The cruise industry has been shutdown for an entire year and losing billions of dollars each quarter. So why are cruise ships still being built?

If you read just a few articles about what is happening in the cruise industry, you would know the industry is facing its most dire circumstances, perhaps ever. With mounting loses, debt piling up, and very few ships actually sailing, you might be wondering why cruise ship orders are still being filled and new ships launching.

It's a good question given everything happening today, and the answer lies has less to do with today and more to do with tomorrow.

A number of new cruise ships were delivered in 2020, and more will be delivered in 2021.

Royal Caribbean, Celebrity, Carnival, and many more lines took delivery of ships and even announced new ships that will be built in the next few years.

Royal Caribbean has plans for Odyssey of the Seas to join the fleet in Spring 2021 and Wonder of the Seas sometime in 2022. There are orders on file for other new ships in the coming years too.

On top of that, quite a few existing cruise ships were sold to be scrapped many years sooner than likely would have happened if there had not been a global health crisis.

Moreover, these ships were scrapped because of the lack of need for these ships right now, the high costs of maintaining them, and the lack of buyers to transfer the ship to their fleet.

It would seem given the mounting debts and financially motivated scrapping of existing ships that building new cruise ships would be the last thing cruise lines would want to do.

So why are cruise ships still being built?

First, cruise ships are ordered many years in advance and they get financed just as early.

As an example, Odyssey of the Seas, which was set to debut in 2020 but had to be pushed back to 2021 due to the global health crisis, was ordered back in November 2015.

Construction of Odyssey began in earnest on February 1, 2019.

Wonder of the Seas, the next Oasis Class cruise ship, was ordered on May 25, 2016 and construction began on April 24, 2019.

Basically, cruise ships we are seeing coming out of shipyards today were ordered many years ago.

Similar to when you buy a car and finance it, you place the order and agree to pay it off over the course of many months.

The second reason why ships are still being built is the cruise industry being shutdown and health crisis has lead to the ability to delay these new ship deliveries.

Ordinarily, a new cruise ship delivery is rarely delayed much, but the unprecedented situation that the entire cruise industry is under has opened up many more possibilities.

Between the cruise lines and shipyards, new ship orders have been delayed in order to space them out better and provide more time for cruise lines to secure additional funding, as well as become situated in a better position.

Odyssey of the Seas was delayed from an original delivery date in 2020, and Wonder of the Seas was similarly pushed back a year.

Read more: Top 5 things Royal Caribbean had planned for 2020 that got delayed

Thus far, orders for new ships have not been completely cancelled, but instead put off to a further date with the hope things will improve financially for cruise lines. Because of the long amount of time needed to build a ship, even a ship that begins construction today, will not be ready for at least a couple of years.

If all of that makes sense, then why are cruise lines building new ships at the same time they are scrapping and selling off many other ships?

The answer boils down to the economics of operating cruise ships.

New ships run more efficiently than older ships because of a combination of new design trends, more berths, and revenue opportunities onboard.

Royal Caribbean Cruises Ltd. Chief Financial Officer Jason Liberty told investors that 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."

In addition, selling older ships is something that always happened.  Granted, some ships that got scrapped in 2020 might have been sold to another operator if there had not been a global health emergency, but the fact is cruise lines sell ships when the time is right.

Mr. Liberty also said that Royal Caribbean typically sells one to two ships per year.

So the shutdown may have accelerated plans to sell off ships and in some cases, caused vessels to be scrapped instead of sold to another company.

Lastly, cruise ships are still being built because cruise lines are also looking at the big picture.

In the long term, a return to cruising means meeting the pent-up demand for travel that everyone will want to embark on once things start moving back in the direction of normal.

Prior to the shutdown, the cruise industry was extremely profitable, and new ships sell extremely well.

So new cruise ship orders are not being cancelled because there is still a great deal of optimism for what the future holds, while also coming at the expense of older and less efficient/profitable ships.

I'm a firm believer that there are no Royal Caribbean ships you should avoid, I do believe some ships are a better fit than others, depending on your personal preferences.

People tend to come up with their own list of favorite anythings: ice cream, television shows, and even cruise ships.  But, sometimes we also try something and vow never to do that again.

Not every ship will necessarily be everyone's cup of tea. Luckily, the fleet of cruise ships is large enough that there is bound to be a good fit for just about anyone.

Read more: What is the worst Royal Caribbean ship?

I reached out to our readers on our Facebook page to ask: is there a cruise ship you’ve been on that you would never go back on again? If so, which one and why?

Needless to say, there were a lot of opinions out there about which ships they love, and which they could live without. 

Being a very subjective question, the responses largely were based on their experiences and tastes for what each reader thought a cruise ship should be all about.

Ironically, this is a good reminder to everyone why you can't trust online reviews of cruise ships.

Enchantment of the Seas

There were quite a few responses regarding the only Vision Class ship to be cut in half and stretched, and many of the critiques were about the ship's size and onboard offerings.

Quite often the words "too small" were used to describe Enchantment, and the lack of activities (perhaps compared to other ships) stood out.

The smaller ships are, well, small compared to the newer ships that have come out in the last ten years or so.  If you are used to the largest ships, there is a bit of "culture shock" when you try out a Vision Class vessel.

I think the key is to understand before you get onboard what the ship offers (and doesn't offer) to avoid disappointment during the cruise.

Anthem of the Seas

To prove that the size of the ship isn't everything, plenty of big ships made the  list of comments, such as Anthem of the Seas.

One reader commented that Anthem's areas "always seemed way too crowded." Another reader complained about the lack of late night parties onboard.

Interestingly enough, there was a lengthy discussion about the people that cruise out of the Northeast versus Florida, and their attitudes.  I'm not touching that debate with a ten foot pole.

Oasis of the Seas

Yup, there were people who claimed they did not like one of the world's largest cruise ships, primarily because of its size.

Remember the people that did not like Enchantment because it was too small? Well, there were plenty that did not care for the enormous size of Oasis either.

One reader said, "it was just way to big for us." Another elaborated, "First time on a ship like that and just didn’t think it was great. The circus theme took up a lot of space and did nothing for me."

Just like Enchantment, these comments serve as a good reminder that a lot of people become accustomed to the first cruise ship they sail on and largely use that as the standard they judge other ships by.  In many cases, it has been my experience that people that start with small ships tend to have issues with larger ships, and people that start with big ships get turned off by smaller vessels.

Of course, plenty of cruisers like cruise ships of all sizes, so it's just a matter of finding a good fit for you.

Read more: First Timers' Guide to Oasis of the Seas

Majesty of the Seas

While Majesty is no longer in Royal Caribbean's fleet, she was still memorable enough to be "one and done" for many readers.

Having sailed on Majesty, I thought this comment was indicative of the experience for many, "Layout was very strange. You often couldn’t get from here to there. Had three sets of elevators. They didn’t all go to the same floors. Centrum elevators just went 4 floors."

Another reader agreed, but thought everything was relative for the time, "It’s tough to bad mouth the old ships. They were once the biggest and best. I love Oasis class and I personally could not sail Sovereign class if she were still sailing."

The lesson I would glean from the comments about Majesty is not all Royal Caribbean cruise ships are exactly the same, and design trends change over the years. 

It is always a good idea to learn about your cruise ship before you sail to get a better understanding of what you can expect onboard.

Explorer of the Seas

Another ship that got repeated quite often was Explorer of the Seas, and there was concern about the appearance of the ship and even the crew.

• "So run down and crew truly didn’t want to be there"
• "She was run down and the crew just seemed apathetic. "
• "Explorer as it felt like we were on the training ship with new recruits!"

Personally, I love the Voyager Class ships and sailed on Explorer of the Seas to Alaska in 2018 and enjoyed the cruise.

I think an unintended side effect of the Royal Amplification program that brought tremendous upgrades to so many cruise ships in the fleet is any ship that had not been upgraded seemed tame in comparison.

Explorer of the Seas was scheduled to get a major refurbishment in 2020, but those plans were sidelined due to the global health crisis and Royal Caribbean having to cut back on any unnecessary spending.

Read more: What was added to each Royal Caribbean ship during its Royal Amplified refurbishment

And a lot of people who didn't like other cruise lines!

Being a Royal Caribbean group of readers, you could quickly tell why so many prefer Royal Caribbean based on negative comments about other brands cruise ships.

Every cruise line has its plusses and negatives about it, but quite a few non-Royal Caribbean cruise ships made people's lists:

• Norwegian Epic: "Service was the worst and it took hours to get passengers off at the private island."
• Carnival Sensation: "There were so many things about it that just made me want to go on another cruise."
• Norwegian Gem: "So many dead ends on that ship. Did a 10 day and took me the whole cruise to figure it out."
• Norwegian Pride of America: "Freestyle dining meant 2-3 hour waits for dinner in the dining room & the service was below par compared to all the other cruises."
• SilverSea Silver Whisper: "Crazy expensive cruise, very old and outdated ship."
• Norwegian Breakaway: "Such a disappointment after Oasis class ships."

Bonus: The funny comments

I love a good snarky comment thrown in now and then, and there were a few that took this opportunity to bring some levity to the poll.

• "Carnival sensation... honeymoon with ex wife."
• "The S.S. Minnow because it only was supposed to be a three hour tour."
• "Mayflower was just terrible. Kept us below decks for weeks, stench was awful, ship bobbed around like a cork."
• Titanic: "swim team practice was chilling"

Royal Caribbean operates the biggest cruise ships in the world, and a ship (if stood upright) that is twice as high as the Washington Monument might leave you wondering how it doesn't sink.

Symphony of the Seas has water slides, an ice skating rink, and an entire park. She can accommodate up to 6,680 guests and weighs 228,081 gross tons (GT).

Whether you have been on a cruise ship, or simply seen a photo of one, you might have wondered how such a big ship can float in the water.

How does a cruise ship float? And why doesn't it fall over when the wind blows?

Royal Caribbean's cruise ships are amazing pieces of technology, maritime tradition, and innovation, but they are not magic.   It is all about physics.

The concept of buoyancy is what keeps a cruise ship like Symphony of the Seas upright and floating.

The science of buoyancy was discovered by Archimedes in 246 BC, when he developed Archimedes' principle.

"Any object, totally or partially immersed in a fluid or liquid, is buoyed up by a force equal to the weight of the fluid displaced by the object."

Essentially, cruise ships can stay above the water as long as they are displacing an equal amount of water to their mass.

A cruise ship displaces an amount of water equivalent to its own mass. The pressure of the sea pushes up against the vessel’s hull to counter the downward force of the ship’s mass. Unlike air, water cannot be compressed, so the combined forces create buoyancy.

As the cruise ship moves forward, water is pushed away and that water tries its best to return to fill the displaced space and that energy forces the ship upward.

While the ship is indeed quite heavy, there is a lot of open space onboard and that empty volume means the ship is not like a giant rock in the water.

When a cruise ship is designed, engineers pay careful attention to keep the average density of the ship (considering both the physical weight of the vessel as well as all the air) less than the average density of the water. 

The ocean is vast and extremely dense.  So if the cruise ship can have less of a density than the ocean, that it floats on the surface.

If you ever meet an engineer, they will often talk about a ship's displacement, rather than its weight. Ships float because they weigh less than the weight of the water they displace.

One other thing you might notice about a ship like Symphony of the Seas is her wide hull.  That design choice is no accident.

When Oasis Class ships were designed,the engineers chose a wide hull to disperse the weight across it.

Think of the hull as the body of the ship, and the part that is below the main deck is usually quite wide and has a deep bottom (known as a base line). Cruise ships (and other large vessels) usually have displacement hulls, or hulls that push water out of the way, to stay afloat.

Another major difference between a cruise ship and a boat is the design of the hull.

Boats have a "v-hull", which means if you took it out of the water and looked underneath, the bottom resembles the letter "v".  Cruise ships have a hull that looks like the letter "u".

Round-bottom hulls move through the water and make them much more stable and seaworthy than a v-shaped boat hull.  This is primarily why cruise ship passengers feel much less rocking or motion compared to a boat.

However, that stability comes at a price: speed. Boats move through the water much faster than cruise ships.

So with all of that said, I have not yet tackled how a cruise ship is going to float.  Why is there only 30 feet below the water and over 200 feet above the water, and how do they keep the upside up?  

It is a matter of weight distribution.  The engines and other machinery, fuel tanks, water tanks, and ballast tanks are all low in the ship, while lighter, less dense spaces are up higher.

The wider hull helps a lot with stability.  Symphony is nearly as wide as she is tall.  That’s why a strong wind hitting the side of the ship doesn’t tip it over.  This is calculated as a wind heel moment and is a large part of the stability calculations for any vessel.

If Yoda had been an engineer, he might have said, "Size matters not. Judge me by my buoyancy do you."

Before the cruise industry shutdown due to the global health crisis, Royal Caribbean had big plans for 2021 and like so many other things in life, their plans had to be changed.

Much of Royal Caribbean's big ticket spending had to be paused in order to conserve cash and be as fiscally responsible as possible.

In 2021, there are still some plans that will go ahead and others that have been delayed.  Here is a look at what we can and cannot expect from Royal Caribbean next year.

Still happening

New cruise ship: Odyssey of the Seas

Photo by Jeroen Houtman

Delayed from launching in 2020, Royal Caribbean's next new cruise ship will instead be delivered in 2021.

Odyssey of the Seas is under construction at the Meyer Werft shipyard in Papenburg, Germany and will be the cruise line's second Quantum Ultra Class ship.

Originally Odyssey of the Seas was going to start cruises in November 2020, but a combination of Royal Caribbean's financial turmoil and issues at the shipyard contributed to a delay.

Instead, she is scheduled to be delivered in Spring 2021, with her first sailings in April 2021.

Galveston terminal construction beginning

Just like Odyssey of the Seas, the new cruise terminal in Galveston was scheduled to begin construction in 2020, but is now scheduled to begin on April 1, 2021.

The new Terminal 3 in Galveston will be built on 10 acres of land at Pier 10, and will be used exclusively by Royal Caribbean.

The new cruise terminal is the linchpin in Royal Caribbean's plans to bring an Oasis Class cruise ship to the Galveston cruise market.

According to the Port of Galveston Trustees, Royal Caribbean asked to delay the start of construction by a year, and is "very much insistent" that they will begin work in 2021.

Likely not happening

Antigua Beach Club

In late 2019, Royal Caribbean announced a new kind of development that would be a sort of small scale private enclave for cruise guests.

The Royal Beach Club was described as the ultimate beach experience, which would offer guests unique features and flavors of each destination.

The first Royal Beach Club was to be built in Antigua, which will open along a half-mile of beachfront near Fort James and was scheduled to open sometime in 2021.

Since everything shutdown in 2020, there has been absolutely no mention by the cruise line of the Antigua Beach Club, or any Royal Beach Club. Moreover, Royal Caribbean Group informed investors it would conserve cash by reducing capital spending through 2021.

"We have reduced our planned capital spending through 2021, which may negatively impact our execution of planned growth strategies, particularly as it relates to investments in our ships, technology, and our expansion of land-based developments."

So while Royal Caribbean has not provided any kind of official update on the fate of the Royal Beach Club, the likelihood of the Royal Beach Club project moving ahead for 2021 seems unlikely.

Ship upgrades

Just like the Beach Clubs, spending on ship upgrades also Royal Caribbean hit the pause button.

Once it became clear the shutdown was going to last a while, Royal Caribbean postponed its upcoming amplifications until further notice.

Two Royal Caribbean ships were scheduled to be upgraded in 2021 as part of the Royal Amplification process: Adventure of the Seas and Liberty of the Seas.

Planned upgrades for Allure of the Seas and Explorer of the Seas that were scheduled to take place in 2020 also never happened and are also on hold.

New cruise ship: Wonder of the Seas

Similar to Odyssey of the Seas, Royal Caribbean's next Oasis Class ship delivery was delayed.

Wonder of the Seas was originally scheduled to be delivered in 2021, but will instead be delivered sometime in 2022.

Under construction in France, Wonder of the Seas had to be delayed in order to spread out spending. She is still scheduled to sail exclusively in China.

Cruise ship design is not simple, and far be it for me to claim I could do a better job, but there are definitely a few decisions made regarding Royal Caribbean cruise ships that make you scratch your head.

Royal Caribbean's cruise ships are marvels of modern engineering, and the New Build team at Royal Caribbean spends an incredible amount of time planning out every inch of the ship.

However, there are a few puzzling design choices on a few ships that some guests have wondered for a while why is that way?

Here is a look at the top five odd annoyances on a Royal Caribbean cruise ship that you may have encountered yourself.

Elevators that don't go to every floor on Majesty of the Seas

While Majesty of the Seas is one of the oldest ships in Royal Caribbean's fleet, I think people in the early 1990s still expected elevators to go to every floor.

Unlike most other ships, Majesty's elevators only go to certain floors.

The aft elevators only go from Deck 5 to Deck 14.

Mid ship elevators only go from Deck 3 to Deck 7.

Forward elevators go from 1 to 11.

On other Royal Caribbean ships, an elevator not going to a certain deck is quite rare, but Majesty's are the exception.

No public bathrooms near Main Dining Room on Vision Class ships

If you are having dinner in the My Fair Lady dining room on deck 5 of a Vision Class ship, you will have to go down a deck to access the restroom.

The Main Dining Room on Vision Class ships encompasses Deck 4 and 5, but there are only restrooms outside the Main Dining Room on Deck 4.

So you will have to either go up to deck 6 or down to deck 4 to visit the restroom from the dining room.

Remote Concierge Lounge location Quantum Class ships

They say everything is relative, including how far of a walk you have to the Concierge Lounge.

The Concierge Lounge is the hub of activity for suite guests, where they can speak to the Concierge host or enjoy time chatting with other suite guests and enjoy complimentary beverages and hors d'oeuvres.

On most Royal Caribbean ships, the Concierge Lounge is located near an elevator, and more or less central on the ship.  On Quantum Class ships, the Concierge Lounge is located at the far end of Deck 12.

This means suite guests must traverse the entire length of Deck 12 to get to the Concierge Lounge, and then walk back when complete. 

Can't cross the ship on certain decks

This annoyance is one that always gets me because I usually remember I am about to run into a dead end by the time it is too late.

Certain decks on Voyager or Freedom Class ships are not passable between the aft and forward sections because of public venues that are in the way.

The most common one is on Deck 3, where Studio B essentially cuts that deck in half preventing going from one end to another.

The conference center on Deck 2 also makes getting across a problem.

Can't cross the deck on Deck 7 of Oasis Class ships

If you happen to be near the aft staterooms on Deck 7 of an Oasis Class ship, you cannot get from the port side to the starboard side of the ship.

The Boardwalk sign blocks access between port and starboard on deck 7. Instead, you have to go up/down a floor, cross over, and then up/down a floor back.

This means you have to choose wisley which elevator bank you select to get off on the same side as your room.

Your thoughts

What head scratching features, impediments, or funky ways to do things on a Royal Caribbean cruise ship have you noticed? Share your (un)favorites in the comments below!

Royal Caribbean could still sell a cruise ship during its shutdown, assuming it makes financial sense.

During an earnings call with Wall Street analysts on Thursday, Royal Caribbean Group executive vice president and Chief Financial Officer Jason Liberty spoke on the topic of supply growth, and what Royal Caribbean might do with existing and new vessels.

Mr. Liberty noted that Royal Caribbean Group would sell about one to two ships in a typical year, but with everything changing this year, anything is possible.

"We're being very opportunistic about the situation," Mr. Liberty said on the topic of selling or scrapping ships. 

In terms of when it makes sense to sell, it sounds like only if a particular cruise ship "does not fit strategically" within the brand would they then look at options.

New cruise ship capacity

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Selling or scrapping a ship may also come to offset new ships joining the fleet.

Right now, Royal Caribbean expects its cruise ships on order to continue ahead, although "delayed by probably eight to 10 months", according to Mr. Liberty.

Nonetheless, new ships growth will continue.

"I think we do expect that will be slower newbuild growth probably towards the latter part of four or five years from now....I think we expect to continue to try to come online."

Royal Caribbean International has a few ships on order, including Odyssey of the Seas and Wonder of the Seas.  Both ships have been delayed, but will debut in 2021 and 2022 respectively.

No change in Royal Caribbean's ship selling strategy

Today's comments on Royal Caribbean having no firm plans to sell any ships continues the company's general strategy since cruises shutdown in March.

In August, Mr. Liberty said Royal Caribbean Group was still evaluating options in selling ships, but had nothing firm to announce.

"This time we are evaluating opportunities to to sell ships or to take other actions with ships."

"We're valuating all all options, but of course, we've put a lot of money into these ships. These ships do exceptionally well, and so it's a difficult decision to depart with ship because they generate so much cash."

Why scrap or sell a ship?

The question of if Royal Caribbean will sell more ships or not is partly based in finances, and partly due to what competitors have been doing.

Carnival Corporation has been far more aggressive in selling ships of its brands, having announced a total of 18 cruise ships across its brands will be sold soon (if not already).

Royal Caribbean Group chose to scrap its fleet of Pullmantur Cruises ships, including the former Monarch and Sovereign of the Seas, when that cruise line went into bankruptcy.

Besides getting rid of ships and the overhead they bring, new cruise ships tend to break-even with less guests and are more efficient with generating onboard revenue.

Wondering if there are any cabins left on your cruise or just how busy it will be onboard?

It can be very helpful to know if the Royal Caribbean cruise you have booked (or are thinking of booking) is getting close to selling out, and there are some easy ways to get a ballpark idea of what to expect.

It's fairly common for cruise ships to sail at full capacity, but occasionally there are some sailings that do not get completely booked up, especially if there are last-minute cancellations.

You should expect your cruise to be completely sold out by the time you sail, as it's the exception to have ships sail with empty rooms. The cruise industry is built around the concept of filling every room.

In Royal Caribbean's second quarter earnings for 2023, the average capacity for the second quarter was 105%. This means ships were sailing on average with every room full, and some rooms with third or fourth passengers in them.

This is a testament to the high demand the cruise industry enjoys, so it's quite likely your cruise will be sold out.

However, there is a chance for some sailings to have less demand, especially in the shoulder seasons when less people are able or willing to cruise.

Read more: When is the best time to go on a cruise?

If you're curious how to tell how full the ship is at any time, here's the easy steps to figure it out.

Why should you care if ship is close to full?

Reading this post, you might be curious why someone might want to know their cruise is almost full, and there are a few good reasons.

If you are on the fence about booking the cruise, depending on how full the ship is will determine how much time you have to decide to book the cruise or not.

In addition, prices tend to go up as rooms get booked, so a ship that is less than half full means prices may not fluctuate that much in the short term, whereas a ship nearing selling out likely will not see any price drops soon.

How to tell if your cruise ship is almost full

There is no exact method for knowing precisely how sold out a ship is or not, because Royal Caribbean does not divulge that information to the public.

However, there are some good strategies for getting a ballpark idea of how close to selling out a cruise is.

Making a mock-booking on Royal Caribbean's website is a very easy and simple way to get an idea how many rooms are left to book.

By going through the website and pretending to book a cruise, you will end up on the stateroom choice page, where you can see which categories are sold out, and drilling down from there, see how many cabin options come back as bookable.

A good travel agent can also provide insight into what is available by having them check on their site for availability. 

Is there any way to view the current amount of booked rooms?

The only way to figure out how many rooms are left on any particular cruise is to do a mock booking.

What you want to do is pretend you are going to book a cruise on the Royal Caribbean website. Select a stateroom category, pick the deck, and see how many are available.

The only caveat to this strategy is you cannot see rooms that might be in a travel agent group that is being held.

Everything can change at final payment

If you are looking this up, keep in mind that the final payment date can drastically change how booked up a cruise is or not.

Prior to the final payment date, anyone can place a deposit and hold a cruise reservation that assures them of that particular cabin.  That cabin will remain unavailable to book and appear sold unless the person fails to make final payment and/or cancels their reservation.

A very common occurrence is people who make reservations many months in advance and then decide to cancel it at the final payment date because they decided not to sail.  

If you are trying to get an idea of available rooms, or discover a sailing is sold out, prior to final payment date, be sure to double-check again the day after final payment to see if more rooms opened up.

Once you get past final payment, cancellations are less likely since there is a penalty associated with canceling.  Cancellations past final payment date are not unheard of, just less likely.

Over the last few weeks, many cruisers have heard cruise lines say their ships may enter cold lay-up, but what does that mean?

With cruise lines entering a prolonged suspension with no cruises resuming anytime soon, one option available is to move ships from a warm lay-up into a cold lay-up.

In order to get a better sense of what cold lay-up is and what it means, I turned to Commander Don Goldstein, Retired United States Coast Guard, who has over 32 years of experience.

What is cold lay-up?

When a cruise ship goes into cold lay-up, it is essentially shutting down as much of the ship as possible in order to cut costs.

Royal Caribbean's fleet is currently in a state of warm lay-up, which means they can bring the ship back to service very quickly since the machinery, lifesaving equipment and navigational equipment are all well-kept and up to date.

In a cold lay-up, the opposite is true. Most of the mechanical systems are taken offline, with just the bare essentials left online to preserve the ship. 

Depending on how long the company intends to lay-up the ship, different approaches can be taken to preserving the interiors of the ship. For a lay up of three to nine months, the air conditioning will continue running to keep the humidity down.  But a more prolonged lay up would result in the rooms being hermetically sealed.

In terms of crew, the amount of workers onboard is drastically reduced.

In a hot lay-up, the engine department and the deck department are pretty close to fully manned, but in a cold lay-up there would be a bare minimum skeleton crew that could step in the case of an emergency to get the ship moving (such as a hurricane).

Why do a cold lay-up?

If you are wondering why a cruise line would consider putting its ships into cold lay-up, it is all about saving money.

The benefit of putting a cruise ship into cold lay-up is added savings compared to a hot lay-up.

"People are the big expense in a lay-up, and you've got a whole lot less people involved in a cold lay-up than you do in a hot lay-up."

Hurdles to get ships back into service

After a ship enters a state of cold lay-up, getting them back into service is no simple task.

In a cold lay-up, you basically have to re-certify the ship, depending on how long it has been in cold lay-up.

"There are a myriad of certificates that have to be redone if it's been longer than six months," Command Goldstein described, and he outlined four entities that go into a ship recertification:

• Ship owner
• Port State (where the ship is located)
• The flag state (Bahamas, for all Royal Caribbean ships)
• Classification Society

All four of those entities have to be involved in putting the ship into cold lay-up, and they all have to be involved in taking the ship out of cold lay-up.

How long to get a ship back into service after cold lay-up

Another question is how quickly Royal Caribbean could get a ship back into service after a ship goes into cold-lay up.

In a best case scenario, Commander Goldstein said if the ship has only been in cold lay-up for three months, the ship could probably get back into service in two to three weeks.

The bigger issue is there are only a limited amount of inspectors available to re-certify a ship, and with other cruise lines trying to do the same thing, that could become an issue if there are not enough inspectors available to get on a ship.

If the cold lay-up extends beyond three months, and goes to six months or more, then Commander Goldstein indicated it could take a month or more to get a ship back out of cold lay-up.

Once the ships return to the United States, the ship would be inspected by the Coast Guard.  These inspections could take just a few days to verify the certificates that had been previously issued when the ship came out of cold storage, as well as verifying crew training and testing.

The Royal Amplification project added a bunch of new activities, entertainment, dining and more to a variety of Royal Caribbean ships over the last few years.

While the Royal Amplified program is on hold at the moment, six Royal Caribbean ships were updated and refurbished in the first few years of the program, and here is a look at what was added to each ship.

Ships that have been updated offer a tremendous value, as guests can enjoy brand new features often found on the Royal Caribbean's newest vessels, but at much less of a cost than sailing on a new ship.

What is Royal Amplified?

While the range of upgrades varies by ship, the goal was to add innovative attractions, pools, bars, and dining to each ship.  In addition, new staterooms were introduced on most vessels.

The Royal Amplified program focused on three main areas:

Pool Deck & Attractions: A re-imagined outside pool deck to discover everything under the sun – from pools specifically designed with prime ways to lounge, to those programmed with diverse activities day and night, plus the boldest attractions and first-of-a-kind thrills on deck. Examples of these experiences are: Sky Pad, The Perfect Storm, Laser Tag and Escape Room.

Bars & Nightlife: We will give your clients the chance to drink, clink and live it up in distinct new bars and nightlife spots that deliver on the three tenets of a great night out: unique drinks, ways to be entertained, and good food. Examples of these experiences: The Bamboo Room and Playmakers Sports Bar & Arcade.

Dining Mission: We will make delectable strides in delivering the cornerstone cuisines that guests have told us they crave – like great seafood, Mexican food, and Italian food – while upping our game in the fast, casual, grab & go category to keep our guests fueled between their adventures. Examples of these delicious culinary options are: El Loco Fresh, Hooked and Jamie’s Italian.

Amplified Ships

Freedom of the Seas

Freedom of the Seas was the last Royal Caribbean ship to be amplified, and it was completed in early 2020. In total, Royal Caribbean spent $116 million on her work, which added many new features, including water slides, a new Caribbean pool deck look, the cruise line’s first Giovanni’s Italian Kitchen and new, dedicated spaces for kids and teens. 

What's new on Freedom of the Seas

• Resort-style Caribbean poolscape
• The Lime & Coconut pool bar
• Splashaway Bay kids aqua park
• Renewed adults-only Solarium
• Giovanni’s Italian Kitchen
• El Loco Fresh
• Izumi Hibachi & Sushi
• Playmakers Sports Bar & Arcade
• Clash for the Crystal City Laser Tag
• Revamped Adventure Ocean
• New Social033 teen club
• App updates
  • Expedited arrival
  • App can control stateroom TV

Freedom of the Seas refurbishment photos

Oasis of the Seas

Oasis of the Seas underwent her Royal Amplification in late 2019 that added a number of changes, including the cruise line’s first barbecue restaurant, Portside BBQ; and guest favorites, from the tallest slide at sea–the Ultimate Abyss–to popular live music venue Music Hall, and a reimagined, Caribbean pool deck. 

What's new on Oasis of the Seas

• Caribbean-style pool deck
• Lime & Coconut signature bar
• Ultimate Abyss slide (dry slide)
• The Perfect Storm water slides
• Splashaway Bay aqua park
• Portside BBQ specialty restaurant
• El Loco Fresh complimentary Mexican restaurant
• Playmakers Sports Bar & Arcade
• Sugar Beach candy shop
• Spotlight Karaoke venue
• Music Hall venue
• Bionic Bar
• Revamped Adventure Ocean
• Mission Control: Apollo 18 escape room

Oasis of the Seas refurbishment photos

Voyager of the Seas

In October 2019, Royal Caribbean completed the Royal Amplification for Voyager of the Seas, which cost $97 million and took 41 days to complete.

Voyager of the Seas received a number of upgrades, including The Perfect Storm water slides and Battle for Planet Z laser tag. 

What's new on Voyager of the Seas

• The Perfect Storm waterslides
• Battle for Planet Z laser tag
• Reinvigorated Vitality Spa and Fitness Center
• Redesigned kids and teens spaces
• 72 new inside and balcony staterooms
• Support for Royal Caribbean's app

Voyager of the Seas amplification photos

Navigator of the Seas

Arguably one of the best updates to any Royal Caribbean ship as part of the Royal Amplified program, Navigator of the Seas had a $115 million bow to stern refurbishment in February 2019.

Royal Caribbean added water slides, dining venues, activities and more to the ship.

What's new on Navigator of the Seas

• The Perfect Storm waterslides
• To Dry For Blow-dry bar at sea
• Reimagined poolscape
• The Lime & Coconut pool bar
• Hooked Seafood specialty restaurant
• Bamboo Room
• Playmakers Sports Bar & Arcade
• Jamie’s Italian specialty restaurant
• Upgraded Windjammer furnishings
• El Loco Fresh
• Solarium upgrades
• Laser tag in Studio B
• Starbucks

Navigator of the Seas refurbishment photos

Mariner of the Seas

Royal Caribbean invested $120 million into the refurbishment of Mariner of the Seas and the results are astounding.

From the bright yellow globe at the top of the ship that houses the virtual reality trampoline experience Sky Pad to the addition of two restaurants, two bars, FlowRider surf simulators, the Perfect Storm water park and an escape room, Mariner's got plenty to keep you entertained.

What's new on Mariner of the Seas

• Sky Pad bungee trampoline experience
• The Perfect Storm waterslides 
• Laser Tag: Battle for Planet Z
• Escape Room: The Observatorium
• The Bamboo Room
• Playmakers Sports Bar & Arcade
• Jamie’s Italian specialty restaurant
• Izumi Hibachi and Sushi specialty restaurant

Independence of the Seas

The first Royal Caribbean ship to be amplified was Independence of the Seas, which boasted a number of new and exciting activities.

• The Perfect Storm waterslides
• Laser Tag: Battle for Planet Z
• New escape room
• New lounges
• New Panoramic Oceanview staterooms 
• Playmakers Sports Bar & Arcade
• Izumi Hibachi & Sushi
• Fish & Ships
• Sugar Beach candy shop

Independence of the Seas refurbishment photos

Allure of the Seas

Allure of the Seas was the first Royal Caribbean ship to have her Royal Amplification delayed, and then postponed.

Allure of the Seas did undergo a "technical dry dock", which means the propulsion and navigation was repaired.

Once the Royal Amplification is undertaken again, the ship was scheduled to undergo a 58-day, $165 million transformation to add the Ultimate Abyss, the tallest slide at sea; The Perfect Storm trio of waterslides, completely redesigned Adventure Ocean kids and teens spaces, the first Giovanni’s Italian Kitchen & Wine Bar, and Music Hall.

Explorer of the Seas

Like Allure, Explorer of the Seas had her Royal Amplification delayed and then postponed.

Explorer will get a "technical dry dock" to repair the vessel's propulsion and navigation.

Explorer of the Seas was scheduled for a $110 million Royal Amplification that would have added a number of changes from bow to stern. However, the closure of shipyards and disruption to the supply chain around the world has delayed the work from being done on time. 

Postponed Amplifications

Due to Royal Caribbean's financial situation, the cruise line postponed scheduled Royal Amplifications for Adventure of the Seas and Liberty of the Seas in 2021.

During Wednesday's call with Wall Street analysts, Royal Caribbean revealed some pretty intriguing statistics about the break even point for its ships.

One analyst asked how many ships Royal Caribbean needs to have sailing to reach a "break even" point in terms of costs.

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."

With the cruise line's recent cost-cutting measures, their return to service does not need the entire fleet operating at full levels to break even. In fact, load factors do not need to be exceptionally high either.

Essentially, Royal Caribbean is eyeing a slow return to service that gets them back to a break even point in a relatively short period of time.

Selling off older ships?

Another question was raised about older ships and if there is a prolonged suspension of cruises, would Royal Caribbean consider selling off or even scrapping its older ships.

Once again, Mr. Liberty answered the question:

"I do think that you will see ships that are retired at a much higher pace than what we have seen in the past with really because there hasn't been that much on the scraping side. I think the combination of what's happening with COVID and then the IMO regulations, you'll see interest in some of the older vessels for possible sale."

"And so you're going to see a permanent shift in the way of new buildings for some time, which is going to weigh on capacity growth numbers for the foreseeable future. Because these, especially the new building side, it's not a shift and catch up. It's what's likely to be a very permanent shift."