Royal Caribbean Blog

The global uncertainties we face today leads many to contemplate what the future of cruising may look like in the coming weeks, months and even years. To find those answers, I turned to Wall Street for a different perspective.

While cruise fans and industry followers look at cruising one way, the people that work and follow the activity of the stock markets look through a completely different lens.

Dan Kline is a Motley Fool contributing partner and podcast/on-air personality, and a lot of his work recently has been focused on the cruise industry as the cruise line stocks have been riding a roller coaster lately, with primarily more drops than hills.

I posed a few of the major questions and concerns so many RoyalCaribbeanBlog readers have been curious about, in order to get a different perspective on the matter.

What sort of hurdles do you see Royal Caribbean facing in getting back to service?

Legally, the pandemic has to no longer be a health crisis -- that's the easiest way.

Being able to test people would help a lot. I've heard people talk about lower customer counts. Maybe a few trips just to get going, but hard to make money that way.

The hardest part after getting permission to operate is convincing people to go. I've seen how much effort Royal Caribbean puts into cleanliness -- the floating petri dish line makes me mad as people on cruises already faced social pressures on hand washing and the crews clean extensively.

I'm happy to get back on a ship (can't wait) but I'm 46. I'm not sure older passengers will feel that any risk is worth it.

The floating petri dish line makes me mad as people on cruises already faced social pressures on hand washing and the crews clean extensively.

What are your thoughts on cruise fare pricing when cruises do resume, and if discounts should be expected?

I expect very heavy discounts and have seen very low prices.

I'm a casino gambler and generally get comp offers. I've been able to get better rooms (a balcony) and comp play on 5-night cruises (booked for August and October). I would say that booking now while there is uncertainty (maybe for a fall trip) is the best way to get a deal.

What is your advice for someone looking to buy Royal Caribbean stock right now?

Be very careful. The company was profitable and, I believe will be again, but strategic bankruptcy is not out the question. Shareholders generally get wiped out in a bankruptcy.

What are some positive or negative signs from Royal Caribbean that you will be on the lookout for over the next few months?

I'd like to see them be able to raise more money. Carnival raised $4 billion in a bond sales but had to pay 11.5% interest to get there. That's very expensive debt. Royal has tapped its credit but has been very quiet.

Some readers are concerned about the long-term health of the cruise line, specifically as it relates to some form of bankruptcy. How realistic is it to be concerned about this?

I think a Chapter 11 may make sense if this extends into the summer. Creditors don't want to end up owning cruise ships or operating cruise lines, so I would expect, in the case of a bankruptcy, they would restructure. That's very bad if you own stock. It's probably not an issue if you planned a cruise.

Expect new ships to slower to come and all capital projects (like making Labadee more like Coco Cay) to take a backseat for a while.

You can follow Dan Kline on Twitter, and check out some of his recent articles on The Motley Fool.

As a novice casino gamer, I can tell you it can be daunting at times to learn a new game, and it looks like Casino Royale is offering a new option to learn to play and walk away with free drinks.

A new option on Royal Caribbean's Cruise Planner is called "Learn To Play: Casino Table Games", which costs $25 per adult and it includes $25 in FreePlay, plus two complimentary drinks.

Guests that sign up will get step-by-step instructions for either Blackjack, Roulette, Three Card Poker or Ultimate Texas Hold’em.

The cost of the activity is credited back in casino FreePlay, and the two free drinks are a bonus.

You can find this activity on select Royal Caribbean sailings by accessing the Cruise Planner, and going to Internet & More > Casino Royale

Guests must be 18 to participate, and under 21 years old can redeem their beverage voucher at the Casino Bar for non-alcoholic beverages.

Thanks to RoyalCaribbeanBlog reader CGTLH for alerting us to this new option.

There was plenty of Royal Caribbean news and helpful posts shared this week, so here is a look at everything from the past few days so you do not miss any of it!

The big news was Royal Caribbean extending its cruise shutdown by cancelling all sailings through June 11.

This is the third time Royal Caribbean has cancelled sailings due to the health crisis, with the first set of cancelled sailings through April 10, then they cancelled all cruises through May 11.

Royal Caribbean had already cancelled all Canada, New England, and Alaska sailings through June 30, due to Canada closing all of its cruise ports.

Royal Caribbean News

• Royal Caribbean laid off 26% of its employees this week.
• Richard Fain was named to the President's economic revival group.
• Take a 360 look at the shipyard where Odyssey of the Seas is being built.
• How to request a refund for your cancelled Royal Caribbean cruise.
• There is a new sale that offers bonus instant savings for Crown and Anchor members.
• Florida's governor has re-opened some beaches and parks.
• Check out these fun virtual cruise bingo cards!
• Richard Fain shared a reassuring message this week on the outlook of cruises returning.
• A new virtual cruise begins today.
• Check out these Royal Caribbean recipes!
  • flourless chocolate cake from the main dining room
  • Kahlua Creme Brulee from the main dining room
• Have you ever wondered why is there formal night on a cruise?
• Arne Wilhelmsen passed away, who had a major impact in the formation of Royal Caribbean.
• A look at who owns Royal Caribbean.
• Should you reschedule your Royal Caribbean cruise in 2020 or 2021?

Royal Caribbean Blog Podcast

The 350th episode of the Royal Caribbean Blog Podcast is now available, which I think will bring a smile to your face with this week's fun cruise story.

Paul shares his story of a very memorable day in St. Thomas while on Freedom of the Seas a number of years ago.  

Please feel free to subscribe via iTunes or RSS, and head over to rate and review the podcast on iTunes if you can! We’d appreciate it.

How did Royal Caribbean get its name?

Did you ever wonder why Royal Caribbean was the name picked for the cruise line? After all, it is not named after the founder of the company or the country or town it is based in, so why was this name chosen?

The story of which names the cruise line founders considered, as well as why they chose Royal Caribbean (and the Crown and Anchor logo) can be discovered on the blog this week!

With no actual cruises sailing, former Royal Caribbean Cruise Director Abe Hughes has been hosting a virtual cruise aboard the "Virtual of the Seas", and its fifth voyage is scheduled to begin on April 19, 2020.

The next sailing will pretend to visit St. Thomas, St. Kitts, St. John, St. Lucia and St. Maarten.

The idea behind a virtual cruise is every day, Mr. Hughes posts on Facebook various activities, photos and even a Cruise Compass for helping to pass the time while many of us are stuck at home.

The activity started out as a fun excuse to talk Royal Caribbean, but has taken on a life of its own with so many cruise fans clamoring for some virtual fun wherever they can get it.

You can follow along each day on Abe Hughes' Facebook page.

If you are looking for signs of the world resuming some level of normalcy, you may want to consider Florida Governor  Ron DeSantis has given the okay for some beaches and parks to reopen if it can be done safely, and north Florida beaches became among the first to allow people to return.

Beaches in the greater Jacksonville, Florida area reopened for the first time in a month, howeever they have restricted hours, and they can only be used for walking, biking, hiking, fishing, running, swimming, taking care of pets and surfing.

Gatherings of 50 or more people are prohibited and people must still practice social distancing.

With Florida being the home of so many cruise ships, the re-opening of beaches is perhaps a sign of the current global situation eking slightly back to normalcy.

The governor said it was important for people to have outlets for getting exercise, sunshine and fresh air.

“Do it in a good way. Do it in a safe way,” DeSantis said.

With Royal Caribbean (and all cruise lines) not offering sailings currently, cruisers have been looking for some fun escapades to help pass the time and the latest trend is cruise bingo cards.

We have seen virtual cruises, coloring sheets, and now we have a home version of bingo to play.

Part of the appeal of social media is sharing with others your experiences, and we have seen a few bingo cards pop up around Facebook, where you can check off your cruise "achievements".

Royal Caribbean Senior Vice President of Sales and Trade Support & Service Vicki Freed shared one such card on her Facebook page that focused on how many ports you have visited.

Our friends (and sponsor) MEI Travel came up with their own cruise bingo card, which includes a few references to this site!

The Facebook group NYC Rocks came up with Travel Bingo: Royal Caribbean edition.

We spotted this Perfect Day at CocoCay bingo card on Facebook.

These are fun diversions that help us all take a mental escape from this world of no cruises.

If your Royal Caribbean cruise was cancelled as a result of the voluntary global suspension of cruising, you have the choice of a Future Cruise Credit or getting a full refund.

There are advantages of both options, but if you are interested in a refund, here is what you need to know.

How long do you have to decide if you want a refund or a credit?

Royal Caribbean wants to provide its guests the greatest flexibility when choosing between either compensation offer.

Even if you opt for a future cruise credit, you have a certain amount of time to change your mind and opt for a refund instead.  Royal Caribbean would prefer you take the future cruise credit, but they do provide a means of changing your mind up until a certain point.

• If your cancelled sailing was on-or-before March 14 - May 11, refunds must be requested on-or-before December 31, 2021 and will be processed approximately 30 days after the request is submitted.
• If your cancelled sailing was between May 12 – June 11, 2020, refunds must be requested on-or-before December 31, 2020 and will be processed approximately 45 days after the request is submitted.

Keep in mind that even if you take a future cruise credit, taxes, fees, and prepaid gratuities  will be refunded to the original form of payment automatically.

How to request a refund

If you know you want a refund, there are two methods you can employ to get the process started on processing it.

If you booked through a travel agent, my advice is contact them and ask them to do it for you.

Alternatively, Royal Caribbean provides a self-service form that you can fill out and submit your refund request. This form is good for requesting refunds of a cancelled sailing, as well as opting into the Cruise with Confidence program.

You will need a few details to complete the self-service request:

• Booking ID
• Ship
• Sail Date
• Last Name

When can I expect refunds for shore excursions, specialty dining, beverage package, and other add-ons?

For sailings departing on-or-before April 10, 2020, once the reservation is cancelled, refunds can be expected within 30 days.

For sailings departing April 11 – May 11, 2020, guests had the option to select a 125% onboard credit to be used on a future sailing, in lieu of a refund. This option was available, if desired, through April 8, 2020, and has since expired. The fulfillment of both options is currently underway and can be expected within 30 days of request date.

For sailings departing May 12 – June 11, 2020, guests can elect to convert their purchases into an onboard credit valued at 125% of the amount paid via the Cruise Planner tool. You must opt-in to take advantage of this option on-or-before Monday, May 4, 2020 – at which time the offer will expire.

Thereafter, all guests who did not opt-in for the elevated onboard credit will automatically receive a refund to the original form of payment. Please allow 45 days for processing. This offer is applicable to individual reservations, as well as individuals within a Group.

Can I change my mind later and opt for a future cruise credit instead of a refund?

Yes, if the refund has not yet been processed, the compensation offer can revert back to a Future Cruise Credit.

What if my cruise isn't cancelled yet? Can I request a refund?

If your cruise has not been cancelled yet, you have a few choices that will depend on when your sailing is scheduled.

If you have not reached your final payment date, you can always cancel your cruise to get a refund, subject to the usual Royal Caribbean policies on how to cancel a cruise.

If your cruise is on or before September 1, 2020, you can take advantage of the Cruise with Confidence program to get a 100% future cruise credit.

The White House announced on Thursday a collection of executives from a variety of industry groups that are tasked with advising President Trump on how to best restart the economy, including Royal Caribbean Cruises Ltd. Chairman and CEO Richard Fain.

Along with Fain, the cruise lines executives include Micky Arison, Chairman of the Board. Carnival Corporation, and Frank Del Rio, President and CEO, Norwegian Cruise Line Holdings Ltd. 

Almost 200 people make up the this new economic council, that include executives from sectors including technology, agriculture, banking, financial services, defense, energy, transportation, sports and health care.

The task of these executives, scholars and industry leaders is to work work together to help guide the United States to economic recovery.

There is no indication yet how this industry group will work, or how the suggestions or ideas formulated by members will be used to reopen business, schools, stadiums or offices.

Despite Royal Caribbean's worldwide cruise shutdown that was just recently extended again, work continues on the cruise line's newest cruise ship, Odyssey of the Seas.

Odyssey is under construction at the Meyer Werft shipyard in Papenburg, Germany and, the shipyard released a 360 photo of the build hall where Odyssey of the Seas and other ships are being worked on.

Viewable in the 360-view is Odyssey of the Seas, which recently had her last block added, along with the first phase of the AIDAcosma and other blocks of AIDAcosma nearby.

Odyssey of the Seas will be the cruise line's second Quantum Ultra Class ship, and is scheduled to debuts in November 2020 when she sails out of Port Everglades, Florida.

Royal Caribbean announced today it has extended its global voluntary suspension of sailings through June 11, 2020 due to the COVID-19 pandemic.

As a result of this new extension of cancelled sailings, Royal Caribbean expects to return to service on June 12, 2020.

This is the third time Royal Caribbean has cancelled sailings due to the health crisis, with the first set of cancelled sailings through April 10, then they cancelled all cruises through May 11.

Royal Caribbean had already cancelled all Canada, New England, and Alaska sailings through June 30, due to Canada closing all of its cruise ports.

There is a slight change to the policy on Future Cruise Credits for guests who had cancelled sailings between May 12 - June 11, 2020. They can choose between a 100% refund or 125% Future Cruise Credit. Future cruise credits must be redeemed by January 1, 2021 and sail by April 30, 2022. In addition, the deadline to request to change a future cruise credit to a refund deadline is December 31, 2020. 

Guests who had cancelled sailings between March 14 - May 11 must redeem their future cruise credits and sail by December 31, 2021.  They may request a future cruise credit to be changed to refund by December 31, 2021.

Any pre-purchased amenities and packages, such as internet, beverage, dining or RoyalUp upgrades, will be automatically refunded. Royal Caribbean Travel Protection will also be refunded.

Guests can opt-in to convert all Cruise Planner purchases into an Onboard Credit valued at 125% of the total amount paid. This offer is available to choose before it expires on May 4, 2020.

The announcement comes a day after Royal Caribbean reduced its U.S. workforce by 26%, and less than a week after the U.S. Centers for Disease Control and Prevention issued an extended “no-sail” order for cruise ships operating out of U.S. ports. The “no-sail” order could remain in effect through late July.

Competitor Carnival Cruise Line announced earlier this week it would cancel all of its worldwide sailings through June 30.

Helpful resources

• What should you do if Royal Caribbean cancels your cruise because of coronavirus pandemic?
• Should you reschedule your Royal Caribbean cruise in 2020 or 2021?
• How to cancel your Royal Caribbean cruise if you are concerned about Coronavirus
• More information on the Cruise with Confidence program