Royal Caribbean Has Sold Empress and Majesty

 

 

 

Letter from President & CEO Michael Bayley to Crown & Anchor members:

It’s my hope that you and your family are staying safe and healthy.

As a valued Crown & Anchor Society member, I’m reaching out to make sure you
were the first to know the latest news about our beloved Empress of the Seas and
Majesty of the Seas. After more than 30 years with Royal Caribbean, having launched in 1990 and 1992 respectively, Empress and Majesty will be leaving our fleet.

We know this news is bittersweet as many of you have sailed on these ships, and they hold a special place in your hearts thanks to the countless memories you’ve made with your families and friends while on board. The news hits close to home for me as well as I was part of the crew on Nordic Empress (as Empress was formerly called) and Majesty of the Seas when we introduced her to the world.

Both ships made an indelible mark on the cruise industry, helping us to continually raise the bar on the cruise experience and leaving a lasting mark on our brand.

Empress was the first ship specifically designed for short, 3- and ‌4-night‌ itineraries, with her first cruises visiting The Bahamas from Miami. This was an important milestone in our brands history as we were able to attract new and younger cruise guests to the industry by introducing quick getaways. Empress also made history as the first cruise ship to sail out of Cape Liberty in Bayonne, New Jersey, when we opened our terminal in 2004. Even just three years ago, in 2017, Empress took center stage once again when she set sail on Royal Caribbean’s inaugural cruise to Cuba. It’s been an incredible journey and one that’s influenced our brand tremendously.

Majesty also played a crucial role in our commitment to continuously redefine the
cruise industry. As the third ship to round out the impressive Sovereign class ships, Majesty was more than twice the size of the average cruise ship at the time — and was the biggest ship in our fleet when she debuted. She started her adventures with ‌7-night‌ western Caribbean cruises from Miami and quickly blossomed into one of our guests’ favorite ships.

Empress and Majesty’s departures are a major moment in Royal Caribbean history. No doubt, they will be dearly missed — they may be small, but their lasting impact is mighty.

Decisions like these are difficult, but they are part of our necessary evolution to
continue introducing new ships and bring you, our guests, the most innovative ships in the industry.

I know many of you may wonder about the crew members you may fondly remember from your time onboard Empress and Majesty. There is no need to worry. They are still part of the Royal Caribbean family and will be reassigned to other ships once we are back to sailing again.

We know this marks a new chapter in our history, and we are excited about what the future holds, but we cannot forget our past and what made us who we are today. I encourage all of you to share your memories of sailing on Empress and Majesty on my Facebook page; I’d love to see the amazing experiences you had while sailing with these two ships.

As I’ve said before, we miss sailing with every one of you. But calmer seas are ahead, and we can’t wait for that day. Thank you for being a loyal member of our family. Please continue to take care of yourself and your loved ones. Until next time!

All my best, 

Michael Bayley
President and CEO
Royal Caribbean International
“Loyal to Royal” 

Odyssey of the Seas floated out

 

 

On a positive note, Odyssey of the Seas was floated out of drydock this week.  There is still much work to do before she is completed sometime next year, but she's getting closer.

Here is a short video from  Meyer Werft:

This nails the CDC's hypocricy right on the head

 

 

Another great post from the Royal Caribbean Blog:

 

CDC ignores crowded airports while holding cruise ships to double standard

 

I've said it before, there is definitely a bias again the cruise industry.  They are held to an impossibly high standard while the airlines, who are most responsible for the spread of this disease, get to operate without restrictions.  

 

Royal Caribbean accepting applications for test cruises

 

 

Royal Caribbean has received so much interest from people asking to be part of their test cruises they have created a new dedicated Facebook group, Volunteer of the Seas, and a way for people to sign up to be considered for these cruises.  If you're interested, you can sign up HERE.

More info from the Facebook group:

Royal Caribbean has some of the most loyal guests in the cruise industry, and we have been overjoyed with their interest to take part in our simulated trial sailings. This week alone, we have received more than 3,000 emails, not including the tweets, comments, and messages across our social channels.

 

While we review the requirements proposed by the CDC and consider when we can host our simulated trial sailings, we are gathering information from those who have shown interest. Our priority is to ensure that we can exercise our comprehensive set of measures in a safe and healthy manner while making sure we provide a memorable vacation experience. This group will serve the community of adventurers who are excited and ready to be the first back at sea. Get ready to dust off your suitcase and get back to adventure!

CDC has lifted the no sail order. Phased restart approved.

 

 

Finally!

 

According to reports, the CDC has decided not to extend the no sail order and has published their "Framework for Conditional Sailing Order." which “introduces a phased approach for the safe and responsible resumption for passenger cruises.”

 

According to USA Today, "the first cruises to leave port will be simulation sailings designed to show that ships and crews are in compliance with CDC standards and able to mitigate the spread of COVID-19 onboard".  “During the initial phases, cruise ship operators must demonstrate adherence to testing, quarantine and isolation, and social distancing requirements to protect crew members while they build the laboratory capacity needed to test crew and future passengers."

 

Full article at USA Today

 

More info at the Royal Caribbean Blog

 

It's a start at least.

 

 

"No Sail" order extended....sort of

 

 

 

Seeing reports this morning that the CDC will extend the "No Sail" order until the end of October, however that's not what they wanted.  Apparently, the CDC wanted to extend the ban until February of next year but they were overruled by the White House.  

Extending it to February is ridiculous, are they intentionally trying to bankrupt the industry?  Extending it to the end of October is in line with what the cruise lines had already voluntarily suspended operations until so this would not have any additional effect except making it "official".

Apparently there will be a meeting of cruise industry reps at the White House on Friday to go through their plans for a healthy return to operations. 

There is mounting pressure from the public as well as industry and Government officials to get the cruise lines back up and running as soon as possible and as safely as possible.

"Anti-cruise" group trying to get the CDC to extend the no-sail order against cruise lines

 

 

 

This is just nuts!  Apparently, an "anti-cruise", environmental group, has instructed it's members to flood the CDC's open comments site to try to get them to extend the no-sail order against cruise lines.

Matt over at the awesome Royal Caribbean Blog, has more info and links to where you can add your comments for the CDC.  The open comments period ends on Monday so get them in now!

Royal Caribbean CEO warns anti-cruise group is flooding CDC to extend no-sail order

FL Senators introduce bill to restart cruising in the U.S.

 

 

Senators Marco Rubio and Rick Scott have introduced a bill called the Set Sail Safely Act to develop a plan to return the cruise industry to operations.  With support from many industry organizations including the CLIA (Cruise Lines International Association), the bill calls for U.S. agencies to work with the cruise industry to come up with a plan for the safe return to cruise operations along with a timeline for implementation of any recommendations and a return to service.

Cruise lines bring in huge amounts of revenue to the economy, especially the state of Florida.  In 2018, the cruise industry contributed close to $53 Billion to the U.S. economy (CLIA article) and they employ thousands of workers here in the U.S.  For some reason it has been singled out by the CDC and has not been allowed to resume operations while most other industries have returned to service or were never even shut down.

Hopefully this gets things moving in the right direction.

Links to more articles regarding this announcement:

https://www.royalcaribbeanblog.com/2020/09/16/us-senators-introduce-bill-allow-cruise-lines-restart

https://www.msn.com/en-us/travel/news/senators-introduce-bill-to-safely-bring-back-cruising-in-us/ar-BB1999Il

https://www.cruiseindustrynews.com/cruise-news/23514-set-sail-safely-act-established-by-florida-senators.html

Wonder of the Seas floated out

 

 

Some good news this week, Royal Caribbean's next Oasis Class ship, Wonder of the Seas was floated out today.  The float out is an important milestone in the ship construction process as it marks the completion of the ship's superstructure and hull.  

 

Wonder was moved to Basin C at the Chantiers de l'Atlantique shipyard in Saint-Nazaire, France, with the help of 7 tugs as she has no engines yet. There is still a lot of work to be done on the ship which will enter service in 2022.

Royal Caribbean's New Muster Drill Concept

Royal Caribbean announced today a concept it is calling "Muster 2.0".  It is a re-imagining of the standard Muster Drill for the new reality of a COVID world.  To be honest, the muster drill needed a re-imagining so this is a good thing.

Key concepts from the press release:

"With Muster 2.0, the key elements of the safety drill – including reviewing what to expect and where to go in case of an emergency, and instructions on how to properly use a life jacket – will be accessible to guests on an individual basis instead of a group approach that has been followed historically. New technology, eMuster™, will be used to help provide the information to guests via their mobile devices and interactive stateroom TVs. Travelers will be able to review the information at their own time prior to setting sail, eliminating the need for the traditional large group assemblies. The new approach also enables everyone on board to maintain better spacing as guests move about the ship, and it allows guests to enjoy more of their vacation with no interruption.

After reviewing safety information individually, guests will complete the drill by visiting their assigned assembly station, where a crew member will verify that all steps have been completed and answer questions. Each of the steps will need to be completed prior to the ship’s departure, as required by international maritime law."

Royal Caribbean has patented the technology and have offered to license it to other cruise lines for free during the pandemic.

Here is the full press release:

ROYAL CARIBBEAN GROUP REINVENTS CRUISE INDUSTRY’S SAFETY DRILL

 

•     New patented approach helps guests sail away smoothly
•     Technology shared with other cruise lines to help eliminate crowding

MIAMI, July 24, 2020 – Royal Caribbean Group is replacing one of the least-loved but most important parts of a cruise vacation – the safety drill – with Muster 2.0™, an entirely new approach to delivering safety information to guests. The innovative program, the first of its kind, reimagines a process originally designed for large groups of people into a faster, more personal approach that encourages higher levels of safety.

With Muster 2.0, the key elements of the safety drill – including reviewing what to expect and where to go in case of an emergency, and instructions on how to properly use a life jacket – will be accessible to guests on an individual basis instead of a group approach that has been followed historically. New technology, eMuster™, will be used to help provide the information to guests via their mobile devices and interactive stateroom TVs. Travelers will be able to review the information at their own time prior to setting sail, eliminating the need for the traditional large group assemblies. The new approach also enables everyone on board to maintain better spacing as guests move about the ship, and it allows guests to enjoy more of their vacation with no interruption.

After reviewing safety information individually, guests will complete the drill by visiting their assigned assembly station, where a crew member will verify that all steps have been completed and answer questions. Each of the steps will need to be completed prior to the ship’s departure, as required by international maritime law.

“The health and safety of our guests and crew are our number one priority, and the development of this new muster process is an elegant solution to an outdated, unpopular process,” said Richard Fain, chairman and CEO, Royal Caribbean Group. “The fact that this will also save guests time and allow the ship to operate without pause means that we can increase health, safety and guest satisfaction simultaneously.”

“Muster 2.0 represents a natural extension of our mission to improve our guests’ vacation experiences by removing points of friction,” said Jay Schneider, Royal Caribbean Group’s senior vice president of digital. “In this instance, what’s most convenient for our guests is also the safest option in light of needing to reimagine social spaces in the wake of COVID-19.”

This marks the first dramatic change to the safety drill process in a decade, since Royal Caribbean’s Oasis of the Seas moved the life jackets from guest staterooms to the muster stations, which improved the evacuation process and has been widely followed throughout the industry. More than a year in the making, Muster 2.0 is also an initiative that will be part of the comprehensive set of protocols and procedures Royal Caribbean Group is developing along with the Healthy Sail Panel that was recently assembled in collaboration with Norwegian Cruise Line Holdings Ltd.

“This new process represents the kind of innovation that the Healthy Sail Panel is focusing on as part of its mission to enhance the health and safety of cruising,” said former Utah Gov. Mike Leavitt, co-chair of the Healthy Sail Panel. “It shows that we can accomplish a lot if we try to think outside the box on safety.”

“I'd like to extend my congratulations to Royal Caribbean Group on this innovative milestone. It's exactly what our industry needs during these unprecedented times and we appreciate the generous offer to participate in this innovation,” said Frank Del Rio, President and CEO, Norwegian Cruise Line Holdings Ltd. “In this industry, we all work cooperatively to enhance health and safety, and this is an example of that.”

The distributed muster for ocean-going vessels concept is patented in the United States and is patent-pending in major markets around the world, including the various cruise industry flag states. The company has also worked with international regulators, the U.S. Coast Guard and other maritime and government authorities to ensure it meets all safety requirements.

In addition to introducing the new process on the ships of its own cruise lines – Royal Caribbean International, Celebrity Cruises and Azamara – Royal Caribbean Group is offering to license the patented technology to interested cruise operators and will waive patent license fees during the time the world and industry battle the global pandemic. Patent licenses have already been granted to the company’s joint venture, TUI Cruises GmbH, as well as Norwegian Cruise Line Holdings Ltd., the parent company of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.

Muster 2.0 was first tested on Royal Caribbean’s Symphony of the Seas in January 2020. Guests who took part in the mock process indicated a strong preference for the new approach and also reported better comprehension and retention of the safety information.

About Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is a cruise vacation company comprising four global brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea. Royal Caribbean Group is also a 50% owner of a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. Together, our brands operate 63 ships with an additional 16 on order as of July 10, 2020. Learn more at www.rclcorporate.com or www.rclinvestor.com.

When will cruises resume??

I'm hopeful that maybe we might see some movement soon on the CDC's ban on cruising.  I'm seeing some cruise lines posting their extensive plans for the return to cruising.  Virgin just released their updates which can be seen here - "Voyage Well: A new wave of health measures before we set sail".

It's still quite puzzling to me why the CDC singled out cruises the way they have.  While other industries are reopening, (Amusement Parks, Tourist attractions, movie theaters, etc) the cruise lines remain shut down by the CDC.  That's not to mention the airline industry which was never addressed by the CDC even though I would think they are more responsible for the global spread of this disease than any other industry.

As pointed out by the one of my favorite blogs, The Royal Caribbean Blog, even Wall Street doesn't understand the CDC's bias against the cruise industry - "Wall Street: CDC to blame for cruises not resuming sooner".

Royal Amplified program on hold

I'm seeing reports that Royal Caribbean has postponed the remainder of the scheduled Royal Amplified projects for the immediate future.  This is not unexpected as it represents $ billions they they probably can't afford to spend right now with everything shutdown.

Affected ships:

Allure of the Seas
Adventure of the Seas
Explorer of the Seas
Liberty of the Seas

Official Announcement from Royal extending shutdown until July 31st

ROYAL CARIBBEAN CRUISES LTD. EXTENDS SUSPENSION OF CRUISING

MIAMI, May 20, 2020 – Given ongoing global public health circumstances, Royal Caribbean Cruises Ltd. has decided to extend the suspension of most sailings through July 31, 2020, with the exception of sailings from China, which will be suspended through the end of June.

We are working with our guests and travel partners to address this disruption to their vacations, and we are genuinely sorry for their inconvenience.

We expect to return to service on August 1.

Royal Caribbean to extend shutdown to July 31st

Royal Caribbean CEO Michael Bayley indicated on today's investor call that Royal Caribbean will be extending their shutdown until July 31st, matching extensions from other major cruise lines.

During the same call, it was announced that the cruise line had suffered a loss in the 1st quarter of 2020 in excess of $1 billion.

Royal Caribbean extends and updates the "Cruise With Confidence" program

Royal Caribbean announced today that they are extending the "Cruise With Confidence" program until April 2022 and they have added something called the "Lift and Shift" where you can move your booked cruise to the same itinerary departing on a future date.  The original price and promotional offer on the reservation will be protected, along with the length of the cruise and stateroom category.

Here is the full press release:

ROYAL CARIBBEAN GROUP EXTENDS CRUISE WITH CONFIDENCE POLICY THROUGH APRIL 2022

Royal Caribbean International, Celebrity Cruises and Azamara Introduce New Booking Options
MIAMI, May 6, 2020 – To provide peace of mind in vacation planning, Royal Caribbean Group is extending its “Cruise with Confidence” cancellation policy to sailings through April 2022.

For new and existing bookings created by August 1, 2020, guests have the flexibility to cancel their cruise up to 48 hours prior to sailing and receive a full credit of the cruise fare for a future cruise through April 2022. The cruise company has also enhanced Cruise with Confidence with new rebooking options. The updates now available to travelers and their travel advisors include:

“Best Price Guarantee”: Guests can choose to change the price and promotional offer on their reservation up to 48 hours before their cruise.
“Lift and Shift”: For ease and as close as 48 hours prior to sailing, travelers have the option to simply “lift and shift” their cruise to the same itinerary departing on a future date. The original price and promotional offer on the reservation will be protected, along with the length of the cruise and stateroom category.

“Guests are reacting positively to our Cruise with Confidence policy,” says RCL chairman and CEO Richard Fain, “because it enables them to make informed decisions and to better manage complicated travel plans during this unprecedented time of uncertainty.”

 Cruise with Confidence applies to both existing cruise bookings and those made by August 1, 2020. In addition to easing concerns of booked guests, Fain says the policy enhances consumer confidence to schedule new bookings, knowing last-minute travel adjustments are allowed.

“We want our guests to feel they can safely keep their existing cruise bookings or schedule new sailings,” says Fain, “because this policy gives them more freedom and flexibility.”

The policy applies to all cruises with sailing dates on or before April 2022 and across the company’s global brands: Royal Caribbean International, Celebrity Cruises and Azamara. For individual brand policy details, including information on Silversea’s policy, please visit the cruise lines’ websites: Azamara: www.azamara.com/cruise-with-confidence, Celebrity: www.celebritycruises.com/cruise-with-confidence, Royal Caribbean: www.royalcaribbean.com/cruise-with-confidence and Silversea: www.silversea.com/temporary-amendment-to-cancellation-policy.html.

Royal Caribbean Cruises Ltd. (NYSE: RCL) is a global cruise vacation company that controls and operates four global brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. We are also a 50% joint venture owner of the German brand TUI Cruises and a 49% shareholder in the Spanish brand Pullmantur Cruceros. Together these brands operate a combined total of 61 ships with an additional 17 on order as of December 31, 2019. They operate diverse itineraries around the world that call on all seven continents. Additional information can be found on www.royalcaribbean.com, www.celebritycruises.com, www.azamara.com, www.silversea.com, www.tuicruises.com, www.pullmantur.es, or www.rclinvestor.com.

Royal Caribbean extends shutdown further. Hoping to resume on June 12th

Press release from Royal Caribbean:

Royal Caribbean Extends Global Suspension of Cruising

April 16, 2020

Given global public health circumstances, Royal Caribbean Cruises Ltd. has decided to extend the suspension of sailings of our global fleet through June 11, 2020.

We are working with our guests to address this disruption to their vacations, and we are genuinely sorry for their inconvenience.

We expect to return to service on June 12.

Royal Caribbean reduces workforce by 26% due to Coronavirus shutdown

From the Miami Herald:

"Royal Caribbean Cruises Ltd. is reducing its U.S. workforce by 26%, with more than half of those workers in South Florida, the Miami Herald has learned."

Most will be permanent but some are 90 day furloughs.

The U.S. government has indicated that cruise lines will not be eligible for any bailout money as they are not registered as U.S. companies.  That doesn't help the 1000s of people in the U.S. who do rely on them for income, from dock and port workers, to travel agents.

Here is the link to the full article:

Royal Caribbean Cruises sheds 26% of US workers as coronavirus cancellations continue

Royal Caribbean's Response to New CDC Order

Not much.....expect more soon.

RCL Response to CDC Announcement 

Friday, April 10, 2020

We are aware of the CDC order and are studying how best to respond to its provisions. Our global sailings are currently suspended through May 11, 2020.

Royal Caribbean extends cruise suspension another 30 days

Royal Caribbean announced late yesterday that they are extending their shutdown due to Coronavirus an additional 30 days, until at least May 12.  There goes our April cruise...oh well.

Here is the brief press release:

Royal Caribbean Extends Global Suspension of Cruising

MIAMI, March 24, 2020 - Given global public health circumstances, Royal Caribbean Cruises Ltd. has decided to extend the suspension of sailings of our global fleet.

We are working with our guests to address this disruption to their vacations, and we are genuinely sorry for their inconvenience. We are also working with our crew to sort out the issues this decision presents for them.

We expect to return to service on May 12, 2020. Because of announced port closures, we expect to return to service for Alaska, Canada and New England sailings July 1, 2020.

Royal Caribbean takes out $2.2 billion loan

Reading on Yahoo finance that Royal Caribbean has taken out a $2.2 billion loan to help them get through these tough times.


Full release:

March 23 (Reuters) - Royal Caribbean Cruises Ltd said on Monday it had borrowed the entire $2.2 billion available under a new financing facility, boosting its liquidity amid the coronavirus outbreak that has resulted in halted sailings for the cruise operator.

U.S. companies have been rushing to borrow more money and boost their cash coffers, as market turmoil fueled by a plunge in oil prices and the virus outbreak raised the risk of an economic downturn.
With the 364-day secured term loan facility, Royal Caribbean has over $3.6 billion in liquidity, including cash deposits and its existing undrawn revolving credit facilities.

The cruise industry have been among the worst hit from the global pandemic as many operators had to halt operations due to travel restrictions imposed to curb the spread of the virus.
Earlier this month, the company raised its credit capacity by $550 million and said it would cut spending, operating expenses and take other actions to improve liquidity by at least another $1.7 billion in 2020.