Carnival Lists Miami Headquarters for Sale; Looking to Downsize

Carnival Lists Miami Headquarters for Sale; Looking to Downsize

Carnival Corporation has listed its headquarters in Miami for sale, after owning it for nearly three decades.

According to Bloomberg, the company is now looking to downsize to about 300,000 square feet of new office space in the Miami area in the next two years. 

Cruise Industry News understands many Carnival employees work fully remotely following the pandemic.

A spokesperson confirmed that the company is “exploring options for new office facilities,” according to the Bloomberg story. 

Located 15 miles from the Port of Miami, the 470,000 square feet Doral headquarters has served as Carnival’s base since it was acquired in 1983. The Miami space is being listed with commercial real estate broker Cushman & Wakefield Plc.

After Record 2022, No Cruise Ships Have Been Scrapped in 2023

After Record 2022, No Cruise Ships Have Been Scrapped in 2023

Disney Dream photo credit Spacejunkie2 (Flickr Photos)

After reaching record levels in 2022, the number of cruise ships being sold for scrapping has come to a halt.

According to the latest edition of the Cruise Ship Secondhand Market Report by Cruise Industry News, not a single cruise ship has been sold to the breaking yards in 2023.

With data dating back to 1977, the special report includes a list of key vessels withdrawn from the global market every year.

In 2022 a total of 18 cruise ships were dismantled. Following a trend that started in the early days of the pandemic, the year set a record for recycling yards.

The number of cruise ships being sold to the breakers saw a significant uptick during the health emergency that started in 2020.

While just a single ship had been scrapped in 2019, a total of 38 were demolished over the next three years.

According to the Cruise Ship Secondhand Market Report by Cruise Industry News, the ships dismantled during the period were also newer.

The average age of the ships that were scrapped between 2020 and 2022 was 37, compared to 43 between 2017 and 2019.

Carnival Cruise Line was one of the companies that sent more ships to the scrapyards during the pandemic, with a total of six ships dismantled between 2020 and 2022.

After ceasing operations in the period, Pullmantur Cruceros, Cruise & Maritime Voyages and Star Cruises also sent a total of eight ships for recycling.

Other companies that sold vessels to the ship-breaking yards include Seajets, New Century Cruise Lines, Marella Cruises, Peace Boat Organization and Bahamas Paradise Cruise Line.

Updated in September, the Cruise Ship Secondhand Market Report by Cruise Industry News also includes all the latest vessel transactions, all based on fully independent research.

Greenock Ocean Terminal Gears up for Record Cruise Ship Year

Greenock Ocean Terminal Gears up for Record Cruise Ship Year

Scotland’s Greenock Ocean Terminal is preparing for the busiest year ever with 91 cruise ships scheduled to arrive throughout 2023.

According to a press release, this number represents a rise of over 25 per cent compared to last year. Greenock will welcome a total of 150,000 passengers and 38,000 crew members over the course of this year.

Jim McSporran, Clydeport port director at Peel Ports said: “We’re extremely proud to be announcing a record cruise year for Greenock Ocean Terminal.

“Welcoming cruise liners to Greenock is a hugely important aspect of our port offering and we’re delighted that we continue to attract and grow cruise numbers to the region.

“This increase in tourism will benefit visitor attractions and businesses across Inverclyde and central Scotland, and we look forward to welcoming these visitors across the season.”

“In an effort to showcase the port as the cruise gateway to the West Coast of Scotland, this year we are also investing in a promotional campaign to feature at the global cruise industry’s key annual gathering in the U.S.”

This year will be the second full season for the port since COVID-19 put a halt on the cruise industry. The port expects the completion of a new £19.2 million cruise ship visitor centre this year. The project is led by Inverclyde Council and is part of the £1 billion Glasgow City Region City Deal funded by the Scottish and UK governments.

Councillor Stephen McCabe, leader of Inverclyde Council, said: “The cruise sector here in Inverclyde continues to go from strength to strength and I’m delighted that this year is set to be the busiest yet with record numbers of ships and passengers, as well as a substantial number of crew visiting these shores.

“It’s timely that with 2023 shaping up to be a bumper year for cruise calls that the finishing touches are being put on our new state-of-the-art Greenock cruise ship visitor centre which will provide our guests from around the world with a first-class welcome to Inverclyde and the west coast of Scotland.

“While we can all look forward to seeing some of the largest and most luxurious ships grace these shores over the coming months, with upwards of 200,000 people expected onboard those vessels there are also economic opportunities there for local businesses as visitors look to discover Inverclyde and the many great things we have to offer.”

Last year, Clydeport welcomed 71 cruise calls, including. Among the ships to visit the port this year are the MSC Virtuosa, one of the biggest ships to dock at the terminal.

Cruise Ships Return to Japan Three Years After ‘Diamond Princess’ Kicked Off a Global Pandemic

International cruise ships are returning to Japan, three years after the Diamond Princess became the world’s first luxury ship to face a major Covid outbreak. 

Amadea, operated by Germany-based Phoenix Reisen, is now docked in Tokyo Bay after earlier arriving at a port in Shizuoka prefecture in western Japan, according to shipping data tracked by Bloomberg.

The outbreak on Carnival Corp.’s Diamond Princess, which docked on the country’s shores in February 2020, drew global attention to the risks of infection aboard sea vessels. At one point, the ship had the most cases outside mainland China, where the virus originated. 

A months-long saga eventually ensued after the ship was quarantined off the nation’s shores, with about a fifth of the 3,711 passengers onboard the luxury ship infected and 12 deaths. That crisis also heralded a wider shutdown of the industry during the pandemic. Japanese authorities were criticized by some infectious disease experts for failing to contain the spread of the virus, with people quarantined on the ship without proper ventilation in place. 

Since then, the country has joined other nations around the world in removing pandemic curbs, loosening travel restrictions last October. Meanwhile, major cruise operators like Royal Caribbean have also seen bookings rebound. 

The nation has geared up to welcome back cruise ships, which brought more than 2 million people to Japan in 2019.

In an indication of changed attitudes, there was much fanfare for the crew members and the mostly German passengers on board the Amadea. Local authorities organized a drum performance to entertain guests and rolled out the local mascot, a blue dinosaur called “Shizulla” to greet them. 

As the ship departed to continue its journey to Tokyo, fireworks were set off. “There will be more cruise ships coming in future,” the mascot’s publicity Twitter account said.

Costa Magica Sold to Seajets

Costa Magica Sold to Seajets

The Costa Magica has been sold to Seajets, a Greek ferry operator, according to Greek media reports and multiple industry sources.

The ship represents another Carnival Corporation vessel leaving the Costa fleet as the world’s largest cruise operator continues to shed less economical capacity.

Of note, it is the newest and biggest vessel to exit a Carnival-owned brand, with the Magica having the capacity for 2,720 guests at double occupancy and having been built in 2004 at a cost of $400 million. It was one of three ships Carnival said would leave the fleet in December. The AIDAaura will also be retired, and a yet-to-be-named Costa ship will follow.

The Marios Iliopoulos-led Seajets has purchased multiple secondhand cruise ships since the start of the pandemic. A handful of ships have since been scrapped, while the former Maasdam was sold to French start-up CFC and will soon enter service.

The Magica will soon join a number of other ships in a layup in Greece under the control of Seajets, including the former Veendam, Pacific Area, P&O Oceania and Majesty of the Seas.

While the former Maasdam was sold to CFC, Seajets has also retired some ships for scrap value including the Columbus and Magellan, two ships that it bought at auction following the demise of Cruise & Maritime Voyages

Norwegian Cruise Line Drops COVID-19 Testing, Masking and More

Norwegian Cruise Line Drops COVID-19 Testing, Masking and More

Norwegian Jade Photo credit Spacejunkie2 (Flickr)

Norwegian Cruise Line announced that it has updated its global health and safety protocols by removing all COVID-19 testing, masking and vaccination requirements effective on October 4, 2022.

Given the significant, positive progress in the public health environment, the Cruise Line updated its health and safety guidelines, which are now more aligned with other global travel organizations, the company said in a press release.

"Health and safety are always our first priority; in fact, we were the health and safety leaders from the very start of the pandemic," said Harry Sommer, Norwegian Cruise Line president and chief executive officer. "Many travellers have been patiently waiting to take their long-awaited vacation at sea and we cannot wait to celebrate their return."

Virgin Voyages has secured $550 million in new capital to support its growth plans

Virgin Voyages has secured $550 million in new capital to support its growth plans

The new funding – which was led by BlackRock and includes new external financing and additional capital from existing investors including Bain Capital Private Equity and Virgin Group – will enable the line to continue its growth strategy and further strengthen its financial position as demand "continues to gain momentum".

 

Tom McAlpin, chief executive of Virgin Voyages, said the company has created an "incredible project" that investors and consumers "truly believe in".
 

"This additional capital comes at a time when we’re looking forward to exponential growth that will, in turn, help us achieve what we set out to accomplish," he added.

The investment comes as Virgin reports "exponential growth in bookings" in the last six months, with this year tipped to see a strong return across the industry as cruising heads toward pre-pandemic levels.

 

According to research carried out by the line, 96% of consumers are keen to cruise this year following two years of restrictions. 

Disney Cruise Drops Vaccination for the Under 12's

The vaccination requirement will still apply to guests aged 12 and over

From 2 September, the line’s requirement to be vaccinated will no longer apply to guests aged 5 to 11 for sailings out of US and Canadian ports. However, the company will still require guests over the age of 12 to be fully vaccinated.

Despite the line updating its website to reflect the changes, it still "highly recommends" guests aged 11 and younger be fully vaccinated before sailing.

Covid-19 testing is also still required for all guests, with different requirements for vaccinated and unvaccinated travellers.

Fully vaccinated guests who provide a negative test result taken one to two days before sailing are exempt from testing at the cruise terminal.

Carnival Removes Pre-Cruise Testing for Vaccinated Guests, More Changes Announced

Carnival Removes Pre-Cruise Testing for Vaccinated Guests, More Changes Announced

Carnival Cruise Line today announced protocol updates for COVID-19.

\With these changes, Carnival said is making it easier for more guests to sail with simplified vaccination and testing guidelines, including no testing for vaccinated guests on sailings less than 16 nights, and eliminating the exemption request process for unvaccinated guests, who will only need to show a negative test result at embarkation.

All new guidelines are effective for cruises departing on Tuesday, Sept. 6, 2022, or later, and include:

• Vaccinated guests must continue to provide evidence of their vaccination status prior to embarkation. Pre-cruise testing is no longer required, except for cruises to Canada, Bermuda, Greece and Australia (per local guidelines), and on voyages 16 nights or longer.
• Unvaccinated guests are welcome to sail and are no longer required to apply for a vaccine exemption, except for cruises in Australia or on voyages 16 nights and longer.
• Unvaccinated guests or those who do not provide proof of vaccination must present the results of a negative PCR or antigen test was taken within three days of embarkation.
• All policies are subject to local destination regulations.

Guests under the age of five years are exempt from vaccination and testing requirements from the United States and under the age of 12 from Australia, the company said.

Voyages 16 nights and longer will continue to have vaccination and testing requirements that are specific to the itinerary. Carnival's Have Fun offers requirements for long voyages and destination-specific protocols. Be Safe. page on Carnival.com

For guests who have a pending vaccine exemption application and are awaiting confirmation for cruises departing Sept. 6 or later, the booking is confirmed unless booked on a sailing that calls on Canada, Bermuda, Australia or if the voyage is 16 nights or longer.

“Our ships have been sailing very full all summer, but there is still room for more of our loyal guests, and these guidelines will make it a simpler process, and make cruising accessible for those who were not able to meet the protocols we were required to follow for much of the past 14 months,” said Christine Duffy, president of Carnival Cruise Line.

“We’ve got lots happening, with Carnival Luminosa and Carnival Celebration joining our fleet this November and more to come in 2023. Whatever the ship, homeport or itinerary that works for you, our great onboard team is ready to deliver a fun vacation – something we all look forward to even more nowadays!”

Duffy added that Carnival is in the process of updating its website, communications, and processes, and sharing more details with guests and travel advisor partners to reflect these new, simplified policies. “We appreciate the patience of our guests and travel advisor partners as we update all materials, but the end result is a very positive one for all who are looking forward to cruising with us,” she said.

CDC Cruise Ship Timeline: From No Sail to the End of the COVID-19 Program

CDC Cruise Ship Timeline: From No Sail to the End of the COVID-19 Program

With the CDC  dropping its COVID-19 Program for Cruise Ships, Cruise Industry News looks at the timeline that led to the decision.

Week of March 9, 2020: Despite efforts by the industry’s lobby group CLIA, cruise lines decide to voluntarily suspend operations in the United States. Most companies plan 30-day operation pauses, aiming for early April resumptions.

March 14, 2020: The CDC issues a No Sail Order, essentially banning cruise ship operations in U.S. ports for 30 days.

April 9, 2020: The No Sail Order is extended for the first time and is now valid for an additional 100 days. During the same announcement, the health agency defines additional parameters for the expiration of the ban, such as the official end of the COVID-19 public health emergency.   

July 16, 2020: The CDC extends the No Sail Order again, this time setting a September 30 expiration date.

July 23, 2020: After extending the No Sail Order, the CDC asks for public input on new cruise protocols.

September 30, 2020: Previously set to expire on September 30, the No Sail Order is extended for another month.

October 30, 2020: The CDC finally drops the No Sail Order, replacing it with a new Conditional Sail Order. The 40-page regulation plan is said to allow cruise lines to start planning their return to service through a framework of phases and public health measures.

November 21, 2020: While cruise operators work to meet the Conditional Sail Order requirements, CDC raises its warning for cruise travel. The health agency now advises against cruising, with a Level 4 warning.

December 31, 2020: As the year ends, no operator has been granted permission to return to service in the U.S. under the original Conditional Sail Order guidance.

March 24, 2021: After Royal Caribbean’s then-CEO Richard Fain speaks out against CDC’s Framework for Conditional Sail Order, calling it “unworkable," more pressure is put on the organization to relax its set of rules for cruising. Mentioning the advance of the COVID-19 vaccination across the country, CLIA asks the health agency to allow for a return of operations by the beginning of July.

April 2, 2021: The CDC issues the first new cruise guidance since October 2020, outlining a technical framework that would allow for the resumption of sailing.

April 3, 2021: Three U.S. Senators introduce an act to revoke the Conditional Sail Order. Called CRUISE Act, the bill requires the CDC to provide mitigation guidance for cruise lines to resume safe domestic operations.

April 5, 2021: Florida Governor Ron DeSantis announces a lawsuit against the Biden Administration, the CDC and the Department of Health and Human Services to allow cruises to restart in the United States.

April 25, 2021: The CRUISE Act is blocked from passing in the Senate and the Conditional Sail Order continues to be the way for the service return.

April 28, 2021: In a letter sent to cruise lines, the CDC says it is looking at a timeline that will allow restarting of the U.S. cruise industry by mid-July.

May 5, 2021:  In yet another step for cruise resumption, the CDC publishes technical instructions for cruise ship operators preparing to conduct simulated voyages in advance of restricted passenger voyages under the COVID-19 Conditional Sail Certificate.

May 15, 2021: The CDC releases further updates to the Conditional Sail Order, paving the way for the restart of cruise operations in the United States. The changes add new rules for screening of embarking passengers, vaccination requirements and more.

May 18, 2021: The State of Florida's lawsuit to reopen the cruise industry against the CDC and the U.S. Department of Health and Human Services heads to mediation.

May 25, 2021: Under the Conditional Sail Order, Royal Caribbean International becomes the first cruise line to receive the CDC’s approval for a simulated voyage with volunteers.

May 26, 2021: The CDC significantly relaxes cruise ship regulations for passengers and crew that have been vaccinated against COVID-19, allowing a quicker restart of the industry.

June 17, 2021: Seven months after raising it, the CDC lowers its warning against cruise travel from Level 4 to Level 3.

June 26, 2021: As more cruise lines get ready for test voyages, Celebrity Cruises becomes the first cruise major company to resume service in North America. Sailing from Port Everglades, the Celebrity Edge launches the first U.S.-based cruise in over 15 months.

First Week of July 2021: More operators resume service in the U.S., including Carnival Cruise Line and Royal Caribbean International.

August 21, 2021: The CDC issues updated guidance that says that people who are at high risk of severe complications from COVID-19 should avoid cruise ships.

October 25, 2021: With most of the U.S.-based cruise lines and various ships now in service, the Conditional Sail Order is extended by the CDC. The extension of the framework is valid through January 15, 2022.

December 30, 2021: The CDC once again raises its warning for Americans going on cruises, telling them to avoid cruise travel, regardless of vaccination status. After being lowered just a few months back, the warning returns to Level 4, the highest such level.

January 15, 2022: Despite pushbacks from some U.S. politicians, the CDC lets the Conditional Sail Order expire. To replace the guidance, the health agency prepares a new voluntary plan, which cruise lines will opt-in.  

February 9, 2022: The CDC finally releases its new COVID-19 Program for Cruise Ships operating in U.S. waters. The program is recommended and includes the continuity of the agency’s colour status system for disease cases on ships.

February 19, 2022: Ten days after the revelation of the new CDC program, 18 cruise brands and 110 ships have officially enrolled in it.

March 15, 2022: After being initially lowered in February, the CDC’s warning for cruise travel goes down once again. For the first time since the start of the COVID-19 pandemic, the risk is classified with a Level 2 (moderate) warning.

March 30, 2022: The CDC finally drops its cruise health travel warning notice after two years.   

July 18, 2022: The CDC ends its COVID-19 program for cruise ships. The health agency also reportedly stops tracking cases of the disease on cruise vessels.

CDC Ends COVID-19 Program For Cruise Ships

CDC Ends COVID-19 Program For Cruise Ships

Centres for Disease Control and Prevent

The U.S. Centers for Disease Control and Prevent on Monday ended its COVID-19 Program for Cruise Ships.

"New guidance for cruise ships to mitigate and manage COVID-19 transmission will be available in the coming days," the CDC said in a statement on its website.

While no guidance was immediately available, this would point to cruise line's being able to set their own vaccination and testing rules for ships operating or calling in U.S. ports.

The CDC will also reportedly stop tracking COVID-19 cases on cruise ships, having launched a dashboard earlier this year.

The CDC's Program for Cruise Ships replaced the previous Conditional Sail Order, which went through multiple revisions that led to the industry's 2021 restart in North America. That Order had replaced the original No Sail Order that was issued in March 2020.

Norwegian Cruise Line Holdings Drops Pre-Cruise COVID-19 Testing

Norwegian Cruise Line Holdings Drops Pre-Cruise COVID-19 Testing

Norwegian Bliss in Ponta Delgada Azores, photo credit Spacejunkie2

Norwegian Cruise Line Holdings today announced it will no longer require guests to complete pre-cruise COVID-19 testing unless required by local regulations, according to a press release.

This policy will go into effect across Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises beginning August 1, 2022, the company said.

The pre-embarkation testing requirement will remain in place for guests currently travelling on voyages departing from destinations with local testing regulations, including but not limited to the U.S., Canada, Greece and Bermuda.

Norwegian said that the relaxation of the testing policy is in line with the rest of the travel, leisure and hospitality industry worldwide as society continues to adapt and return to a state of normalcy. The company added that it continues to strongly recommend all guests be up to date on vaccination protocols and test at their convenience prior to travel.

Arcadia Marks the Return of the Entire P&O Cruises Fleet

Arcadia Marks the Return of the Entire P&O Cruises Fleet

Another cruise line is completing its restart plan today as Arcadia resumes service for P&O Cruises in England.

Returning after a three-month operational pause, the 2005-built vessel is welcoming guests in Southampton for a cruise to Iceland, Norway and Ireland.

The 14-night itinerary visits six different ports, such as Reykjavik, Akureyri, Alesund and Belfast.

Continuing its restart program, the Arcadia is set to offer different itineraries departing from Southampton, with cruises visiting the British Islands, the Baltic, Western Europe and more.

In September, the 83,000-ton vessel is also sailing a special 30-night voyage to the United States and Canada. The roundtrip itinerary features visits to New York City, Boston, Halifax, Corner Brook, Bar Harbour and more.

After being taken out of service due to the COVID-19 pandemic in early 2020, Arcadia is returning to guest operations for the second time.

The ship previously resumed service in March 2022, offering a few scheduled cruises before entering another operational pause due to crew shortages. 

At the time, P&O cancelled seven additional departures on board the ship, which offers an adults-only product.

Built in Italy, the Arcadia originally entered service in April 2005 and has a capacity for 1,968 passengers in double occupancy.

In 2018, the vessel was subjected to a major refit, which, according to P&O, improved the onboard experience with a fresher and more contemporary feel.

Following guests’ feedback, the company updated several parts of the ship, including cabins, suites, public areas, bars, main dining restaurants and speciality dining venues.

With the Arcadia now sailing again, P&O Cruises’ entire fleet is once again in service.

After a 14-month gap, the UK-based company first welcomed guests back in mid-2021, with a series of domestic cruises onboard the Britannia and the new Iona.

The Carnival-owned brand later returned to more destinations, gradually adding the rest of the fleet back into service.

Carnival Corporation: On Course for Recovery

Carnival Corporation: On Course for Recovery

Cash from operations is turning positive and the company has turned the corner of its recovery trajectory, according to Carnival Corporation CEO Arnold Donald, who spoke on today’s second-quarter business update call with analysts.

“We are aggressively ramping up to full operations, driving higher occupancy on our ships, and focused on increasing revenues,” Donald said.

Bookings are expected to continue to improve during the rest of the year and reach historical levels in 2023, according to David Bernstein, executive vice president and CFO. He also said that there is the potential that EBITDA will be greater in 2023 than it was in 2019. The wild card is the cost of fuel. The target for 2023 is to carry 14 million guests.

Contributing to the recovery will also be fleet optimisation, reallocating ships to the strongest markets, such as introducing the new Costa by Carnival brand in North America.

Donald noted that European markets are in many ways more challenging than North America from a consumer standpoint as it relates to travel and added that moving Costa ships was also about right-sizing the Italian brand. A big chunk of Costa’s capacity has been in China, he said, and with that market closed, it made more sense to expand the strong North American market than to put all that capacity in Europe.

Bernstein added that North America and Europe are headed in the right direction, but that the company’s North American brands are doing better than their European counterparts.

As for other headwinds, such as the impact of the recession, Donald said the industry is resilient, offering a strong value proposition and that people feel entitled to their vacations. In addition, there is a tailwind of pent-up demand, he added, and the relaxing of health protocols is also expected to attract more people who may have been on the sidelines.

As for any other allocation moves, Donald said: “We are very pleased with our portfolio of brands but will always have an open mind to do what makes sense for our shareholders.”

He also said that since 2019, the company has shed 23 less efficient ships while adding nine larger, more efficient ships, including more premium-priced staterooms, while reducing operating expenses, including fuel, on a per available guest day basis.

Princess Cruises has reintroduced its onboard mask mandate on three Alaska-based ships.

It comes after the line reinstated mask-wearing on Island Princess last week following a number of positive Covid tests amongst staff and guests.

 According to a Princess Cruises spokesperson, those who tested positive and their close contacts have been quarantined and are being monitored and cared for by the onboard medical team.

 

"We recently identified some positive Covid-19 cases among our guests and teammates onboard Island Princess," they added.

 

"Out of an abundance of caution, we will now be requiring guests to wear face masks while indoors at all times, except when eating or drinking or in their own staterooms."

 

Each of Princess’ ships follows the primary health protocols of the country or region they depart from at the start of their voyage. The line said it will continue to make "any necessary adjustments" as conditions warrant during future cruises.

 

The company has since reintroduced face coverings on Alaska cruises onboard Royal Princess, Majestic Princess and Grand Princess sailing from Whittier and Vancouver until further notice. Guests will be provided with a mask if needed.

 

A spokesperson for the line said: "In an abundance of caution masks are required in indoor locations on Alaska cruises aboard Royal Princess, Majestic Princess and Grand Princess sailing from Whittier and Vancouver until further notice.  Masks will be provided to guests if needed."

Virgin Voyages has delayed the launch of its third ship Resilient Lady

The vessel had been scheduled to operate from Athens from mid-August

The vessel has been scheduled to operate from Athens from mid-August but will now not launch until the second quarter of 2023.

 

Virgin Voyages said the delay at the yard in Genoa “was not anticipated”, adding: “Resilient Lady will remain in Genoa getting onboard work completed, hitting the high seas next spring.”

 

It added: “Virgin Voyages did not land on this decision lightly, and despite making tremendous strides alongside the cruise industry as a whole, the brand is not immune to the global challenges the world is facing. 

 

“This includes supply chain obstacles, a level of regional uncertainty for international travellers in countries in Eastern Europe, crewing challenges based on government regulations and restrictive Covid entry requirements back into the US.” 

 

Passengers and agents are due to be informed of refunds and compensation advice in the next few days.

 

This includes a 200% Future Voyage Credit (FVC) or a full refund of the amount paid, plus 25% FVC.

 

Those that choose the 200% FVC and rebook in 2022 will get the option of another free voyage, excluding taxes and fees. There will also be assisted with travel changes and penalties.

 

Agents will have their commission protected on funds already paid. 

Musica Marks MSC Cruises’ Full Return to Service

Musica Marks MSC Cruises’ Full Return to Service

A Chocolate Tribute to 'Return to FULL Service' on the MSC Virtuosa last week, Photo Credit SpaceJunkie2.

The MSC Musica is resuming service today in Italy, marking the return to revenue operations of the entire MSC Cruises fleet.

One of the first cruise lines to welcome guests back during the pandemic, MSC has been sailing since August 2020.

After months of limited operations in Europe, the brand has been gradually adding destinations and ships back into its active lineup for the past year.

With the Musica kicking off its summer program in the Eastern Mediterranean, all of the fleet’s 19 cruise vessels are now in service again.

Sailing from Monfalcone every Sunday, the 2006-built vessel will offer week-long cruises to the Greek Islands and Italy through November.

Passengers will also be able to board the ship in Bari before sailing to Santorini, Katakolon and Heraklion.

After completing its European deployment, the vessel is set to cross the Atlantic, ahead of a winter program in South America.

Starting in December, the vessel will serve the Argentinean market, with cruises to Brazil and Uruguay departing from the Port of Buenos Aires.

The MSC Musica originally entered service in 2006, introducing a series of four ships known as the Musica Class.

Built by the Chantiers de l’Atlantique shipyard in St. Nazaire, France, the 92,400-ton cruise ship can carry 2,550 passengers in double occupancy and features more than 236,800 square feet of common areas.

Among them are five different dining venues, including two main dining rooms and a Japanese speciality restaurant.

The vessel is also equipped with two outdoor pool decks, a large spa, a two-deck theatre, a mini-golf course, a nightclub, a casino, a cigar room and several lounges and bars.

As the second ship to resume service for MSC Cruises this month, the MSC Musica follows the MSC Orchestra.

After a winter season in South Africa, the vessel returned to Europe on June 4, kicking off a summer program in the Western Mediterranean.

Norwegian Reports Q4 2021 and Business Update

Norwegian Reports Q4 2021 and Business Update

Norwegian Cruise Line Holding today reported financial results for the fourth quarter and full-year ended December 31, 2021, and provided a business update.

“We launched our Great Cruise Comeback in late July 2021 and in five short months, the teams at Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises have restarted operations on 75% of our capacity, safely carrying over 230,000 guests and delivering the unique vacation experiences that our award-winning cruise brands are famous for,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings.

“These last few months have also had their share of challenges caused by the impacts from the Delta and Omicron COVID surges, but despite these challenges which were mostly out of our control, our booked position and pricing remain strong, particularly for the second half of 2022 and into 2023, demonstrating the strong fundamental demand for our cruise offerings.”

The company continues to execute the phased relaunch plans for its 28-ship fleet. By year-end 2021, the company had approximately 70% of its capacity operating, or 75% when including a vessel that had returned to service and subsequently paused due to the inoperability of its scheduled voyages in South Africa during the height of its Omicron surge. Norwegian said strong ticket pricing and onboard revenue spend drove positive contribution from the fleet that operated in the quarter. Occupancy in the fourth quarter of 2021 was 51.4% reflecting the company’s self-imposed occupancy limits, the effect of COVID-related booking cancellations and a significant capacity increase from the prior quarter.

As a result of Omicron-related disruptions, the Company now expects to have 85% of its capacity operating by the end of the first quarter of 2022 with the full fleet expected to be back in operation during the early part of the second quarter of 2022. In addition, the company expects to reach a critical inflexion point during the second quarter of 2022 with net cash provided by operating activities turning positive. Based on the current booked position and trajectory, the company expects to have a positive Adjusted Net Income1 for the second half of 2022.

Norwegian said that net booking volumes at the beginning of the fourth quarter of 2021 continued to demonstrate substantial week-over-week sequential growth after the slowdown in booking activity caused by the Delta variant of COVID-19.

Net booking volumes in the latter part of the fourth quarter of 2021 began to be negatively impacted by the Omicron variant of COVID-19, primarily for close-in voyages in the first and second quarters of 2022. In recent weeks, as the Omicron wave subsided, net booking trends have improved sequentially.

As a result, the company’s current cumulative booked position for the first half of 2022 is below the extraordinarily strong levels of 2019 at substantially higher prices even when including the dilutive impact of future cruise credits (FCCs), while the booked position for the second half, when the full fleet is expected to be back in operation, is in line with the comparable 2019 period and at higher prices, also including the impact of FCCs. Booked position for each quarter compared to the comparable quarter in 2019 improves sequentially through the year. Booking trends for 2023 demonstrate continued strong demand for sailings in the medium and long term with booked position and pricing meaningfully higher and at record levels when compared to bookings for 2020 in 2019.

Of note, the company's monthly average cash burn for the fourth quarter of 2021 was approximately $345 million, slightly below the prior estimate of approximately $350 million. Looking ahead, the company expects the first-quarter 2022 monthly average cash burn to increase to approximately $390 million driven by the continued phased relaunch of additional vessels. This cash burn rate does not include expected cash inflows from new and existing bookings or contributions from ships that have re-entered service.

“Momentum continues building as we approach 85% of our capacity expected to be in operation at the end of the first quarter. We are keenly focused on executing our financial plan on the path to our next significant milestone as we expect to achieve positive Operating Cash Flow in the second quarter,” said Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd. “We continue to be opportunistic in accessing the capital markets to optimize our capital structure by eliminating high-cost debt incurred during the crisis.”

Pride of America

The full Year 2021 Results

GAAP net loss was $(4.5) billion or EPS of $(12.33) compared to a net loss of $(4.0) billion or EPS of $(15.75) in the prior year. The Company reported Adjusted Net Loss of $(2.9) billion or Adjusted EPS of $(8.07) in 2021. This compares to Adjusted Net Loss and Adjusted EPS of $(2.2) billion and $(8.64), respectively, in 2020.

Total revenue decreased 49.4% to $0.6 billion in 2021 compared to $1.3 billion in 2020. The adverse impact on revenue was due to the suspension of all cruise voyages in March 2020 through the first half of 2021 and the phased relaunch of certain cruise voyages with ships initially operating at reduced occupancy levels in the second half of 2021 as a result of the COVID-19 pandemic, which resulted in a decrease in Capacity Days of 18.1%.

Total cruise operating expense decreased 5.0% in 2021 to $1.6 billion compared to $1.7 billion in 2020. In 2021, our cruise operating expenses prior to the resumption of cruise voyages were primarily related to crew costs, including salaries, food and other travel costs; fuel; and other ongoing costs such as insurance and ship maintenance, including Dry-dock expenses. The reduction in cruise operating expense in 2021 reflects lower direct costs, such as commissions, in the second half of 2021 due to fewer Capacity Days partially offset by increases in expenses related to our return to services, such as costs related to crew and passenger testing for COVID-19.

Fuel price per metric ton, net of hedges increased to $690 from $599 in 2020. The Company reported a fuel expense of $301.9 million in 2021.

Interest expense, net was $2.1 billion in 2021 compared to $482.3 million in 2020. The increase in 2021 primarily reflects losses on extinguishment of debt and debt modification costs of $1.4 billion related to the repurchase of certain exchangeable notes as well as additional debt outstanding at higher interest rates, partially offset by lower LIBOR. 2020 included losses on extinguishment of debt and debt modification costs of $27.8 million.

Other income (expense), net was income of $124.0 million in 2021 compared to the expense of $(33.6) million in 2020. In 2021, the income is primarily related to gains from derivatives not designated as hedges and foreign currency exchange.

Income tax expense was $5.3 million in 2021 compared to $12.5 million in 2020. In 2020, the tax expense is primarily due to a valuation allowance of $39.6 million recognized in the fourth quarter on certain net operating loss carryforwards partially offset by tax benefits generated by operating losses.

Fourth Quarter 2021 Results

GAAP net loss was $(1.6) billion or EPS of $(4.01) compared to a net loss of $(0.7) billion or EPS of $(2.51) in the prior year. The Company reported Adjusted Net Loss of $(765.0) million or Adjusted EPS of $(1.95) in 2021. This compares to Adjusted Net Loss and Adjusted EPS of $(683.8) million and $(2.33), respectively, in 2020.

Revenue increased to $487.4 million compared to $9.6 million in 2020 as cruise voyages resumed in the quarter.

Total cruise operating expense increased 246.7% in 2021 compared to 2020 as cruise voyages continued to resume in the quarter. In 2021, cruise operating expenses were primarily related to crew costs, including salaries, food and other travel costs as ships were prepared to return to service, fuel, costs related to health and safety protocols and other ongoing costs such as insurance and ship maintenance.

Fuel price per metric ton, net of hedges, increased to $737 from $574 in 2020. The Company reported a fuel expense of $125.9 million in the period.

Interest expense, net was $950.0 million in 2021 compared to $159.2 million in 2020. The increase in interest expense primarily reflects losses on extinguishment of debt and debt modification costs of $771.6 million related to the repurchase of certain exchangeable notes as well as additional debt outstanding at higher interest rates, partially offset by lower LIBOR.

Other income (expense), net was income of $66.5 million in 2021 compared to the expense of $(1.3) million in 2020. In 2021, the income is primarily related to gains from derivatives not designated as hedges and foreign currency exchange.