Table Of Content
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 companies
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.
Cruise industry worldwide - statistics & facts
Carnival and the other big companies have no revenue and face questions over whether customers will return once the threat of the coronavirus passes. “The cruise industry is really resilient and I don’t expect we’ll be talking about this in 2022,” she said. “If you look at prior outbreaks what you see is kind of short-lived duration impact on booking trends in the cruise space followed by a return to normalcy over the subsequent months,” said Sharon Zackfia, an equity analyst with William Blair.
Cruise Industry Defies New 100-Day ‘No Sail’ Order
Princess Cruises Cancels 9 Sailings on Its Newest Ship After Inaugural Voyage Gets Delayed - Travel + Leisure
Princess Cruises Cancels 9 Sailings on Its Newest Ship After Inaugural Voyage Gets Delayed.
Posted: Mon, 22 Apr 2024 14:57:50 GMT [source]
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.
"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."
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.
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.
The two ships will be the nucleus of Viking Expeditions, a new division of the company. Sustainability and reducing its carbon footprint have been major goals of the cruise industry. The industry has announced a goal of reducing carbon emissions by 40% by 2030 from a baseline in 2008. Forty-four percent of new ship construction relies on LNG fuel for primary propulsion. More importantly, roughly two-thirds of all cruise ships now utilize exhaust gas cleaning systems (ECGS), which results in a significant reduction in sulfur and nitrogen oxides as well as total particulate matter.
Carnival: Introducing Celebration Key - Cruise Industry News
Carnival: Introducing Celebration Key.
Posted: Mon, 22 Apr 2024 11:46:32 GMT [source]
Cruise passengers share what it’s like to be on a ship with COVID cases
The 1,100-foot ship was relocated from New Jersey to Shanghai as part of the effort to attract new passengers. The Polar Class 6 ships will hold around 378 guests, a little less than half of what its ocean cruise ships accommodate, and are designed to operate in summer and autumn in medium thick, first year ice. The Octantis will operate in Antarctica during the Antarctic summer and autumn and then transfer to the Great Lakes during the Antarctic winter and spring. The Polaris will operate in Arctic waters, offering cruises between Tromsø and the Svalbard archipelago in northern Norway. The Svalbard Islands are about 800 miles from the North Pole, roughly halfway between northern Norway and the top of the world. Why the cruise industry thinks it would be able to operate itineraries from U.S. ports and sail in U.S. territorial waters during a period when the CDC is expressly prohibiting it for 100 days is unclear.
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.
The Carnival Corporation, which serves nearly 11.5 million travelers a year, or roughly 50 percent of the global cruise market, is at the center of the crisis. Over the last couple of months, the company has had highly publicized outbreaks on several of its ships, including the Diamond Princess and the Zaandam, which has been trying to unload sick passengers in Florida. The CDC’s No Sail Order — which was an extension of its initial order on March 14 — could end sooner than the 100-day timeline, but only if the U.S. Department of Health and Human Services declares that Covid-19 is no longer a public health emergency before then.
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.
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.
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.
"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.
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.
No comments:
Post a Comment