Royal Caribbean have repatriated 95% of its crew members

In:
01 Jul 2020
By: 
Matt Hochberg

Royal Caribbean has been diligently working on getting its crew members home, and reported on Wednesday that it has repatriated 95% of its crew members.

Royal Caribbean Senior Vice President of Sales and Trade Support & Service Vicki Freed told travel agents in her weekly webinar that among its corporate brands, Royal Caribbean has repatriated 95% of its crew members so far, and that number will climb to 97% by July 15.

"We have about 40,000 crew members from our corporate collective efforts, of which 95% have now been taken home, either via our own ships or be a chartered aircraft. By July 15th, 97% will be repatriated to their home. So no crew left behind."

"We're happy for them that they get to spend some time with family until we know that we're ready to start service again and we can bring them back and we're excited to bring them back."

In order to get crew members home, Royal Caribbean had to overcome significant legal and political hurdles countries have set up that prevent crew members on a cruise ship from returning home.

Countries around the world, including the United States, have added complex new regulations and travel restrictions meant to protect its citizens at home, while making it extremely difficult for citizens abroad to return simply because they are on a cruise ship.

Top priority

Getting crew members home has been a hot topic in the news, and Royal Caribbean made it a top priority to get its crew members home.

Royal Caribbean Cruises Ltd. Chairman Richard Fain noted in the company's first quarter results call with analysts that crew repatriation is its first priority.

"In the two months since we suspended operations, we've been working tirelessly to safely repatriate our guests and crew members to their homes," Mr. Fain elaborated,  "Our crew come from more than 100 countries around the world with widely different safety protocols and travel restrictions. This has turned, what should be a simple task into a monumental one."

"It's really hard to convey the complexity of the process to somebody who's used to making simple travel arrangements. But, our teams are working around the clock with the multitude of governing bodies to repatriate our crews as soon as possible. We've even gone to the extent of using our ships as transport vessels and currently have nine ships carry more than 10,000 crew members back to their home countries. It's a complex and expensive way to do it. But it's a most reliable way to get these men and women home to their families as quickly as possible. And therefore, we've undertaken to do it this way."

"Obviously, our industry and our Company are undergoing unprecedented challenges, and we are having to quickly adapt to this new and evolving environment. But, our priorities are clear, we will work to protect the safety of our guests and crew, we will proactively enhance our liquidity, we will protect the Company's brands and our travel partners, and we will define and prepare for a new normal."

Will Royal Caribbean limit the amount of people on a cruise ship?

In:
30 Jun 2020
By: 
Matt Hochberg

While Royal Caribbean has not officially announced its new policies procedures aimed to limit and prevent the spread of COVID-19 on its ships, one possibility is having a lower occupancy on ships to promote social distancing.

Royal Caribbean Senior Vice President of Sales and Trade Support & Service Vicki Freed told Travel Weekly that a lowered capacity is one strategy that is in play.

Freed spoke on the nature of cruise pricing, and alluded to the fact cruise lines will have less than full ships, and in order not to compromise on quality, will not be reducing prices.

"We know that initially we're not sailing at 100% occupancy and we'll have to have lower load factors.  I think all the cruise lines are planning that. And we're going to need to have more staff onboard and still offer the quality people expect from Royal Caribbean. If suddenly we downgrade the product onboard people will say, 'they're not the same brand I thought they were ' So you do keep your price integrity up in order to fund what we need to fund."

Limiting the amount of passengers on a ship below the regular capacity could be one of Royal Caribbean's health and safety protocols that is forthcoming.

Royal Caribbean Cruises Ltd. Chairman and CEO Richard Fain has mentioned many times the cruise line is working behind-the-scenes on their plan, which has not been announced yet.

"Looking forward to restarting, health and safety are absolutely paramount as I've said before, what was fine just a few weeks ago is no longer adequate. Good enough just good enough. We need to raise the bar to new heights, and we have teams of doctors, of scientists, of epidemiologists, and teams of people who know our business, all looking hard and charting the safest and surest path forward that we can."

In terms of profitability, Royal Caribbean told Wall Street investors that its newer ships break even on costs with less passengers, than its older ships.

Royal Caribbean Cruises Ltd. Chief Financial Officer Jason Liberty answered by saying the company could break even with use of fewer, but newer cruise ships, in lieu of older ships.

"For our newer ships, you need about 30 percent load factors to kind of break even. And then they skew to about 50 percent load factor on onto our older ships."

How would they limit capacity?

If Royal Caribbean does have lower load factors, how would they determine which rooms would not be sold, and would there be any cancellations if someone was already booked?

These are among the many questions left unanswered at this time, and Ms. Freed did not comment on the logistics involved with reducing ship capacity.

UBS Analyst Robin Farley said in a recent note the cheapest staterooms are likely candidates to be excluded.

"We note that since cruise lines are taking so much capacity out of service and not pricing to fill what is in service, they could potentially eliminate some of the lowest-margin demand that they might normally turn to when filling a ship."

There is no clear indication what Royal Caribbean may or may not do, nor is there any signs if they would cancel certain reservations that are already booked.

There is plenty of speculation, including perhaps leaving specific cabins unbooked between reserved staterooms, as well as only allowing cabins with access to fresh air to be booked.

Other cruise lines approaches

Another way to figure out what Royal Caribbean might do to limit capacity is see what other cruise lines have done.

Genting Cruise Lines, which operates China-based Star Cruises and Dream Cruise Line, was among the first cruise lines to announce new health protocols, including limiting capacity.

Their approach was to limit the capacity in most venues to half of what it was previously.  

Prior to shutting down its global fleet, Carnival Cruise Line announced in early April it would close inventory on select sailing dates. Essentially, not selling any more cabins on select sailings once they reach a certain point.

Liberty of the Seas will resume sailings from Galveston earlier than scheduled in February 2021

In:
30 Jun 2020
By: 
Matt Hochberg

Royal Caribbean's Liberty of the Seas will resume sailings earlier than originally scheduled in February 2021, and take over for Jewel of the Seas as well.

Liberty of the Seas was scheduled to undergo a Royal Amplification dry dock in early 2021, but Royal Caribbean has postponed the remaining Royal Amplifcations until further notice.

The new schedule is for Liberty of the Seas to arrive to Galveston and take over for Jewel of the Seas, beginning with the February 21, 2021 sailing.

Liberty of the Seas will sail seven night cruises to the Western Caribbean and the Bahamas from Galveston in February/March 2021.

Guests bookings on Jewel of the Seas will be automatically transferred to an equivalent stateroom on Liberty of the Seas.

Royal Caribbean has no indicated yet if Liberty of the Seas will get a "technical drydock" similar to Allure of the Seas and Explorer of the Seas, where just the propulsion and navigation systems are repaired, leaving out the add-ons and enhancements such as new venues or activities.

With the Royal Amplifications on hold, the cruise line never announced that specific upgrades were coming to Liberty of the Seas as part of her drydock.

Royal Caribbean added Jewel of the Seas sailings from Galveston in December - March 2021 in order to accommodate the time needed for Liberty of the Seas to undergo her Royal Amplification.

The original plan was for Liberty of the Seas was scheduled to be out of service from January through early March, and return to service in Galveston in mid-March.

UPDATE: Royal Caribbean has released the updated itineraries for both ships.

Jewel of the Seas 2020-2021 sailings

Liberty of the Seas 2020-2021 sailings

Royal Caribbean cancels all Odyssey of the Seas sailings through April 2021

In:
30 Jun 2020
By: 
Matt Hochberg

Royal Caribbean has announced due to COVID-19's impact on the cruise line and shipyard operations, it has cancelled all scheduled Odyssey of the Seas sailings between November 5, 2020 - April 17, 2021.

The cruise line made the announcement on Tuesday that the next new cruise ship on order is officially delayed due to a variety of factors that Royal Caribbean faces in the current economic climate.

In the wake of COVID-19, our initial global suspension and its subsequent extensions, we understand the uneasiness all of this has caused both for you as a travel advisor and, of course, your clients whose vacations have been regrettably disrupted. The health crisis has unfortunately also impacted shipyard operations, as well as our supply chain. As a result, the debut of our newest fleet member, Odyssey of the Seas, will be delayed, resulting in the unfortunate cancellation of all sailings between November 5, 2020 - April 17, 2021.

In addition to the cancelled sailings, Royal Caribbean also announced two other changes to Odyssey of the Seas.

First, the trapeze school will no longer be a feature of the SeaPlex.

Second, the age restrictions for the Sky Pad virtual trampoline experience will change: guests must be at least 7 years old to jump, and at least 13 years old to jump with a virtual reality headset.

Compensation options

Just like all cancelled Royal Caribbean sailings during the pandemic, guests have a few options if they were booked on any of the affected cruises.

Lift & Shift: Select next year’s sailing with the same itinerary type, sailing length, stateroom category, and within the same 4-week window of the original cruise date, and you can take your existing reservation and move it to next year. Option expires on July 17, 2020.

125% Future Cruise Credit: Guests are eligible for a 125% Future Cruise Credit (FCC) that is based on the total cruise fare paid at the guest-level to be redeemed on-or-before December 31, 2021 on sailings through April 2022. This option is automatic and will default as if neither of the other options are selected.

FCCs for cancelled Odyssey sailings can be expected via email no later than August 7, 2020.

Refund: If you prefer a cash refund, you can do so by requesting this option on-or-before December 31, 2020.

You can expect their refund to the original form of payment within 45-60 days from the cancellation date. 

Switch ships: Royal Caribbean has added another option for Odyssey cancelled cruise. Move your Odyssey of the Seas reservation to another 7-night Caribbean sailing that departs within 1 week before or after your original sail date and you'll receive the following:

  • Your original Odyssey cruise fare paid will be price protected at the original cruise fare rate or reduced to the current cruise fare rate (whichever is lower) of your new reservation. This excludes taxes, fees, gratuities, and other non-cruise fare items.
    • If you had already paid in full and your cruise fare rate decreases, you will get a refund if there is any difference in pricing. You can expect to receive your refund to your original form of payment within 45 days of the price change. Kindly note, refund times may vary depending on your financial institution.
    • Royal Caribbean will also waive any non-refundable deposit change fees associated with the move.
  •  Please know, if you weren't previously booked on a holiday sailing (Christmas, New Year's, and Easter), sailings during that timeframe are excluded from your options.

MOREWhat you should do now that Royal Caribbean cancelled your cruise?

Onboard credit: One additional option is available for guests that want to convert their pre-cruise purchases, such as shore excursions, specialty dining, beverage package, and other add-ons, into onboard credit.

Guests choosing the FCC option can elect to convert their purchases into an onboard credit (OBC) valued at 125% of the amount paid via the Cruise Planner tool.

This can be opted-into by July 17, 2020 for Odyssey of the Seas sailings.

Warnings of a delay

The news that Odyssey of the Seas' debut would be delayed should not come as a shock, given the warning signs that have been around for months now.

In early May 2020, Royal Caribbean told its investors it believes COVID-19 has impacted shipyard operations and will result in delivery delays of ships previously planned for delivery in 2020 and 2021.

A few weeks later, Royal Caribbean International President & CEO Michael Bayley spoke briefly on the topic of Odyssey of the Seas, indicating there were delays at the shipyard, and that Royal Caribbean's newbuild team was working with Meyer Werft to craft a strategy.  

"I think there may be some delays, but we're working through it as a team to try and figure that out."

This past weekend, Meyer Werft shipyard posted a video that spoke about delays related to both the virus impacting shipyard operations, as well as a construction fire onboard the caused a setback.

"And the fire at 713 Odyssey of the Seas is another stroke of fate in this overall very difficult situation. It results in high property damage and leads to further expensive delays."

Odyssey of the Seas construction photo update - June 30, 2020

In:
30 Jun 2020
By: 
Matt Hochberg

The Meyer Werft shipyard has released a few photos that show off the progress being made on Odyssey of the Seas.

Within Hall 6 of the Meyer Werft shipyard, the shipyard's webcam was updated with a wide view of the ship in position.

In addition to the weekly webcam photo of Odyssey, the shipyard also added a couple of other photos to indicate Odyssey will soon be on the move.

In the next few days, Odyssey will move to a new position within the hall to the water side of the complex.

Meyer Werft set up palings today, and due to the exact positioning of the palings, the ship has a fixed stand after the move.

The updated photos of Odyssey come just days after a construction site fire caused some damage onboard the ship, that the shipyard's owners are concerned could cause delays in the construction plans.

While no change to scheduled sailings has occurred, Royal Caribbean did tell Wall Street in May that impacted shipyard operations will result in delivery delays of ships previously planned for delivery in 2020 and 2021.

UPDATE: Royal Caribbean has delayed Odyssey of the Seas' debut until at least April 2021.

Shipyard: Fire on Odyssey of the Seas results in damage and delays

In:
29 Jun 2020
By: 
Matt Hochberg

Bernard and Tim Meyer posted a video providing a sobering look at the German shipyard's operations, and touched on an incident on a Royal Caribbean ship under construction and what it could mean for the project.

The Meyers shared a video that talked about some of the issues at the Meyer Werft shipyard, where Odyssey of the Seas is under construction.

Tim talked about Royal Caribbean's next new cruise ship in the video.

Recently, a fire was reported at the construction site, which was the second reported fire in the last few months. This incident, coupled with project complications on other ships under construction, lead Mr. Meyer to speak about the situation at hand in German.

"And the fire at 713 Odyssey of the Seas is another stroke of fate in this overall very difficult situation. It results in high property damage and leads to further expensive delays."

UPDATE: Royal Caribbean has announced it has pushed back Odyssey of the Seas debut, and cancelled all scheduled sailings through April 2021.

On June 24, the second fire reportedly involved insulation materials and took place on deck 2 of the ship. On May 28, there was another fire reported on deck 8 near a stateroom.

Meyer Werft is also juggling other issues, including P&O Cruise Lines refusing to take delivery of its new ship, Iona, which has financial consequences for the shipyard.

Last week, Royal Caribbean Vice President of Revenue Management Michael Goldner was asked about any delays in the status of Odyssey of the Seas, where Mr. Goldner indicated an update was likely forthcoming.

"We will know within the next week or two on whether there's any impact on the delivery. I don't have an answer for you today but in the next week or two we will have a more definitive answer."

The current schedule has Odyssey of the Seas arriving in Port Everglades in early November to begin sailings, with her first sailing on November 5.

Thanks to Rich Freudenberg for assisting in translating the video.

Royal Caribbean Post Round-Up: June 28, 2020

In:
28 Jun 2020
By: 
Matt Hochberg

Happy Sunday! Hope you are having a relaxing weekend and enjoying summer! It is time to sit back, relax, and catch up on all the recent Royal Caribbean news!

Royal Caribbean announced this week it cancelled more cruises, extending its cruise suspension through September 15, 2020.

The cruise line's announcement comes a few days after Cruise Lines International Association (CLIA) trade group announced its member cruise lines will cancel all cruises from U.S. ports until September 15, 2020.

Exceptions to this timeline include China sailings paused through July onboard Spectrum of the Seas and Quantum of the Seas, as well as the further suspension of the 2020 Bermuda season onboard Grandeur of the Seas and Adventure of the Seas through October 31, 2020.  Voyager of the Seas sailings through September 30th, 2020 have also been cancelled.

Royal Caribbean plans to resume sailings on September 16, 2020 for the majority of its fleet.

Royal Caribbean News

Royal Caribbean Blog Podcast

The 360th episode of the Royal Caribbean Blog Podcast is now available, featuring how Ryan proposed to his girlfriend while on a Royal Caribbean cruise.

Ryan took his girlfriend on Oasis of the Seas, and shares what steps he took to plan the perfect proposal.

Please feel free to subscribe via iTunes or RSS, and head over to rate and review the podcast on iTunes if you can! 

Five costly lessons learned on a cruise

We all make mistakes, including some that cost a lot in the long run, so I wanted to share how to avoid making five really costly lessons-learned on a cruise.

Going on vacation means spending money to splurge and enjoy yourself, but it does not have to mean wasting money. There are plenty of first-time cruise mistakes to avoid, and a few of them could really cost you in the long run.

The proverb, "Experience is The Best Teacher" holds true even on cruises, because there are a few mistakes that could cost you a lot of money.

Royal Caribbean offering virtual concert on Friday night

In:
26 Jun 2020
By: 
Matt Hochberg

Kick off your weekend with a Music Hall Virtual Concert experience by Royal Caribbean.

Royal Caribbean is inviting everyone to watch a Virtual Concert featuring Santa Fe and the Fat City Horns. It will be streamed on Royal Caribbean's Crown and Anchor Facebook page beginning at 5:25pm.

The virtual concert experience is an activity shown in Two70 on its Quantum Class ships, and as part of Royal Caribbean's final Virtual of the Seas online event, the concert is going to be streamed online.

"We're thrilled to bring you an exclusive virtual concert featuring one of the world's most extraordinary bands and Las Vegas' Crown Jewel: Santa Fe and the Fat City Horns."

As an added bonus, there will be special interviews held before the concert begins at 5:25pm. 

Royal Caribbean Senior Vice President of Entertainment, Nick Weir, will conduct exclusive interviews pre-show with the band. 

 

Unique to the Two70 theater on Quantum Class ships, Virtual Concert is a musical experience that uses high resolution video footage of live performances captured on five 4K cameras to create a truly unique, immersive experience.

You can combine Future Cruise Credits instead of separately being reissued

In:
26 Jun 2020
By: 
Matt Hochberg

Royal Caribbean has made it easier to manage Future Cruise Credits in a situation where a guest uses a Future Cruise Credit towards another sailing.

In a scenario where a guest uses a Future Cruise Credit to pay for their existing cruise, but now wishes to cancel under “Cruise with Confidence” terms, the cruise line aims to simplify the process.

If a Future Cruise Credit was leveraged to pay for either all or a portion of the existing reservation, Royal Caribbean will make it easier by combining all funds into one voucher. This is an alternative to having multiple FCCs, one from each cancelled booking.

The value of the original FCC will now be added to the new FCC at 100% of its original value, plus the addition of any amount paid by the guest.

Regardless of the original FCC’s expiration date, the new FCC is valid through December 31, 2021, at which time all unused funds will expire.

Prior to this change, Royal Caribbean would have issued a separate FCC for each cruise instead of combining the value into one.

This is another change Royal Caribbean has made to its Future Cruise Credit program, which has evolved since the start of the current global cruise suspension in order to meet the needs of guests.

Earlier in June, the cruise line began allowing guests to use Future Cruise Credits to pay for a new cruise deposit.

Future Cruise Credits are an option for guests who either choose to cancel their cruise up to 48 hours before the sail date via the Cruise with Confidence program, or have their cruise cancelled by Royal Caribbean. In either case, a voucher code is provided that can be redeemed for the value of the sailing.

When Royal Caribbean cancels the sailing, the Future Cruise Credit is worth 125% the value of the cruise fare that the guest paid.

Expert-level cruise tips that all the cruise pros use

In:
25 Jun 2020
By: 
Matt Hochberg

If you have done even a tiny bit of research, you are well aware of common cruise tips, such as not overpacking or to pre-purchase add-ons to save money, but here are the secrets and tricks people that cruise all the time do, so you can do it too!

There is plenty of good cruise advice to go around, and this blog was started as a means of learning from each other.

In that spirit, I wanted to highlight five tips that I, and so many other people that cruise all the time, do on pretty much every cruise we book.  These tips may save you time and money, and not something the average cruiser may know about.

Changing their booking to non-refundable at the last minute

Many of you know I am a big proponent of booking refundable cruise fare because it adds a great deal of flexibility in case your plans change.  But you can change to non-refundable cruise fare down the line, especially if it is in your financial best interest to do so.

While not something that always occurs, there are plenty of situations where a booking is made a year or two in advance with a refundable cruise fare.  As the sail date approaches, it becomes clearer that you will almost certainly want and be able to sail on that cruise.

A good tip is to monitor the non-refundable cruise rates prior to final payment, because there are scenarios where the non-refundable rate drops to a point where it makes sense to rebook under that deposit program and take advantage of the savings.

I will employ this strategy once I am certain I will go on the sailing, and the savings bu changing are worth the jump.

Booking solo stateroom with a fake second person

This is one of my favorite tips for saving money when cruising by yourself.

Going on a cruise solo is a really fun experience, but it can also be an expensive sailing. Royal Caribbean charges something known as the "single supplement fee" to offset the loss for not achieving double occupancy in a stateroom.

When someone seeks to book a solo cruise, they usually enter just one person in the room reservation, and Royal Caribbean sticks you with that single supplement fee.

Instead, try looking for a reservation that has two people on it: you and a fake person.

When you add a second person, it is not uncommon that the total price is cheaper than if you price the same room out solo. 

Don't worry, you will not get in trouble for booking a fake second person.  You simply show up to the cruise terminal alone, let the agent know the other person will not be coming and you will get the fake second person's port fees and taxes refunded later.  And you still get double Crown and Anchor Society points for sailing solo!

Pre-book gratuities

When you book a cruise, there is the option to pre-book gratuities or pay them onboard.  Cruise pros always pre-book gratuities because it simplifies things, and locks in the gratuity rate in case of a rate change later.

Every so often, Royal Caribbean will revise the gratuity rates for its crew to keep pay in line with the industry.  When this occurs, anyone who pre-booked gratuities will be grandfathered in under the old rates.  

By pre-booking gratuities, you not only spread out the total cost of the cruise, but you assure yourself of the lowest price you can pay.

Book cruises years in advance

People that cruise a lot will book their cruises many months in advance to take advantage of the lowest prices. 

This is the best strategy for locking in the lowest price, as well as getting the most sought-after cabins that get booked up quickly (such as suites).

When Royal Caribbean releases new sailings, cruise pros will comb over the new options and usually place deposits as soon as they can to lock in low prices.

By booking early, you will often find the best rates available because cruise fares operate on a supply and demand basis.  The less supply there is (i.e. staterooms available to book), the higher prices.  So by booking one to two years early, you will find the best rates.

Book with a travel agent

I will never tire of sharing one of my favorite tips that will save you time and money in the long run - work with a good travel agent.

A good travel agent is more than somebody to take your credit card details and reserve a cabin.  Travel agents are your advocate throughout the cruise process, and are invaluable if an issue should arise at any point. 

In these days of delayed refunds, cancelled cruises, and future cruise credit tracking, having a good travel agent working on your behalf is incredibly important.

Since a good travel agent should cost you nothing extra to use (the cruise line pays them a commission), you have nothing to lose and everything to gain by using one.

Your best tips

Did I miss a cruise tip employed by the most cruise-ninjas out there? How many of these tips have you heard about? Share your suggestions and experiences in the comments!