Royal Caribbean Post Round-Up: June 7, 2020

In:
07 Jun 2020
By: 
Matt Hochberg

Happy Sunday! We hope you are having a great weekend and ready to talk a little Royal Caribbean.

Earlier this week, Royal Caribbean pulled the plug on its 2020 Alaska, Hawaii and Canada cruises, following a decision by Canada to ban cruise ships through the end of October.

Royal Caribbean indicated itineraries touching on a Canadian port through October 2020 are suspended.

Without the ability to visit Canadian ports, Royal Caribbean cruises cannot legally offer sailings because of U.S. cabotage laws that require foreign-flagged vessels leaving from a U.S. port of call to first call on a "distant foreign port" before returning to the United States.

Royal Caribbean News

Royal Caribbean Blog Podcast

The 357th episode of the Royal Caribbean Blog Podcast is now available, featuring the story of two brothers who cruise annually together.

In this episode, Joe shares how he and his brother take a "bro cruise" every year as an opportunity to catch up with family, as well as enjoy their favorite way to vacation.

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

Do's & Don'ts of Perfect Day at CocoCay

Perfect Day at CocoCay is packed with so many activities for families to enjoy, and it has quickly become a must-visit destination for lots of cruisers.

If you are looking to make the most of your visit to this private island, I have compiled a list of thirteen do's and don'ts of Perfect Day at CocoCay to ensure your next visit is flawless.

Why you should book a cruise ship inside room

In:
06 Jun 2020
By: 
Matt Hochberg

Is booking an inside cabin on your Royal Caribbean cruise a good idea, or a mistake waiting to happen?

Inside Cabin

An inside stateroom is usually the cheapest option available when booking, and it offers a "home away from home" to enjoy during your cruise. In fact, a lot of people end up booking an inside room for a variety of reasons.

If you are deciding between room choices, here are a few good reasons why you should book an inside cabin for your Royal Caribbean cruise!

How much time will you really spend in your room?

Royal Caribbean offers so much to see and do onboard its ships, and then there are all the activities you can do in the ports you visit, that you have to start wondering how much time will you actually spend in your room.

Unlike a hotel room, stateroom cabins are somewhere to get ready for your day ahead, but not a focal point of where you will spend your time. In practice, many guests find themselves outside of their room for most of the day, so why invest in space you will barely use?

An inside room and a balcony room offer the same basic amenities, but if you are going to be at the pool deck, exploring ruins, swimming, learning how to fold a napkin and dancing the night away, an inside room will still provide a place to shower, sleep and change.

Good idea if you are worried about getting sea sick

Experts say if you are prone to motion sickness, the best location for any stateroom is to be on as low a deck as possible, and towards the middle of the ship.  On most ships, that location is where the inside staterooms are located.

Obviously there are no guarantees that any room will be able to completely prevent getting sea sick, but the location of a room is among the most important factors in reducing the likelihood of it occurring the in the first place.

Inside rooms are not always tiny

Some cruisers hear "inside stateroom" and think a closet posing as a cabin, but that is not always true.

Royal Caribbean offers a great variety of interior staterooms to choose from, especially on their newer ships. Larger interior stateroom category can offer up to 178 square feet of space, and family interior staterooms range between 260 square feet to 324 square feet.

While inside rooms are not the most spacious rooms on the ship, they do offer more space than you might be giving it credit for offering.

The best room for sleeping!

If you want the best sleeping conditions, an inside room is just what the doctor ordered.

Since there is no natural light in an interior room, your cabin can get pitch black when you turn off all the lights, and that means prime sleeping conditions.

Unlike at home or in a balcony room, where the morning light seeps in and wakes everyone up, 3pm and 3am look exactly the same in an inside room (so pack an alarm clock!).

The inside room X factor: virtual balcony

So you like everything so far about an inside room, but giving up that view of the world still bugging you? Try a virtual balcony!

Virtual balcony rooms are available on select Royal Caribbean ships and they are inside cabins that feature a floor-to-ceiling LED screen that offers real-time, high definition views of the outside world.

This fun application of technology provides an on-demand option to see what is going on outside, whether to see if the sun is shining, or catch a view of the port your ship is docking at, the virtual balcony provides a balcony experience, without the balcony cost.

Save money!

Perhaps the most compelling reason to book an inside room is the cost.

Without a doubt, the best reason to book an inside room is for the cost savings, relative to other stateroom categories.

Often, inside staterooms are the least expensive option, which means you can spend a lot less money on your cruise vacation, or have more money to spend during the cruise on things like drink packages, excursions, the spa and more.

Unfortunately, not everyone has a vacation budget for booking higher room categories, but an interior stateroom gets you on the same ship as people in a balcony or suite, and any cruise vacation is better than no cruise vacation!

The bottom line

Anyone that typically books inside rooms will tell you that you will find lots of public space and open decks on the Royal Promenade, pool decks, helipad give you ample opportunity to go outside and enjoy the fresh air and passing scenery.

The interior rooms may not be the right choice for everyone, but if it is the difference between going on a cruise or not, I will gladly stay in an interior room!

AstraZeneca aims to produce Coronavirus vaccine by September

In:
05 Jun 2020
By: 
Matt Hochberg

Drugmaker AstraZeneca announced today great news for the cruise industry, which has seen a great deal of hesitation among customers who are concerned about going on a cruise ship during the current pandemic.

The British company said it has begun manufacturing the University of Oxford’s potential coronavirus vaccine ahead of trial results and has doubled its capacity to two billion doses. It hopes to make 400 million doses for the U.S. and U.K. and 1 billion for those in low- and middle-income countries. 

AstraZeneca CEO Pascal Soriot told journalists the company plans to start distributing the vaccine to the U.S. and U.K. in September or October, with the balance of deliveries likely to be made by early 2021.

Human trials began in Oxford at the end of April and scientists hope to have some indication over whether the vaccine works by July. 

Soriot added that the company expected to have clinical results by August. “Our present assumption is that we will have the data by the end of the summer, by August, so in September we should know whether we have an effective vaccine or not,” he told BBC radio.

Last month, American biotech company Moderna announced it has an experimental vaccine that resulted in positive interim clinical data in its first human safety tests.

Royal Caribbean Cruises Chairman rejects the idea of a "new normal"

In:
05 Jun 2020
By: 
Matt Hochberg

Royal Caribbean Cruises Ltd. Chairman and CEO Richard Fain shared a new video with travel advisors challenging the notion of "new normal" as it relates to the world today.

Mr. Fain explained that change is an inevitable part of life, and as it relates to cruising, change is something that has been a key part of Royal Caribbean's mantra.

"Some people, many people are beginning to talk about the next chapter as the new normal. That's a term that I've begun to hate."

"The only constant is change. We don't know how the future is going to unfold. We don't know how long it will take to get beyond this epidemic, and the traumatic changes that we are enduring to deal with it. We do know that things will be different."

"Most importantly, there won't be a new normal for selling cruises, or taking cruises or operating cruises. Change is coming to cruising. Some suggest the cruising in the future will be unrecognizable from what we are used to. That we will go from one constant, unchanging cruise experience before, to a radically different, totally changed cruise experience after. Horse pucky."

Mr. Fain reiterated how important change has been to the makeup of Royal Caribbean, "When we design our ships, we talk about a design formula of one third tradition, one third evolution and one third revolution," he said.  "That formula's worked pretty well for us and it works in the post-COVID world, too. It doesn't stick us in the past, but it isn't a new normal."

Towards the end of the video message, Mr. Fain spoke about the health protocols Royal Caribbean is working on that will be announced soon.

"We will raise the bar even higher on health, safety, sanitation and medical care. We will soon be announcing a blue ribbon panel working to ensure our health safety protocols are unparalleled. We will proceed cautiously and we will learn from our experiences. And unquestionably, we will invest in all these areas more than most of our guests will ever fully see or know."

"As I said, our mantra is continuous improvement. And it means just that everything gets better. Every chance we get."

Photos: Majesty & Jewel of the Seas in Southampton

In:
05 Jun 2020
By: 
Matt Hochberg

Two Royal Caribbean ships have been in Southampton over the last few days repatriating crew from the UK and Europe.

    

Jack's Cruise Blog shared photos with us of these great ships in port, while crew members were disembarking and getting charter flights home.

Jewel of the Seas had crew members from Allure of the Seas that were transferred onboard prior to Allure beginning her dry dock while the two ships were in Gibraltar. 

   

Both ships came from The Bahamas to Southampton in an effort to repatriate more of the cruise.

Royal Caribbean announces pricing for its $2.0 billion of bonds

In:
05 Jun 2020
By: 
Matt Hochberg

Royal Caribbean Cruises Ltd. announced on Friday that it has priced its concurrent private offerings of $1.0 billion aggregate principal amount of 9.125% Senior Guaranteed Notes due 2023, and $1.0 billion aggregate principal amount of 4.250% Convertible Senior Notes due 2023.

The Senior Notes will mature on June 15, 2023. The Senior Notes will be fully and unconditionally guaranteed on a senior unsecured basis by a newly formed, direct wholly owned subsidiary of the Company that will own all the equity interests in the Company's subsidiaries that own seven of the Company's vessels. 

The Convertible Notes will mature on June 15, 2023, unless earlier converted, redeemed pursuant to a tax redemption or repurchased. The initial conversion rate per $1,000 principal amount of Convertible Notes is 13.8672 shares of common stock of the Company, which is equivalent to an initial conversion price of approximately $72.11 per share, subject to adjustment in certain circumstances. The initial conversion price represents a conversion premium of approximately 25.00% to the last reported sale price of $57.69 per share of the Company's common stock on The New York Stock Exchange on June 4, 2020.

The Convertible Notes will be convertible at the holder's option in certain circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, at its election, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock. The Convertible Notes will not be guaranteed by any of the Company's subsidiaries.

In connection with the offering of the Convertible Notes, the Company granted certain of the initial purchasers of the Convertible Notes a 13-day option to purchase up to an additional $150.0 million aggregate principal amount of the Convertible Notes. The Notes are expected to be issued on or around June 9, 2020, subject to customary closing conditions. The closing of each of the Senior Notes offering and the Convertible Notes offering is not contingent upon the closing of the other offering.

The Company expects to use the combined net proceeds from the offerings of the Notes for general corporate purposes, which may include the repayment of indebtedness.

Up to 45% off pre-cruise Royal Caribbean purchases this week

In:
04 Jun 2020
By: 
Matt Hochberg

Royal Caribbean has launched a new sale on shore excursions, drink packages, internet and more.

The Sun-Soaked Savings offer applies to bookings made between June 4 - June 11, 2020 on sailings from  August 1, 2020 - March 31, 2021.

It includes:

BEVERAGE: Up to 45% off on all sailings.

  • Classic Soda Beverage Package: 40% off onboard prices. (Excludes Charter Sailings + Spectrum of the Seas)
  • Classic Soda Beverage Package + VOOM Surf & Stream 1 Device: (Excludes Charter Sailings + Spectrum of the Seas)
  • Dasani Water Cans: Discount varies by ship. (Excludes Charter Sailings + Spectrum of the Seas)
  • Deluxe Beverage Package: Discount varies by ship. (Excludes Charter Sailings + Spectrum of the Seas)
  • Deluxe Beverage Package + VOOM Surf & Stream 1 Device: Discount varies by ship. (Excludes Charter Sailings, Vision of the Seas + Spectrum of the Seas)
  • Refreshment Package: Discount varies by ship. (Excludes Charter Sailings + Spectrum of the Seas)

SHORE EXCURSIONS: Up to 40% off

  • Shore Excursions: Discount varies by ship. (Excludes Charter Sailings + Spectrum of the Seas)

INTERNET: Up to 65% off

  • The Key: Discount varies by ship.. (Excludes Charter Sailings, Majesty of the Seas & Spectrum of the Seas)
  • VOOM Surf + Stream Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship. (Excludes Charter Sailings + Spectrum of the Seas)
  • VOOM Surf Voyage Package 1, 2, 3, 4 Device(s): Discount varies by ship. (Excludes Charter Sailings + Spectrum of the Seas)

DINING: Up to 55% off

  • Unlimited Dining Package on 3N – 9N sailings: Discount varies by ship. (Excludes Charter Sailings, Majesty of the Seas & Spectrum of the Seas)

ACTIVITIES: 20% off

  • All Access Ship Tour: 20% off onboard prices. (Sailings from 8/1/20 - 12/31/20, Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas & Spectrum of the Seas)

GIFTS & GEAR: Up to 20% off

  • Chocolate Covered Strawberries: 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • Happy Anniversary Decorations with Champagne: 20% off onboard prices. (Excludes. Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • Happy Birthday Decorations Bright Style: 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • Happy Birthday Decorations with Vanilla Cake & Strawberries: 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • Inky Beach Set: 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • Inky Beach Towel (TicTacToe): 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • Inky Travel Set: 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • Red Wine and Cheese: 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • Strawberries with Champagne: 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)
  • White Wine and Cheese: 20% off onboard prices. (Excludes Charter Sailings, Ovation of the Seas, Quantum of the Seas, Spectrum of the Seas + Voyager of the Seas)

PHOTO PACKAGES: Up to 20% off

  • Photo Packages: From 5 - 100 print and/or digital options: discount varies by ship. (Sailings from 8/1/20 - 3/31/21; See full terms for exclusions)

To check if your sailing has this new offer available, log into the Cruise Planner on Royal Caribbean's web site look for any available offers. Keep in mind that not all sailings may see the sale applicable, nor are all offers significantly cheaper than previously posted.

If you spot a better discount on something you already pre-purchased, you should be able to cancel the purchase and then re-purchase the same item under this promotion.

Royal Caribbean offers up to $2 billion in bonds and convertible bonds that mature in 2023

In:
04 Jun 2020
By: 
Matt Hochberg

Royal Caribbean announced on Thursday it is offering up to $2 billion in senior notes and convertible bonds that mature in 2023 in two separate offerings. 

The company said in a statement it will use the proceeds for "general corporate purposes", which may include repaying debt.

The Senior Notes will be fully and unconditionally guaranteed on a senior unsecured basis by a newly formed, direct wholly-owned subsidiary of the Company that will own all the equity interests in the Company’s subsidiaries that own seven of the Company’s vessels with an aggregate net book value of approximately $7.7 billion. The Convertible Notes will not be guaranteed by any of the Company’s subsidiaries.

CDC will use red, yellow, or green system to identify COVID-19 on cruise ships during shutdown

In:
03 Jun 2020
By: 
Matt Hochberg

A new plan by the Centers for Disease Control and Prevention (CDC) will utilize a color-coded system of identifying potential and existing cases of Coronavirus on cruise ships while there are no passengers onboard.

The Miami Herald is reporting that the CDC's new system will assign each cruise ship with a color to signify the ship's status:

  • Green: no confirmed cases of COVID-19 or COVID-like illness for 28 days.
  • Yellow: one or more COVID-like illness cases pending confirmation.
  • Red: one or more cases of confirmed COVID-19 or COVID-like illness within the past 28 days

The new system is one part of the agency's plan to detect, prevent and mitigate the spread of coronavirus on cruise ships. It was developed to assist in simplifying the process of getting crew members home.

If a ship is in Green status, crew transfers and repatriation are possible via commercial transportation, whereas non-commercial transportation would be permitted for yellow or red status.

In addition to the color-coded system, the CDC included recommendations for action to take onboard cruise ships for each color system to mitigate the spread of the disease.

Even while a ship is in Green status, the CDC recommends cruise ships take certain steps to slow the spread if it were to occur:

  • Instruct crew members to wear a cloth face covering when outside of individual cabins
  • Relocate all crew to single-occupancy cabins with private bathrooms
  • Implement social distancing (6 feet) of crew members when working or moving through the ship

It also will require certain other changes for ships in Green status:

  • Eliminate self-serve dining options at all crew and officer messes
  • Discourage handshaking
  • Place hand sanitizer (containing at least 60% alcohol) in multiple locations and in sufficient quantities to encourage hand hygiene
  • Promote respiratory and hand hygiene and cough etiquette
  • Place posters that encourage hand hygiene to help stop the spread in high-trafficked areas

Plan for passengers is still unknown

The color-coded system was designed for the current state of cruise ships during the global cruise shutdown, but an entirely different approach needs to be determined for passengers.

The CDC’s director of the Division of Global Migration and Quarantine Martin Cetron indicated these plans do not apply to passenger cruises. Furthermore, he told the Miami Herald, "the CDC has not begun to review plans for how to safely operate cruises prior to development of a vaccine."

"This is the bare minimum," Cetron said of the plans to mitigate spread of the virus on ships while cruising is stopped. "If a line ever wants to get back to full density on board, bringing on board people who are at risk of dying of COVID, they have to be able to control COVID on these ships when their occupancy is 90% less. It will be this plan on steroids."

Tourism opening back up elsewhere

While the cruise industry is under the microscope of government oversight, other aspects of the tourism industry have plans in place to resume operations.

Theme parks in Orlando, Florida are re-opening this month, with Universal Orlando re-opening select resort hotels and parks to guests this week. Walt Disney World will re-open in July, and SeaWorld Orlando & Busch Gardens Tampa will re-open June 11.

The airlines have been operating throughout the COVID-19 era, with regular flights in and out of countries such as Spain, Italy and the United Kingdom.

Port Canaveral's CEO recently said he feels the cruise industry is taking an "unfair hit" from the federal government.

Royal Caribbean employees will begin returning to its Miami headquarters

In:
03 Jun 2020
By: 
Matt Hochberg

Royal Caribbean's employees will begin returning to its Miami headquarters in the next couple of weeks for the first time since the current health crisis forced the cruise line to have everyone work from home.

Royal Caribbean Senior Vice President of Sales and Trade Support & Service Vicki Freed confirmed that employees will begin returning to the corporate headquarters in Miami beginning on June 8, and the second group will go back on June 15.

The factor in determining the date of return for each employee will depend on which building they work in on Royal Caribbean's campus.

Employees working at the company's headquarters were forced to work from home for a number of months in order to foster proper social distancing and adhere to Florida's regulations. With the state relaxing some of those laws in order to reopen many aspects of life, working from headquarters will now be permitted.

Royal Caribbean has paused construction on its new Miami headquarters in late March. The new headquarters will eventually replace the existing corporate campus, as well as provide more space for other employees to work directly in the company's headquarters.