Allure of the Seas is going to get some, but not all, of the refurbishment work beginning this week.

The ship is on her way to Cadiz, Spain for a "technical dry dock".  Allure will enter the Navantia Cádiz shipyard in Spain at the end of this week, and the work will take about 30 days.

Royal Caribbean was forced to postpone the work in March after Spain closed its cruise ports in March.

The amplification aspect of the work to be done is still being finalized, and Royal Caribbean will communicate an update when a plan is in place.

Spanish media is also reporting that the shipyard Commitee Chairman, José Gallardo, indicated Royal Caribbean has decided to postpone some of the upgrade work that was originally planned, and instead simply focus on the propulsion and navigation of the ship.

“La reforma del hotel no se va a hacer, algo lógico dada la situación del negocio de los cruceros, ”Gallardo said. This translates to, "The reform of the hotel is not going to be done, which is logical given the situation of the cruise ship business."

The work will be carried out by workers at the shipyard, with a focus on limiting the presence of foreign subcontractors.

Like so many other aspects of Royal Caribbean's business, plans for upgrades to Allure of the Seas (and Explorer of the Seas) were put on hold and now delayed until the company's financial situation can improve.

Royal Caribbean indicated last week it identified approximately $3.0 billion and $1.4 billion of capital expenditure reductions or deferrals in 2020 and 2021.

Planned upgrades for Allure of the Seas included the Ultimate Abyss, the tallest slide at sea; The Perfect Storm trio of waterslides, completely redesigned Adventure Ocean kids and teens spaces, the first Giovanni’s Italian Kitchen & Wine Bar, and Music Hall.

Royal Caribbean's Lift and Shift program offers guests the option to move their existing cruise reservation one year ahead, and it has intrigued plenty of potential cruisers looking to defer their vacations.

The appeal of Lift and Shift is it provides a simple and clean way to move a booking without having to cancel and rebook.

Taxes & fees will be adjusted to reflect the charges associated with the new sailing. Taxes & fees from the original sail date will not be protected.

How does Lift and Shift work?

If you have a cruise booked, Royal Caribbean is offering the opportunity between now and January 31, 2021, to protect the original price and promotional offering of a cruise by selecting a future sailing on the same itinerary type, sailing length, stateroom category, and within the same 4-week period of their original cruise date same-time-next-year.

You do not need to book the same ship or even class of ships.

Does it matter when a cruise was booked?

Guests are eligible to rebook under the Lift & Shift guidelines between now and January 31, 2021. After this point, Lift & Shift expires and is no longer eligible.

All existing bookings, as well as bookings made between now and January 31, 2021 are eligible.

Royal Caribbean announced Lift and Shift will be discontinued on February 1, 2021. However, they are still offering Lift & Shift when new rounds of cruise cancellations are announced.

You will need to refer to the specific Lift & Shift terms and conditions when offered for specifics on how and when it can be used.

Do all rates qualify for Lift & Shift?

Most cruise rates do apply with no restrictions, but there are a few exceptions.

Select restricted rates are ineligible for Lift & Shift and Best Price Guarantee - including but not limited to

• Net rates
• Casino rates
• Travel Agent Friends & Family rates
• Travel Agent Reduced rates
• Complimentary staterooms

Are there any blackout dates for Lift & Shift?

Christmas, New Year’s, and Chinese New Year’s cruises are ineligible, unless you are currently confirmed on one of these sailings and wish to take advantage of Lift & Shift to move to the same sailing next year (assuming all other qualifying criteria is met).

Will my pre-cruise purchases at their booked rates come with Lift & Shift?

Unfortunately, not.

Pre-cruise purchases such as beverage packages, shore excursions, etc. will be removed during the re-accommodation process and can be added to the future reservation, as desired, at prevailing rates.

What happens to hotels and transfer purchases?

If you purchased hotel accommodations or transfers with Royal Caribbean, these will be removed during the re-accommodation process, but can be re-added, if desired, once confirmed
on the future ship/sailing of choice at prevailing rates.

If you purchased these outside of Royal Caribbean, you will need to be addressed directly with whomever you purchased it originally.

Is there a limit to how many times I can use Lift & Shift?

Yes, you can only use it once throughout the lifetime of the booking.

Lift & Shift scenarios

While the rules laid out in this post answer many questions, there may still be lingering questions and conundrums you may have about specific situations.

In order to provide better context, Royal Caribbean has provided some examples of when Lift & Shift may or may not be applicable.

Different ship

Currently booked on Explorer of the Seas in Europe this August 2020. Can I Lift & Shift to Harmony of the Seas in September 2021?

Yes, provided the sailing next year is on a departure that falls within a 4-week span of their original sail date, you are able to enjoy a cruise onboard the Harmony of the Seas in
Europe within the same stateroom and on a sailing of the same length. 

Currently booked on an Open Jaw Alaska itinerary onboard Radiance of the Seas departing August 21, 2020 and want to move to a Roundtrip Alaska itinerary onboard Ovation of the Seas departing August 20, 2021. Does this qualify for Lift & Shift?

Yes, assuming you want the same stateroom category since the sailing length, itinerary type, and timing meet the required criteria.

Different Sailing Length

Currently booked on a 4-night Bahamas cruise onboard Mariner of the Seas in October 2020 and now want to move to a 3-Night weekend getaway onboard the same ship in October 2021, can I take advantage of Lift & Shift as long as the same stateroom category is selected?

No, because the two sailings are not the same length. 

While the same itinerary, stateroom category, and 4-week cruise window were selected, you would have to select another 4-night Bahamas cruise in October 2021 to qualify for Lift & Shift.

Different stateroom type

Is it possible to Lift & Shift from 2020 to the same cruise in 2021, but upgrade to a balcony stateroom over the prior booked oceanview?

Yes, you could upgrade to a balcony, but under prevailing pricing and promotional offerings.

Unfortunately, prior rates and promotions will not carry through.

Different timing

Is it feasible to Lift & Shift an Oasis of the Seas cruise from Port Everglades on December 6, 2020 to Oasis of the Seas departing Miami on December 19, 2021?

Since December 19, 2021 is a Christmas sailing and the current reservation is confirmed on a non-holiday December cruise, unfortunately, Lift & Shift does not apply.

Are cruises cancelled eligible for Lift & Shift?

Lift & Shift is applicable to cancelled sailings departing between June 12 and July 31, 2020. Those sailings previously impacted by Royal Caribbean's pause in operation, unfortunately, are ineligible.

If you are keeping score at home, we have now gone through the longest period of time since Royal Caribbean voluntarily suspended all of its cruises without any more cruises being cancelled.

Here is the breakdown of the recent timeline of cancelled cruise announcements:

• March 13: Initial cruise cancellations announced for March 14 - April 11, 2020
• March 24: Second round of cruise cancellations: April 12 - May 11
• April 16: Third round of cruise cancellations: May 12 - June 11

The time between the first and second announcements of cancelled cruises was 11 days, and then the second and third round took 23 days.

At the risk of jinxing things, today marks 25 days since the last round of cancelled cruises.

This statistical anomaly is not necessarily an indicator that more cruises will not be cancelled. In fact, Royal Caribbean disclosed last week that more cancelled cruises are possible, as continued disruptions to travel and port operations in various regions.

However, it is a good sign that with shelter in place laws being lifted around the United States and abroad, perhaps this just one more sign that we are getting closer to cruises resuming.

More than any other question, cruisers are curious to know when will Royal Caribbean resume cruises.

Royal Caribbean has not provided much detail on when it intends to resume cruises, other than stating it will resume cruises on June 12, 2020 (with the exception of Canada, New England and Alaska sailings).

Carnival Cruises announced a more fleshed out plan to resume sailings later this summer, while simultaneously cancelling more cruises. The announcement seemed to carry more weight with it, as it provided more than just a new target date to sail again.

When do you think cruises will start back up again? Share your predictions in the comments!

Happy Mother's Day! All the moms out there deserve a big hug, thank you, and hopefully a cruise booking too.

Royal Caribbean unveiled an expanded ability to cancel and rebook cruises earlier this week.

The "enhanced & extended Cruise with Confidence policy" offers guests the ability to cancel up to 48-hours prior to sailing in exchange for a 100% Future Cruise Credit on sailings through April 2022 for bookings made on-or-before August 1, 2020.

In addition, a new "Lift & Shift" program was announced to move a cruise to a similar sailing one year away. 

On top of all of that, Royal Caribbean relaxed its Best Price Guarantee up to 48-hours prior to their cruise vacation start date, ensuring the best rate and/or promotion.

Royal Caribbean News

• Royal Caribbean issued a business update on how its business is doing given the major impact of no cruises.
• Royal Caribbean has cancelled plans to introduce a Spa stateroom category on its ships.
• Carnival Cruises announced its plans for resuming cruises.
• Grand Cayman announced it will close its borders to cruise ships until September.
• Five important facts from Royal Caribbean's business update.
• Two sailings were cancelled so that the ships could repatriate crew members.
• Richard Fain spoke on the work to get crew home and resume cruises.
• Get Kids Sail Free & 30% off all guests on cruises booked in May.
• Royal Caribbean is working on a plan to get its crew members home.
• Have you gotten your refund yet? I asked readers if they have gotten theirs yet.
• Have you seen this uplifting video made by Royal Caribbean's entertainment team?
• One year ago this week, Perfect Day at CocoCay officially opened.
• I shared some really captivating Royal Caribbean cruise photos.
• Here is the full recipe on how to make the Grand Sabor Margarita at home.
• The Royal Caribbean shareholder meeting is scheduled for the end of May.

Royal Caribbean Blog Podcast

The 353rd episode of the Royal Caribbean Blog Podcast is now available, that features Ron's story of how he rescheduled a cruise to work around family obligations

Our love of cruising can sometimes take a back seat to our loved ones, and Ron tells us about how he changed sailings to work around family plans and ended up with a fantastic cruise.

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

How to get ready for your next cruise (whenever it happens)

While there are no Royal Caribbean cruises to go on currently, the day when they will sail again is coming, and now is a great opportunity to prepare for that vacation.

One of the best ways to ensure you have a fantastic vacation is to plan ahead, as I see too many cruisers that do little to no research into their vacation.

Make the most of your cruise with these top tips!

The Caribbean island of Grand Cayman has decided to keep its borders closed until at least September 1, 2020.

Tourism Minister Moses Kirkconnell confirmed that Cayman’s borders will remain officially closed until at least 1 Sept., and no cruise ships will be landing here before that date.

Grand Cayman's borders had been closed and set to re-open after May 31, but the new timeline was approved by the cabinet.

The new date is not a guarantee that Grand Cayman's borders will re-open by then, simply it is the new "line in the sand".

Kirkconnell said the cruise business “is extremely fluid” and it may be some time before those ships touch local shores.

“I don’t think that we’re going to see cruise vessels back in Grand Cayman [for the] second, third quarter or fourth quarter, to be quite honest. We will continue to dialogue and see what’s the best for the tourism industry and product,” he said.

Royal Caribbean provided an operating update on Friday that gave a fairly positive outlook on its business operations, despite a major impact by global cruise suspension.

While the information was mostly provided for the context of financial disclosures, cruise fans can glean some important tidbits from the announcement.

New ships will be delayed

The most striking announcement was new cruise ship construction is certainly going to be delayed.

Royal Caribbean said that impacted shipyard operations, "will result in delivery delays of ships previously planned for delivery in 2020 and 2021."

While none of Royal Caribbean's ships were named specifically, Odyssey of the Seas is/was scheduled for delivery at the end of 2020 and Wonder of the Seas in 2021.

Booking levels for 2021 have not taken a major hit (yet)

Perhaps the most surprising statistic of the disclosure was executives suggested a growth recovery as early as 2021.

Although still early in the booking cycle, the booked position for 2021 is within historical ranges when compared to same time last year with 2021 prices up mid-single digits compared to 2020.

While there are "elevated cancellations for 2020", it appears the public has not yet made such stark decisions for vacations next year.

Royal Caribbean is going through around $150 million per month

With no real revenue coming in since cruises were cancelled in mid-March, Royal Caribbean said its average ongoing ship operating expenses and administrative expenses is approximately $150 million to $170 million per month during the suspension of operations.  

Royal Caribbean is doing its best to mitigate costs during this time, and may seek to further reduce this average monthly requirement under a prolonged non-revenue scenario.

More than 5,000 employees have been cut

Many companies have been forced to lay off workers in order to deal with reduced demand and income, and Royal Caribbean is no exception.

Royal Caribbean Cruises Ltd reduced workforce by approximately 26 percent of more than 5,000 shoreside employees in the United States.

The reduction was made through a combination of permanent layoffs and 90-day furloughs with paid benefits.

More people want credits instead of refunds

A good sign for Royal Caribbean is the fact approximately 55% of its guests who had a cruise cancelled opted for a 125% future cruise credit in lieu of a 100% refund.

Royal Caribbean is known for its cruise ships that not only take guests to destinations around the world, but offer an incredible onboard experience as well.

In fact, the cruise ships are as impressive as they are photogenic and Royal Caribbean has taken some truly impressive photos of their vessels.  These photos capture the majesty of their design, as well as incorporating the vistas and cityscapes in the background.

I have hand-picked some of my favorite Royal Caribbean cruise photos shared by the cruise line recently to show off the intriguing look these vessels offer.

If there was a recipe for a great photo, you would not want just a sprinkle or dash, but instead a heaping of sunset. Photo by Volnei M.

In the first year since Perfect Day at CocoCay debuted, there has been no shortage of jaw-dropping photos of this private destination. It is impressive to consider how closely the island ended up looking like the concept art that proceeded it. Photo by Adam H.

If you have been on an Alaska cruise, then you know just how amazing your surroundings look every time you visit. No matter the port or location of the ship, there is always sweeping landscapes to take in, and this photo is a shining example of what happens when you combine the scenery around you with a sunny day. Photo by twangster

Earlier, I talked about how a great sunset and Perfect Day at CocoCay never disappoints from a photography perspective, so it should come as no surprise to see when combined, the results are awe-inspiring. Photo by Pieter D.

The sleek lines of a Royal Caribbean ship have been eye-catching for decades, and the contrasting color you will find across its decks are always a visual treat.

In photography, the golden hour is the period of daytime shortly after sunrise or before sunset, during which daylight is redder and softer than when the Sun is higher in the sky. Combine that with the ship's lights and you have a great photo!

The Ultimate Abyss may be a polarizing topic among cruisers, but the ten story plummet will capture the attention of pretty much anyone. Photo by Nick M.

It is always an interesting contrast between the natural wonders created thousands of years ago, and the latest in cruise ship design.

Fireworks, anyone? The launch of a new ship is cause for celebration and it makes for a great photo too.

Our final photo may not have lens flare, fireworks or even an amazing sunset behind it, but during its prime, this would have been an incredible sight to see, because Royal Caribbean made a name for itself from the beginning with cruise ships that commanded the attention of anyone who caught a glimpse.

It is incredible to consider that from this one ship, Royal Caribbean would go onto build ships like Oasis of the Seas or destinations like Perfect Day at CocoCay.

Royal Caribbean's in-house production company has been away from the office during the current shutdown, but put out a powerful new video sung to the popular Styx song, "Come Sail Away".

The video is narrated by Senior Vice President of Entertainment for Royal Caribbean International, Nick Weir, who starts off the video at a vacant production studio in North Miami, but quickly turns to the casting team who engage in their rendition of the 70's song.

The video includes scenes from various stages and venues aboard Royal Caribbean's ships, as well as ships around the world.

This is one of many videos that Royal Caribbean crew and employees have created during its voluntary cruise suspension. Many have been posted on social media and quickly shared between guests, crew, and executives.

If you have cruised on Royal Caribbean before, you could get up to $400 instantly off your cruise fare when you combine promotions.

The Crown and Anchor Bonus applies to new bookings made between May 8 – May 11, 2020 to Gold, Platinum, Emerald, Diamond, Diamond Plus, and Pinnacle Crown & Anchor Society members.

The CAS Bonus provides up to $50 USD instant savings per stateroom on select sailings departing on or after June 12, 2020.  

Savings amount determined by sailing length:

• Sailings 5 nights or less, $25 savings
• Sailings 6 nights or longer, $50 savings

Savings are not redeemable for cash and are non-transferable. When reserving, a valid Crown & Anchor Society membership number must be included in the reservation. 

Dive and Discover Sale applies to new bookings made bet‌we‌en 5‌/8‌/2‌0– ‌5/1‌0‌/2‌0. Dive and Discover Sale offers up to $200 USD instant savings for select sailings departing on or af‌ter 6/‌12‌/2‌0. Savings amount is per stateroom and determined by category booked and sailing length:

• Sailings 5 nights or less, $25 savings for Interior and Ocean View, $75 for Balconies and $75 for Suites
• Sailings 6 nights or longer, $50 savings for Interior and Ocean View, $100 for Balconies and $200 for Suites.

Instant savings applied as instant rebate to the price of cruise fare at checkout. Instant savings do not apply to China departures.

Royal Caribbean issued an update on Friday on how the COVID-19 pandemic has impacted its business.

The cruise line has not offered any cruises since it announced a voluntary suspension of its global cruise operations from March 13, that will last through at least June 11, 2020. More cancelled cruises are possible, as continued disruptions to travel and port operations in various regions may result in further suspensions. 

Royal Caribbean also said it is working towards, "developing a comprehensive and multi-faceted program" that addresses the public health challenges posed by COVID-19. These efforts will include among other things, enhanced screening, upgraded cleaning and disinfection protocols and plans for social distancing.  

The Company will continue to work with the Centers for Disease Control and Prevention, global public health authorities and national and local governments to enhance measures to protect the health, safety and security of guests, crew and the communities visited when we are out of service and once operations resume.

Cruise Bookings Situation

It should come as no surprise to hear that the COVID-19 outbreak has taken a hit on the cruise line's bookings.

Prior to the pandemic, Royal Caribbean began the year in a strong booked position and at higher prices compared to the previous year. But since the virus, booking volumes for the remainder of 2020 are meaningfully lower than the same time last year at prices that are down low-single digits.

Due to the suspension in sailings, booking trends reflect elevated cancellations for 2020 and more typical levels for 2021 and beyond. 

Although still early in the booking cycle, the booked position for 2021 is within historical ranges when compared to same time last year with 2021 prices up mid-single digits compared to 2020.

As of March 31, 2020, the Company had $2.4 billion in customer deposits.  This includes approximately $0.8 billion of future cruise credits related to previously announced voyage cancellations through June 11, 2020.

Liquidity Situation

"Since late January, we have undertaken several proactive measures to mitigate the financial and operational impacts of COVID-19." said Jason T. Liberty, executive vice president and CFO.  "Our focus is on bolstering liquidity through significant cost cutting, capital spend reductions, and other cash conservation measures.  In addition, the Company is considering additional financing sources.  We continue to evaluate all options available to us to further enhance liquidity."

As of April 30, 2020, the Company had liquidity of approximately $2.3 billion all in the form of cash and cash equivalents.  On May 4, 2020 the company increased the 364-day senior secured credit facility and drew $150 million, further enhancing the Company's liquidity profile.

In order to cut costs, Royal Caribbean has taken the following actions:

Reduced Operating Expenses

The Company has taken significant actions to reduce operating expenses during the suspension of its global cruise operations:

• Significantly reduced ship operating expenses, including crew payroll, food, fuel, insurance and port charges
• The Company's ships are currently transitioning into various levels of layup with several ships in the fleet transitioning into cold layup, further reducing operating expenses
• Eliminated or significantly reduced marketing and selling expenses for the remainder of 2020
• Reduced workforce by approximately 26 percent of more than 5,000 shoreside employees in the US
• Suspended travel for shoreside employees and instituted hiring freeze across the organization.

The Company estimates that its average ongoing ship operating expenses and administrative expenses is approximately $150 million to $170 million per month during the suspension of operations.  The Company may seek to further reduce this average monthly requirement under a prolonged non-revenue scenario.

Reduced Capital Expenditures

Since the last earnings call, the Company has identified approximately $3.0 billion and $1.4 billion of capital expenditure reductions or deferrals in 2020 and 2021, respectively. The 2020 reductions and deferrals are comprised of:

• $1.2 billion, of non-newbuild, discretionary capital expenditures and
• $1.8 billion in reduced spend or deferred installment payments for newbuild related payments which the Company is currently finalizing.

The Company believes COVID-19 has impacted shipyard operations and will result in delivery delays of ships previously planned for delivery in 2020 and 2021.

Debt Maturities, New Financings and Other Liquidity Actions 

Since the last earnings call, the Company has taken several additional actions to further improve its liquidity position and manage cash flow:

• Increased the capacity under its revolving credit facilities by $0.6 billion, and fully drew on both facilities
• Entered into a $2.35 billion 364-day senior secured credit facility with an option to extend (secured by 28 ships with a net book value of approximately $12 billion as of March 31, 2020) 
• Obtained a $0.8 billion, 12-month debt amortization and financial covenant holiday from certain export-credit backed facilities
• Amended its non-export-credit backed bank facilities to incorporate a 12-month financial covenant holiday
• Agreed with its lenders that it will not pay dividends or engage in stock repurchases.

As of May 5, 2020, expected debt maturities for the remainder of 2020 and 2021 are $0.4 billion and $0.9 billion, respectively. 

The Company estimates its cash burn to be, on average, in the range of approximately $250 million to $275 million per month during a suspension of operations.  This range includes ongoing ship operating expenses, administrative expenses, and debt service expense, hedging costs, expected necessary capital expenditures (net of committed financings in the case of newbuilds) and excludes cash refunds of customer deposits as well as cash inflows from new and existing bookings.  The Company is considering ways to further reduce the average monthly requirement under a prolonged out-of-service scenario and during start-up of operations.

The Company continues to identify and evaluate further actions to improve its liquidity.  These include and are not limited to: further reductions in capital expenditures, operating expenses and administrative costs and additional financings.

On March 10, 2020, the Company withdrew its first quarter and full-year 2020 guidance.  The magnitude, duration and speed of COVID-19 remains uncertain.  As a consequence, we cannot estimate the impact of COVID-19 on our business, financial condition or near or longer-term financial or operational results with reasonable certainty, but we expect to incur a net loss on both a US GAAP and adjusted basis for the first quarter ended March 31, 2020 and the 2020 fiscal year; the extent of which will depend on the timing and extent of our return to service.