Anyone with a Royal Caribbean cruise booked for early 2022 will now have more flexibility in changing plans, as well as when they have to pay it.

Royal Caribbean informed travel agents on Friday of a number of changes related to guest-facing programs, many of which have been well-received by guests.

Here is a breakdown of the major changes just announced.

More time to cancel cruise for a credit

The Cruise with Confidence program has been extended yet again.

The Cruise with Confidence program  will expand to reservations confirmed on or before December 17, 2021 and sailing through April 30, 2022.

This program allows guests to cancel a cruise up to 48 hours before their sail date with no penalty in exchange for a 100% Future Cruise Credit.

Cruise with Confidence was introduced at the beginning of the cruise industry shutdown in 2020, and was designed to give guests peace of mind that they can change their plans after final payment date.

Ordinarily, guests would incur a penalty for canceling a sailing beyond the final payment date, which is typically 90 days before a sailing commences. Cruise with Confidence provides a great deal more flexibility to change minds with no penalty.

Included with this extension is the Best Price Guarantee, which allows guests to reprice their sailing up to 48-hours prior to the sail date if the price drops.

Credits accrued from the Cruise with Confidence program must be redeemed by April 30, 2022 on sailings departing on or before December 31, 2022, or 1-year from the original sail date, whichever is later.

Final payment window pushed back

The final payment due date on sailings departing through March 31, 2022 will now have until 30 days prior to sailing to submit full payment. 

The change was made to give guests more flexibility in deciding if they want to cruise without forcing a cancellation earlier.

Royal Caribbean said they will not inform guests directly of this change, so that travel agents can do so if they choose.

"Rest assured, no action is needed on your part, and no cancellations will occur until the new final payment date."

Ordinarily, final payment date for a cruise is 90 days before sailing. 

COVID-19 Assistance program extended

One more extension is for Royal Caribbean's COVID-19 Assistance program, which covers passengers if anyone tests positive within 14 days of the cruise, or while onboard.

Vaccinated guests and children not yet eligible to be vaccinated who are sailing on or before April 30th, 2022 will have the following COVID-19 Assistance at no extra charge.

• 100% cruise fare refund for you, and your Traveling Party, if any of you tests positive for COVID-19 within 14 days prior to the cruise or at the boarding terminal.
• Pro-rated cruise fare refund if your cruise is cut short for reasons related to COVID-19.
• If you test positive for COVID-19 during the cruise, Royal Caribbean will cover the costs of COVID-19 related medical treatment onboard, any required land-based quarantine, and travel home for you and your Traveling Party.

A new expansion at Royal Caribbean's private island in The Bahamas will cater to adults.

In September 2021, Royal Caribbean teased a new expansion coming to Perfect Day at CocoCay, Hideaway Beach.

The announcement confirmed the expansion and name, but no other details.

During an earnings call with investors on Friday, Royal Caribbean International President and CEO confirmed Hideaway Beach will be an adults-only area.

"We have an expansion taking place in perfect day with the addition of Hideaway Beach, which is a new experience that will open in late '22 for Perfect Day," Mr. Bayley said while talking about port projects on the books. "The beauty of Hideaway Beach is that it is an adult only area as part of Perfect Day."

Mr. Bayley said the new area will increase the capacity of the private island by "approximately 3000" passengers.

Mr. Bayley also added that Hideaway Beach will help improve the cruise line's overall profitability and drive more more revenue, which seems to indicate Hideaway Beach will have an extra cost.

The choice of an adults-only was part of a survey sent to some guests in late September for what sort of activities they would want see added to the island experience.

Hideaway Beach will be located on the western end of the island in a cove area that is slowly being developed.

The western end of the island is undeveloped land, as well as backstage storage and lodging, but it appears those operations can be relocated.

This will be the first expansion of CocoCay since the pandemic, and first since the Coco Beach Club was completed in early 2020.

Not only is another Royal Caribbean cruise ship restarting sailing today, but a new homeport is making a return as well.

Explorer of the Seas will conduct her test cruise on Friday from San Juan, Puerto Rico.

It appears the test cruise will run between October 29 to October 31.

Explorer of the Seas will be the first Royal Caribbean cruise ship to restart operations from San Juan since it shut down operations in March 2020 due to Covid-19.

Explorer will set sail from Puerto Rico with a seven-night itinerary, stopping in San Juan; St Thomas, U.S. Virgin Islands (USVI); St Croix, USVI; Phillipsburg, St. Maarten; Castries, St Lucia; Bridgetown, Barbados; Basseterre, St. Kitts; and returning to disembark back in San Juan.

This is another simulated cruises required by the U.S. Centers for Disease Control and Prevention’s (CDC) as part of its phased approach to cruise ships restarting in the United States.

Royal Caribbean has been systematically getting its cruise ships back in service by staffing them up, operating a test cruise, and then once they get approval from the CDC, beginning revenue sailings.

The purpose of a test cruise is to demonstrate to the CDC that the onboard health protocols can work, and keep crew members and passengers safe.

Explorer of the Seas is the latest Royal Caribbean cruise ship to undergo a test cruise, which have been successful on all the other ships that have conducted them.

If the test sailing goes well, Explorer of the Seas could be ready for her first scheduled voyage on November 7.

What happens on a test cruise?

A simulated voyage (also known as a test cruise) is when Royal Caribbean operates its ships without paying passengers in order to demonstrate the Covid-19 protocols onboard are effective.

Test cruises also serve a dual purpose for the cruise line, as a way to give returning crew members a chance to prepare for paying guests later.

The CDC requires ships starting back up to go through a series of steps that prove the new health protocols onboard and simulate a few scenarios to ensure the ship and crew are prepared for any Covid-19 issues that could occur.

The CDC gives cruise lines the option of completing these requirements over one or multiple sailings, but thus far, Royal Caribbean has always completed its test sailings in just a single voyage.

Some cruise lines required at least 95% of its passengers be fully vaccinated, but Royal Caribbean has not and that is because of the line's dedication to families.

Royal Caribbean has been adamant that it wants families to be able to cruise, including children who are not old enough to get the Covid-19 vaccine.

As a result, Royal Caribbean decided to take the extra time to do test cruises so that it could continue to welcome children onboard its ships.

Royal Caribbean International's senior vice president of Hotel Operations, Mark Tamis, called the decision "obvious" given how many kids sail with Royal Caribbean, along with the cruise line's dedication to remaining a family brand. "A good 20 to 25 percent of our guests are kids."

Royal Caribbean Group released its third quarter 2021 financial results, which reflect a $1.3 billion loss while restarting more than half of its ships.

In fact, Royal Caribbean Group was able to get two-thirds of its ships back in operation, although the Delta variant of Covid-19 delayed booking progress.

The company championed a few key statistics from the quarter before diving into its financials:

• Over 500k guests sailed across its five brands, including Royal Caribbean International. Over 1 million passengers are expected before the year ends.
• By the end of 2021, 50 of the 61 cruise ships in the Royal Caribbean Group should be back in service, representing almost 100% of its core itineraries and approximately 80% of worldwide capacity.
• Sailings for 2022 are booked within historical ranges and at higher prices than 2019, even when including future cruise credits (FCCs).
• Guest satisfaction scores and onboard spending per passenger are both at the highest levels in the Company's history.
• The Group expects to be cash flow positive by spring and profitable for the full year 2022.
• Constructive dialogue with the CDC leading to the end of the prescriptive CSO in January.

Third quarter results

Royal Caribbean Group posted a $1.3 billion loss for 2021, compared to a $1.3 billion loss in the third quarter of 2020.

The Company also reported Adjusted Net Loss of $(1.2) billion or $(4.91) per share for the third quarter of 2021 compared to Adjusted Net Loss of $(1.2) billion or $(5.62) per share in the prior year. The Net Loss and Adjusted Net Loss for the third quarter of 2021 are the result of the continued impact of the COVID-19 pandemic on the business.

The good news is 11 more cruise ships returned to service, which means there are now 40 cruise ships across all the Royal Caribbean Group brands operating today. This represents 65% of the fleet capacity have restarted cruises.

The Company also reported Adjusted Net Loss of $(1.2) billion or $(4.91) per share for the third quarter of 2021 compared to Adjusted Net Loss of $(1.2) billion or $(5.62) per share in the prior year. The Net Loss and Adjusted Net Loss for the third quarter of 2021 are the result of the continued impact of the COVID-19 pandemic on the business.

Cruise ships that operated the Group's core Caribbean, Alaska, and Europe itineraries in the third quarter achieved a load factor of 44%. Core itineraries exclude sailings during the early ramp-up period of up to four weeks and also exclude specialized itineraries implemented during the COVID period (e.g., Singapore, Cyprus). 

Total revenues per Passenger Cruise Day in the third quarter was up 12% versus record 2019 levels driven mainly by strong onboard revenue performance. 

Cruise ship plans and capacity

Royal Caribbean Group says it will move load factors up to 65-70% during the fourth quarter.  

The Group expects all ships on core itineraries in the fourth quarter will be cash flow accretive even when including start-up costs.

By the end of the year, the Group expects that 50 out of 61 ships will have returned to service, representing almost 100% of core itinerary capacity and approximately 80% of worldwide capacity. 

The remaining ships are expected to return by the spring of 2022 and return to historical load factors in the third quarter 2022. 

They believe Mainland China cruises will resume in the spring, albeit with lower load factors.

CDC and the Conditional Sailing Order

Royal Caribbean Group highlighted the fact the U.S. Centers for Disease Control and Prevention (CDC) announced a plan to transition the Conditional Sailing Order (CSO) to a voluntary program.

Mr. Fain said of the change, "We are very pleased with the continued and constructive partnership with the CDC and the U.S. government's COVID-19 interagency group."

"This is a great example of how close collaboration between the cruise industry and the CDC results in health and safety protocols that have demonstrated cruising can be one of the safest forms of vacation," Fain continued.

Bookings

While the Delta variant had a negative impact on cruise bookings, Royal Caribbean Group said booking volumes have improved "significantly" since the slowdown.

The Company attracted more bookings in the third quarter compared to the second quarter.  September was particularly strong, with new bookings for 2022 sailings more than 60% higher than the monthly average during the second quarter.

Sailings for the full year 2022 are booked within historical ranges and at higher prices than 2019. 

"As cases have come down, demand has come surging back.  Consumers are showing their resilience and desire to vacation, and the growing affinity of Royal Caribbean's leading brands, ships and crew. Although there are many uncertainties going forward regarding COVID-19, as well as cost and supply chain pressures, we continue our pathway forward and anticipate positive cash flow for the Group by spring of 2022 and generating positive earnings for the full year 2022," said Jason T. Liberty, Executive Vice President and CFO.

As of September 30, 2021, the Company had approximately $2.8 billion in customer deposits.  The comparable figure for the three brands at the same time in 2019 was $3.1 billion. This represents an improvement of about $400 million over the past quarter despite the $300 million of revenue that was recognized during the quarter.  

Approximately 35% of the customer deposit balance is related to FCCs compared to 40% in the prior quarter; a positive trend indicating new demand.  Customer deposits for second quarter 2022 forward sailings are higher than at the same time in 2019.

Royal Caribbean is bringing back some of the perks it had previously altered for its VIP treatment program guests can purchase.

RoyalCaribbeanBlog reader, Teresa McChane, received an email from Royal Caribbean before her Freedom of the Seas cruise this coming weekend with a look at her benefits for purchasing The Key, and there are two notable changes.

First and foremost, the option for early check-in at the cruise terminal has returned.

According to the email, guests who bought The Key can arrive to the cruise terminal between 11:00am - 11:30am instead of at the appointment time they received after checking in for their cruise online.

If passengers that purchased The Key are not able to make the early access window, they should arrive within their appointment time and will receive priority access into the terminal.

There will be a signage for guests who bought The Key at the cruise terminal so they can get their priority access.

In addition, the embarkation day meal is back in the Main Dining Room, which features a welcome lunch provided by Chops Grille.

The embarkation day lunch is available between 12:00pm - 1:30pm.

Finally, Royal Caribbean has also brought back the private debarkation á la carte breakfast, replacing the "grab and go" breakfast option.

A few weeks ago, Royal Caribbean brought back The Key to its ships, but with more restrictive changes than what is shown for this upcoming sailing.

Instead of true early access, guests still had to arrive at their booked arrival time.

Royal Caribbean had also swapped the embarkation day welcome lunch in the main dining room for complimentary room service for the duration of the cruise and 25% off onboard dining purchases.

The complimentary room service  and 25% off onboard dining purchases benefit still remains, even with the welcome aboard lunch offered again.

The price of The Key varies, and starts at $25.99 per day, per person, although there can be discounts available to bring that price down.

All guests over the age of 6 in the same room must purchase The Key.

Royal Caribbean Group announced on Wednesday a new initiative to make its cruise ships as eco-friendly as possible by reducing net zero emissions by 2050.

"Destination Net Zero" is the name of the new program that the company is calling its collective effort.

There are two primary objectives in its pledge to pursue science-based targets:

• Delivery of a net zero emissions cruise ship
• A path to net zero emissions by 2050

A comprehensive decarbonization strategy is behind how Royal Caribbean Group will get there, and executives feel now is the time to get moving on that goal.

"Decades ago, we set out on a course to advance sustainability; our vision now is to realize carbon-free cruising over the next two decades," said Royal Caribbean Group Chairman and CEO Richard Fain.

"Today we are announcing the most important destination of all in our company's history – Destination Net Zero – an ambitious strategy to cut emissions, protect our oceans, and ensure the viability of the hundreds of destinations that our guests and crew members care deeply about."

How they will get there

Over 18 to 24 months, Royal Caribbean Group will develop goals to be validated by the Science Based Targets initiative (SBTi).

The work will begin following the publication of SBTi's marine transport methodology. Science-based targets show companies how much, and how quickly, they need to reduce their greenhouse gas (GHG) emissions to help limit global warming.

The company will set key milestones to ensure they are making progress, one of which will be the delivery of a net zero cruise ship by 2035.

Thanks to optimized hull design and system upgrades such as AC chillers utilizing 30-40% less energy, Royal Caribbean Group has consistently delivered a new generation of ships 20-25% more efficient than their predecessors. 

To reach their goal of net zero emissions, Royal Caribbean Group will pull a lot of levers, including a few already announced. SilverSea Cruises will launch the first hybrid-powered ship set to debut summer 2023, and a wind farm in Kansas will offset up to 12% of the company's scope 1 and 2 emissions per year.

Destination Net Zero's four-pronged approach includes:

1. Modernization of the cruise company's global brands fleet through the introduction of 13 new energy-efficient and alternatively fueled vessels.
    
2. Continued investment in energy efficiency programs for its fleet, including energy saving technologies, enhanced data systems and digitalization.
    
3. Development of alternative fuel and alternative power solutions.
    
4. Optimized deployment and integration of strategic shore-based supply chains.

Royal Caribbean's Halloween sale begins today on its pre-cruise purchases for drink packages, shore excursions and more.

The No Tricks, Just Treats sale is valid on purchases made between October 28 - November 8, 2021.

It applies to all sailings between November 1, 2021 - October 31, 2022.

Here is what is included during the sale:

BEVERAGE: Up to 40% off

• Classic Soda Beverage Package: 30% off onboard prices.
• Classic Soda Beverage Package + VOOM Surf & Stream 1 Device: Discount varies by ship.
• Dasani Water Cans: 40% off onboard prices.
• San Benedetto Water Cans: 40% off onboard prices. (only on. AN, BR, JW, OY, RH, VI, VY, WN)
• Evian Water Bottles: 40% off onboard prices. (excl. RD, VI, VY, WN)
• Deluxe Beverage Package: Discount varies by ship.
• Deluxe Beverage Package + VOOM Surf & Stream 1 Device: Discount varies by ship.
• Refreshment Package: 30% off onboard prices.

SHORE EXCURSIONS: Up to 25% off

• Shore Excursions: Discount varies by ship

INTERNET: Up to 50% off

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

DINING: Up to 55% off

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

ACTIVITIES: Up to 20% off

• All Access Ship Tour (Excludes GR, RD, RH, VY, WN)

Gifts & Gear: Up to 20% Off

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

PHOTO PACKAGES: Up to 70% off

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

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

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

More helpful information

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

Royal Caribbean posted a new video update with the progress being made on the cruise line's next generation cruise ship.

Icon of the Seas is under construction at the Meyer Turku shipyard in Finland, and we have a closer look at  how the ship will be powered by liquefied natural gas (LNG).

This will be the first Royal Caribbean cruise ship to be powered by LNG.

Traditionally, cruise ships are powered by diesel. The advantage LNG has over diesel is it is more energy-efficient and will reduce fuel consumption and emissions.

LNG is considered to be the cleanest-burning fossil fuel available because it has virtually zero sulfur dioxides and particulates, and a significant reduction in nitrous oxides.

Royal Caribbean's overall goal is to become emission-free.

The LNG fuel tank is 307 tons and 90 feet long, and were installed recently into one of the blocks that makes up the new ship. Royal Caribbean says the two LNG fuel takes are the largest in the cruise industry.

In addition, Icon of the Seas will utilize a shore power connection that removes emissions while connected at port.

Icon will have advanced waste heat recovery systems that repurpose heat to be used as energy across the ship.

Additional details about Icon of the Seas largely remain unknown. Royal Caribbean promises, " it will make waves with a mix of innovations and adventures cruising’s never seen before."

According to Royal Caribbean Group SEC filings in April 2021, the unnamed Icon Class ships will have a capacity of approximately 5,600 passengers.

The first of the revolutionary Icon Class is set to make its debut in fall 2023, and two other Icon Class ships are on order. The other two ships will be delivered in 2025 and 2026.

The U.S. Centers for Disease Control and Prevention (CDC) extended its requirements for how cruise ships need to operate due to Covid-19, and the cruise industry has come out in support of the temporary extension.

The extension means the Conditional Sailing Order (CSO) will continue to remain in effect between November 1 and January 15, 2022, but the CDC says it will then expire.

While the CSO was at one time a major thorn in the side of the cruise lines who were eager to restart operations, the CDC began allowing ships to sail in June 2021 and since then, it has largely become a mere formality for ships to be able to sail from all major and minor cruise ports in the United States.

The Cruise Lines Industry Association (CLIA) issued a statement in support of the CDC's decision, as it provides a means for the CSO to transition to a voluntary basis, "Cruising has successfully resumed in the United States, with leading public health measures that have enabled our ocean-going cruise line members to effectively mitigate the risk of COVID-19 amongst cruise passengers, crewmembers and destinations."

"The changes to the Framework for Conditional Sailing Order (CSO), announced today, show that the Biden Administration and the Centers for Disease Control and Prevention (CDC) recognize the cruise industry’s successful resumption of operations. We look forward to demonstrating the industry’s continued leadership in this final phase of the CSO, and to carrying out a smooth transition when the Order comes to an end on 15 January 2022."

In mid-January, the CDC says the CSO will transition to a voluntary program in which participation will be at the discretion of cruise lines.

"CDC wishes to stress that cruise ship participation in any future voluntary program would not be mandated; the scope and parameters of such a program would be subject to further discussion and information sharing; and cruise ship operators would be free to develop alternative pathways of detecting, mitigating, and controlling the spread of COVID-19 onboard cruise ships."

CLIA believes the industry is committed to a safe approach to cruising once that occurs, "The health and safety of cruise passengers, crewmembers and destinations remain the industry’s highest priority."

"CLIA ocean-going cruise line members will continue to be guided by science and the principle of putting people first as we work with the Administration and the CDC to expand on our progress and build additional confidence in cruising as one of the safest vacation options, during the pandemic and beyond."

In a statement to RoyalCaribbeanBlog, a Royal Caribbean Group spokesperson also supported the CDC's move, "As our phased approach to healthy return to service continues fleetwide, we are pleased by the decision of the CDC to end the Conditional Sail Order after a two-month extension until January 15, 2022."

"Royal Caribbean Group will continue to operate in accordance with protocols that prioritize the health and safety of our guests, crews and the communities we visit, as we have done successfully from the United States since June."

What does the Conditional Sailing Order require?

In a nutshell, the CSO laid out a phased approach for cruise ships to restart operations from the United States through a series of steps in order to get approval to sail.

Introduced in October 2020, the full set of rules were not fully unveiled until spring 2021, but they provided cruise lines with requirements to ensure their ships would not put crew, passengers or communities served by the ships under unnecessary risk to Covid-19.

Cruise lines had the choice of mandating at least 95% of their passengers and 98% of their crew members be fully vaccinated in order to restart cruises quicker, or run test cruises with volunteer passengers to ensure health protocols onboard were effective.

Cruise lines like Norwegian Cruise Line and Celebrity Cruises opted to mandate the vaccine, while Royal Caribbean and Disney Cruise Line chose the test cruise path in order to allow unvaccinated children onboard.

Royal Caribbean began test cruises in June 2021, and has successfully launched every one of its ships that has had to conduct a test cruise.

Simulated voyages applied a variety of new cruise line policies and rules to ensure they mitigate any potential spread of a virus onboard. Besides testing protocols, Royal Caribbean found the test cruises a good opportunity to prep the ship to return to service after many months of being shutdown.

The CDC now believes the protocols devised under the CSO has helped avert concerns it had earlier, "cruise lines, with CDC assistance, have resumed passenger operations and successfully developed and implemented health and safety protocols to manage COVID-19 that have averted overwhelming onboard medical facilities and burdening shoreside hospital resources"

Why the CDC extended the Conditional Sailing Order

RoyalCaribbeanBlog reader smokeybandit reacted to the temporary extension by asking, "I want to know what difference another 75 days makes," which echoes many other cruise fans concerns about the CDC decision.

In the 54-page document the CDC issued regarding the CSO extension, it justified the temporary extension because of the upcoming winter season and anticipated increase in passengers and ships sailing from the United States.

"The winter season (November through January) has historically been the most active cruising season in the Caribbean and Central America, involving travel to countries currently listed by CDC as being under COVID-19 travel health notices where cruise ship travelers may be at increased risk for acquiring and subsequently introducing COVID-19 variants into the U.S.

"Additionally, cruise ship operators have informed CDC of their intended plans to increase the number of ships operating in U.S. waters this fall and winter."

The CDC added it was not "feasible" to pause the CSO in order to get a comment period, noting it would be "impracticable and contrary to the public interest."