with FCCs, versus about 50% last quarter.

Royal Caribbean is still writing off the Oasis of the Seas crane accident

In searching through the filings, I was surprised to see a write off still on the books for the Oasis of the Seas crane accident from April 2019.

Under their Adjusted Net Loss calculations, one of the line items is "Oasis of the Seas incident, Grand Bahama's dry dock write-off and other incidental expenses", which is described as "Amounts includes net insurance recoveries related to the collapse of the dry dock structure at the Grand Bahama Shipyard involving Oasis of the Seas."

Any good bookkeeper knows to use your losses wisely to help offset profits, and spreading them out is not a bad idea.

In April 2019, a crane toppled over onto Oasis of the Seas while the ship was in dry dock. No passengers were onboard the ship at the time of the accident.

As a result of the accident, the cruise line found damage to the Aqua Theatre and some suites. It cancelled three scheduled sailings in order to make repairs.

Happy weekend! In case you missed any Royal Caribbean news, here is a look at everything that happened this week!

The big cruise news this week came when the U.S. Centers for Disease Control and Prevention (CDC) gave the cruise industry new hope for sailings to resume from the United States this summer.

In the new guidance, the CDC said cruise ships that have 98% vaccinated crew members and 95% vaccinated passengers could restart sailings and bypass the required simulated test voyages carrying volunteers and jump to sailings with paying passengers.

It is not clear yet if Royal Caribbean will move in this direction, nor when any restart might commence yet.

Also included in the report are five points of clarification that give cruise lines better insight into the CDC's expectations for a restart.

Read more:

• CDC update means there are now two potential timelines for cruise ships to restart
• Royal Caribbean talks about CDC letter and what it means for kids
• U.S ports begin vaccinating cruise ship crew members

Royal Caribbean News

• Royal Caribbean reports $1.1 billion loss in first quarter of 2021
• Royal Caribbean Group CEO on 2021 Alaska cruises: "reason for some hope"
• Rhapsody of the Seas will sail from Barbados beginning November 2022
• Royal Caribbean will use Nassau hotel for Adventure of the Seas passenger check-in
• Royal Caribbean asks Galveston for extra time to complete new cruise terminal in case ships cannot sail
• Harmony of the Seas completes dry dock
• Royal Caribbean's Royal Beach Club in Nassau is almost a done deal
• Norwegian Cruise Line will not limit passengers to cruise line shore excursions
• Where are Royal Caribbean's cruise ships right now?
• CDC says fully vaccinated Americans don’t need masks outside in most cases
• Royal Caribbean temporarily halts hiring new crew members from India
• Royal Caribbean offering up to 35% off Cruise Planner purchases with Seas the Deals sale
• Royal Caribbean Group pledges support to buy Alaska products
• 10 Vision of the Seas tips, tricks and secrets
• European Union to allow fully vaccinated Americans during summer 2021
• Bar Harbor Survey Could Mean More Port-Specific Cruise Ship Restrictions

Royal Caribbean Blog Podcast

The 404th episode of the Royal Caribbean Blog Podcast is now available, with advice on flying to Nassau.

Someone that has flown to Nassau a lot recently shares his tips and experiences for flying to Nassau given the changes these days.

Please feel free to subscribe via iTunes or RSS, and head over to rate and review the podcast on iTunes if you can! We’d appreciate it.

New RCB Video: The most FRUSTRATING things about Royal Caribbean cruises!

Have you subscribed to the Royal Caribbean Blog YouTube Channel? We share some great videos there regularly, all about taking a Royal Caribbean cruise! This week, we are sharing our latest video — The most FRUSTRATING things about Royal Caribbean cruises! — and don’t forget to subscribe here.

5 reasons why what happened to cruise ships in 2020 will never happen again

In the early days of the global health crisis, the cruise industry was caught off guard with a new health threat which was unfortunately seen in the public eye in the case of a few high profile ship quarantines.

More than a year later, memories of what happened to those cruise ships in early 2020 still dominate the narrative for many people and the fear of allowing something like this to happen again is enough to compel some to not want cruise ships to sail again.

While the cruise industry struggles to prove it can safely sail from the United States, here is why what happened on cruise ships at the very start of the global health crisis will all but certainly never happen again.

Another Royal Caribbean has completed her routine maintenance.

Harmony of the Seas is back in the water following a multi-week dry dock in Cadiz, Spain.

Harmony of the Seas is one of four Royal Caribbean ships that will get work done at the Navantia shipyards.

There was no major upgrades or enhancements made to Harmony of the Seas. Rather, it underwent routine work that is required every few years (usually five) so that the vessel can be properly maintained and seaworthy.

Captain Johnny Faevelen and James Van Fleet each posted photos of Harmony's final days at the shipyard.

These type of dry docks are known as a technical dry dock.

Harmony of the Seas arrived in Spain in early April to undergo technical work on her propellors, stabilizers and bottom valves, as well as give the ship some paint work. 

Around 8,000 liters of paint were needed for the work.

Read more: Harmony of the Seas Guide & Review

According to the shipyard, Jewel of the Seas and Symphony of the Seas will follow in May 2021, followed by Liberty of the Seas in July 2021.  

Royal Caribbean suspended upgrades and enhancements under its Royal Amplification program until further notice due to the global cruise industry shutdown.

Other ships have gone in for work over the last year, but not received upgrades, such as Allure, Explorer and Anthem of the Seas.

Prior to the global cruise industry shutdown, Harmony of the Seas was scheduled to sail in Europe this summer from Barcelona, although firm restart plans for the ship have not been announced by Royal Caribbean.

Two ports in the United States are helping get cruise ship crew members vaccinated to facilitate the cruise industry getting back to service faster.

On Friday, Port Canaveral became the first U.S. port to offer crew members a Covid-19 vaccine.

Port Canaveral's option to give crew members the vaccine came a day after Florida Governor Ron DeSantis and Surgeon General Dr. Scott Rivkees approved an expansion to vaccine eligibility in Florida to include individuals who are in the state for purpose of providing good or services for the benefit of residents and visitors of Florida.

Port Canaveral Chief Executive Officer John Murray released a statement celebrating the start tof this new program, "We have been working closely with our cruise partners, the Florida Department of Health and our port community to come up with a plan and timeline of vaccinating cruise ship crews that could begin the process for a safe return to cruising."

"This expanded eligibility is significantly important for our cruise tourism business, and we’re proud of our efforts to help get this industry up and running."

It is not clear which ship was the first to receive the doses.

Up to 1,000 COVID-19 vaccination shots per day can be provided to vessel crew members, shoreside and waterside support personnel, which aligns with recommendations released this week by the federal Centers for Disease Control for a return to cruising in the U.S.

Port Canaveral officials consulted with the U.S. Coast Guard, U.S. Customs and Border Protection and cruise line operators, as well as the CDC to develop its vaccination model to efficiently and expeditiously get vaccines disbursed to crew members and shoreside personnel. 

The Port of Galveston also plans to offer the vaccine to crew members next week, when the Carnival Breeze and Carnival Vista visit.

The Port of Galveston Board of Trustees announced during a meeting on Tuesday the new plan.

Through a partnership with the University of Texas Medical Branch (UTMB), the Pfizer vaccine will be made available to crew members.

Crew vaccination part of restart plan

Getting crew members vaccinated is part of the cruise industry's plan to return to service.

Royal Caribbean has already committed itself to vaccinating all of its crew members, as of February 2021.  At the time, there was not a plan in place to do so, but vaccine eligibility in the United States is beginning to open up widely.

Moreover, the U.S. Centers for Disease Control and Prevention (CDC) informed cruise lines this week that if they can get 98% crew members vaccinated, they can get cruise ships back into service sooner (along with 95% vaccinated passengers).

Getting crew members to get the vaccine appears not to be a problem for Royal Caribbean.

During a call with Wall Street analysts this week, Royal Caribbean International President and CEO Michael Bayley said crew were overwhelmingly in favor of getting vaccinated.

In a recent survey of crew members conducted by the cruise line, Mr. Bayley said, "we had over 98 percent positive response from our crew saying, yeah, we're going to get vaccinated."

Norwegian Cruise Line has quietly updated its cruise protocols for restart, which includes now allowing passengers to go on third party shore excursions.

3

Norwegian Cruise Line (NCL) has a listing of health and safety protocols on its website, known as Sail Safe, in which it has a changed the tour policy.

Based on comparing the website today versus an archived copy, NCL is now allowing passengers to book any shore excursion the wish, instead of limiting them to cruise line only tours.

Guests are free to explore ports of call on their own, according to protocols in each specific port, and can purchase shore excursions as they wish.

This is an important shift in policy considering most lines up until now have required guests to only book shore excursions through the cruise line in order to retain a "bubble" approach to cruising.

New policy on NCL website

Old policy from NCL website from April 6, 2021

NCL's change may also reflect the line's proposed restart plan for every single crew member and passenger to be fully vaccinated, exceeding even the U.S. Centers for Disease Control & Prevention (CDC) updated guideline.

NCL's change is also noteworthy since the cruise line is part of the Healthy Sail Panel, which it founded in conjunction with the Royal Caribbean Group.  Both cruise lines rely on the Healthy Sail Panel to formulate its policies onboard.

On their website, NCL states their policies are guided by the Healthy Sail Panel, "We have developed a comprehensive and multi-layered set of health and safety protocols that span the entire cruise journey, guided by the expert advice from our Healthy Sail Panel. We will continuously refine and improve these protocols as science, technology and our knowledge of the virus improve and will provide guests with all relevant information or any changes to protocols prior to setting sail."

Thus far, the Healthy Sail Panel has only published its set of recommendations from September 2020, although it is understood the panel has been working behind the scenes with the cruise lines.

Among the 74 recommendations, recommendation 59 recommends cruise lines limit guests to cruise line tours.

Recommendation 59: During the initial return to sailing, cruise operators should only allow guests debarking from a ship at a destination port to participate in cruise line-sponsored or verified excursions as a way of limiting potential exposures in the destinations they visit.

It is worth noting these recommendations were written before vaccines became widespread, and classified it as a temporary recommendation, which could be modified or removed later when health conditions permit.

In March, Royal Caribbean's vice president EMEA, Ben Bouldin, said the impact the vaccine has had prompted the cruise line to ask the Healthy Sail Panel to go over their recommendations.

"We have asked the Healthy Sail Panel to go back and revisit their findings in light of the improvements and the encouraging news vaccines provide."

The origin of limiting shore excursion options goes back to the first cruise ships to restart sailings.

In an effort to create a travel bubble, MSC Cruises restarted sailings in August 2020 with the rule in place. They even refused to let a family back onboard that broke the rule.

What about Royal Caribbean cruises this summer?

Royal Caribbean has not formally announced its protocols and rules for sailings restarting this summer, but thus far there have been strong indications guests can expect to be limited to cruise line excursions.

Royal Caribbean's Senior Vice President, Sales, Trade Support and Service, Vicki Freed, said in March 2021 guests will be limited to Royal Caribbean excursions in Cozumel and Grand Bahama Island.

"With our own little bubble, we can really make sure the health and safety protocols are being followed."

Royal Caribbean's own Shore Excursions Health Acknowledgement confirms that only cruise line tours will be permitted, "guests are currently only permitted to book and participate in Shore Excursions which are selected and approved by Royal Caribbean Group."

Guests booked on Odyssey of the Seas sailings from Israel received a list of terms and conditions for their sailings which also allude to the limitation of shore excursion options you can book.

Of course, all of this could change at any time, much like NCL has done.

Moreover, Royal Caribbean has promised additional health and safety measures to be implemented by Royal Caribbean will be announced at a later date.

It looks like Royal Caribbean's deal to build a beach club in Nassau, Bahamas is nearly complete.

At a virtual town planning meeting in Nassau, a Royal Caribbean representative said the deal is waiting final signatures to be completed.

According to Eyewitness News, Royal Caribbean Group Vice President of Private Destinations, James Black, told the meetings attendees, "all terms for the development have been agreed to, approved and are awaiting signature for final execution of the contract."

The beach club will be built on 7 acres on the western end of Paradise Island.

According to Mr. Black, Royal Caribbean had originally wanted more land, but negotiations brought it down to seven, "The crown land lease is seven acres. Royal Caribbean had originally requested 21 acres including the lighthouse and the government negotiated own from 21 to 10 acres and now to seven acres under submission."

A report earlier this month pegged the project at 13 acres.

Royal Caribbean believes the new beach club will bring an additional 1.2 million visitors to Nassau annually by 2030, with 3,500 daily visitors.

Mr. Black also repeated the same targeted opening date as previously reported, which is a 2023 opening.

Construction would begin "later this year".

The meeting also brought up concerns from other attendees who had competing projects, as well as other concerns.

Some other landowners in the area are concerned about how Royal Caribbean's project may impact their own operations.

Tribune Business noted environmentalists wanted to know how the land, which is currently zoned as  "low density" residential, would have to be rezoned and the associated impact.

Royal Caribbean said was waste management would be handled through a partnership with local vendors, "Our plan to handle solid waste is to work with a local vendor to make use of existing recycling and solid waste management that’s available in Nassau currently."

"There will be a commercial barge operated by local vendors that will address the solid waste."

What is the Royal Beach Club?

Royal Caribbean first announced intentions to build a private shore excursion option in Nassau in March 2020, but has provided no official updates since the cruise industry shutdown shortly thereafter.

Royal Caribbean said the beach club would be built at the western end of Paradise Island, and would be cruise line guests.

Details on what would be offered to guests have not been divulged, but paperwork filed with the Bahamas seems to indicate the club could feature dining pavilions, a 26,000 square foot pool, 4,000 square foot “splash pad” for children, 14 beach bars; restrooms and cabanas.

Royal Caribbean has not publicly commented on any kind of timeline for the Royal Beach Club, nor have they given any update on it since acknowledging they purchased land for the project in early 2020.

Is the Alaska cruise season not totally dead for 2021?

During Royal Caribbean Group's first quarter earnings call on Thursday, Royal Caribbean Group Chairman and CEO Richard Fain was asked about the prospect of return to Alaska for this year, and while "slightly complex", he did not rule it out.

The Alaska cruise season faces two hurdles: the U.S. Centers for Disease Control and Prevention (CDC) ban on cruise ships, as well as Canada's own ban on cruise ships from its waters.

Mr. Fain said even if the CDC relents on its ban, they would need would need a waiver from the Passenger Vessel Services Act (PVSA), or Canada would have to allow at least technical stops.

The Passenger Vessel Service Act (PVSA) of 1886 requires foreign flagged cruise ships to call on a foreign port if sailing a closed-loop cruise form the United States.

This means, cruise ships cannot sail from Seattle and only visit Alaska ports.  It must make a stop outside the country, and Canada is the only place between Seattle and Alaska for that.

The justification for both the PVSA is to protect the U.S. Merchant Marine (the licensed (officers) and documented (trades) personnel on the ships) and to protect U.S. shipyards that both build and repair the ships.

Mr. Fain said during the earnings call that Royal Caribbean and "others" are working on resolving the issue with the CDC and Canada, "we're working on both and others are working on both, but we can't be certain where that will end up."

"I think given the momentum, there's reason for some hope, but that's a sufficiently complex and confusing situation that I don't think we're going to put odds on it one way or the other."

"But as to Alaska specifically, while we're optimistic and we're working to make that happen, there are these other factors."

"We do think that will be in time for the Alaskan season. And we're obviously hopeful that we'll be able to solve the issue with Canada in either one of these two ways."

U.S. Senators Lisa Murkowski and Dan Sullivan, both R-Alaska, introduced a bill in late February 2021 that proposes alleviate the Passenger Vessel Services Act (PVSA) restrictions for cruise ships transporting passengers between the State of Washington and the State of Alaska.

The Alaska Tourism Recovery Act (H.R.1318) was introduced in the House on February 24, 2021 and was referred to the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation the next day.

When the bill was introduced, Royal Caribbean International President and CEO Michael Bayley posted on social media in support of the bill, "If passed, this would represent a step in the right direction for the Alaskan communities that depend on the tourism industry."

"If you support the bill, please reach out to your representatives to make your voice heard!"

So far, that bill has not moved past that point.

Besides Royal Caribbean's lost cruise revenue, the state of Alaska is facing dire consequences for a second cancelled cruise season in a row.

Alaska Governor Mike Dunleavy (R-AK) said over the course of the lost 2020 and 2021 cruise seasons, Alaska will have a $3.3 billion loss in Alaska, "that's in a state with about a fifty six billion dollar GDP, so it's going to be significant."

"We're going to lose millions of dollars in local revenue for our communities, especially along the coast. Unemployment rates will remain stubbornly high when we can actually lower them through this process."

Meanwhile, Royal Caribbean's Alaska cruises are not cancelled yet.

Royal Caribbean did remove bookable Canada-related cruises from its website, but existing bookings are still on hold.

Royal Caribbean is offering a discount on cruise add-ons, such as drink packages, shore excursions and more, with its new sale.

The Seas the Deals offer runs between April 30 - May 5, 2021 and is valid on sailings from June 1, 2021 - April 30, 2022 (excluding Quantum of the Seas).

For Quantum of the Seas sailings, the sale is valid on sailings between May 10 2021 - April 30, 2022.

Here is what is included during the sale:

BEVERAGE: Up to 40% off 

• Classic Soda Beverage Package: 30% off onboard prices.
• Classic Soda Beverage Package + VOOM Surf & Stream 1 Device: Over 35% off onboard prices.
• Dasani Water Cans: 40% off onboard prices.
• Deluxe Beverage Discount varies by ship.
• Deluxe Beverage Package + VOOM Surf & Stream 1 Device: Over 30% off onboard prices
• Refreshment Package: 30% off onboard prices

SHORE EXCURSIONS: Up to 40% off

• Shore Excursions: Discount varies by ship

INTERNET: Up to 50% off

• The Key: Discount varies by ship.
• VOOM Surf + Stream Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship.
• VOOM Surf Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship

DINING: Up to 60% off

• Unlimited Dining Package on 3N – 9N sailings: Discount varies by ship

ACTIVITIES: Up to 20% off

• All Access Ship Tour (Excludes Grandeur of the Seas)

Gifts & Gear: Up to 20% Off

• Anniversary Decorations with Champagne
• Happy Birthday Decorations with Chocolate Cake & Strawberries
• Happy Birthday Decorations with Vanilla Cake & Strawberries
• Inky Beach Set
• Inky Beach Towel (TicTacToe)
• Inky Travel Set
• Red Wine and Cheese
• Royal Caribbean Beach Towel
• Strawberries with Champagne
• White Wine and Cheese

PHOTO PACKAGES: Up to 70% off

• Photo Packages: From 5 - 100 Print and/or Digital Options: Discount varies by ship
• Photo Package: Private Photo Session: Discount varies by ship
• Photo Package: Picture This Private Studio: Discount varies by ship

SPA: Up to $30% off

• Spa Packages:30% off onboard prices.
  • Only on Allure, Anthem, Harmony, Independence, Navigator, Oasis, Ovation, Odissey, Quantum and Symphony of the Seas

To check if your sailing has this new offer available, log into the Cruise Planner on Royal Caribbean's web site look for any available offers. Keep in mind that not all sailings may see the sale applicable, nor are all offers significantly cheaper than previously posted.

If you spot a better discount on something you already pre-purchased, you should be able to cancel the purchase and then re-purchase the same item under this promotion.

More helpful information

• Should you buy pre-cruise purchases now or wait to buy it onboard?
• 45 ways to save money on a Royal Caribbean cruise
• How much should I budget for a cruise?

The cruise industry is abuzz with the news that the U.S. Centers for Disease Control (CDC) has provided an update for cruise ships to restart by summer 2021.

Royal Caribbean International President and CEO Michael Bayley was quite optimistic about the chances for cruises to resume in July.

"I think this commitment to mid-July is looking very realistic based upon what we we saw last night," Bayley told Wall Street analysts during an earnings call on Thursday.

"I think the target that's been stated and that we've all been working towards is a mid July. And I think that after what we received last night, it's looking very realistic."

Part of that optimism is based in the CDC allowing cruise ships to restart cruises again and bypass test cruises if 95% of the passengers and 98% of the crew are fully vaccinated.

The changes follow up on a better relationship between the cruise industry and the CDC.  Mr. Bayley said, "we've been in very constructive dialogue with the CDC over the past few weeks."

"I think the mood of Royal Caribbean last night and late into the night and then just speaking also to some of our industry colleagues was simply positive that all of this dialogue that was constructive had resulted in and clearly being heard."

Two pathways

One of the major tenets of the CDC's letter was cruise ships can bypass the required simulated test voyages and go directly to revenue sailings if 98% of crew and 95% of passengers are fully vaccinated.

During the call, Mr. Bayley elaborated on the possibility of some ships requiring the vaccine, while others may not.

"There'll be really two pathways, one pathway for vaccinated crew and largely vaccinated guests that meet the threshold that they've defined. And that would mean that there wouldn't be a requirement for a simulated voyage etc, and there would be a different expectation on protocols and planning. So it's a faster route."

"And then for ships that wouldn't wouldn't meet that threshold for whatever reason, there would be a different timeline and a different set of protocols and requirements."

"So fundamentally that there's two pathways. It's not that simple, but that's a way of simplifying."

Both Bayley and Royal Caribbean Group Chairman and CEO Richard Fain warned that there's still a lot of uncertainty about what the CDC update means, and Royal Caribbean has already reached out to the CDC for clarification.

Will enough people be vaccinated?

Mr. Bayley cited surveys of their customer base as a good sign that many cruisers are willing to, or have already, be vaccinated in order to cruise.

"There's an overwhelming certainty for our customer base. People are just saying, I'm getting vaccinated."

"And if you skew older, the percentage increases quite significantly, mainly because, of course, when the vaccinations started, it started with the older age group first."

What about the crew?

Mr. Bayley said a recent survey pointed to a survey of crew members the cruise line conducted recently as proof Royal Caribbean could meet the threshold by the CDC, "we had over 98 percent positive response from our crew saying, yeah, we're going to get vaccinated."