Cruise Stocks Are Way Up Since First Fears of New COVID-19 Variant

P&O Britannia, Oasis and Allure of the Seas in St. Kitts, photo credit Spacejunkie2

Cruise line stocks are doing well despite fears over the Omicron variant of COVID-19 and are significantly up since dropping on variant fears on Nov. 26.

Carnival Corporation stocks were up just under 20 per cent since closing on Nov. 26 as of mid-morning on Thursday, Jan. 6., has gone from $17.95 to $21.50.

Royal Caribbean Group was seeing a similar surge, up 19 per cent since closing on Nov. 26 at $67.98 with the Thursday morning price hovering just under $81.

Norwegian Cruise Line Holdings has also rallied since late November, coming from a close of $20.06 on Nov. 26 to a price of $21.76 on Thursday, Jan. 6.

Heineken Reveals ‘Back to Sailing’ Support Package for Cruise Lines

Heineken has revealed details about its “Back to Sailing” program, aimed at supporting the company’s cruise line partners as they resume operations worldwide. According to a press release, the program includes the initiative entitled “The first round is on us,” with free product donations of Heineken and Heineken 0.0 for cruise partners.

“Heineken’s ambition is to be the leading partner in the beer, cider and seltzer categories and we set out with the goal of helping our cruise line partners maximize the revenue opportunity of the 2021 season,” explained Christian Klimpke, global account manager, cruise lines, Heineken.

“To celebrate the highly anticipated return to sailing we are supporting our partners in the most useful ways possible as they balance the dynamics of operating onboard bars and restaurants in the new era and to safely navigate health regulations. Our teams are doing all we can to help them implement new ways of working especially with hygiene and social distancing, while also creating the best possible atmosphere to ensure guests have all the fun and enjoyment of cruising that they have craved for so long,” he added.

According to Heineken, the program has several elements:

  • Adapting to the new bar experience: helping bars and restaurants to safely re-start after lockdown with health-and-safety-focused education and training to ensure hygiene protocols in draught equipment, best practice in pouring, care of glassware, social distancing focused point of sale and signage, stock management, and joint collaborations;
  • Portfolio Innovation: tailoring vessel portfolios based on regional consumer insights, sharing re-start learnings from other markets and global beverage trends. Designed to help cruise lines maximize the revenue opportunity, this approach also ensures they are equipped to communicate effectively with consumers on issues that COVID-19 had accelerated such as low/no alcohol health-driven preferences and increased interest in sustainability;
  • Digital support: providing digital assets and product information from the Heineken portfolio for easy-to-use online drinks menus and guest engagement;
  • Crew engagement: developing concepts that educate, motivate and incentivize crew led by hosted events and competitions, enhancing their learning and training through Heineken’s dedicated e-learning platform to help them discover more about Heineken’s portfolio of beers and ciders, consumer trends and insights including Heineken’s “Enjoy Responsibly” responsible consumption framework.

CRUISE LINES MOVE CUSTOMERS TO OBEY GOVT CAPACITY LIMITS

Cruise lines have begun moving customers over to future sailings to stay within government capacity limits after restrictions on the number of guests allowed on board were extended.

The Department for Transport confirmed on Tuesday (15 June) rules capping guest numbers on domestic cruises at 1,000 people or 50% of ship capacity, (whichever is lower), could remain in place until 19 July.

Limits were due to be lifted on 21 June under the next stage of the government’s “unlocking roadmap” but a four-week delay was announced by Boris Johnson at the start of the week.

In response, lines have taken steps to stay within the regulations and have been contacting customers about switching sailings to later in the summer.

In a statement on Friday (18 June) Royal Caribbean International said it had been “working collaboratively” with the UK government in the build-up to its return to UK service next month and that its “guest capacity and protocols on board are all in line with the current recommendations”.

“In line with the most recent government announcement, unfortunately, we had to move some guests on our first sailings to a future sailing later in the season. We are excited to sail and can’t wait to welcome our first guests onboard,” the line added.

Royal’s announcement followed that by Fred Olsen, whose director of product and customer service, Clare Ward, said as the line “had already planned to sail with a reduced capacity” for its initial programme of Welcome Back itineraries, “only a small number of bookings were affected, and only on one sailing”.

“We contacted all guests on the affected cruise, giving them the opportunity to move to one of our other, longer, British Isles sailings. This offer was well received, and as such we do not need to make any further changes in light of the extension to restrictions,” said Ward.

Earlier in the week, MSC Cruises also confirmed plans to switch guests over to future sailings, saying in a statement “a number of UK guests who have booked a cruise departing after 21 June but before 19 July may need to be assisted to rebook on a sailing departing after the restriction is removed”.

MSC said it was “disappointed” with the government’s delay in easing restrictions in England and “had fully expected” measures to be lifted.

“Whilst still seeking further clarifications from the relevant authorities and continuing to monitor for developments, the company will initially begin by contacting those affected guests due to embark between 23 June and 26 June,” the line said.

MSC said it had adopted “a fair criterion based on the earlier date of booking” so the first 1,000 guests booked would keep their places on board.

“MSC Cruises looks forward to the eventual easing of Covid restrictions in the UK so cruising can play a bigger role in the vital restart of British tourism and its contribution to the economy, and it can offer more UK residents that safe and richly deserved holiday option this summer,” the line added.