Royal Caribbean to Ditch Covid Testing on Short Sailings.

Independence of the Seas in Southampton, Photo Credit Spacejunkie2

Royal Caribbean Group will ditch pre-embarkation testing for fully vaccinated guests on sailings of five days or less from 8 August, president and chief executive Jason Liberty has confirmed.

Speaking during Royal’s second quarterly results call on Thursday (July 28), Liberty said the change in policy would be “subject to local destination requirements” and unvaccinated passengers would still be tested.

“We also anticipate in the not-too-distant future that pre-embarkation testing for longer-duration voyages will be reduced,” he added.

Asked on the call when testing requirements for longer cruises might be lifted, Liberty predicted further easing could follow soon but did not rule out reintroducing measures if needed.

“So we’re starting off here by doing the five days or less and we’re going to look at that. But I think our expectation here, call it, in the next 45 days or so. And of course, following local requirements, which will somewhat dictate in some of our destinations, what those testing requirements will be that the majority of the testing requirements will be lifted, especially around the majority of our deployment,” he said.

“We might, depending on where the ships are going, take some additional protocols and of course, we’re going to continue to follow where Covid is in society and take the necessary actions.”

The update came as Royal announced a return to “positive operating cash flow” with the group’s entire fleet now back in service.

Average second-quarter (three months to 30 June) load factors ran to 82% and to nearly 90% in June, while the group expects third-quarter (three months to 30 September) load factors to average around 95% before “increasing to triple digits” by the end of the year.

Royal’s positivity came despite posting a US $500 million Q2 net loss, one the group said “exceeded the company’s expectations” and was “driven by better revenue and cost performance”.

In its trading update, the company revealed that second-quarter bookings for sailings departing in the second half of the year remained “significantly higher” than those received in Q2 2019 for the latter half of 2019.

Royal Caribbean’s CocoCay Drives Rate and Short Market

CocoCay

“To describe Perfect Day as a home run wouldn’t do it justice. It really resets the bar in the short cruise market,” said Richard Fain, chairman and CEO, Royal Caribbean Cruises, on the company’s second-quarter earnings call.

Fain highlighted Perfect Day CocoCay as part of Royal Caribbean’s strength to adapt to an ever-changing business environment.

“We continue to do well because we continue to adapt our product to the changing desires of our current and future guests and the changing environment which we operate,” Fain added.

Michael Bayley, president and CEO of Royal Caribbean International, said that through 2020, 11 Royal Caribbean ships will call at the private island that now features an expansive water park.

“If you may recall, we put Mariner, Navigator and Independence through Royal Amplified and we completely changed the product offering in the short cruise market and literally put the biggest best ships in that short market, which is about 20-something per cent of the entire American cruise market,” Bayley said. “So we already started to see demand increasing for those products because they are truly great products.”

Bayley said that since May when the new experience opened, the company has taken around 350,000 guests to CocoCay.

Empress of the Seas to sail short cruises from Miami

Royal Caribbean International said the Empress of the Seas will offer short cruises out of Miami, beginning in March.

The 1,600-passenger ship, built in 1990 as the Nordic Empress, is returning to Royal Caribbean from Pullmantur as part of a fleet reduction of the Spanish cruise line. Pullmantur and Royal Caribbean are sister lines.

Royal Caribbean said the Empress will offer four- and five-night cruises to Nassau, Bahamas; Cozumel and Costa Maya, Mexico; Grand Cayman; and Key West, Fla.

The ship will stay late in the evening at many destinations, and will overnight in Cozumel on select cruises.

Royal Caribbean currently offers short cruises to the Bahamas from Miami on the Majesty of the Seas.