Come Sail Away with Royal

We look at the current state of the cruise industry through the lens of a CEO of one of the largest cruise lines. We end with an optimistic video, which was made almost a year ago, by their entertainment department .

Industry Update

As a professional travel advisor, part of my job is to stay informed, so that I can keep my guests updated with the latest information during these unprecedented times.

This morning I attended the 49th trade update presented by Royal Caribbean since the pandemic started.  These weekly updates have been very beneficial to me and the rest of the trade industry.  Thank you Royal Caribbean Group for your ongoing commitment and efforts during these times. 

Richard Fain, Chairman and CEO of Royal Caribbean Group, was guest speaker for this session. This image captured his expressions during his various past appearances, with the latest one reflecting joy about the progress made in resuming operations safely.

In fact, Royal Caribbean Group has already had 100,000 guests onboard. With the new protocols in place, mainly testing and contract tracing, they have only had 10 positive cases of COVID-19 without any major disruption to other passengers or countries visited.  This is mainly due to the ability to isolate anyone that is showing symptoms and identify anyone they were in contact with.  The industry as a whole has had 350,000 guests sailing successfully since gradually resuming sailings.

We Control the Environment

You might be wondering why there has been such a low percentage of positive cases among these 100,000 passengers.   Richard Fain explained that since they are in control of the environment, everyone is tested and contract tracing can identify any possible risk from exposure.  He went on to say that the contract tracing technology being used is more effective that what is used on land.   There you would be contacted by phone by someone and most likely you wouldn't even know who you had been in contact with.  On the ship, they can determine who you were in contact with, and for how long, using the technology put in place.  Impacted individuals can quickly be identified and isolated keeping the remaining guests safely protected and not impacting their vacations.

Time to Move On

Back in October, 2020, CDC issued a Conditional Sail Order which consisted of four phases.  We are still in Phase 1 with no direction regarding remaining phases.  This plan is out of date, therefore Royal Caribbean has been working with health experts and various governments to put safe cruising protocols in place.

The various Public Health agencies have detailed information about infectious illnesses and the cruise lines have the data about the cruise industry and protocols.   Cooperation and dialog has been very valuable, as well as science and technology, in creating a revised plan to safely resume sailing.

Royal Caribbean has announced homeport changes which will allow them to continue their gradual return to sailing.  The latest announcement has sailings embarking from Bermuda starting in June (more on that in another post).

Delivering Great Experience

As you can imagine there were many questions during this session.  One agent asked how crew members were holding up.  Mr. Fain acknowledged that it had been hard on everyone, especially in the beginning with flight restrictions preventing crew members from getting home.  He said that "while the men and women that deliver the great cruise experience had it very difficult, their response was a joy to behold."  Royal Caribbean recently had a survey and within 12 hours they had overwhelming responses with the crew anxious to return.  He said "I often say that I have the best job in the world.  I work with a team that really cares."

Passengers who are disembarking the cruises, that have begun, are giving Royal Caribbean high marks.  The cruise experience that Royal is known for is still being delivered.  Another technology item that is making a difference is Muster 2.0, which allows passengers to view the safety video at their leisure and checkin at the muster station during a pre-defined period of time.  This eliminates social distancing issues while still maintaining the mandatory safety requirements.

Who is Cruising Now

There had been an assumption made that when cruising resumed, the majority of the cruisers would be well-seasoned veteran cruisers.  In Singapore for example, 80% of the guests are first time cruisers.  In Germany, first time cruisers are at or above the level they were at prior to COVID-19.

What Destinations 

Several questions were asked about various cruise destinations.   He indicated that there will be a Europe season this summer, but it won't be the same as usual.  Royal Caribbean is still working through the various regulatory hurdles.   He mentioned that MSC and Costa are currently operating in Europe and Royal Caribbean's Israel to Greece itinerary will be very popular.

Alaska's cruise season is still in question.  There has been support by several members of Congress and others, mostly on behalf of businesses in Alaska.   The cruise season is short, so you can't just postpone it for a few months.  One issue is the it takes months to prepare a ship's sailing so getting timely permissions is crucial. 

Royal Caribbean Entertainment

A year ago the world learned about Zoom meetings and soon they discovered you perform music as well.  The Royal Caribbean Entertainment team produced this video with performers all over the world to share an inspirational message.  The video ends with "We'll Be Back".  

This is the last time this video will be seen in its current form.   Royal Caribbean is Back (sailing again)!!

 

Related Posts 

Cruise Industry Leaders Share Their Vision
CDC Publishes Conditional Sailing Order

Reassuring Safe to Cruise

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Sheehan Makes a Splash

Kevin Sheehan 

Steps Down as CEO

Kevin Sheehan, President & CEO of Norwegian Cruise Line resigned from the company.  The announcement was unexpected and comes on the heals of the completion of the acquisition of Prestige Cruises International, which operates two upscale cruise brands, Oceania Cruises and Regent Seven Seas Cruises.

Frank Del Rio was named by the Board of Directors as the new President and Chief Executive Officer.  He has more than 20 years of cruise industry experience and has served as CEO of Prestige since 2007.  

"Frank Del Rio has established himself as a leader and innovator in our industry," said Steve Martinez, member of Norwegian's Board of Directors. "Norwegian is poised for continued growth and we are delighted to have Frank lead our team during the next phase of the company's evolution. We also thank Kevin Sheehan for his service to the company. Kevin has built Norwegian into the highly successful company it is today – a company that has reported 25 consecutive quarters of growth in trailing twelve month Adjusted EBITDA coupled with consistent margin improvement. Most recently, Kevin was integral to the Prestige acquisition, assembling a diversified portfolio of brands that spans all market segments in the cruise industry, which we believe puts the company in a strong position for the future."

I am excited to begin this new chapter in my long career in the cruise industry," said Mr. Del Rio. "I am blessed with a great team at Norwegian, and I am confident that together we can help our company continue to realize great things."

Reaction to Announcement

 "Cautious optimism" might be the best way to describe consumer reaction to the announcement.   The acquisition of Prestige Cruises had caused some concern that there would be changes in the luxury product after the merger.   With Del Rio now at the helm, one would hope that any change would be positive influence on the contemporary part of the portfolio of the combined company.

Some industry watchers had expressed concern about Del Rio's involvement in the defunct Renaissance Cruise Line.   From our perspective, that is old news,  with his successful co-founding of Oceania Cruises serving as proof that there were lessons learned from the past.

Any way you look at it, this is exciting times for Norwegian Cruises and their guests as changes unfold and their young fleet expands with the arrival of Norwegian Escape later in the year.

New CEO at Helm of Carnival Corporation PLC

 
On the same day they announced their second quarter earnings, Carnival Corporation & plc, parent company of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (Australia) and P&O Cruises (UK), announced that it was splitting roles of Chairman & CEO.

Micky Arison will continue to serve as Chairman of the Board of the company and Arnold W. Donald, a highly experienced and respected business leader who has served on the company's board for the past 12 years, will assume the CEO role effective July 3.  

According to the press release, In his role as chairman, Arison will continue to provide board level oversight for the company and will remain the company's largest shareholder. Donald will lead the executive team, initially focusing on achieving the company's long-term strategic goals while working directly with the operating brand executives.  Frank will continue to serve in his current role as vice chairman and COO of the company, supporting Donald in working with the corporate level executive team.  The move has received unanimous approval from the company's nominating and governance committee as well as the full board of directors.   

"I have been discussing this with the board for some time now and feel the timing is right to align our company with corporate governance best practices and turn over the reins after 34 years as CEO," said Arison.  "Arnold is an exceptional professional with extensive experience in organizational leadership who will bring a fresh perspective to the company.  I have come to value and rely on his judgment and insight during the 12 years he has served on the company's board and I am very confident in his ability to move the organization forward." Arison added, "As chairman, I will still be working closely with Arnold to ensure a great future for all our stakeholders." 

 As you are quite aware Carnival Corporation has been in the news quite a lot the past two years starting with the January, 2012 Costa Concordia disaster in Italy and continuing this year with disabled ships following a fire and other propulsion problems.  Carnival has responded with a $300M project to improve reliability and safety of its vessels.

"I am honored and privileged to have this opportunity to lead the next stage of growth for Carnival Corporation & plc," said Donald. "As a board member, I have come to know Micky, Howard and the company well.  I have a first-hand appreciation of what it has taken to develop this highly successful business, an understanding for the dynamics and challenges we face, and a great deal of confidence in the company's management team and their ability to execute. I have enormous respect for Micky as a visionary in our industry, and as the builder and leader of Carnival.  I have come to know many of the talented professionals who work within Carnival during my time on the board and I look forward to working with the company's many stakeholders including our 90,000 employees, 10 million guests, thousands of travel agent partners, vendors and shareholders around the globe."

Arison remains the company's largest shareholder, which signals his continued efforts to help Carnival Corporation rebuild the company's image and take it to new levels in the industry.

Carnival Triumph Statement

U.S.C.G. photo by Lt. Cmdr. Paul McConnell

CARNIVAL TRIUMPH
STATEMENT FROM GERRY CAHILL, PRESIDENT & CEO, CARNIVAL CRUISE LINES

February 11, 2013, 8:30pm ET

The Carnival Triumph, while on a four-day cruise that departed Galveston last Thursday, experienced an engine room fire on Sunday morning and has been without propulsion in the Gulf of Mexico since that time. The ship’s automatic fire extinguishing systems activated and the fire was successfully extinguished. Fortunately, there were no injuries to guests or crew members.

Earlier this evening, the first of two tugboats arrived and is tied up to the ship with the second expected in the early hours of Tuesday morning. We had originally planned to tow the ship to Progreso, Mexico, the closest port to the ship’s location early Sunday. Since that time, the ship has drifted about 90 miles north due to strong currents. This now puts the ship nearly equidistant to Mobile, Alabama and given the strength of the currents, it is preferable to head north to Mobile, rather than attempt to tow against them. We now expect to arrive in Mobile sometime on Thursday, roughly the same time the ship would have arrived in Progreso given the distance the ship has traveled. From there, we will provide the necessary transportation to get our guests home. Mobile also provides simpler re-entry, particularly for the 900 guests onboard traveling without passports.

We have maintained constant contact with the ship’s officers. All of our guests are safe, and we’re doing everything we can to make them as comfortable as possible. The ship has maintained emergency generator power since the fire occurred and the technical team on board has been successful in gradually restoring auxiliary power to operate some basic hotel functions. Currently, public and cabin toilets are operational in certain sections of the ship, power has been restored to a limited number of elevators, and some power in the Lido dining area is providing for hot coffee and limited hot food service.

All guests on the current Carnival Triumph voyage will receive a full refund for the cruise, along with transportation expenses. In addition, they will receive a future cruise credit equal to the amount paid for this voyage, as well as reimbursement of all shipboard purchases during the voyage, with the exception of gift shop and casino charges.

We’re terribly sorry for the inconvenience, discomfort, and frustration our guests are feeling. We know they expected a fantastic vacation, and clearly that is not what they received. Our shipboard and shoreside teams are working around the clock to care for our guests and get them home safely.


Photo Credit: 

GULF OF MEXICO - The Coast Guard Cutter Vigorous stands by to assist the cruise ship Carnival Triumph in the Gulf of Mexico, Feb. 11, 2013. The Carnival Triumph lost propulsion power after an engine room fire Feb. 10, 2013. U.S. Coast Guard photo by Lt. Cmdr. Paul McConnell.

NCL's Boss Goes Undercover

Watch CBS Tonight

Norwegian Cruise Line

CEO Goes Undercover

Kevin Sheehan, CEO of Norwegian Cruise Line, is the latest "Undercover Boss" to be featured on the popular CBS television show.  The NCL episode airs tonight at 9 PM Eastern.

Sheehan says it was "an eyeopening experience for me as I got to see firsthand how hard our crew works each and every day to make memorable Freestyle Cruising vacations for our guests".

The show was filmed on Pride of America and Norwegian Epic.  To find out what he learned during his various assignments, you'll have to watch the show.

NCL is also giving away a 7 Night Caribbean cruise in conjunction with the show.   Check out their Undercover Boss tab for details.  Watch the trailer below for a sneak peak at tonight's episode.




Cruising Entertainment Like You've Never Seen Before Aboard Norwegian Epic!  (learn more)


Ask me how you can get up to $150 in onboard credits now through January 3rd

RCI Has the Keys to the Allure of the Seas

Juha Heikinheimo, President, STX Finland and Richard Fain, Chairman and
CEO, Royal Caribbean Cruises Ltd. at the delivery of Allure of the Seas
Photo Courtesy Royal Caribbean International

Today on 28 October 2010, the world's largest and most innovative cruise ship, the Allure of the Seas, was delivered by STX's Turku Shipyard to the American shipowners Royal Caribbean International.  Allure of the Seas is the sister ship of  Oasis of the Seas delivered a year ago. 

What's it like to sign a piece of paper authorizing the payment of One Billion USD (that's with a "B")?  Chairman and CEO of Royal Caribbean Cruises LTD., Richard Fain, can tell you.

In an official closing ceremony there were only two documents signed of the hundreds that were done behind the scenes.   In his blog post, She’s Ours!, he indicated that it was both anti-climatic and an awesome responsibility:

"The closing created conflicting emotions for me. On the one hand, it was anti-climactic. After millions of man hours, years of effort, endless argumentation and consideration, and tons of sweat and tears, a simple one page document saying it was complete didn’t seem momentous enough. On the other hand, signing a one page sheet of paper transferring a billion dollars (that billion with a B) is an awesome responsibility. Actually having to sign your name brings home the implications in a very strong way. Before signing, I obviously checked with Harri Kulovaara that all the technical elements of the ship were up to snuff and checked with Adam Goldstein that all the operational aspects were ready. Nevertheless, I have to admit that my hand hesitated a bit before actually signing that paper."

Sister Ship of Oasis of the Seas

The Allure of the Seas and the Oasis of the Seas can be termed the most powerful and
sophisticated ships in the world for a reason. They also are the culmination of more than 40
years of product development cooperation between the cruise line, the shipyard and the
maritime cluster. The Oasis class vessels are 361 metres in length, and their cross tonnage is
225,000. The Allure of the Seas can accommodate 6,360 passengers at maximum. In
comparison, the Song of Norway delivered to the same customer in 1970 was 168 metres long
with a gross tonnage of 18,400; in other words, the Allure of the Seas is some 12 times as
large.

An Amazing Collaborative Effort

The building contract was signed on 2 April 2007, and production was launched on 4 February
2008. The keel laying of the Allure of the Seas started on 2 December 2008, and the vessel was
launched for the first time on 20 November 2009.

At closing time, there were only 230 comments outstanding on the Allure contrasted to 6,000 at the same time for the Oasis.   STX Finland should be quite proud of their accomplishments with both vessels.  Millions of man hours later, we have the second Oasis-class ship delivered on-time and with fewer outstanding items remaining to be corrected.

VIDEO: Signed, Sealed and Delivered: Allure Joins the Royal Fleet

Allure of the Seas is officially a part of the Royal Caribbean fleet, following months of construction and preparation this is a moment marked with celebration!

Allure of the Seas is currently sailing the Atlantic Ocean on its way to the home port of Fort Lauderdale, Florida.