Can cruising go from Covid scapegoat to pandemic hero?

Coronavirus: Foreign Office tells Britons to stay on cruise ship ...
Diamond Princess in Japan

In terms of economic and reputational damage, travel was the first industrial sector to fall victim to the coronavirus and is expected to be the last to recover.

And among travel products, none has taken a harder reputational hit than cruising.

But recently, a path to reputation restoration has opened, and with it the possibility that cruising may even be credited with funding advances related to epidemiology.

Crises of the magnitude of Covid-19 spur a binary result for enterprises: innovation or collapse. And the high degree of risk posed to cruise lines is measurable, reflected in the cost of the loans and investments they arranged to ensure midterm liquidity.

But signs have emerged that cruising will not only survive but even offer a case study of exemplary crisis management. Such a narrative might go like this:

When the initial reports of the virus came out of Wuhan, China, they were frightening but distant, clouded by medical unknowns and shrouded by official silence and secrecy.

A clearer, though far from complete account emerged from the disease’s devastating impact on a cruise ship quarantined dockside in Japan. For more than two weeks, the attention of the world focused on a microcosm of an emerging pandemic. The setting — the Diamond Princess — became a metaphor for contagion and fear. Every new and morbid development was broadcast worldwide.

How does a product that has never been universally embraced — it has devoted followers, but still struggles against outdated stereotypes and a persistent chorus of critics — overcome the stinging characterization of being a “petri dish” of infection?

Even within the travel ecosystem, cruising’s situation seemed particularly dire. Aviation and hospitality had been struck devastating blows; individual brands are still endangered. But because these sectors never stopped operating, enhanced protocols for sanitation were formulated and deployed quickly.

Compared with cruising, these are relatively simple operations. Airline passengers occupy just a few cubic feet of space over a brief period of time. Service is minimal.

Hotels are more complex, but they don’t move around and are typically surrounded by a community of supportive services.

A portion of cruising mirrors hotel operations, and like aircraft, ships move through multiple regulatory jurisdictions. But cruise companies also run shore excursions, manage private islands and maintain myriad public spaces, restaurants and recreational opportunities. They house staffs as well as guests. Maritime engineering and architecture bring additional challenges. And ships must be self-contained, often isolated from support for days.

It’s the sheer number of issues cruising must address that may ultimately give it its halo. Travel Weekly news editor/acting cruise editor Johanna Jainchill and I interviewed former secretary of Health and Human Services (and three-time Utah governor) Mike Leavitt, former Food and Drug Administration commissioner Dr. Scott Gottlieb, Royal Caribbean Cruises Ltd. chairman Richard Fain and Norwegian Cruise Line Holdings CEO Frank Del Rio last week on a Zoom call to discuss a panel they assembled to develop health and sanitation protocols.

The panel comprises working groups. One, for example, will recommend how to operate a safe shore excursion, breaking it down to components in order to minimize the possibility of introducing the virus from a port onto a ship.

Fain and Del Rio expressed willingness to share what they discover with other cruise lines, and Gottlieb noted that, because the challenges of cruising are diverse, the work done by the panel may have applications in other industries.

If so, the petri dish metaphor could be replaced by the image of a ship as a bubble of protection, an environment, as Gottlieb put it, of “exquisite control” that poses less threat than a land vacation.

Should this vision be realized, the extended No Sail Order may ultimately be viewed as an unintended blessing. The lines not only have the time to get it right but to emerge from the crisis as innovators and responsible corporate citizens.

It’s not a far-fetched outcome. There’s a parallel in the oft-cited challenge Tylenol faced in 1982 when cyanide was put, seemingly randomly, into bottles of the pain reliever on shelves of Chicago-area stores. Seven people died, and the brand became associated with fear and death.

At a cost of $100 million, the company recalled and destroyed all existing bottles of the drug and developed the multilayered, tamper-proof seals that have become standard for the industry. But more than that, manufacturer Johnson & Johnson was credited with putting values over profit. Confidence in Tylenol was restored and, as importantly, trust in the entire company was enhanced.

As noted above, cruising is a complex product. There are still hurdles to overcome, and the recruitment of big names for a blue-ribbon panel is not enough to ensure success. But after speaking with Del Rio, Fain, Gottlieb and Leavitt, I’m encouraged that if they follow through on their commitments for passenger safety, the industry will not only recover but may receive due credit in the annals of health and crisis management.

Royal Caribbean takes complete ownership of Silversea Cruises

Royal Caribbean to take majority stake in Silversea Cruises

Royal Caribbean Group has taken complete ownership of Silversea Cruises, two years after acquiring a two-thirds share of the ultra-luxury line.

Royal Caribbean Group is the recently-introduced new name of Royal Caribbean Cruises Ltd, the parent company of Royal Caribbean International, Celebrity Cruises, Azamara, Silversea and other lines.

Richard Fain, chief executive of Royal Caribbean Group, said; “Silversea has been a great fit for our company from the very first day. The cultures of the two organisations have proven to be harmonious, and guests have responded favourably to the combination.”

Manfredi Lefebvre d’Ovidio, who took over the company from his late father, will serve as chairman of Silversea. Roberto Martinoli will remain the brand’s president and chief executive.

Fain added: “Manfredi and Roberto have brought a fresh point of view to our company, as well as deep knowledge of their brand’s unique audience. Their skills – and Manfredi’s inimitable style – will continue to play an important role in growing Silversea into the future.”

Lefebvre said: “The combination of our companies has been everything I hoped for. The skills and resources of the Royal Caribbean Group have helped us grow and flourish. We share a vision about the bright future of cruising, and I look forward to being a shareholder in the broader Royal Caribbean Group.”

Martinoli added: “Thanks to the incredible resources and skills of Royal Caribbean Group, Silversea will grow and thrive. Today marks another key step in our drive to uncontested leadership in ultra-luxury and expedition cruising.”

The remaining stake in Silversea held by Heritage Cruise Holding Ltd was paid for in the form of 5.2 million shares of Royal Caribbean Group common stock, representing about 2.5% of its total common stock.

The industry is prepping for a comeback. Where is the CDC?

Cruise industry taps leading health experts for enhanced Covid-19 ...

MSC Cruise has put together a Blue ribbonCovid group to put in protocols for safety.

By Johanna Jainchill

The past week has seen major movement in the shaping of protocols around the resumption of cruising. Last week, the European Union released guidelines for the resumption of cruising. Yesterday, Royal Caribbean Group and Norwegian Cruise Line Holdings Ltd. revealed that they had assembled a panel to develop health and safety protocols for the industry to resume operations. MSC Cruises has put together a Blue Ribbon Covid Expert Group that will advise it on sanitation and health protocols.

What’s missing from all of these advancements is any word from the U.S. Centers for Disease Control and Prevention (CDC), which will ultimately determine when large cruise ships can resume sailing from U.S. ports. The agency has said nothing about the cruise industry since updating its No Sail Order on April 9 to expire on July 24.

The cruise industry has not publicly said that the CDC is being uncooperative, but in a conversation with Travel Weekly last month, CLIA CEO Kelly Craighead praised Europe for enabling the industry to “participate in dialogue about thoughtful resumption protocols” but said that with the CDC it was “having some challenges with having that kind of engagement and dialogue with them.”

CLIA said it had been actively engaged in the development of the guidance published last week by the EU.

UBS analyst Robin Farley said in a note to investors in June that according to her sources, the reason CLIA announced a voluntary suspension of cruises through Sept. 15 is “likely so that [the] CDC would not have to extend its No Sail Order while negotiations continue.”

“It sounds like there needs to be an agreement with the CDC in place about 30 days before ships can restart,” Farley said.

However, Farley also said that according to Royal Caribbean Group management, the company “is in constant communication with the CDC in a constructive dialogue, and at this point, they are going back and forth with iterations of an agreement.”  And one of the co-chairs of the Royal/Norwegian panel, Mike Leavitt, a three-term governor of Utah and former secretary of the U.S. Department of Health and Human Services, said that the CDC was “very pleased to know the panel was being proposed. We described the membership and told them how we were going to work and we pledged transparency and they received it warmly.”

But publicly, at least, the CDC has been quiet. And several industry stakeholders have privately said the CDC is being unresponsive and uncooperative with the industry. The CDC did not respond to outreach from a Travel Weekly reporter.

It has been suggested that the CDC has been hamstrung by the Trump administration, such as in a scathing New York Times report in June that detailed the CDC’s failures overall in its response to the Covid-19 pandemic. In one example of its shortcomings, the article cited the CDC’s No Sail order and reported that the CDC wanted the order to be indefinite, but that the White House intervened, and so the agency replaced it with the order the ends in July.

It’s not the only article on the agency’s failures: the Washington Post this week reported that the CDC’s mishandling of the coronavirus is similar to the mistakes it made with the Zika outbreak in 2016.

CLIA and the cruise industry may not want to rock the boat and cause any further delay, but given the fact that so many travel advisors depend on the ability to relaunch operations in the world’s No. 1 cruise market, ASTA CEO Zane Kerby might have spoken for the industry at large when he called the CDC’s communications about travel “uneven at best.” In a letter to its director, Robert Redfield, on June 9, he said that prioritizing of the restart of the cruise industry is one of four main goals the CDC should tackle.

“In the absence of clear communication, the entire population remains essentially in the dark, left to rely on a patchwork of regional, state and local pronouncements to inform their decision-making with respect to travel,” Kerby wrote. “Airlines, hoteliers, cruise lines, tour operators, car rental companies, insurance providers and others are similarly left to their own devices as to when to restart operations in the face of an unprecedented global pandemic.”