How A lot Cash Cruise Corporations Misplaced As a result of Crusing Suspension & Pandemic

For many companies, the 2020 health crisis was a blessing. Companies such as Amazon, Zoom, and Apple saw sales and share prices soar.

But on the other hand, many companies saw their wealth dwindle. Restaurants were closed. Cinemas closed. However, perhaps no other industry has been as badly affected as cruises.

The ships were idle for more than a year, resulting in huge financial losses for cruise lines.

In the early days, not only stories about cases on cruise ships dominated the headlines, but the cruise was discontinued in March 2020. While other industries may have closed, only to slowly reopen weeks or months later, cruise lines in the US – the world’s largest cruise market – have been halted for over a year.

Even after vaccines were introduced and some cruise lines said they would need the shot and test every passenger before boarding, the ships were still stuck at the dock due to CDC rules.

Cruise ships have lost billions of revenue during the suspension. Carnival Cruise Line alone said it more than canceled 2,600 cruises with 4 million passengers. That’s a lot of tickets that had to be refunded.

It’s not just the loss of sales, however. Cruise ships also had to turn off the lights. This includes everything from paying the CEO to maintaining and delivering ships while they waited at sea for their return.

The bottom line of a turnover close to zero with high expenses at the same time? Massive business losses, in many cases well above the combined profits of recent years. In other words, cruise line long-term net profits added up to a negative figure that goes back to at least 2017 … and sometimes even earlier.

Here’s a closer look at the top three cruise companies and the amount of money they lost due to the cruise suspension and health crisis.

Carnival Corporation

Of course, Carnival Corporation is known as the parent company of perhaps the most iconic brand in the industry – Carnival Cruise Line. However, the company is much more than just the Carnival brand. Lines such as Princess, Costa and Cunard are part of the company’s business operations. Before the pandemic, the company operated more than 100 ships on its nine different cruise lines.

After being hired, the cruise line took the opportunity to reduce its fleets, with more than a dozen ships departing. Even so, the cost of having the ships sail with no income was a double blow. After a record year in 2019 and a promising start to 2020, the company saw a dramatic change in its wealth.

For the full year 2020, Carnival Corporation had total sales of $ 5.6 billion, 85% of which in the first quarter. That money was offset by the massive cost of dealing with the pandemic. Overall, the company posted a loss in each quarter of 2020 and the first quarter of 2021. This equates to a total loss of $ 12.2 billion.

By comparison, combined net income for 2017-2019 was $ 8.75 billion.

Royal Caribbean Group

Royal Caribbean Sign

The cruise line of the same name – Royal Caribbean International – is one of the largest and most popular lines in the world. However, the Royal Caribbean Group is more than just a single line. It is also the owner of Celebrity, Azamara and Silversea Cruises.

The Royal Caribbean Group’s fleet comprises a total of around 50 ships. That means enormous costs, even if no passengers are sailing. With its Oasis-class ships, which have been idle since March 2020, it also has the largest ships in the world.

After the cruises were canceled, the Royal Caribbean Group had 2020 sales of just $ 2.2 billion. Compare that to 2019, when sales were nearly $ 11 billion and you’re getting a feel for the ramifications of that hiatus.

Because of the costs associated with the pandemic and the business impact The Royal Caribbean Group made a net profit of – $ 6.9 billion during the health crisis that continues to hinder the industry.

Financial impact of the pandemic on the Royal Caribbean cruise line

This meant a dramatic asset reversal for the company. From 2017 to 2019, the Royal Caribbean Group had net profits of $ 5.3 billion. In other words, the pandemic year was tantamount to wiping out the three previous profit years … and a few more.

Norwegian Cruise Line Holdings Ltd.

Norwegian cruise exhaust

NCLH, the last of the three major cruise lines, may be the smallest but anything but casual. In 2019, the year before the pandemic, Norwegian had sales of $ 6.5 billion and net income of $ 930 million.

The offer includes Norwegian Cruise Lines, but also the luxury brands Oceania Cruises and Regent Seven Seas. Unlike its rivals, NCLH did not shrink its fleet by getting rid of older ships during the pandemic. That’s because the company’s main route – Norwegian Cruise Line – has one of the youngest fleets.

That means the company had to support the entire fleet throughout the cruise suspension while generating limited revenue.

Throughout 2020, Norwegian had sales of just $ 1.3 billion. This resulted in a net income loss of – $ 4.0 billion for the year and – $ 5.4 billion since the cruise began being suspended.

Financial Impact of the Health Crisis on Norwegian Cruise Line Holdings

By comparison, NCLH generated net income totaling $ 3.3 billion in the four years between 2016 and 2019. This shows how massive the downturn has been for the company.

The losses will continue to rise in 2021

While 2020 was a tough year for cruise lines, the trouble isn’t over. There are some positive developments as some lines are slowly sailing around the world again. Travels are returning to Asia, Europe and even the Caribbean.

However, the United States is the largest cruise market. Without trips leaving Florida or Texas, for example, a significant loss of revenue will continue to affect the industry. Even if trips return, it is likely a staggered return. It is possible that U.S. cruises won’t fully return until 2022.

That means the losses will continue to pile up in 2021. The three major cruise lines lost a total of $ 4.5 billion in the first quarter of the year.

In other words, we won’t know the full extent of the financial implications for the cruise industry in the months to come – or possibly years. Nevertheless, we already know that the effects are increasing in the billions and getting bigger every day.

Popular: 39 Useful Packs To Pack (17 You Wouldn’t Think Of)

Continue reading: Park & ​​Cruise Hotels for every port in America

Popular: 107 Best Cruise Tips, Secrets, Tricks, and Freebies

CDC provides cruise traces subsequent steps to renew crusing | Arts & Leisure

ORLANDO, Florida – The Centers for Disease Control and Prevention recently issued new cruise ship engineering guidelines to continue the return to sailing.

All major cruise lines departing from U.S. ports are subject to the CDC Conditional Sailing Ordinance, which was enacted last October in lieu of a no-sail order issued in March 2020. This includes setting up a test infrastructure on board and on land as well as performing simulated trips before a line can sail again with paying customers.

However, the cruise industry has asked for more guidance on how to get to these steps. The new guidelines promise to bring cruise ships closer to a return to business.

“CDC is committed to working with the cruise industry and seaport partners to resume cruising when it is safe to do so,” said a statement on the new technical guidelines.

The next steps, which the CDC is now referring to as Step 2A of a four-step plan, is that the cruise lines must have:

– Increase in reporting frequency of COVID-19 cases and diseases from weekly to daily.

– Perform routine tests of all crew members based on the color status of each ship.

– Updated the color coding system to classify ship status related to COVID-19.

– Reduced the time it takes a “red” ship to go “green” from 28 to 14 days based on the availability of onboard tests, routine screening test protocols and daily reports.

– Prepare planning documents for agreements that need to be approved by port authorities and local health authorities to ensure that cruise ships have the necessary infrastructure to cope with a COVID-19 outbreak on their ships that are exposed.

– Prepare a plan and schedule for vaccination of crew and port personnel.

The new guidelines are the first mention of vaccination and do not require the crew or port workers to be vaccinated.

However, in its statement, the CDC suggests that the more potential port workers and passengers are vaccinated, the faster this process will happen.

“The COVID-19 vaccination effort will be critical to the safe resumption of passenger operations,” said the CDC. “As more people become fully vaccinated, the step-by-step approach enables the CDC to incorporate these advances into planning to resume cruise shipping when it is safe to do so. CDC recommends that all eligible port workers and travelers (passengers and crew) receive a COVID-19 vaccine, if one is available to them. “

Cruise ships have been at the center of several deadly outbreaks in the first few months of 2020, including several ships preventing passengers from disembarking. One of the worst was Princess Cruises’ Diamond Princess, which killed 14 people. These issues resulted in both the cruise industry voluntarily closing last March, as well as the CDC sails-no command.

Florida Governor Ron DeSantis held a discussion in Port Canaveral last month with cruise guides from Royal Caribbean, Disney, Norwegian, Carnival, MSC Cruises and other politicians calling on the CDC to take the next steps to reopen the industry. He pointed out that several lines have already started the safe resumption of sailing in other markets around the world. That discussion was based on a letter signed by two Florida senators and other elected officials to the CDC asking for more guidance.

At the beginning of March, the Cruise Lines International Association asked the CDC to completely cancel the conditional sail order by July. However, the CDC replied that it intended to keep the order, which doesn’t expire until November 1, 2021, but would see some changes.

The new guide maintains its 74 points, but means that cruise lines now have at least the next few steps towards the ultimate goal of a full return.

“Driving safely and responsibly during a global pandemic is difficult,” the statement said. “While cruises always pose some risk to the transmission of COVID-19, following the phases of the (conditional sail order) ensures that cruise ship passenger operations are carried out in such a way that crew members, passengers and port staff are protected, especially if new ones emerge COVID -19 worrying variants. “