Tag Archives: P&O Cruises

Carnival is selling 6 cruise ships after a $4.4 billion loss, a sign of the industry’s bleak future in the coronavirus pandemic

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Princess Cruises Coral Princess
The Coral Princess, part of Carnival Cruises’ Princess Cruise line. Princess Cruises
  • Carnival Cruises, which includes brands such as P&O, Princess Cruises and Cunard, is to sell 6 ships amid a downturn caused by the coronavirus crisis.
  • The industry has been hammered by COVID-19 after multiple outbreaks occurred at sea, and ports around the world closed to cruise ships. 
  • Carnival said it lost $4.4 billion in the past three months and doesn’t know when it can resume normal operations.

Carnival is planning to sell 6 of its cruise ships after reporting a loss of $4.4 billion in the second quarter of 2020, as the coronavirus crisis continues to hammer the cruise industry.

The company, which includes major cruise lines such as Cunard, P&O and Princess Cruises, reported on Thursday that it was “accelerating” planned sales of the ships.

It reported a massive drop its revenues in the three-month period to May 31, taking in $700 million, a fraction of its $4.8 billion revenues for the same period in 2019, The Guardian reported.

The company said it was “unable to definitively predict” when cruises will back to normal, making it impossible to make an earnings forecast.

All its cruises were suspended in mid-March after onboard outbreaks were reported. Across the industry, by March 25 there had been coronavirus outbreaks on 36 cruise ships worldwide, as Business Insider reported.

Although Carnival has offered customers the chance to pause their bookings for a future date, half of them requested a cash refund, the company said.

Meanwhile, administration and keeping ships afloat still cost the company $250 million a month.

An estimated 21,000 ship staff are still stuck on board 49 ships which cannot dock due to governmental restrictions, the company said.

P&O Cruises says agents ‘vital’ as staff claim trade teams under threat

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Carnival UK | Frylow

The boss of P&O Cruises has insisted agents’ support will be “vital” to developing the brand’s restart plans, despite claims the field sales team has been cut as part of a restructure at parent Carnival UK.

Paul Ludlow, president of P&O Cruises, said its commitment to the trade “remains as strong as ever” as a consultation that could see up to 450 jobs lost continues.

His comments came in response to claims from members of staff at Carnival UK that regional agent-facing sales teams at P&O and sister brands Cunard and Princess Cruises were set to be removed.

One staff member under consultation, who asked to remain anonymous, said the move was “completely the wrong decision”, claiming 60% of P&O Cruises’ UK bookings come from travel agents.

Agents also told Travel Weekly of redundancies in the trade sales teams, as well as senior staff going on long-term sabbaticals.

Carnival UK said no decisions would be made or communicated until the consultation finishes at the end of June.

However, a letter sent to staff confirmed it would not be making use of the government’s extended furlough scheme, which it said would “delay the inevitable need we have to right-size our business in order to sustain and protect it for the future”.

The letter also confirms sabbaticals were being discussed for some roles that were needed in the company’s long-term structure but not in the short term.

P&O Cruises has cancelled all sailings up to October, Cunard until November and Princess Cruises has cancelled all summer sailings as the industry battles the effects of the Covid-19 pandemic.

In a statement, Ludlow said: “The Covid-19 pandemic has not only affected the holidays of our guests but it has also impacted every part of our business; our future deployment; the guest experience; our supply chain and our people on ship and on shore. During our pause in operations we have tried to create as much certainty and stability as possible for our colleagues in the office as well as those on board.

“Unfortunately though, and similar to many businesses, as Covid-19 has continued to impact our way of life it is necessary to make changes to our organisation to build a stable platform for the time we phase our ships back into service and for future growth.

“We appreciate it is a very difficult and unsettling time for everyone but we are following a clear and fair consultation process and considering the suggestions put forward by each individual.

“I am so proud to see so many examples of absolute professionalism throughout this period with everyone supporting each other. The process is still continuing and no decisions will be made or communicated until we reach the conclusion at the end of the month.

“Our commitment to the travel trade remains as strong as ever and support from agents will be vital as we develop our re-start plans.”

P&O Cruises sets new return date

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P&O Cruises sets new return date

P&O Cruises will extend its operations pause until Oct. 15, the Carnival Corp. brand said Tuesday.

“As a business, our operational focus is not when can we resume sailing but is instead of how can we develop a comprehensive restart protocol that will keep everyone onboard — our crew and guests — safe and well and still give our guests an amazing holiday,” said P&O president Paul Ludlow in a release.

The British cruise line said it is focusing on working in close coordination with relevant public health organizations to approve the enhancement of its health and safety protocols.

“Our aspiration is to be adopting best practice in managing COVID-19 within the travel industry,” Ludlow said, adding that the line already has in place many of the protocols now being adopted for social gathering venues such as hand-sanitizing stations and rigorous cleaning and disinfecting procedures.

P&O’s Iona, a 5,200-passenger ship powered by liquefied natural gas, was supposed to enter service in May. German shipbuilder Meyer Werft has not set a new delivery date.