P&O Cruises sells Oceana

P&O Cruises sells Oceana to 'fit for future growth' | seatrade ...

P&O Cruises ship Oceana has been sold and will not return to service when operations resume following the Covid-19 cancellation of sailings.

The UK line confirmed that Oceana “will leave the fleet from July this year” but the identity of the buyer has not been revealed.

Passengers with bookings on the ship will be offered a 125% future cruise credit or refund, although all the company’s sailings are paused until October 15.

The sale of 1,950-passenger Oceana for an undisclosed sum comes ahead of the arrival of giant new ship Iona, which has been delayed from its original debut in Southampton in May due to the global cancellation of cruises due to the pandemic.

A sister ship to 5,200-passenger Iona is due to join the fleet in 2022.

Parent company Carnival Corporation revealed plans last month to speed up the disposal of ships after registered a $2.4 billion adjusted net loss in the three months to May 31 as the coronavirus pandemic shut down global cruise operations.

The cruise giant said “preliminary agreements” were in place for the disposal of six ships, expected to leave the fleet in 90 days, with others likely to follow.

Oceana originally entered service in 2000 operating for sister brand Princess Cruises as Ocean Princess.

P&O Cruises president Paul Ludlow said: “Whilst we and many of our guests will miss Oceana, her departure will allow us to focus on our remaining ships in the fleet, as capacity expands with the delivery of Iona later this year followed by her sister ship, scheduled for 2022.

“During this pause in our operations, we need to fit the fleet for the future and ensure we have the right mix of ships once we resume sailing.

“I am so sorry to disappoint those guests who were booked on Oceana but I hope they will be able to find a similar alternative holiday, whether that is ex-UK from Southampton or a fly-cruise itinerary.”

Cruise ship exodus from Alaska cuts very deeply

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Only a few months ago, most talks about Alaska cruises revolved around the record season expected this summer and some concerns about over-tourism.

Then came the coronavirus. Now, Princess Cruises and Holland America Line have cancelled most of their 2020 Alaska sailings and all land products.

Sarah Leonard, CEO of the Alaska Travel Industry Association, called the cuts “devastating, not just to the hundreds of businesses that rely on cruise passengers for their livelihoods but also to the communities that receive a large portion of their revenue from visitor taxes and fees.”

Leonard said cruise ships bring a little more than half of Alaska’s visitors and that the state’s tourism industry in total supports more than 52,000 jobs and creates more than $4.5 billion in economic activity.

According to CLIA Alaska, more than 1.4 million people on 43 ships were projected to spend $793 million this year. Juneau was projected to have 626 calls this year, more than any other municipality in Alaska, followed by Ketchikan (558) and Skagway (454).

The changes mean that Holland America will not offer an Alaska land program for the first time in 70 years.

“These are unprecedented times,” Holland America Line CEO Orlando Ashford said in a statement. “We know this decision impacts our loyal guests, travel advisor partners, staff members and local businesses who rely on summer tourism for their economies.”

Princess president Jan Swartz called the decision “extremely difficult” and lamented not being able to support the small-business partners throughout the state as it has “every summer for decades.”

“We know these decisions will have a large, adverse economic impact on the state of Alaska, which relies on tourism,” she said in a video.

Several factors played into why such a hot market became one of the first to see major cruise reductions this summer.

The biggest might be that because of the U.S. Centers for Disease Control and Prevention’s no-sail order from U.S. ports until mid-July, combined with Canada’s restrictions on cruising through June, half of the Alaska cruise season was already lost. This has an outsize impact on Holland America and Princess because so much of their business includes land and cruise combinations.

“The shortened summer season has made it simply not viable to operate our [lodges, trains and buses] throughout Alaska,” Swartz said.

Holland America also cited the “complexities of starting up hotels, rail operations and motorcoach fleets for what is at best a mid-to-late restart of travel to Alaska.”

Tom Garrett, the owner of Union Hill Travel, a Protravel independent agency in Kansas City, Mo., that specializes in Alaska travel, said that given how high the startup costs are for companies on the land side in Alaska, it would be hard to recoup costs if they lost half the season.

“The season is roughly 130 days long,” said Garrett, who is also the former director of tourism for Alaska. “They’re going to miss out on over 50% of the season already. We used to say in Alaska, our businesses didn’t begin to make money until late August.”

Adding to that is the uncertainty as to whether the national parks will be open.

“If nobody can go on a tour of Denali, and that’s one of the main reasons for Alaska and guests can postpone for a year and get a future cruise credit worth 125%, they’ll say, let’s just go next year,” Garrett said.

Both Princess and Holland America are still offering some Inside Passage cruises that are not tied to the land product.

And while the massive cuts have some advisors wondering if other lines will follow, Garrett said none are as tied to the land extensions as Princess and Holland America.

“They’re heavily invested in land assets,” he said. “A huge portion of their business revolves around those land extensions. A company like Celebrity takes advantage of those extensions but isn’t personally financially invested in them.”

In fact, he added, “it’s possible that some lines will say, ‘If Holland America and Princess don’t want to go, we’re happy to take their space.’”

Another factor some travel advisors cited was the demographic of Alaska cruisers. Eric Hrubant, president of CIRE Travel in New York, said the decision did not surprise him.

“Alaskan cruises tend to have a big baby boomer population,” he said. “People in the retired age bracket or not in perfect health probably aren’t going to want to get on a cruise this summer.”

He also said those cruises attract a lot of multigenerational families.

“Over the years, most of the people I do Alaska cruises for are affluent retirees, and we’ll do a multigen thing: grandparents, their kids and their kids’ kids,” he said.

Deborah Deming of Frosch Classic Cruise & Travel in Woodland Hills, Calif., also said her Alaska business is made up of a lot of multigen families, which means “the 60-to-80-year-old is the one paying for it,” and this year, they are unlikely to take a cruise.

One thing she is grateful for is that the cancellations happened before most clients made final payments.

“With so many things in flux, it makes sense for this to happen now before they took in more money that would then have to be refunded,” she said.

Coronavirus: Royal Caribbean extends suspension of sailings

Coronavirus: Royal Caribbean extends suspension of sailings

A suspension of sailings by all brands under the Royal Caribbean Cruises umbrella has been extended until the middle of May.

The world’s second-largest cruise company originally paused all global operations on March 14 until April 11.

That date was last night changed to an expected return to service on May 12.

But Alaska, Canada and New England sailings will not resume until July 1 due to port closures.

The group’s global fleet includes Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises.

The company said: “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.”