Tag Archives: Royal Caribbean Group

Royal Caribbean Business Update Call Preview: What Matters

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Royal Caribbean Group has scheduled a business update call for investors, as well as report 2020 fourth quarter and 2020 full-year earnings, on Monday, Feb. 22.

It’s a key call for the investment community, with the company approaching the one-year mark without ships in service from U.S. ports, and only a small percentage of its fleet operating, with the Quantum of the Seas sailing from Singapore while TUI Cruises and Hapag-Lloyd Cruises have seen smaller restarts.

Company executives are expected to provide a 15 to 25-minute presentation and then will open it up to question from financial analysts. 

What to Listen For:

  • Restart: When will ships actually start sailing in mass in the United States and Europe? Company executives will be pressed to answer or provide a realistic timeline. Previous remarks about restarting in 2020 did not pan out. 
  • CDC: Will company executives provide an update regarding ongoing discussions with the CDC and its Conditional Sailing Order. Since being issued in late October there have been no further public updates nor promised technical regulations. 
  • Biden Administration: After the industry had high-profile meetings with Vice President Mike Pence in 2020, as well as a teleconference in October, what has been the relationship with the new U.S. administration so far with President Joe Biden in office?
  • Azamara: Company executives will need to comment on the sale of Azamara to a private equity company. Will other sales of ships or brands follow?
  • Alaska: How will the Canada cruise ship ban impact the Alaska season and is the idea of a waiver to operate without calling on a foreign port realistic?
  • Occupancy: When the ships do restart, what occupancy will they sail at, and what occupancy do they need to sail at to generate positive earnings?
  • Deployment: Could 2021 and possibly 2022 lead to a seismic shift in deployment as cruise lines stay even closer to home and embrace short cruises?
  • Cash Burn: Royal Caribbean Group opted not to provide an exact cash burn figure in its last earnings release, but offered a range that averaged out to $270 million a month. Investors will be looking for an update.
  • Startup Costs: Among Wall Streets, key concerns will be the startup costs per vessel as well as the timeline to get a vessel ready to cruise with guests.
  • Lay Up: Will the company elaborate on further cold lay-up scenarios for the vessels that may return to service last? 

Cabezas: ‘Azamara Sale is a Win-Win-Win’

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The Chief Operating Officer of Azamara, Carol Cabezas, has explained the sale of Azamara to a private equity firm, Sycamore Partners, with increasing the value of the cruise line’s product and driving the brand forward.

“Sycamore Partners, which has invested in many upscale consumer brands, is known for identifying great brands that need flexible funding to grow and succeed,” Cabezas said in a video address published on the brand’s official website.

“Sycamore’s strategy is to partner with existing management to nurture companies for growth and invest in upscale companies. The priority is to increase the value of our product. So, it’s a win-win-win,” she added.

This comes a couple of hours since Royal Caribbean Group announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners in an all-cash carve-out transaction for $201 million, “subject to certain adjustments and closing conditions.”

The sale is expected to close in the first quarter of 2021, Cabezas said, after the cruise line receives all the normal regulatory approvals.

The transition will take a couple of months with the help of the Royal Caribbean Group.

According to Cabezas, nothing is currently expected to change for Azamara’s customers.

“There is no impact on your current bookings, future cruise credits, refunds or the availability of your travel advisor. Also, our website and care centre agents remain open for business, and I encourage you to start planning your next cruise with us,” she said, before adding that that the entire team will stay with Azamara, including customer care staff and crew.

“We commit to keeping the brand elements that make us Azamara, your brand of choice with immersive experiences that elevate vacation to lifestyle and superior service throughout the journey. With Sycamore, we intend to rapidly expand these to offer more destinations and portfolio choices at every step along the way. We’re only going to get better,” Cabezas stated.

Azamara will adopt the same health and safety protocols as the Royal Caribbean Group, Cabezas said in a statement. These were developed by a group of public health experts at the Healthy Sail Panel.

Royal Caribbean Drops ‘Cruise Line’ from Group Name

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Independence of the Seas in Southampton photo credit Dave Jones.

Royal Caribbean Cruises Ltd, the world’s second-largest cruise line operator, will now go by the new moniker: Royal Caribbean Group.

With the new name comes a new identity, as well. The company’s logo has also been updated with the iconic crown and anchor emblem being sharpened and made more symmetrical. The crown will officially now reside inside a circle at all times.

Royal Caribbean Group sets sail with updated corporate identity

“The name is simpler, fresher and more modern. It’s also more descriptive—Royal Caribbean Group sounds like a parent company name, reflective of our growth and evolution since we last updated our identity more than 20 years ago,” said Royal Caribbean Group chairman and CEO Richard Fain.

Royal Caribbean Group’s flagship cruise line brands still include Royal Caribbean International, Celebrity Cruises, Silversea, Azamara, TUI Cruises and Hapag-Lloyd Cruises. Together, the brands operate 63 ships with an additional 16 on order as of July 10, 2020.

The new branding comes as the Royal Caribbean Group (NYSE: RCL) has suspended all sailings through September due to the COVID-19 pandemic. The voluntary suspension is in-line with the U.S. CDC required suspension for cruise lines operating out of the United States.