Table Of Content
- A dozen passengers on cruise ship test positive for coronavirus
- Guests and crew members test positive for COVID-19 aboard Princess Cruise ship
- State Of The Cruise Industry: Smooth Sailing Into The 2020’s
- Premium Investing Services
- Impact of COVID-19
- Newsom has approved three California prison closures but resists pressure to shutter more
- Cruise industry worldwide - statistics & facts
Moody’s Investors Service lowered its outlook for the lodging and cruise industry last week to “negative” from “stable,” saying both industries face revenue losses in 2020 if the outbreak is not contained. The Majestic Princess, operated by a subsidiary of Carnival Corp., featured 1,780 cabins, 19 decks, an atrium and nearly 1,100 square meters of luxury boutiques, representing the largest shopping space at sea. Worldwide, the cruise industry generated $150 billion in direct and indirect revenues.
A dozen passengers on cruise ship test positive for coronavirus
The cruise industry has previously faced and recovered from health outbreaks before, including norovirus and chickenpox. Earlier this month over 600 Carnival’s Diamond Princess passengers were forced to remain on their ship in "chaotic conditions" after testing positive for coronavirus. Some described their 10-day quarantine like being held “hostage.” Two passengers later died after leaving the ship.
Guests and crew members test positive for COVID-19 aboard Princess Cruise ship
Carnival told investors if travel restrictions continue through May, it could lead to a 14 percent reduction in share price. Royal Caribbean said additional cancellations could lead to a roughly 12 percent decrease in earnings this year. Onboard the ships that are docked or anchored are either a full crew – in some cases stuck on the ship because ports are wary of COVID-19 – or partial crew, keeping systems such as power and sewage running. Cruise lines are reluctant to lower trip prices because they can’t raise them back too drastically after the crisis has passed, for fear of scaring off potential customers, according to industry experts.
State Of The Cruise Industry: Smooth Sailing Into The 2020’s
North America makes up about 50 percent of the market and Europe accounts for 25 percent, he said. To take one example, the Queen Mary 2 is currently sailing from Durban, South Africa to Southampton, UK with about 264 passengers onboard. A few other ships are still trying to get to places where remaining passengers can disembark. Summer seasons in Alaska and Europe are questionable, according to industry analysts and cruise insiders. Entire countries — including Australia, Canada, Italy, and Mexico — are closed to cruise ship traffic.
Cruise News
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Since the beginning of the year, the company’s share price has plummeted more than 80 percent, though on Monday it rose sharply — to $10.21 a share — after Saudi Arabia’s state investment fund said it had acquired a stake in the company. And last week, Carnival, which has already drawn on bank credit lines, began an effort to raise $6 billion by selling stock, bonds and other securities. It was selling some of those bonds with a suggested 12.5 percent interest payment to investors, a strikingly high figure. “The industry is really erring on side of caution to reduce the risk of introducing virus on board this ship,” Brian Salerno, spokesperson for Cruise Lines International Association trade association, said.
My favorite amenities on Royal Caribbean Icon of the Seas cruise ship - Business Insider
My favorite amenities on Royal Caribbean Icon of the Seas cruise ship.
Posted: Sat, 20 Apr 2024 10:58:00 GMT [source]
But the ship is now docked in Singapore, with its next 13 cruise trips canceled. Each of Viking’s expedition ships will carry an assortment of Zodiacs, including high speed rigid inflatable boats, two-seater sea-kayaks and, in an industry first, two mini-submarines with six revolving seats. More significantly, cruise industry revenues have grown even faster, from approximately 15.7 billion in 2010 to an estimated 31.5 billion in 2020, a compounded rate of growth of 7.2%. The last decade was one of record growth for the cruise industry and that trend looks set to continue into the 2020s. The cruise industry has ground to a complete halt due to the coronavirus pandemic. That has left Royal Caribbean (RCL 2.15%), Carnival (CCL 1.13%), and Norwegian Cruise Line (NCLH 1.37%) without any way to make money for the moment.
The cruise lines may be able to begin some limited operations before the CDC gives the go-ahead in countries that allow for sailings and do not stop in U.S. ports. But they will continue to bleed money until the U.S. and a large number of ports get the all-clear. The cruise industry issued a plan on April 3 outlining how it will ensure adequate medical care for these crew members without relying on U.S. government and shoreside resources. The CDC was not satisfied with this plan, and has asked the industry to re-submit it — along with other provisions regarding containing Covid-19’s spread on board ships — within seven days. The cruise lines have announced additional cleaning and safety measures to address the coronavirus issue. Several cruise lines are denying boarding to passengers who have visited infected regions, and extra screenings for anyone who appears sick or may have come in contact with travelers to affected regions.
Newsom has approved three California prison closures but resists pressure to shutter more
If travelers do abandon cruise trips, experts say it is not clear how long the cruise industry can withstand the revenue loss before turning to dramatic cost-cutting measures such as layoffs. She said she would have preferred that the State Department had only warned people with underlying health conditions to stay home. State Department recommending that Americans, particularly travelers with underlying health conditions, avoid cruise ships. The Centers for Disease Control and Prevention said “a cruise-ship environment” could increase the risk of infection.
Cruise industry worldwide - statistics & facts
"Our members have been exchanging feedback with one another," says Colleen McDaniel, the editor in chief of the popular website Cruise Critic. "According to a recent forum poll among members, 66 percent report that they'll continue to cruise the same as always. An additional 10 percent said they'd cruise more than ever," she said. Crew on many ships are being allowed to stay in passenger cabins to enable more social distancing, says Bill Burke, chief maritime officer for Carnival Corporation. Hugo Martín is an assistant editor on the Fast Break Desk, the Los Angeles Times’ breaking news team. He has been a journalist with the Los Angeles Times for more than 30 years, covering politics, transportation, travel, business and the outdoors. A native Californian, Martín was part of the Metro staff that won Pulitzer Prizes in 1993, 1995 and 1998.
To meet the increasing demand, the world’s cruise companies were scheduled to launch 19 new ships in 2020, for a total of 278 cruise ships registered as members of the Cruise Lines International Assn. The industry supports nearly 1.2 million jobs, generating $50.2 billion in wages and salaries, according to the trade group. The outbreak comes after five or six years of growing profits and bookings for the cruise industry. Before the outbreak, a trade group for the cruise industry predicted 32 million passengers would sail on cruise ships worldwide in 2020, up from 30 million in the previous year. The distinction will quickly disappear, however, as luxury cruise lines add expedition cruise ship capabilities to their itineraries. Viking, for example, has announced the planned launch in 2022 of the Viking Octantis and the Viking Polaris.
That has forced all three companies to tap their credit lines and look for the cash needed to stay afloat. Carnival, for example, took in $4 billion in cash, but it needed to pay 11.5% interest on that money to secure it. Royal and Norwegian will likely face similar pain as the coronavirus crisis extends.
"If they start up again and the virus breaks out they have to shut down again," Coggins says. "I think for cruise lines, probably the best thing is if a vaccine is developed and then you need to be vaccinated before you come onboard." It will be a challenge, says Richard Fain, chairman and CEO of Royal Caribbean, but one he thinks the industry can tackle. Late last month, in an iPhone video shot in the tropical garden of his Miami home, he told travel advisors that "weeks of social distancing are creating the need for togetherness."
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