Royal Caribbean CEO Fain: Cruising Has Restarted

The CEO of Royal Caribbean Group, Richard Fain, has highlighted the changing times since the CDC’s conditional sail order in October and hopes for a more topical approach to the resumption of cruising.

“The CDC issued the conditional sale order last October in an effort to provide a path for cruising to reopen in the United States … When the conditional sale order was written, there were no vaccines. The disease was on an upward trajectory and heading towards a terrible peak. Testing was less available and more costly, and therapeutics were limited. In general, the situation looked very bleak back then,” Fain said in a video post on social media.

“Last October, preparing for resumption service based on extensive protocols made good sense. But today, a vaccine approach makes much more sense than this old protocol-based approach. The vaccines are bringing down the incidence of COVID-19 in society; the testing enables us to catch cases early. And the preparation we’re doing allows us to handle individual cases safely and simply,’ he added.

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Fain said that he expects that the CDC will take these changes into consideration.

“We look forward to a constructive dialogue with health officials in the United States and elsewhere, for the path forward under these new circumstances,” he said.

According to Fain, 100,000 cruisers have sailed aboard Royal Caribbean Group’s ships since the pandemic started, with 10 having tested positive for the coronavirus.

“And all of them have been handled smoothly and without undue disruption of other guests’ cruises. And without undue burden on the communities and the governments involved,’ he said. “Our experience with these 100,000 guests is a very powerful proof of concept. In essence, we’ve just had 100,000 test cruisers and demonstrated that the process works.”

The cruise industry overall has carried more than 350,000 passengers since the pandemic with “minimal disruption,” he added.

“This is precisely what we thought would be the case. And now it is the most powerful and reliable evidence in multiple real-world settings,” he said. “No longer are we talking about when will cruising restart cruising has already restarted.”

Fain also said that Royal Caribbean’s post-pandemic cruises have received higher ratings from guests than pre-pandemic.

Fain also stated that the coronavirus vaccines are a “gamechanger,” but he can’t say yet if all Royal Caribbean sailings will require them from guests.

“We have announced three cruises that will require inoculations for all adults, and there are likely to be more. But each circumstance is different. And I would note that the cruises we are currently operating are operating without requiring vaccines,” he said.

Fain finally called on people not to become complacent, as letting “our guard down” and stopping to take simple precautions would cause another spike.

“I, therefore, encourage all of you to get your vaccine, follow the CDC advice, and we can be sailing in time to meet President Biden’s goal of reopening society in time for the Fourth of July,” he concluded

CDC Cruise Rules May Be Just Days Away; Volunteer Sailings Next?

“We’re just literally waiting,” said Michael Bayley, president and CEO of Royal Caribbean International, of technical regulations expected from the U.S. Centers for Disease Control and Prevention that will provide a clear path for cruise lines to operate again in the U.S.

Having issued the Framework for Conditional Sailing Order for Cruise Ships in late October, the CDC has yet to release referenced technical regulations which will define a return to service.

Those regulations now may just around the corner, according to Bayley, who said it could be coming in days, speaking on Royal Caribbean’s year-end and fourth quarter business update call on Monday morning. 

The next step is then trial sailings with volunteers cruising, Bayley noted, adding the company had seen some 250,000 volunteer sign-ups. 

Bayley noted the communication and dialogue between the industry and the CDC have been productive, and it has been a relatively open process.

Royal Caribbean Shares Soar As Bookings Rise On Vaccination News

Port of the Bahamas

by Praveen Paramasivam  (Reuters) – Royal Caribbean Group said on Monday it was seeing an uptick in future bookings, following a disastrous year for the cruise operator, as travel enthusiasts look to sail again at a time governments globally have started mass vaccinations.

The company’s shares, down 44% last year, soared 9% in morning trading (and is up 24% in the past five trading days), as Royal Caribbean said it recorded a 30% increase in new bookings since the beginning of the year when compared to November and December.

Analysts have also tipped Royal Caribbean and its peers Carnival Corp and Norwegian Cruise Line Holdings Ltd to resume voyages gradually in the back half of this year, after the pandemic-triggered months-long halt.

“Now after 11 months of the pandemic, I think we all know that COVID fatigue is real. People are clamouring for the opportunity to have experience outside their homes,” Chief Executive Officer Richard Fain said on an earnings call.

Royal Caribbean said bookings for the first half of 2022 were within historical ranges and at higher prices, with some on Reddit and Twitter saying they were itching to go on cruises again.

However, the operator of “Symphony of the Seas” cruise posted a net attributable loss of $1.37 billion for the quarter ended Dec. 31, taking its annual loss to $5.8 billion.

Royal Caribbean’s total revenue for the quarter was $34.1 million, compared with analysts’ estimates of $35.6 million, according to IBES data from Refinitiv.

On an adjusted basis, the company lost $5.02 per share. Analysts had expected a loss of $5.20.

Miami-based Royal Caribbean forecast a net loss for its first quarter and the 2021 fiscal year.