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Royal Caribbean pushes back China sailings return & cancels Denmark cruises

In:
11 Jun 2020

Royal Caribbean announced more cruise cancellations caused by the current state of world health, as well as new regulations imposed by Denmark.

Instead of resuming China sailings in the beginning of July, Royal Caribbean has extended its cancellations through July 12, 2020 for Quantum of the Seas and Spectrum of the Seas, as well as Voyager of the Seas sailings through September 2020.

The cruise line had cancelled all of its China sailings through the end of June during the last round of cancellations, but now the resumption of sailings in China may not begin until at least July 12.

Additionally, Copenhagen, Denmark has restricted all non-essential travel through August 31, 2020. As a result, the following sailings have been cancelled:

  • Brilliance of the Seas departing on August 21, 2020
  • Jewel of the Seas departing August 8 - 22, 2020

We continue to monitor the progress and evolution of the current environment as we begin to balance continued safety with a gradual return to normalcy. At the forefront, the health and well-being of our guests and crew, as well as the communities we visit, fuel the decisions we make as a corporation. As we work to prepare our ships for their operational return, extensive planning and research have proven essential.

Guests booked on any of the affected sailings have the following choices for compensation.

125% Future Cruise Credit to re-book a new cruise by December 31, 2021 for sailings departing on or before April 30th, 2022. This will automatically be issued by July 24th, 2020 via email if no action is taken.

Taxes and fees, as well as any pre-purchased amenities or onboard packages will be automatically refunded to the original form of payment within 45 days from the cancellation date.

Lift and Shift: If you prefer to move your cancelled booking to a 2021 sailing, you can take advantage of Royal Caribbean's new policy where the cruise line will price protect the original pricing and/or promotion on the same itinerary, length, product, and stateroom category as your original sailing within 4 weeks (before or after) of the original sail date in 2021.

You will need to contact your travel agent by June 25th to take advantage of this option.

100% Refund: if you prefer a full refund, you have until December 31, 2020 to request a refund and deactivate your certificate. You can expect to receive your refund 45 days after you submit your refund request.

Royal Caribbean announces third China cruise cancellation due to coronavirus

In:
29 Jan 2020

Royal Caribbean released a new statement on the ongoing coronavirus outbreak and announced a third Spectrum of the Seas sailing cancellation.

In addition to the two cancelled sailings previously announced, the cruise line has cancelled an additional sailing of Spectrum of the Seas through February 8th.

"As has been widely reported, China has moved aggressively to contain the spread of the virus.  As a result of these measures, and after consultation with national and local health authorities, the company has cancelled three sailings through Feb 8th, on the high yielding Spectrum of the Seas, currently its only ship homeported in China."

Royal Caribbean only has Spectrum of the Seas based in China during the winter sailing season, with two additional ships are scheduled to join in May and July 2020, respectively.  For all of 2020, China represents about 6% of the company's capacity.

The company estimates that this (which included the Chinese new year's cruises) will impact 2020 financial results by approximately $0.10 per share.  If the travel restrictions in China continue until the end of February, the company estimates that this would further impact its results by an additional $0.10 per share.

The company also commented on the long-term impact of the virus on the cruise business:

"There are still too many variables and uncertainties regarding this outbreak to calculate the overall impact on the business.  For example, we expect an erosion of consumer confidence in China could have an additional impact on load factor and rate in the region until the market normalizes.  If these travel restrictions continue for an extended period of time, they could have a material impact on the overall financial performance of the company."

Coronavirus fears force Royal Caribbean to cancel cruises in China

In:
27 Jan 2020

Multiple media outlets are reporting Royal Caribbean has canceled at least the next two Spectrum of the Seas sailings out of concern over the spread of Coronavirus.

The Spectrum of the Seas sailings from Shanghai scheduled for January 27 and January 31 have been canceled.

A cruise line spokesperson said: "In light of the latest developments with the coronavirus outbreak in China, we are suspending the January 27 and January 31 sailings of Spectrum of the Seas, currently our only ship homeported in China. We are working with our guests to provide full refunds for the cancellation. The health and safety of our guests and crew is our primary concern, and we continue to work with the World Health Organization, the Centers for Disease Control, and government health authorities to monitor the situation."

Royal Caribbean is also assuring its guests it is taking other proactive steps to ensure guest safety, such as special sanitizing of high traffic areas, adding additional medical staff onboard, and providing consultations with medical experts.

As of January 27, 81 people have been killed from the virus, along with another 3,000 infected. Forty-four cases have been confirmed outside of China. 

Royal Caribbean announces 2021 Spectrum of the Seas sailings from China

In:
12 Dec 2019

Royal Caribbean revealed the 2021 sailings for Spectrum of the Seas from China and are available to book.

In 2021, Spectrum of the Seas will sail from Shanghai, China and offer a variety of sailings to destinations around the Far East.  Spectrum will also offer culturally-immersive sailings with stops at some of Japan’s most incredible destinations.

You can view all of Spectrum of the Seas 2021 sailings.

Royal Caribbean Crown & Anchor Society members can begin booking sailings on December 12, 2019, with the general public available to begin booking on December 13, 2019.

Spectrum of the Seas debuts in China

In:
03 Jun 2019

Spectrum of the Seas, Royal Caribbean's first Quantum Ultra Class ship, officially debuted in China as she sailed into Wusongkou International Cruise Terminal in Shanghai after completing a 46-night Global Odyssey cruise.

To celebrate Spectrum's arrival, the cruise line held a grand naming ceremony with Chinese celebrities and Royal Caribbean brand ambassadors, Xiaoming Huang and Angelababy, in attendance. Honored with the lifetime role of Godparents, the popular couple were on hand to name the ship and bestow a blessing of safekeeping over all those who sail on her.

Spectrum of the Seas was custom built for the Chinese market, and offers new experiences, such as Royal Caribbean's first enclave for suite guests, new stateroom categories, innovative dining concepts, and stunning features and experiences – many of which have never before been seen at sea. 

"Royal Caribbean has always been known for innovating and pushing the boundaries, and Spectrum of the Seas is a great example of this," said Michael Bayley, President and CEO, Royal Caribbean International. "Spectrum brings to life the best of Royal Caribbean along with curated experiences for our Chinese consumers."

Spectrum of the Seas innovative features include: 

  •  A two-level, 2,809-square-foot Ultimate Family Suite, accommodating up to 11 guests. The three-bedroom suite features a master bedroom and a bathroom that extends over the side of the ship for unparalleled ocean views, along with two additional suites for grandparents and other family members. Kids have their own kid-friendly space on the upper level, complete with an in-suite slide that will transport them to the living area below. Everyone in the family can enjoy time together in the recreation room, featuring surround-sound equipment for a night of karaoke, movies or video games.
  • Sky Pad, a virtual reality (VR), bungee trampoline experience, where guests can strap in, don a VR headset and be transported to another time and planet with three new games: Jump Rally, Sugar Leap and Bass Bouncer. 
  • The Suite Club on decks 13 through 16 offers Royal Caribbean’s first exclusive suites-only area, which features 36 Golden Suites and 106 Silver Suites. The Golden Suites and Silver Suites have exclusive access, elevator, as well as a private restaurant and lounge. In addition to a range of amenities, Gold Suite guests may access The Balcony, a private outdoor space with the best views of the sea; and The Boutique, which can be reserved for private shopping, intimate parties and wine tastings. Travelers in suites are also provided with a dedicated team of Royal Concierges who provide excellent value-added services, including concierge services, Royal embarkation, enhanced food and beverage experiences, and exclusive room service.

Dining Options

  • Sichuan Red, a brand-new restaurant debuting on Spectrum that features authentic cuisine from the Sichuan province of China.
  • A traditional tea room and café parlor known as Leaf and Bean, where guests can enjoy a range of authentic Chinese teas, classic coffee drinks as well .as freshly baked Chinese and Western desserts and pastries.
  • Teppanyaki, offering authentic oriental flavors cooked in Japan’s traditional teppanyaki style.
  • Splashaway Café, near the kids’ pool area; and the Noodle Bar, which serves up freshly made noodles and live chef demonstrations.
  • The main dining room has been combined into one awe-inspiring, three-level dining room with 1,844 seats. The complimentary venue also serves a variety of Chinese and Western a la carte options that rotate every day of an itinerary.
  • The Windjammer Marketplace on Spectrum has been designed to be 20% larger than those on Quantum Class ships. The laidback option offers a wide selection of Chinese and Western dishes.

Entertainment

  • Three new production shows developed in-house by Royal Caribbean – The Silk Road, The Effectors, and Showgirl! Past. Present. Future. are taking the stage.
    • Each full-scale production features unrivaled talent, immersive technology and unparalleled special effects to create spectacular entertainment experiences.  
  • Battle for Planet Z, an epic glow-in-the-dark laser tag adventure for the whole family.
  • Star Moment, a lively and energetic karaoke venue where family and friends can sing like stars.
  • Expedition Two70, where guests can test their adventuring skills in four fully immersive augmented reality (AR) games.
  • SeaPlex, the multipurpose indoor sports and entertainment complex that offers activities from various parts of the world including various indoor ball games as well as fencing and archery – activities never before seen at sea in the Asia market.

Technology

Spectrum of the Seas features a bold lineup of new digital experiences, from digital room keys and automated stateroom controls, to immersive AR games. The Royal Caribbean mobile app is also available for the first time for guests in China and supports both Mandarin and English language. Designed to seamlessly deliver unprecedented vacation experiences at sea, technology is prevalent throughout the ship, substantially increasing guest convenience and efficiency while offering new experiences that entertain and amaze.

Royal Caribbean opens bookings for China 2020 sailings

In:
07 May 2019

Royal Caribbean released its 2020 China sailings for guests to book, which includes sailings on Quantum of the Seas and Spectrum of the Seas.

The new bookings are available to book for Crown & Anchor Society members on May 7, 2019. Bookings open to the general public on May 8, 2019.

Spectrum of the Seas will sail from Shanghai and is specially tailored for Chinese guests. Quantum of the Seas will sail from Beijing. Both ships will sail to Okinawa, Nagasaki, Tokyo and beyond — plus late-night stays in Kobe and Osaka, Japan on select sailings.

You can view sailings scheduled for Spectrum of the Seas and Quantum of the Seas.

6 interesting facts from Royal Caribbean's second quarter earnings call

In:
01 Aug 2017

Each quarter, Royal Caribbean's management gets on the phone with investors to discuss its quarterly earnings.  Much of the call is dedicated to the discussion of rather uninteresting fiscal reports, however, there are a number of tidbits that Royal Caribbean fans can glean during the discussion.

During Royal Caribbean's second quarter 2017 earnings call with investors, we picked up on five interesting points worth noting.

New trend: People are buying memories

Royal Caribbean Cruises Ltd. Chairman and CEO Richard Fain started off the earnings call with an observation on the changing ways consumers are spending their money.  A strong cruise market seems to suggest to Mr. Fain that consumers have less they need to buy, and are instead investing in their memories.

"People have bought all the stuff that they need, and they're now looking towards gaining more experiences. Instead of buying TVs and cars, they seem to be buying memories as never before. Since we're in an industry that specializes in providing great memories, that trend plays to our sweet spot. Even better, the trend shows no respect for borders and seems to be occurring all around the world.  Our sailings in the U.S., Europe, Alaska, Asia, all demonstrate this fabulous phenomenon."

Smart phone app update

Royal Caribbean provided another sneak peek at what it's working on for its new smart phone app and digital strategy, dubbed internally as Project Excalibur.

While no additional information was provided in terms of what Project Excalibur will do, Richard Fain did provide an idea of how many ships will have the new feature ready for use. 

"We expect to have Excalibur functioning on 15% of our fleet within in 5 months of today, and half of our fleet by the end of next year."

Moreover, Fain elaborated on the importance of developing Project Excalibur to the long-term sustainability of the cruise line, "I've said before that our efforts in this arena are not nice to have, they are vital to keeping cruises relevant as a great vacation experience."

Price Integrity Policy rewarding those that book early

Richard Fain provided an update on its no last-minute price drop efforts, known as the Price Integrity Policy.

"As we have predicted, the early stages cost us revenue in both 2015 and 2016.  That hurt, but once we established our consistency and credibility with the travel agents, with the public, and with our own revenue managers, the benefits started flowing in.  Today, it's clearer that the program is accomplishing our goal of rewarding those who book early, while disincentivizing those who push for last minute discounts."

"The key to this consistency has been consistency. We don't do it only when it's painless or convenient. We maintain the program, even when it hurts, and sometimes, we have to let cabins sail empty. That goes against every one of our instincts. But the focus and the discipline have proven their value."

"Ironically, the program has been so successful, that we're now expecting to achieve a record load factor this year. That in turn, causes slightly higher operating costs per lower berth, but obviously, the bottom line impact is very positive."

Strategy of premium hardware in China

Earlier this year, Royal Caribbean announced the first Quantum Ultra class ship will be sailing in China, and that is in line with the cruise line's plan to bring new and impressive ships to sail from China. 

Fain explained, "With the Quantum Class of ships, we're giving the most technologically advanced hardware to a market that is very digitally focused. This move is a continuation of our strategy to have premium hardware in China.  And that strategy is what has enabled us to gain, and to hold, a leadership position in the eyes of the Chinese consumers, such that today, Quantum is essentially synonymous with cruising in China."

North American passengers are cruising more than ever

Cruisers from the United States and Canada have always been a strong source of Royal Caribbean's market, but the cruise line is seeing even higher demand for its cruise products from North American consumers.

Royal Caribbean Cruises Ltd. Chief Financial Officer Jason Liberty elaborated as to how North Americans are cruising now more than ever, "North America remains our largest sourcing market, and the strength and demand we have seen from U.S. and Canadian guests have been unwavering for both sides of the Atlantic."

"While we most itineraries have benefited from strength of the North American consumer, we have seen particularly strong trends on European sailings, both in the Mediterranean and the Baltics. Fewer geo-political events and stable air pricing have contributed to a surge in demand from our higher paying North American guests. As a result, North American guests will account for a larger percentage of Europe itinerary sourcing than in any other recent year."

"The North American consumer does not only spend more on the ticket, but they also spend quite a bit more on the ships, and the driver of that has to do with the shore excursion side, because it's more of a bucket list vacation experience for them.  So they tend to more onboard than the European guest. It's a more profitable opportunity for us if we are sourcing more North American guests versus European guests. As the North American consumer is eating up a lot of that capacity, that also puts the European consumer in a position where they have to spend more in order to get onto the ships."

Royal Caribbean's marketing strategy targets those new to cruising and Millennials (and it's working)

It is no secret that Royal Caribbean (and really the entire cruise industry) has been targeting those that have never taken a cruise before, but we got a bit of insight into Royal Caribbean's marketing strategy in today's earnings call.

Royal Caribbean International CEO Michael Bayley elaborated how the cruise line targets the American cruise market, "We have been quite focused on developing the new to cruise and the Millennial market, and we've have been making very good progress over the past couple of years.  If you look back over time, you'd see a decrease year over year in new to cruise and Millennial to Royal Caribbean International, but over the past two years, we've seen a good increase.  Part of that's related to our messaging and our marketing strategy, where we've moved from really traditional marketing to more digital, and we're seeing a good pickup from new to cruise."

Royal Caribbean has absolutely no plans to move cruise ships out of China

In:
02 Aug 2016

During Royal Caribbean's second quarter earnings call with investors, Royal Caribbean reiterated it had absolutely no plans to reduce or transfer capacity from the Chinese cruise market.

Royal Caribbean Chief Financial Officer Jason Liberty summarized the quarter's earnings and provided guidance for the future, where he mentioned there has been some "softness in close-in demand in Shanghai in recent weeks". 

Royal Caribbean Ltd Chairman Richard Fain added, "Softness in China is being driven by huge capacity growth rather than faltering demand."

Royal Caribbean International CEO Michael Bayley spoke more about the role of China within Royal Caribbean's business, "With the softness we've seen, still, China continues to generate above-average yields and it's accretive to our business."

"Certainly, we are optimistic about the overall future in terms of the market potential, and we have been very actively engaged in the broadening and broadening of channels in the marketplace.  There is no issue with demand. The demand is there and the market is there. It's the building of the distribution quickly enough to handle the capacity."

When concerns arose from investors about a shift in capacity from China to the Caribbean, Richard Fain flat out ruled out any such change in the foreseeable future, "We are a long-term industry. This is an industry where our horizon is long-term, we plan long-term. We see a very powerful market and don't see any real change in that.  The idea that because of relatively modest discounting in one year, and in the face of a more profitable environment even with that discounting, that we would suddenly change the way we've operated forever in the industry just doesn't seem to me to be realistic."

"There are concerns that if China doesn't develop, all the capacity will turn left and head towards the Caribbean and saturate the Caribbean. It would require an enormous change in the fundamentals of China to even begin to contemplate that.  I will just tell you, within our company, the subject has literally never arisen in any deployment discussion that I am aware of.  We are so far from it that we just think that would require a level of change that none of us think is likely or remotely likely."

Royal Caribbean signs deal with China's Forbidden City Imperial Palace to showcase Chinese culture on Ovation of the Seas

In:
19 Jan 2016

Royal Caribbean and the Chinese Imperial Palace Museum (the Palace Museum) held a joint press conference today at a signing ceremony for a Memorandum of Understanding (MOU) agreement in the Forbidden City’s Jianfu Palace. 

As part of the agreement, experts from different research fields selected by the Palace Museum will be invited to give lectures of Chinese history and culture to guests on Ovation of the Seas. 

The Palace Museum also will provide professional consultation of the ship’s interior décor and art program. In addition, signature pieces from the collections of the Imperial Palace Museum will be on display to promote the traditional culture and arts of China. Paintings and art pieces created by artists from the Palace Museum will be available for guests to purchase at auctions held onboard.

Ovation of the Seas, Royal Caribbean’s newest ship that debuts in April, will be the first to homeport in China immediately after its delivery and will begin service from Tianjin beginning June 2016.

The signing ceremony officially launches the “2016 – Let’s Ovation” campaign in China and marks the countdown to Ovation of the Seas’ maiden voyage in China.

“We are proud of the extensive collection of art and relics that represent the imperial treasures of the Ming and Qing Dynasties and it is our goal at The Palace Museum to showcase the traditional Chinese culture to people all over the world,” said Shan Jixian, Director of the Imperial Palace Museum. “This partnership with Royal Caribbean International and our programs on Ovation of the Seas will help to further these objectives. We are excited to promote the rich heritage of the Forbidden City and China to the guests of the world’s largest global cruise line and we hope to continue to expand on these efforts.”

Dr. Zinan Liu, President of North APAC and China, Royal Caribbean International said: “Cruising is becoming increasingly popular with Chinese travelers and Royal Caribbean’s award-winning and state-of-the-art ships with features found only on Royal Caribbean are very appealing to those consumers looking for a high quality vacation experience. Quantum of the Seas has been very well received by our Chinese guests and we are excited to now bring Ovation of the Seas to Tianjin. Sailing two of the world’s newest and most technologically advanced ships in China demonstrate our leadership and commitment to the market and this partnership with the Palace Museum showcasing China’s rich heritage will bring yet another unique element to our vacation offering.”

Ovation of the Seas will be officially launched in April 2016, when she departs Southampton for Tianjin, China on a 53-day Global Odyssey. She will begin her first homeport sailing season in China from Tianjin in June 2016. Ovation of the Seas, together with Quantum of the Seas, Mariner of the Seas, Voyager of the Seas and Legend of the Seas, will make up the largest fleet of any cruise line sailing in China.

Angry Chinese passengers forcibly removed from Royal Caribbean Quantum of the Seas

In:
01 Sep 2015

About 300 passengers from Royal Caribbean's Quantum of the Seas had to be forcibly removed because they were upset about an itinerary change.

Quantum of the Seas was slated to make stops in three Japanese cities, but concerns about Typhoon Goni forced the ship to make stops in South Korea instead.

The passengers were upset about the change and wanted to receive compensation for the change in their route.

When Quantum of the Seas returned to the Wusongkou International Cruise Terminal in Baoshan District, the angry passengers refused to disembark until 1pm, when the final few were removed by crew members.

Royal Caribbean had given passengers free Wi-Fi and lobster dinners during the voyage to try to make up for the change.

Royal Caribbean took the upset passengers to a nearby hotel, where negotiations reconvened.

Royal Caribbean said it was willing to communicate with tourists based on international and Chinese regulations.

However, it said it would not accept “irrational and illegal behavior,” including threats affecting other tourists’ vacation.

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