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Royal Caribbean gives business update on 2021 bookings, restarting & impact of shutdown

In:
13 Oct 2020

Royal Caribbean Group issued a business update in an SEC filing, as part of a financial disclosure tied to the offering of $1 billion in stock and senior convertible notes.

New bookings for 2021 have continued to improve over the last two months, although they are still below pre-Covid-19 levels.

Pricing for 2021 bookings is relatively flat year-over-year when including the negative yield impact of bookings made with future cruise credits; it is slightly up year-over-year when excluding them. 

As of June 30, 2020, the Company had approximately $1.8 billion in customer deposits. The Company believes that the customer deposits balance is not materially different as of September 30, 2020 as compared to the June 30, 2020 balance. Approximately 50% of the guests booked on cancelled sailings have requested cash refunds.

Restarting cruises

In terms of being able to restart cruises in 2020, the disclosure also touched upon the confidence level the company has right now.

Royal Caribbean Group says it remains "optimistic that we will be able to commence commercial sailings in 2020; however, we can provide no assurance that we will be able to return to service within such timeframe."

In addition, there has been no word from the U.S. Centers for Disease Control on what to expect in the future, "We have not been notified by the CDC of any intention to extend the current “no sail” order beyond the current specified outside date of October 31, 2020, and we currently have no further information as to when the CDC will respond to our recommendations or make any announcement."

In terms of getting crew members back home, the company also warned that shipboard crew were notified that their contracts would end early and they would be notified about new assignments when operations resume in the future. As a result of these actions, Royal Caribbean said they "may be challenged in rebuilding our workforce which could further delay our return to service."

Other impacts of the shutdown

The SEC filing did not pull any punches related to other business forecasts, such as what other fallout could occur from this prolonged shutdown.

One of the early steps Royal Caribbean took to conserve cash was the reduce capital spending, and Royal Caribbean Group said it has reduced their capital spending through 2021.

"We have reduced our planned capital spending through 2021, which may negatively impact our execution of planned growth strategies, particularly as it relates to investments in our ships, technology, and our expansion of land-based developments."

"Furthermore, we have taken actions to monitor and mitigate changes in our supply chain, and port destination availability, which may strain relationships with our vendors and port partners."

Of five ships originally scheduled for delivery between July 2020 and December 2021, Royal Caribbean expects that Silver Moon, Silver Dawn and Odyssey of the Seas will be delivered within the planned time frame.

The exact duration of the ship delivery delays is currently under discussion with the impacted shipyards.

Class action lawsuit

You may have read about a new class action lawsuit filed last week against Royal Caribbean Group that seek damages related to the decline in Royal Caribbean's stock in the early part of the global health crisis.

The company made a brief comment on this litigation, noting it as "without merit".

"We cannot predict the duration or outcome of this lawsuit at this time, although we believe the claims are without merit."

"Depending on how the case progresses, it could be costly to defend and could divert the attention of management and other resources from operations. Accordingly, even if ultimately resolved in our favor, this action could have a material adverse effect on our business, financial condition, results of operations and liquidity."

Cruise lines meet with Vice President Pence to discuss cruises restarting

In:
09 Oct 2020

Five cruise line executives met with U.S. Vice President Mike Pence for a conference call to discuss the standards and approaches the cruise lines will employ to safely restart cruises.

Royal Caribbean Group Chairman & CEO Richard Fain joined CEOs from Carnival Corporation, Norwegian Cruise Line Holdings, MSC Cruises and Disney Cruise Line during the talks with Vice President Pence, along with Secretary of Health and Human Services Alex Azar and CDC Director Robert Redfield.

Also present was former Utah Governor and HHS Secretary Mike Leavitt of the Healthy Sail Panel.

The meeting was set up to discuss how the current global health crisis impacts the cruise industry, along with the CDC’s No Sail Order, and the Cruise Lines International Association and Healthy Sail Panel’s proposal to resume sailing operations in a safe and responsible manner.

The cruise lines highlighted the Healthy Sail Panel's 74 key steps towards getting cruises back sailing safely, which has received industry-wide adoption.

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

Vice President Pence gave a brief overview of the current state of the No Sail Order and highlighted the shared goal of reopening the maritime economy, with a focus on the cruise line industry safely sailing again. Pence thanked Governor Leavitt, Co-Chair of the Healthy Sail Panel, and the cruise line executives for conducting an industry-driven effort that focuses on the health outcomes.

The cruise line executives, "thanked the Trump Administration for its collaborative approach and support, and stressed that this process and proposal introduces accountability and standards that will ensure cruise ship passengers are in a safe and healthy environment."

The collective proposal will now be presented to the Task Force headed up by Vice President Pence so that it can provide a recommendation to President Donald Trump with regard to next steps on the CDC’s No Sail Order.

The virtual meeting took place a week after it was postponed due to President Trump testing positive for the virus.

The meeting covered a variety of topics, including testing for passengers and crew members and the use of shorter itineraries.

CNBC reports closer to the end of October, the CDC will either lift or extend its ban. In the meantime, the cruise lines are in the process of bringing back a lot of their crew that were sent overseas to ensure and bring them back to the U.S. to ensure that if they do get the green light from the CDC that they have a staff available to set sail.

A major factor in the decision to rescind the No Sail order is if there are any outbreaks on any of the sailings that are taking place in Europe, which are using the same safety protocols that they hope to replicate and use in the United States.

In the time since the original meeting was postponed, both Royal Caribbean and NCL announced new extensions of cruises through the end of November.

The No Sail order has been a legislative, as well as symbolic, barrier to the cruise industry restarting. Royal Caribbean has been shutdown since mid-March, and the No Sail order has been a major obstacle to any restart plan.

According to a report, CDC Director Redfield wanted to push the No Sail order out to February 2021, but the Trump administration would only allow an extension through the end of October 2020.

Vice President Mike Pence informed the CDC Director of a different plan than what the agency had in mind, according to the two task force members.

First look at Royal Caribbean's new health protocols when it restarts cruises

In:
08 Oct 2020

Royal Caribbean will restart cruises in Singapore in December, and with these first cruises back, we have a look at the new health protocols it will implement on these first sailings.

The new rigorous protocols are known as The Royal Promise, and it is our first look at what kind of changes we can expect to find on a Royal Caribbean cruise ship going forward.

These new protocols are based on the Healthy Sail Panel recommendations, as well as in keeping with the local guidelines. RoyalCaribbeanBlog has confirmed these are in line with what can be expected fleetwide.

100% Testing

Royal Caribbean committed to fully testing all passengers and crew earlier this week, so it is not a surprise to see testing will be part of the plan for these first sailings.

Every guest and crew member will be required to test negative for SARS-CoV-2 (coronavirus) prior to boarding — and Royal Caribbean will cover the cost of the test for sailings departing on or before January 30, 2021.All guests must undergo a SARS-CoV-2 test within 48 to 72 hours prior to boarding and obtain a negative result. The cost of your SARS-CoV-2 test is included in your cruise fare for sailings departing on or before January 30, 2021.

    Full refunds if you cannot cruise

    What happens if you test positive at home, or at the terminal? 

    For Singapore sailings, if you test positive and cannot join the cruise, you can still receive 100% Future Cruise Credit in the event you contract COVID-19 within the three (3) weeks before departure and are unable to cruise.

    • 100% Future Cruise Credit if you or someone in your travel party tests positive within three weeks prior to the cruise

    • 100% Future Cruise Credit if you or someone in your travel party tests positive at the boarding terminal

    • 100% refund for you and your travel party if any of you tests positive during your cruise

    • Royal Caribbean will cover COVID-19-related costs up to $25,000 SGD ($20,000 USD) per person in your travel party, for onboard medical costs, cost of any required quarantine, and travel home.

    Aside from a positive test result, certain circumstances may lead to a denial of boarding for you or your party, including but not limited to:

    • Failure to affirmatively state a willingness to comply with our safety and public policies
    • Prior to boarding, or at any time during the voyage, failure to comply with our safety and health policies
    • Refusal to wear face masks in violation of applicable law or regulations
    • A guest who is unable to provide verifiable evidence of a negative SARS-CoV-2 test result
    • A guest who provides a negative SARS-CoV-2 test result which we, in our sole discretion, deem unacceptable
    • Multiple temperature readings that equal or exceed 37.5 degrees Celsius
    • Symptoms outlined in the Health Questionnaire are observed or documented
    • Contact tracing reveals close contact with someone with COVID-19
    • Refusal to submit to secondary health screening; or a secondary health screening which results in a denial of boarding recommendation by the personnel conducting the secondary health screening.

    Upgraded filtered air

    Royal Caribbean has promised its ships will have new HVAC system that continuously supplies 100% fresh, filtered air from outdoors to all indoor spaces.

    The air is drawn from one side of the ship for cooling and ventilation, then removed via exhaust on the opposite side of the ship. This continual intake of fresh air replaces the air in any space, with a total air change up to 12 times an hour in staterooms, and about 15 changes an hour in large public spaces.

    In local spaces, like smaller venues and your stateroom, fan coil units provide an extra layer of protection, continuously scrubbing the air of pathogens, using a high-grade MERV 13 filter that captures aerosols 0.3 to 1 micron in size with 90% efficacy— fine enough to filter colds, flu germs, and coronavirus. 

    New cleaning standards

    A new set of medical-grade cleaning standards will be implemented on its cruise ships.

    All ships are thoroughly cleaned and disinfected prior to every voyage, and consistently and frequently throughout your sailing. 

    Frequently touched areas like elevators, escalators, stairways, and promenades will be cleaned every two hours and gangway rails every 20 to 30 minutes during busy times.

    Staterooms are cleaned daily only while guests are out of the room, and particular attention is paid to frequently used items and surfaces. 

    Reduced capacity

    At least initially, Royal Caribbean will only sail with a maximum of 50% capacity in order to foster social distancing and provide enough space for guests. The number of guests onboard may be adjusted in the future as situations evolve.

    Signage, ground markings, and crew safety ambassadors will be posted throughout the ship and terminal to kindly remind guests of distancing and other protocols.

    Seating in public spaces such as dining venues, theaters, and pool decks will be spread out and elevators will be limited to no more than four guests or one travel party at a time.

    Where and when you have to wear masks

    All guests and crew will be required to wear a mask onboard.

    Specifically, guests should wear face masks in nearly all public settings regardless of physical distancing measures but will not be required to wear face masks in their own stateroom.

    There are exceptions, however, such as dining venues, where guests can eat and drink without face masks while seated, provided physical distancing is observed.

    Also, guests should not wear masks while engaged in activities that may cause the mask to become wet, like when swimming in pools, or when participating in strenuous activities, such as jogging, running, or fitness classes at the Vitality Spa and Fitness Center.

    Note that neck gaiters, open chin bandanas and scarves, and face masks with valves do not meet health authority guidelines and will not be permitted.

    What happens if there is a positive case onboard?

    The last thing anyone wants is to become "stuck" on a cruise ship due to a quarantine, and Royal Caribbean says it has a "robust, tiered response plan in place" to deal with that sort of a situation.

    The tiers increase protocols and vigilance onboard while providing transparent updates to guests the whole way.

    In partnership with local authorities, Royal Caribbean has developed transport protocols to ensure we can get you home safely. Thanks to rapid technology-enabled contact tracing, the cruise line will also be able to advise you in the event you had extended contact with any known case.

    Rapid SARS-CoV-2 tests can be conducted right onboard in the medical lab that allows for rapid, accurate onsite RT-PCR testing with results in under an hour, alongside a multitude of other evaluative tests.

    Rapid COVID-19 tests now available at New York airports

    In:
    07 Oct 2020

    The cruise industry has promised to test every passenger before they get on a cruise ship, and one company will begin offering 15 minute rapid tests in New York airports.

    Royal Caribbean joined other cruise lines in declaring a commitment to offer 100% testing of every crew member and guests earlier this week, and the promise of new and faster tests seems to be one step closer.

    XpresCheck announced it has opened testing stations in two New York airports that can deliver results in just 15 minutes. The Company has signed a contract securing 100 rapid test instruments. 

    The tests are available at the JFK International Airport and Newark Liberty International Airport locations as of October 7. The company has plans to open locations in 60 Large Hub and Medium Hub airports, which are "in advanced discussions".

    The new test stations are at Terminal 4 of JFK and level 3 in Terminal B at Newark.

     XpresCheck already operates health and wellness facilities at 25 airports around the world. 

    Testing is a major priority for cruise ships

    Royal Caribbean has identified testing as a primary focus of its multi-layered strategy for ensuring guests are safe on their cruise ships.

    One of the Healthy Sail Panel's recommendations is to have guests get a negative test between 5 days and 24 hours before the cruise.

    "All guests joining a ship, regardless of method of travel to the ship, should be tested for SARS-CoV-2 between 5 days and 24 hours before boarding and receive a negative result that is shared with the cruise operator, before coming on board."

    Royal Caribbean Group Chairman and CEO Richard Fain recently said he was very excited about the recent advances in testing.

    Specifically, Fain believes the development of new test capabilities, combined with decreasing testing costs and speedier results is "staggering."

    How will guests get a test in time?

    While many cruise fans are eager to do what it takes to get back on a cruise, getting test results in a short amount of time is not an easy task.

    With faster tests becoming more readily available, the cruise lines plans become more viable.

    The Healthy Sail Panel hopes guests can get a test before they travel in order to minimize the spread. Mr. Fain believes the test results can then get electronically linked to your SetSail Pass, and assuming all is well, you are good to go.

    "We do think that we have procedures that we could put in place that gets you the tests, have the test results reported directly to us."

    "I think we have processes that will enable you relatively easily to get the tests and have... the confirmation of the negative tests forwarded to us electronically."

    Top 8 things you should know about Royal Caribbean's 125% onboard credit offer

    In:
    07 Oct 2020

    When Royal Caribbean cancels cruises during its voluntary suspension, it usually offers guests the option of taking anything they pre-purchased and turn that into an onboard credit for a future sailing.

    Not only does this simplify the process of getting a refund and then re-purchasing items for a different sailing, Royal Caribbean sweetens the deal with an extra 25% credit.

    If you are thinking of taking advantage of Royal Caribbean's 125% onboard credit offer, here are the most important things to be aware of before you take it.

    You can only qualify for the onboard credit offer if you take the future cruise credit

    At this time, the elevated onboard credit offer is only available to those guests who opt for the Future Cruise Credit.

    If you elect to use Lift & Shift or ask for a full refund, you will not qualify for the 125% onboard credit.

    The bonus is only for money you spent

    The 125% onboard credit offer only applies to money you spent out of your own pocket, and not any onboard credit that was used for the now cancelled cruise.

    If you had onboard credit and used that to pay for Pre-Cruise purchases, you would only receive the offer only for the amount paid, not for the portion paid via an onboard credit.

    The onboard credit is non-refundable

    Once the onboard credit is applied to a new booking, it has no cash value and is nonrefundable.

    Once onboard, any amount unused during the voyage will not be refunded at the end of the voyage.

    You can use the onboard credit before or during your cruise

    Once you get the onboard credit, it can be used prior to your cruise to purchase items, and/or you can wait to spend it during the cruise.

    The onboard credit can be used for both pre-cruise purchases and onboard purchase, so there is no limitation on when you have to use it.

    You have to decide to use it by a certain date.

    You only have a limited time to decide if you want to opt-in for the 125% onboard credit offer. 

    Once you reach the deadline, no adjustments can be made, and an automatic refund of the pre-cruise purchases will be issued.

    For the November cruises that were just cancelled, guests have until October 16, 2020 to opt-in.

    How the bonus is calculated

    The bonus 25% onboard credit sounds great, but you should be aware of how Royal Caribbean determines the exact amount for you.

    The new Onboard Credit is based on the amount paid, excluding any previously applied Onboard Credits, and will be based on a per person value.

    You have until September 2022 to use the onboard credit

    Once you opt-in for the 125% onboard credit offer, you have until April 2022 to apply it to a particular sailing.

    You do not have to use it on your next booked cruise. Rather, it is like a Future Cruise Credit, where you can apply it as you see fit.

    Once issued, the credit will be valid for use by April 30, 2022 onboard Royal Caribbean sailings through September 30, 2022.

    The onboard credit is not tied to your future cruise credit

    The good news is you do not have to apply the 125% onboard credit to the same sailing your future cruise credit is redeemed towards.

    You can use their Future Cruise Credit on one sailing and their Onboard Credit on another.

    Royal Caribbean cancels Quantum of the Seas cruises through March 2021

    In:
    07 Oct 2020

    In addition to canceling all of its November 2020 cruises, Royal Caribbean has also cancelled Quantum of the Seas sailings through the end of March 2021.

    Sailings aboard Quantum of the Seas between December 2nd, 2020 – March 22nd, 2021 have been added to the list of cancelled cruises.

    Quantum of the Seas had been scheduled to sail from Singapore between 2020 and March 2021.

    Royal Caribbean's website has also removed all Quantum of the Seas cruises for booking until April 2021.

    In a statement on Royal Caribbean's website, the cruise line explained the need to "assess" changes for Quantum.

    "In preparation for our return to service, we’ve been making changes to our existing itineraries to ensure we meet the evolving needs of our guests and are aligned with any existing travel restrictions. Unfortunately, the following Quantum of the Seas sailings have now been cancelled as part of this change, while we assess our next move for this ship."

    Similar to the other cancelled cruises, guests who had cruises booked on Quantum qualify for compensation options, although Lift and Shift is not available for Quantum.

    • 125% Future Cruise Credit to book a new cruise by December 31, 2021 for sailings on or before April 30th, 2022.
    • 100% Refund. You have until December 31, 2020 to request a refund and deactivate your future cruise certificate.

    Royal Caribbean has big plans for Quantum of the Seas, setting the stage for her return to North America in summer 2021 to sail from the Pacific Northwest for the first time when she calls Seattle home in May 2021.

    Quantum will join Ovation of the Seas next year and offer 7-night cruises to Alaska, leaving on Mondays.

    Quantum of the Seas sailed for a brief period out of Bayonne, New Jersey when she debuted in 2014, but since 2015 has been sailing in Asia.

    Royal Caribbean cancels all November 2020 cruises

    In:
    06 Oct 2020

    Royal Caribbean announced on Tuesday it has extended its voluntary cruise suspension by canceling all of its November 2020 cruises.

    A statement on its website states all of its sailings are cancelled through November 30, 2020 and the new goal to restart cruises is December 1, 2020.

    "After further consulting with our partners at Cruise Lines International Association and in conjunction with the CDC, we have decided to extend the suspension of sailings for our global fleet for all sailings through November 30th, 2020."

    "Our goal is to resume operations on December 1st, 2020."

    Cruise operations had been suspended through the end of October, but will now be extended an additional month.

    In an email to travel agents, Royal Caribbean expanded a bit more on the impetus to extend the cancellations, "Our most recent plan was to resume operation on October 31st, 2020. However, to ensure we have ample time to focus on our healthy return to service initiatives, our global suspension has been extended through November 30th, 2020, with a plan to resume operation on December 1st, 2020."

    Compensation

    Guests affected by the cancelled cruises between November 1 - 30, 2020 have three options for compensation.

    Lift & Shift: Select next year’s sailing with the same itinerary type, sailing length, stateroom category, and within the same 4-week window of the original cruise date, and you can take your existing reservation and move it to next year. Option expires on October 16th, 2020

    125% Future Cruise Credit: To account for the inconvenience this has caused, guests are eligible for a 125% Future Cruise Credit (FCC) that is based on the total cruise fare paid at the guest-level and will be automatically issued on-or-before November 4th, 2020 — if neither of the other options is selected.

    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. 

    If you previously opted to take advantage of our Cruise with Confidence policy, the 100% FCC will stand, and this new option is ineligible.

    Additionally, if you redeemed your Cruise with Confidence Future Cruise Credit on a sailing that is now cancelled, their original FCC will be reinstated, plus 125% of any amount paid by the guest on the cancelled reservation.

    FCCs for sailings in November will automatically be sent via email by November 4th, 2020.

    Refund: If you prefer a cash refund, you can do so by requesting this option on-or-before December 31, 2020.

    You can expect their refund to the original form of payment within 45 days from the cancellation date. 

    If you redeemed a Cruise with Confidence Future Cruise Credit on an impacted sailing and would now prefer a refund instead, Royal Caribbean will process this request in the amount of any new funds paid above the original certificate and, in turn, will reinstate the Cruise with Confidence FCC for future use.

    Cruise Planner Purchases: If you had purchased any cruise add-ons, such as shore excursions, drink packages, wifi and more, you could opt to convert your Cruise Planner purchases  to an Onboard Credit valued at 125% of the total amount paid. This offer expires on October 16th, 2020.

    What's next for Royal Caribbean?

    The latest round of cancellations likely come as no surprise to cruise fans, but the question of when cruises might actually restart again remains.

    A few hours before this announcement, Royal Caribbean Group Chairman and CEO Richard Fain did not rule out cruises in 2020.

    Speaking at an industry event on Tuesday, Mr. Fain shared a sense of confidence that cruises could still restart sometime in 2020.

    "We're going to start with test cruises, I think, and and then a few shorter cruises and and gradually build up as we build up our experience. But I do think that's going to start this year. I'm highly I'm highly optimistic."

    Regardless of the cruise line plans, the U.S. Center for Disease Control "No Sail" order remains the most visible obstacle for Royal Caribbean to restart cruises.

    The federal agency extended its cruise ship ban by another month, through the end of October, and there does not appear to be any signs that it could end.

    The CDC has been adamant in its belief cruise ships are not safe environments during the current global health crisis.

    "Cruise ships continue to be an unsafe environment with close quarters where the disease spreads easily and is not readily detected," is the direct rationale for why cruise ships may not sail.

    Royal Caribbean, and the entire cruise industry, has been working on comprehensive new health protocols it believes will make cruises safer than any other form of travel.

    Just today, cruise lines announced they would implement 100% testing, alongside over 70 new policies that will create a layered approach to keeping guests and crew members safe.

    Fain believes a bubble approach to cruise ships could very well be the answer, with testing at the top of that myriad of protocols.

    Royal Caribbean plans to have 100% testing of everyone on its cruise ships

    In:
    06 Oct 2020

    When Royal Caribbean resumes sailings, it intends to test every single passenger and crew member.

    Royal Caribbean Group Chairman and CEO Richard Fain highlighted a recommendation of the Healthy Sail Panel to institute 100% testing of cruise ship guests and crew members.

    Mr. Fain asserted that no other section of the travel industry has 100% testing, which separates Royal Caribbean (and other CLIA member lines) from the rest of travel.

    "No other section of the travel industry, no other section does one hundred percent testing. In fact, no other industry in the world requires 100 percent testing. The closest anyone comes is the bubble that was organized to the NBA teams and that's been so very successful."

    Fain seems very excited about the recent advances in testing and how much of it is offered.

    "The improvement in our country's ability to test has been phenomenal," Mr. Fain explained. "The capacity for traditional testing has grown exponentially, and we now regularly seeing more than a million tests performed in a single day. That's unheard of."

    Specifically, Fain believes the development of new test capabilities, combined with decreasing testing costs and speedier results is "staggering."

    Vaccine vs. tests

    To exemplify how important testing is and the advances made with them, Richard Fain went as far to say that he expects tests to have a greater impact on cruises than the vaccine in the short term.

    "The advances are so significant that I believe in the near term we will see more benefit from testing than we will from vaccines in the near term."

    Fain thinks the impact of a vaccine will take time, and in the meantime, new and better testing will make a quicker difference.

    "Vaccines are the ultimate weapon against this virus and their development has been nothing short of amazing. But I do think it's likely that a vaccine will be available before the end of the year. But getting enough for widespread distribution is going to take probably until sometime in the spring."

    "On the other hand, faster, cheaper and widespread testing will be much more impactful, much sooner. Widespread testing enables contact tracing, and it's the one two punch of testing and contact tracing that is so effective in limiting the community spread of the disease."

    Testing can't solve the problem by itself

    While testing is going to be a big part of Royal Caribbean's approach to ensuring cruises are safe when they return, it is not a silver bullet.

    Mr. Fain admitted that as helpful as it is, testing cannot solve the problem by itself. That is why the Healthy Sail Panel's recommendations take a variety of different steps to create a layered approach of several different operating protocols.

    "Each individual step whittles away at the risk levels until you have architected a overall much safer journey."

    "I compare it to a car. The brakes keep you safe, of course, and a seatbelt and you've got even better protection. Then add an air bag and you start to see the effect of a layered approach."

    Fain believes a bubble approach to cruise ships could very well be the answer, with testing at the top of that myriad of protocols.

    Carnival and NCL cancel more cruises: Is Royal Caribbean next?

    In:
    05 Oct 2020

    UPDATE: The answer is yes, Royal Caribbean has cancelled its November 2020 cruises.

    In the days since the No Sail Order was extended, Royal Caribbean's primary competitors have each announced a new round of cancellations, so is Royal Caribbean next?

    There has been no official word by Royal Caribbean on any new cancellations, but typically when one of the "big three" cruise lines has announced a new wave of cancelled cruises, the others have eventually followed suit.

    Royal Caribbean currently only has cruises cancelled through October 31, 2020, although it has also canceled transatlantic, European and Australian itineraries beyond that date.

    The dominos begin to fall

    The first cruise line to announce changes was Carnival Corporation, when it canceled sailings from most ports through December 2020.

    Carnival essentially cancelled all of its cruises, minus ships sailing from Port Canaveral and Miami in Florida. The line has not yet canceled November or December sailings from those two ports.

    Earlier today, Norwegian Cruise Line Holdings Ltd. cancelled all of its cruises through November 2020, with three ships cancelled through the end of March 2021.

    Both cruise lines made their announcements less than a week after the U.S. Center for Disease Control (CDC) extended its No Sail Order through October 2020

    An unconfirmed, but widely accepted, report claims the CDC wanted to extend the No Sail Order to February 2021.

    Cruise line executives were scheduled to meet with White House officials last week, but the meeting was postponed.

    What will Royal Caribbean do?

    The big question is if/when Royal Caribbean may announce a new set of cancellations to match what the other cruise lines have done.

    Royal Caribbean rarely gives any kind of warning when a new set of cancellations are going to occur, and there is no consistent pattern to when they have been announced.

    Earlier today, Royal Caribbean Group Chairman and CEO Richard Fain offered a video update that did not specifically call out any new changes to its cruise schedule, but did allude to some recent news impacting the cruise industry.

    "Soon, we hope to have the opportunity to put our plans to the test. It's not going to happen overnight. It is going to take time for this process to work through."

    "The process will be carefully evaluated by independent outside observers and then only on a ship or two at first, we hope to start sailing again."

     

    Cruise fans are quite eager to know what the cruise line will do, with many having sailings scheduled to depart in less than a month.

    "It’s less than 30 days from November 1st, and based on prior cancellations by Royal, we should have had Royal’s decision about November (at the very least) by now," writes S.Marie. "I would even be ok with Royal saying we are still waiting for the green light from the CDC but here are the ships we plan to deploy (or not deploy) for our start up phase."

    "If I was a cruise line," twangster postulated, "I'd be hesitant to begin bringing thousands of crew back for two ships until there was an absolute green light from the CDC or CV Task Force that a restart is a sure thing."

    CJS2766 exemplified the concern so many seem to have, "I'm also one of those that's supposed to cruise Nov 8... I wish we would hear something already, even though I know the realistic outcome."

    Cruise line meeting with White House officials postponed

    In:
    02 Oct 2020

    The meeting scheduled between cruise line executives and White House officials has been postponed.

    A meeting had been set up between the cruise lines and Vice President Mike Pence on Friday to discuss the No Sail order extension, but it is being reported that meeting has been postponed.

    No reschedule date for the meeting has been announced.

    Earlier this week, it was revealed the White House overruled the U.S. Center for Disease Control's recommendation to extend the No Sail Order until February.  Instead, the order was extended through just the end of October.

    In addition, a meeting was set up for Friday afternoon between representatives of the cruise industry and the Trump administration to, "describe their transformation and dozens of ways that they will mitigate risk and ensure public health," according to a White House official.

    And in that meeting there will be a discussion and afterwards a decision will need to be made about whether the order needs to be extended," the White House official added. "These things can be extended for a month and then we can reassess the conditions on an ongoing basis."

    One senior official added that the cruise ship decision "is an example of the task force weighing all the equities of the departments and agencies represented on the task force and making a decision that properly balances the public health impacts and the economic ramifications on the country."

    The CDC believes cruise ships would create an unacceptable amount of risk to the public health if allowed to resume sailings.

    "Cruise ships continue to be an unsafe environment with close quarters where the disease spreads easily and is not readily detected," is the direct rationale for why cruise ships may not sail.

    "Cruise ships continue to be an unsafe environment with close quarters where the disease spreads easily and is not readily detected," is the direct rationale for why cruise ships may not sail.

    In short, the CDC sees these factors as necessitating the extension of the No Sail Order:

    • The continued spread of the COVID-19 pandemic worldwide
    • Risk of resurgence in countries that have suppressed transmission
    • Ongoing concerns related to restarting of cruising internationally
    • Need for additional time to assess industry measures to control potential SARS-CoV-2 transmission on board cruise ships with passengers without burdening public health
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