Royal Caribbean provides a business update and the current status of bookings along with impacted from the COVID-19 pandemic.
Royal Caribbean Business Update
The cruise line has provided a business update on the impact of the global pandemic and look forward to how cruises will need to be changed to protect guests and crew. This comes as the cruise company has just announced a further extension on the suspension of cruises through the end of July 2020.
Richard D. Fain, Chairman and CEO, said:
“Responding to the dramatic change in business conditions caused by COVID-19 has required focus, dedication, ingenuity and improvisation from all our people, and their efforts have been nonstop.”
“We understand that when our ships return to service, they will be sailing in a changed world. How well we anticipate and solve for this new environment will play a critical role in keeping our guests and crew safe and healthy, as well as position our business and that of our travel agent partners to return to growth.”
The company has been working on repatriating thousands of crew members and that effort is now coming to an end. We just posted about Adventure of the Seas finally being allowed to dock in Jamaica to repatriate the crew back there.
The focus will mainly be on ensuring that the crew and guest can remain safe moving forward, proactively enhancing liquidity, protecting the companies brands along with preparing for the “new normal”
Royal Caribbean will be working with agencies and experts and brining new procedures to the fleet. When cruises resume cruises will not be the same as before.
Prior to the outbreak of COVID-19, the Company started the year in a strong booked position and at higher prices on a prior year comparable basis. Given the impact of COVID-19, booking volumes for the remainder of 2020 are meaningfully lower than the same time last year at prices that are down low-single digits.
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.
The Company has implemented various programs in order to best serve its booked guests providing the choice of future cruise credits in lieu of providing cash refunds for both cancelled sailings and future bookings.
As of April 30, 2020, approximately 45% of the guests booked on cancelled sailings have requested cash refunds. Additionally, as of March 31, 2020, the Company had $2.4 billion in customer deposits. The Company also continues to take future bookings for 2020, 2021 and 2022, and receive new customer deposits and final payments on these bookings.
You can read all the details at the Royal Caribbean Ltd web site. Do keep checking for all the official updates and any terms and conditions before making your cruise adjustment.