“Just let us cruise, CDC,” said Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings (NCLH), on the company’s Thursday earnings call, expressing his frustration with what he called ridiculous regulations and overreach by the agency.
“But is it not just the CDC (holding the industry back),” Del Rio added. “To be fair, the rest of the world has to open up as well – Europe, Asia and South America.
“How quickly we can return to normal will depend on travel restrictions being lifted and borders being opened.
“There are 50 million people who have not been able to cruise for the last year and a half and now want to cruise. There is pent up demand setting us up for a beautiful scenario to improve pricing.”
Forward bookings and pricing are up compared to 2019 which was a record year, Del Rio said.
Part of Del Rio’s frustration comes from Norwegian submitting an “ironclad proposal” to the CDC on April 5 and has not yet received an answer, which also puts the mid-July return to service in jeopardy.
Among the impractical and onerous requirements, the CDC has released is that passengers must wear face masks onboard all the time, only lifting the mask to take a bite of food or a sip of a drink, according to Del Rio. He said he was hoping these requirements would not be applicable to fully vaccinated ships.
NCLH will require 100 per cent vaccinations of passengers and crew wherever the ships are sailing and do not plan to participate in the simulated sailing program of the CDC, Del Rio noted.
He said he was outraged that the cruise industry is being treated differently than airlines, casinos, etc. and said that cruise ships will be the safest place on earth.
“We will have 100 per cent vaccinated passengers and crew in addition to our SailSAFE program,” he said.
MSC Cruises may be the biggest cruise brand based on confirmed resumption plans (as of late April 2021) and ships and berths back in service by August 31, using data from the 2021 Cruise Industry News Annual Report.
On a corporate level, Carnival Corporation will have the most ships and berths back in service, with six brands set to operate 13 ships by late August at press time, and indications are that more announcements are forthcoming.
Top 5 Cruise Lines Back in Service by August 31:
MSC Cruises Ships: Ten – MSC Virtuosa, MSC Grandiosa, MSC Seashore, MSC Seaview, MSC Seaside, MSC Preziosa, MSC Splendida, MSC Magnifica, MSC Orchestra and MSC Musica Total Berths: 37,066 Regions: Europe – Western Mediterranean, Eastern Mediterranean and Northern Europe
The restart fleet includes two newbuilds, the MSC Virtuosa, slated to offer cruises in the United Kingdom, and the MSC Seashore, poised to spend its inaugural season in the Mediterranean.
Royal Caribbean International Ships: Six – Odyssey of the Seas, Anthem of the Seas, Quantum of the Seas, Jewel of the Seas, Adventure of the Seas and Vision of the Seas Total Berths: 19,500 Regions: North America, Mediterranean and Asia
Costa Cruises Ships: Four – Costa Firenze, Costa Smeralda, Costa Luminosa and Costa Deliziosa Total Berths: 13,976 Region: Europe – Western Mediterranean and Eastern Mediterranean
Starting in August, the Norwegian Joy will sail from Jamaica, while the Norwegian Gem will sail from the Dominican Republic. In Europe, the Norwegian Jade will be based in Greece starting on July 25.
P&O Cruises Ships: Two – Iona and Britannia Total Berths: 8,811 Region: Europe – United Kingdom
Carnival Corporation’s British cruise line, P&O Cruises, will resume service in June, with domestic sailings in the United Kingdom.
Sailing from Southampton, the company plans to use its two newest ships, the 5,200-guest Iona and the 3,611-guest Britannia.
Numbers by Corporation
Carnival Corporation Ships: 13 Brands in Service: 6 out of 9 Total Berths: 38,557
By Brand
Costa: 4 ships and 13,976 berths AIDA: 2 ships and 5,424 berths P&O: 2 ships and 8,811 berths Princess: 2 ships and 7,200 ships Cunard: 1 ship and 2,092 berths Seabourn: 2 ships and 1,054 berths
MSC Cruises Ships: 10 Brands in Service: 1 out of 1 Total Berths: 37,066
By Brand
MSC: 10 ships and 37,066 berths
Royal Caribbean Group Ships: 15 Brands in Service: 5 out of 5 Total Berths: 36,982
By Brand
Royal Caribbean: 6 ships and 19,500 berths Celebrity: 3 ships and 7,840 berths TUI: 3ships and 8,300 berths Hapag-Lloyd: 2 ships and 746 berths Silversea: 1 ship and 596 berths
Norwegian Cruise Line Holdings Ships: 1 out of 3 Brands in Service: 1 out of 3 Total Berths: 9,000
By brand
Norwegian: 3 ships and 9,000 berths
Genting Cruise Lines Ships: 6 Brands in Service: 3 out of 3 Total Berths: 8,486
By Brand
Dream: 2 ships and 5,204 berths Star: 1 ship and 1,090 berths Crystal: 3 ships and 2,192 berths
Royal Caribbean Group Chairman and CEO Richard Fain saw total compensation of just over $12 million for the fiscal year 2020, according to a company SEC filing.
Fain saw his base salary cut by nearly 50 per cent, but made up for it with $11 million in stock awards.
Other company executives also had a good year, with CFO Jason Liberty seeing total compensation of $5.6 million, up from 2019.
Royal Caribbean International President and CEO Michael Bayley earned $7.4 million, also up from 2019.
The SEC filing noted that executives did forgo portions of their base salaries
The company said it wants to establish a mix of compensation components, including fixed and variable pay and short- and long-term incentives, that encourages “focus on both the short- and long-term interests of the company and its shareholders.”
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