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Cruise travel update: There's good news out there

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 07 August 2020 07 August 2020

While headlines are being made about three cruise lines that have recently started sailing and are already grappling with Covid-19 outbreaks onboard, making less of a wave are lines that are sailing with no issues whatsoever.

Rudi Schreiner, co-founder and president of AmaWaterways, reports that one vessel, AmaKristina, has been operating successfully on the Rhine River since early July. In partnership with German tour operator E-hoi. The cruises, which travel between Cologne and Strasbourg, are primarily marketed to German-speaking passengers.

AmaWaterways has, with guidance from the European Union, instituted new protocols. Capacity is reduced from 150 to 100 passengers. Crew wear masks whenever in public areas (including cleaning passenger staterooms) and guests are required to wear masks whenever passing through public areas. And, as we reported a few weeks ago, a dynamic approach with plexiglass

AmaWaterways is the first U.S.-based cruise line to operate in Europe but it's by no means the only one, Schreiner tells Cruise Business. "What we see right now is up until last week about 45 ships already operating on the Rhine, Danube, and Moselle, also in Bordeaux and the Douro. This week alone there are 15 more ships entering the European market, so now there are close to 60 ships.

Among other operators include A'Rosa, CroisiEurope, and Scylla among others, on rivers that include the Danube, Rhine, Bordeaux and the Douro. And a successful resumption of service isn't limited to river operators; Hapag-Lloyd, Ponant, Dream Cruises, and Tui Cruises, are sailing.

Over the weekend, a fairly significant setback occurred when it was reported that Hurtigruten, which began cruises in July, had an outbreak of Covid-19 and returned to Tromso, where some passengers and all crew are being quarantined. SeaDream Yacht Club, also operating in Norway, had a Covid outbreak as well. And UnCruise Adventures, the first U.S.-flagged, small ship line to offer Alaska itineraries this year, literally had just started its first all-Alaska cruise Saturday when a passenger tested positive with Covid-19. Its season has since been cancelled. Travelers are quarantining in Juneau.

In the meantime, the European Union continues to measure, every two weeks, the progress of Covid-19 across the globe to determine which countries can open travel to Europe. In the U.S., it was announced today that CLIA-affiliated cruise lines have now extended their no-sail date through October. Canada, while not reporting significant numbers, is still on hold for resumption of cruising.

Cruise credits accounted for two thirds of NCLH advance ticket sales early August

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 07 August 2020 07 August 2020

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, said that cruise credits accounted for two thirds of its advance ticket sales as per early august.

All three brands have instituted programmes for guests on cancelled sailings as a result of the company’s voyage suspension which include offering value-add future cruise credits typically for 125% of the cruise fare paid in lieu of providing cash refunds, the company said in a statement.

These are valid for any sailing through 31 December 2022 and as of 3 August approximately 60% of the guests who have had their voyages cancelled have requested cash refunds.

At the end of June, NCLH had $1.2 billion of advanced ticket sales, including the long-term portion, which includes approximately $0.8 billion of future cruise credits. “The Company continues to take future bookings and receive new customer deposits and final payments on these bookings,” NCLH said.

“To provide additional flexibility to its guests, the Company has also introduced a new final payment schedule for all 2020 voyages which requires final payment 60 days prior to embarkation versus the standard 120 days,” it concluded.

NCLH: deep second quarter loss, sharp rise in interest expenses, unable to provide guidance for rest of 2020

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 07 August 2020 07 August 2020

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest listed cruise ship operator, has reported a deep loss for the second quarter due to the Covid-19 outbreak and said it is unable to give a guidance regarding its result for the rest of the year.

While revenues decreased, interest expenses almost doubled due to rising debt.

Group net loss amounted to $715.2 million compared to a profit of $240.2 million profit in the prior year. Revenue decreased to $16.9 million compared to $1.7 billion in 2019 due to the complete suspension of voyages in the quarter.

Interest expense, net was $114.5 million in 2020 compared to $66.0 million in 2019. The change in interest expense reflects additional debt outstanding, partially offset by lower LIBOR rates. Included in 2020 were losses on extinguishment of debt and debt modification costs of $21.2 million compared to $1.2 million in 2019.

Total cruise operating expense decreased 68.5% in 2020 compared to 2019. “In 2020, our cruise operating expenses were primarily related to the continued payment of protected commissions as additional sailings were cancelled, crew costs, including salaries, food and repatriation costs, and fuel,” NCLH said in a statement.

“As a consequence of Covid-19, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it expects to report a net loss on both a U.S. GAAP and adjusted basis for the third quarter ending September 30, 2020 and the year ending December 31, 2020,” the company said.

P&O Cruises expects delivery of Iona soon, second ship December 2022

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 August 2020 04 August 2020

P&O Cruises, the UK focused contemporary market unit on Carnival Corporation & Plc group, said it expects to take delivery of Iona in a few weeks’ time and the second, as yet unnamed sister ships, in December 2022.

“P&O Cruises has announced that it plans to take delivery of Iona “before the autumn” and that following discussions with the Meyer Werft shipyard in Papenburg Germany, Iona’s as yet unnamed sister ship will be delivered in December 2022,” the company said in a statement.

The second ship was originally du to enter service in May 2022 and Iona early in this summer.

“Whilst our operations as currently paused, we are delighted that we have more clarity on the arrival of these two new ships.

The final outfitting of Iona is almost complete and is looking stunning and we will take delivery of her before the autumn. We also now know that her sister ship will join the fleet at the end of 2022, said P&O Cruises president, Paul Ludlow, in the statement.

Itineraries for the second ship will go on sale in Spring 2021, P&O Cruises added.

MSC Cruises provides passenger-centric detail on how its cruises will adapt in pandemic era

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 03 August 2020 03 August 2020

As cruising struggles to adapt to travel procedures and protocol in Covid-19 pre-vaccine times, MSC Cruises tackled today one of the biggest questions travelers have about cruise travel today: How will health protocols impact the onboard experience?

In a press conference today in Italy, where MSC Cruises' president Gianni Oronato also provided information about progress the line is making on other back-to-service fronts, noting in a press release "that From the moment a guest starts to plan and book to the moment they return home, MSC Cruises has assessed every touchpoint of their vacation to put in place the appropriate health and safety measures." In addition, MSC added, "guests will be supported every step of the way with simple and practical information, clear booking conditions and supporting technology to make the process smooth and seamless."

Specifics about consumer impacts as they would apply to a possible summer start of cruising in the Mediterranean only, as revealed by Onorato, include:

– For this initial phase of the restart of operations, the two MSC Cruises’ ships operating in the Mediterranean for the current summer season will initially only welcome guests who are residents in Schengen countries[1]. Additionally, their itineraries have been designed according to the accessibility of the ports, reducing — where possible — the need for guests to make use of public transport or flights, and have been planned in conjunction with the authorities.

– Guests residing in countries who are unable to sail on the summer Mediterranean cruises will be contacted by MSC Cruises with options for their vacation plans.

– For guests on board both ships, the MSC for Me app will support and facilitate the new health and safety measures. The app can be used to book services as well as to manage their daily activities on board and source information.

– Additionally, on board MSC Grandiosa every guest and crew member will be provided with a complimentary MSC for Me wristband, which facilitates contactless transactions around the ship as well as providing contact and proximity tracing.

– A new Information Center, accessible by telephone, will allow guests to call Guest Services for information, rather than having to go to the desk in person.

– Onboard activities and entertainment have been redesigned to enable smaller group sizes and guests should book in advance. A rich program of activities will be available throughout the cruise including themed events, fun games, talent shows, fitness, dance and more.

– Award-winning children activities and family live game shows will be available each day. New spaces on board will be reserved for children and teenagers as the youth areas will operate at a reduced capacity. Parents taking an excursion can still leave children with the youth staff by making a reservation one day in advance. Lunch and dinner with the youth staff will still take place along with the most popular kids’ activities such as MSC Dance Crew, Cabin 12006 family game show & web series and the LEGO experience.

– Wide choice of live entertainment will continued to be offered around the ship. As the capacity of the theater will be reduced to ensure responsible social distancing, the entertainment schedule will be adapted so all our guests can still enjoy a great variety of award-winning shows.

– Restaurants, bars and lounges, will allow for social distancing and all meals and drinks will be served to guests at their table. The buffet restaurant will offer a new service concept and a new guest flow to ensure social distancing. Instead of self-service, the guests will select what they want and the food will be plated and handed to them to take back to their table to ensure the highest level of health and hygiene measures are followed. For a contactless experience, guests will be able to access restaurant and bar menus from their personal mobile device by scanning a QR code.