Royal Caribbean Blog

Royal Caribbean could still sell a cruise ship during its shutdown, assuming it makes financial sense.

During an earnings call with Wall Street analysts on Thursday, Royal Caribbean Group executive vice president and Chief Financial Officer Jason Liberty spoke on the topic of supply growth, and what Royal Caribbean might do with existing and new vessels.

Mr. Liberty noted that Royal Caribbean Group would sell about one to two ships in a typical year, but with everything changing this year, anything is possible.

"We're being very opportunistic about the situation," Mr. Liberty said on the topic of selling or scrapping ships. 

In terms of when it makes sense to sell, it sounds like only if a particular cruise ship "does not fit strategically" within the brand would they then look at options.

New cruise ship capacity

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Selling or scrapping a ship may also come to offset new ships joining the fleet.

Right now, Royal Caribbean expects its cruise ships on order to continue ahead, although "delayed by probably eight to 10 months", according to Mr. Liberty.

Nonetheless, new ships growth will continue.

"I think we do expect that will be slower newbuild growth probably towards the latter part of four or five years from now....I think we expect to continue to try to come online."

Royal Caribbean International has a few ships on order, including Odyssey of the Seas and Wonder of the Seas.  Both ships have been delayed, but will debut in 2021 and 2022 respectively.

No change in Royal Caribbean's ship selling strategy

Today's comments on Royal Caribbean having no firm plans to sell any ships continues the company's general strategy since cruises shutdown in March.

In August, Mr. Liberty said Royal Caribbean Group was still evaluating options in selling ships, but had nothing firm to announce.

"This time we are evaluating opportunities to to sell ships or to take other actions with ships."

"We're valuating all all options, but of course, we've put a lot of money into these ships. These ships do exceptionally well, and so it's a difficult decision to depart with ship because they generate so much cash."

Why scrap or sell a ship?

The question of if Royal Caribbean will sell more ships or not is partly based in finances, and partly due to what competitors have been doing.

Carnival Corporation has been far more aggressive in selling ships of its brands, having announced a total of 18 cruise ships across its brands will be sold soon (if not already).

Royal Caribbean Group chose to scrap its fleet of Pullmantur Cruises ships, including the former Monarch and Sovereign of the Seas, when that cruise line went into bankruptcy.

Besides getting rid of ships and the overhead they bring, new cruise ships tend to break-even with less guests and are more efficient with generating onboard revenue.

Royal Caribbean International President and CEO Michael Bayley spoke about demand the cruise line is seeing for cruises during a call with Wall Street analysts.

One question raised was if Royal Caribbean will have to wait for them to prove cruises can sail safely before substantial demand returns.

Mr. Bayley talked about the pent-up demand customers have, even before the cruise line is ready to restart.

Surprised by the level of demand

A great example of this demand comes from the newly added Quantum of the Seas cruises from Singapore, which will begin in December.

Despite the fact Quantum will offer cruises to no where, with no port stops at all, demand has been very strong.

"We were really quite surprised by the level of demand that came into the product of the winter season that we've got it open," Mr. Bayley shared during the call with investors.

"Within the first two weeks, we had literally the triple demand that we were expecting at rates above what we were expecting."

In addition to Singapore, Mr. Bayley said despite COVID increases in Europe, "there is demand in the marketplace and it's coming quite naturally."

A look at the American cruise market

Mr. Bayley also touched upon demand for cruises in the American cruise market, which he sees tied to how Americans feel about the nature of the pandemic.

Royal Caribbean is conducting a great deal of market research to get a sense of what consumers are thinking.

"About three or four months ago, most people believed that COVID would be kind of moving behind us by the end of 2020. Of course, that shifted now. And the belief from most consumers is that as you move through '21, COVID will move behind us with vaccine, therapeutics, etc."

"You very much see a correlation between what people are believing and how they're booking."

To that point, the data shows Royal Caribbean that people want to vacation again once things start to settle down.

"We kind of see that in the booking behavior out of the American market for our products through '21, with a particular emphasis on Summer 21, " Mr. Bayley described. "It feels and it looks as if customers are thinking this is going to be behind us and we're going to have a summer vacation."

Of course, the No Sail order looms large in the United States, and while a lifting of that prohibition would be helpful for bookings, Mr. Bayley believes ultimately consumers want to see cruises begin before booking in large numbers.

"I do believe that if there is a change in the No Sail order and a pathway is created for the safe return to cruising, there will be an uptick in demand. But I think people will naturally wait and see."

During Royal Caribbean Group's third quarter earnings call with investors on Thursday, the company provided a preview of what its early return to service might look like.

While Royal Caribbean is very cautious about expectations related to restarting, but it did provide more insight into its plans for a very limited initial return.

Jason T. Liberty, executive vice president and CFO, spoke on restart plans during his opening statement, "The situation regarding our return to service is fluid, but we are currently planning for a very limited initial return and a gradual ramp up during the first half of 2021."

Mr. Liberty emphasized that the first cruises back will be focused on short sailings, "Deployment of spring is expected to be highly focused on short sailings from key drive markets in both the U.S. and Asia-Pacific regions."

Typically, "key drive markets" references cruises that depart from ports where most of the customers can drive to the cruise ship, as opposed to guests who fly to their cruise ship.

In addition, the first sailings will be highly focused on Perfect Day at CocoCay.

"We will also make the most out of our incredible private destination in the Bahamas. Perfect Day at CocoCay."

Cruises restarting will be slow

Royal Caribbean Group Chairman and CEO Richard Fain reiterated the restart plans that have been the plan for months, with a slow and methodical restart.

Mr. Fain spoke of the work the Healthy Sail Panel has done to provide a roadmap for cruises to restart, "the panel has recommended that this process be carefully evaluated by independent outside observers and we will do that.

"And then only on a ship or two it first and in a gradual and methodical way, we expect to start sailing again."

"There'll be short cruises at first with limited destinations and controlled shore excursions. But as we learn and as the science continues to improve, we will expand."

A scientific approach to cruising safely

Prior to cruises starting again, Mr. Fain reminded investors that they intend to test out their new protocols with a series of test sailings.

"We propose to start slowly by training our crew and embarking on a series of non-revenue trial sailings, where we can rehearse and validate the new protocols."

Mr. Fain was confident that the Healthy Sail Panel recommendations can serve as a foundation for a gradual and methodical, healthy return to service.

"We intend to make our ships and environment a bubble, if you will, that presents less risk of transmission than our guests would find on land."

If all of this sounds frustrating, Mr. Fain remains optimistic about the future, "I am optimistic that we will soon have a path that we all see as a pathway back to resuming operations. It will be slower than I would wish, but faster than many are assuming."

Announcement coming soon?

While Royal Caribbean Group executives were hesitant to provide any insight into what the CDC might do, travel advisors are being told to expect a change.

In an email to travel advisors sent on Thursday morning, Royal Caribbean told travel agents to expect something "very soon".

Very soon – potentially as early as next week - we’ll be announcing our return to service. 

Royal Caribbean Group reported a $1.3 billion loss for the third quarter of 2020 as part of its financial results, and also provided a business update.

The cruise company is still in the midst of a global shutdown due to the health crisis. While limited cruise operations outside of the U.S. have been able to restart with its TUI cruises and Hapag Lloyd brands, the company is still dealing with being mostly shutdown.

Royal Caribbean highlighted the fact Quantum of the Seas will be able to restart operations in Singapore in December after receiving approval to sail from the Singaporean Government.

These initial cruises will most likely take place with reduced guest occupancy, modified itineraries and enhanced health protocols developed in collaboration with governments and health authorities.

In addition to the financial results, Royal Caribbean Group provided a business update to investors.

Healthy Sail Panel recommendations

Royal Caribbean's blue ribbon panel of health experts submitted 74 recommendations for how cruise ships could safely operate.

On September 21, 2020, the HSP submitted its recommendations to the Centers for Disease Control and Prevention (CDC) in response to a CDC request for public comment that will be used to inform future public health guidance and preventative measures relating to travel on cruise ships. 

"The work of the Healthy Sail Panel has been thorough and comprehensive. We are grateful for its enormous dedication and passion, which has resulted in what has quickly become the seminal document in this arena. We are also grateful for the time the CDC and their observers have spent on this important topic with the Healthy Sail Panel," said Richard D. Fain, Chairman and CEO. "We understand the importance of getting this right and are preparing to put these plans to the test with a gradual and methodical return to service in the near future."

Cash on hand

In order to remain operational throughout the shutdown, Royal Caribbean Group made additional moves to bolster its financial situation.

Since the last earnings call, Royal Caribbean Group has taken further actions to enhance its liquidity, preserve cash and obtain additional financing. 

• $700M increase in liquidity through a 12-month commitment for a senior guaranteed 364-day facility
• Approximate $1.15 billion increase in liquidity through a combination of a convertible bond issuance and a common stock public offering

The current cash burn is on average in the range of approximately $250 million to $290 million per month during a prolonged suspension of operations. This range includes all interest expenses, ongoing ship operating expenses, administrative expenses, hedging costs, expected necessary capital expenditures (net of committed financings in the case of newbuilds) and excludes cash refunds of customer deposits, commissions, debt obligations and cash inflows from new and existing bookings. 

Cash burn will increase once cruises are able to start up again as a result of:

• Bringing ships out of their various levels of layup
• Returning the crew to the vessels
• Taking the necessary steps to ensure compliance with the recommended protocols
• Restarts sales and marketing activities

Jason T. Liberty, executive vice president and CFO said, "We are optimistic that with the gradual resumption of cruise operations, our cash flow from operations will sequentially improve, driven by an increase in the inflow of customer deposits."

As of September 30, 2020, the Company had liquidity of approximately $3.7 billion, including $3.0 billion in cash and cash equivalents and a $0.7 billion commitment from the 364-day facility, compared to $4.1 billion as of June 30, 2020.

The total cash spend for the third quarter was approximately $1.1 billion, mainly driven by ship operating expenses. 

Odyssey of the Seas

For those wondering about the fate of Royal Caribbean's next new cruise ship, Odyssey of the Seas is very much on the radar.

Royal Caribbean Group has allocated funds for delivery of Odyssey of the Seas during the first quarter of 2021.

2021 Bookings

Booking activity for the first half of 2021 is aligned with the Company's anticipated staggered resumption of cruises.

The cumulative booked position for sailings in the second half of 2021 is within historical ranges with prices that are down slightly year-over-year when including the negative yield impact of bookings made with future cruise credits ("FCCs") and about flat when excluding them. 

Since Royal Caribbean Group's last business update, more than 65% of the 2021 bookings are new and the rest are due to the redemption of FCCs and the Lift & Shift program. 

As of September 30, 2020, the Company had $1.8 billion in customer deposits of which approximately 50% are FCCs and $180 million correspond to fourth quarter 2020 sailings.

Approximately 50% of the guests booked on cancelled sailings have requested cash refunds.

Royal Caribbean Group's legal team was busy this week with a variety of new trademarks that sound like it could be names for new venues on its cruise ships.

Trademark registrations may not end up being used by the cruise line, but it does provide insight into what may be currently planned.

Four new trademarks have been filed with the United States Patent and Trademark Office earlier this week:

Vue Bar

On October 23, a trademark was made for "Vue Bar" under the category of "cruise ship services".

Cask & Clipper

Another registration made on October 23 is for the "Cask & Clipper", which is filed under two categories:

• Cruise ship services
• Restaurant and bar services

Royal Caribbean's English-style pubs on its cruise ships tend to have names that combine two words in a similar style to Cask & Clipper.

Wonder Playscape

The trademark filing for "Wonder Playscape" sounds a lot like the name of a new play area on Wonder of the Seas cruise ship.

Wonder of the Seas will be Royal Caribbean's fifth Oasis Class cruise ship, which is set to debut in 2022 and sail from China.

The description for Wonder Playscape says, "Entertainment services in the nature of children's dry playscape attractions".

The trademark might correlate to a series of renderings for a newly imagined concept for families that popped up online. Or it could be something completely unrelated.

Cantina Fresca

The last trademark filing was made for something called "Cantina Fresca" and is described as "restaurant and bar services".

The name infers a Mexican inspired venue, of which Royal Caribbean has targeted this particular cuisine in the past with Sabor Modern Mexican and El Loco Fresh.

What do these trademarks mean?

Trademark applications are usually quite vague and do not indicate exactly how the cruise line will utilize them, if at all.

In fact, a lot of trademarks never get used for many reasons.

It is also worth noting these registrations are filed on behalf of the Royal Caribbean Group, which means they could be intended for a subsidiary cruise line that is not Royal Caribbean International.

Read more: Who owns Royal Caribbean?

Royal Caribbean has two cruise ships under construction set to debut in the next few years, Odyssey of the Seas and Wonder of the Seas. With new ships comes new opportunities to potentially introduce new venues that will help market a ship and differentiate it from other vessels.

In addition, the Icon Class cruise ships are also on the horizon in the next few years.

Royal Caribbean has released the deployment schedule for initial 2022-2023 sailings.

The opening deployment for summer 2022 will include Alaska, Europe and 7-night Caribbean sailings.

The deployment schedule corresponds to when certain itineraries will go on sale to the public.

• Week of November 9, 2020 Alaska Summer 2022
• Week of November 9, 2020 Europe Summer 2022
• Week of November 16, 2020 7-Night Caribbean Summer 2022

Royal Caribbean says the remainder of the deployment will be "coming soon"

All itineraries are subject to change without notice.

What does a deployment schedule mean?

The deployment schedule is when Royal Caribbean intends to put certain sailings on sale to the public.

It is important to note the key words, "week of", which means it could actually go on sale on any day that particular week.

A common mistake is for guests to read the date, and assume that will be the first day the sailings on on sale.

Moreover, Royal Caribbean's booking system tends to lag, where the new sailings get entered into the booking system first, and the website second. This means in some cases cruises are bookable earlier if booked over the phone or with a travel agent, even if they do not appear on the website.

What should you do now to prepare?

If you are in the market for a cruise during one of these new deployments, you will want to keep an eye out for once cruises go on sale.

Royal Caribbean typically allows Crown and Anchor Society members a 24 hour head start on the general public, but since anyone can sign up for Crown and Anchor Society, there is no excuse for waiting.

Talk with your travel agent in the days leading up to the new deployments coming online so you can jump on specific bookings and book them.  

One of the best strategies for the lowest prices is to book a cruise as soon as it goes on sale.  Hard-to-find staterooms are also available during this period, so now is the time to lock in a studio room or a suite.

Planning on booking a cruise in 2022-2023? These stories will help:

• What is the best time to cruise to the Caribbean?
• 7 tips for a great Mediterranean cruise
• What is the best time to cruise to Alaska?
• What is the cheapest month to go on a cruise?

Royal Caribbean often trademarks words or phrases that it thinks may have a business use down the line, but these trademarks do not always get used.

Royal Caribbean recently filed a trademark for something called a "tracelet", and while it remains to be seen what that registration might be for, it is a good opportunity to look back at some notable trademarks that were never used (yet).

These trademarks are filed with the United States Patent and Trademark Office, and Royal Caribbean typically registers a couple dozen over the course of a year.

Here is a list of 8 trademarks Royal Caribbean filed recently, but I have not found anything that they have done with them.

Seaface

The current health crisis lead Royal Caribbean to trademark a name for its own brand of sanitary masks named "seaface".

The trademark was filed on April 8, 2020 and is intended for cruise ship services. The trademark lists it as a "medical apparatus".

In June, Royal Caribbean Group Chairman and CEO Richard Fain said they would not go ahead with any plans for a seaface mask, "that was one idea that was thrown out of which we're not pursuing."

Anchors Up

On February 15, 2020, Royal Caribbean trademarked "Anchors Up" and it sounds like it might have been their own brand of wine.

The registration says it is intended to cover the categories of wine; Red wine; White wine.

Thus far, I have yet to hear or see any reference to a cruise line branded wine.

Floating Vistas

Trademark registrations are always vague, and "Floating Vistas" registration matches that, with simply a description of being for "cruise ship services".

It is possible this is/was intended for the floating cabanas at Perfect Day at CocoCay.  The Coco Beach Club features floating cabanas, and perhaps Floating Vistas sounded like a better marketable name.

Cox & Kings

In January 2020, Royal Caribbean filed a trademark for "Cox & Kings", which sounds like perhaps its own type of British pub.

However, the trademark almost sounds like a hotel brand name.

"Trademark registration is intended to cover the categories of hotel and motel services; restaurant and catering services, arranging and booking of facilities for meetings, conferences, and for exhibitions; reservation services for hotel accommodation, arranging and booking of temporary accommodations, booking agency services for hotel accommodation, arranging and booking of campground and caravan facilities, arranging and letting holiday accommodation, letting of and reservation of tourist accommodation, tourist agency and tourist office services, namely, booking accommodations for others."

The filing was rejected because of a likelihood of confusion between it and three existing trademarks.

Rec Room

Also registered in January was a trademark for "Rec Room", which is described as "intended to cover the category of cruise ship services".

The registration also listed as for use with "night club services", indicating perhaps it would be the name of a new club.

Like Cox & Kings, it was rejected as well for likely confusion with three other trademarks.

Bohio Beach Bar

Royal Caribbean made two different trademark registrations for "Bohio" and "Bohio Beach Bar", and once again fell under the catch-all category of "intended to cover the category of cruise ship services".

The word "bohio" is Spanish, and refers to a small timber dwelling with thatched roof in the Caribbean.

The registration lists it as under an additional category of "bar services", and the words "beach bar" later appear in the registration as well.

Both registrations were approved.

Thrillamanjaro

A play on words for the famous mountain in Africa, "Thrillamanjaro" was registered by Royal Caribbean as the name of a water slide.

"Recreational services in the nature of a water slide."

While no water slide has been announced with that name, the trademark was approved in April 2020 and could still be used later.

Cruise ship names

The most well-known examples of Royal Caribbean filing a trademark but not doing anything with it are cruise ship names.

Royal Caribbean regularly trademarks names of cruise ships that it might use later. Part of the process for coming up with cruise ship names is brain storming new names, and finalists get trademarked.

Here are some recent cruise ship names that never got used (yet):

• Metropolis of the Seas
• Eon of the Seas
• Gallant of the Seas
• Phenom of the Seas
• Emblem of the Seas
• Passion of the Seas
• Pulse of the Seas
• Joy of the Seas
• Apex of the Seas
• Valhalla of the Seas
• Sunrise of the Seas

Royal Caribbean is offering up to 45% off cruise extras you can add-onto your vacation, such as drink packages, shore excursions and more.

The Sale Before You Sail begins today, and runs between October 27 - November 2, 2020 and is valid on sailings from December 1, 2020 - October 31, 2021.

Here is what is included during the sale:

BEVERAGE: Up to 50% off

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

SHORE EXCURSIONS: Up to 40% off

• Shore Excursions: Discount varies by ship. 

INTERNET: Up to 65% off

• The Key: Discount varies by ship. (Excludes MJ)
• 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 55% off

• Unlimited Dining Package on 3N – 9N sailings: Discount varies by ship. (Excludes Majesty of the Seas)

ACTIVITIES: 20% off

• All Access Ship Tour: (Sailings from 12/1/20 – 12/31/20, Excludes BR, JW, NE, OV, OY, QN, RD, SR, VY)

GIFTS & GEAR: Up to 20% off

Excludes Ovation of the Seas, Quantum of the Seas , Voyager of the Seas

• 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. (See full terms for exclusions)
•  Photo Package: Private Photo Session: discount varies by ship. (See full terms for exclusions)

SPA & FITNESS: Up to 30% off (Only on AL, HM, ID, MA, NV, OA, SY) 

• Spa & Fitness: 30% off onboard prices

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.

Royal Caribbean Group will release its third quarter financial results later this week, which could shed light on a number of ongoing questions.

Between the financial results and the subsequent call with Wall Street investors, the public gets a certain level of insight into what the cruise line company is thinking, as well as what story the numbers tell.

The shutdown of the cruise industry has left so many concerns and questions about the short-term and long-term state of cruises. Earnings calls earlier this year have helped answer some of these issues.

While we will not know exactly all topics to be covered, here are the top issues cruise fans are curious about (and Wall Street too).

Any restart hints

There is no doubt the third quarter was another bad loss for Royal Caribbean Group, but anyone that is buying the cruise stock is fixated on the long-term gains the company has the potential to deliver.

To that point, the sooner Royal Caribbean can start cruising again, the sooner revenue can start flowing back in again.

Both investors and cruise fans are equally eager to know when cruise ships will be able to start sailing again.

While Royal Caribbean may not have a definitive answer, their conjecture and attitude may provide a glimpse of how they see cruises restarting.

New protocols

Assuming Royal Caribbean Group does not have all the answers on a firm restart plan, the next best thing to assuage investors is a plan for cruises to be able to restart in a safe manner.

While the Healthy Sail Panel has provided key recommendations on what it says cruise lines should do, Royal Caribbean has not specified exactly which of its Royal Promise rules are intended for Singapore sailings versus the entire fleet.

The new rules have an additional effect on the psyche of the public prior to cruises starting, by adding confidence that the operations are indeed safe. Similar to how airlines and local businesses added new protocols to keep guests safe, the cruise lines are looking to demonstrate the lengths at which they will go to in order to keep everyone healthy.

Ship status

If the cruise industry shutdown continues, will Royal Caribbean put any cruise ships into cold lay-up or even sell any of them?

While Royal Caribbean International has not seen any of its ships sold, Pullmantur Cruises (a Royal Caribbean Group partial subsidiary) did sell its fleet due to financial insolvency.  Moreover, rival Carnival Corporation has sold a number of vessels in order to cut costs.

Royal Caribbean Group Chairman and CEO Richard Fain said in July there are no plans to sell ships, but it is a consideration.

New cost-cutting measures

Big losses are to be expected, but they are not sustainable.  To that point, it is possible more cuts could be announced in order to reduce the company's monthly cash burn.

The longer the shutdown continues, the more likely Royal Caribbean is to try to save cash and reduce its expenditures.

Royal Caribbean Group recently said they have a monthly cash burn of $200-290 million, but any way they can bring that number down is going to help in the long term.

Financial analysts seem to think Royal Caribbean Group has enough liquidity (cash) to deal with a prolonged cruise suspension, however, the road back to recovery is going to be a long one.

On the plus side, Royal Caribbean Group announced a couple financing transactions in the past week aimed at improving its balance sheet.

Royal Caribbean is using an abundance of caution in how it conducts its business. At the end of its 2019 fiscal year, it had cash and cash equivalents of $243.74 million. By the time the second quarter this year ended, this figure surged to $4.15 billion. Gross debt over this timeframe jumped from $11.04 billion to $18.83 billion, though net debt rose more modestly, climbing from $10.79 billion to $14.68 billion. With so much cash on hand already at quarter-end, it’s clear management is planning for an extended period of pain.

2021 bookings update

The silver lining to the entire cruise shutdown has been bookings for 2021 cruises (and beyond) have been pretty solid.

Essentially, a lot of people opted to defer their cruise vacations to next year instead of outright canceling plans, and the question is if this trend is holding up.

Wall Street has been skeptical of any cruise line's ability to lure customers back once cruises resume, so positive feedback on how 2021 (and beyond) is looking would put a lot of concerns at ease.

The U.S. Centers for Disease Control (CDC) updated its warning last week to travelers to defer all cruise travel worldwide.

The Level 3 warning was updated on October 21st due to, "widespread ongoing spread of coronavirus disease (COVID-19) has been reported in some countries. Other countries have reported sustained community spread."

The warning comes just days before the CDC will announce if the No Sail order that bans cruise ships from operating in North America will be lifted or extended.

The warning itself is not new, but rather an update to an existing warning the agency issued in the spring.

Thanks to CruiseHive for discovering this announcement.

Details on the warning

The CDC noted it typically does not post advisories for forms of transportation (trains, ships or airplanes), but because of the unprecedented nature of the novel coronavirus pandemic, and the increased risk of transmission of COVID-19 on cruise ships, the U.S. government is advising U.S. travelers to defer all cruise travel.

In addition to the CDC's warning, the agency recommends anyone with a cruise booked reschedule for a future date.

The rationale for the elevated warning is rooted in an increased risk of infection to passengers and crew members.

"As the COVID-19 pandemic continues, there remains a risk of infected passengers and crew on board cruise ships."

According to data from Johns Hopkins University, the United States reported more than 83,000 new infections on both Friday and Saturday after outbreaks in Sun Belt states, surpassing a previous record of roughly 77,300 cases set in July.

No update yet on No Sail order

The fate of the cruise industry remains hinged on what will happen to the cruise ship ban that has been in place since March.

Last month, the CDC took until just hours before the No Sail order was set to expire before extending it another 30 days.

A report that came out just days earlier indicated the CDC and the White House are fighting over how much longer the No Sail order should be extended.

Just like last month, there is no advanced warning when the CDC might announce anything and the cruise lines have not commented on possibilities either.

Healthy cruise plan

Over the last few months, Royal Caribbean and the entire cruise industry has been focused on coming up with a plan to keep passengers and crew safe, while operating crew ships.

The industry as a whole adopted a broad new set of health protocols that exceed the rules and regulations imposed by other sectors of travel, such as calling for 100% testing.

The Healthy Sail Panel that created these new rules is chaired by Governor Mike Leavitt, former U.S. Secretary of Health and Human Services, and Dr. Scott Gottlieb, former commissioner of the U.S. Food and Drug Administration.

Recommendations include testing, the use of face coverings, and enhanced sanitation procedures on ships and in terminals. 

The Healthy Sail Panel identified five areas of focus every cruise operator should address to improve health and safety for guests and crew, and reduce the risk of infection and spread of COVID-19 on cruise ships:

• Testing, Screening and Exposure Reduction
• Sanitation and Ventilation
• Response, Contingency Planning and Execution
• Destination and Excursion Planning
• Mitigating Risks for Crew Members

In each category, the Healthy Sail Panel created practical and actionable recommendations to address specific safety concerns. Among the recommendations are key strategies such as:

• Taking aggressive measures to prevent SARS-CoV-2 from entering a ship through robust education, screening and testing of both crew and guests prior to embarkation
• Reducing transmission via air management strategies and enhanced sanitation practices
• Implementing detailed plans to address positive infection on board, including contingencies for onboard treatment, isolation and rapid evacuation and repatriation
• Closely controlling shore excursions
• Enhanced protection for crew members

Furthermore, the CDC has been made aware of the panel and even invited to observe the planning and creation of procedures.