Fain says early cruises will be at reduced capacity

[39august]

Just watched the Fain Csnbc interview. Most of the answers dodged the questions, understandably as no hard and fast plans have been formulated yet. But he did state that early cruises would be at reduced capacity. The interviewer stated she had been on Oasis, so knew the challenge there. We are booked on a late Nov.-Dec. cruise on Reflection in a suite. This may be among those early cruises. I am wondering how X will limit the number of pax. I believe the ship is fairly well sold at this point.  My guess is that the most expensive cabins will be allowed and the least delayed and given some sort of incentive to more to a different cruise.

[jelayne]

At final payment there will be cancellations and if X is still has bookings above the reduced level they can stop taking bookings.  Then  are some that have made the decision not to sail for a number of reasons but are holding out to see if Celebrity cancels their cruise so that can get the 125% FCC. So if X doesn't cancel then those hoping for a 125% will cancel under CWC and get a FCC.  

 

If that doesn't get them down to the level then maybe some incentive to move to another sailing.

[Spif Barwunkel]

Makes sense that first several cruises will sail at reduced capacity. Best way to determine if other safety measures taken will indeed work, to some degree. We are booked on a January 2021 cruise and wonder if that will also be considered an early cruise, if it goes at all. If the ship is full, or close to it, you are probably right, those that sail will have spent more money on their cabins. Perhaps too, Captain's Club status could be a factor. Hopefully, whatever is deemed satisfactory by the powers-that-be, in order to once again float a boat somewhere, will be known by all, sooner rather than later.    

[mahdnc]

During Wed's earnings call, Richard Fain also said (full transcript😞

 

Richard D. Fain -- Chairman and Chief Executive Officer

"And Felicia, this is Richard, and I'll just comment on the process of returning to service. I think we don't expect that this is going to be that someday somebody blows a horn and all the ships start operating right away. We think that it will be a gradual start, a little bit like societies opening up gradually. And so we would imagine that we would start with smaller, with fewer ships and more likely to be more drive markets in the beginning, and it would then evolve and grow from there. I also think coming back to the earlier question, there's such big differences between what's happening in different countries, what's happening in the local society, what different mix of where the ships are and where they're going. So I also think that you'll see that high degree of variability depending on what area of the world you're talking about. But to answer your second question, we see that as a slow and gradual thing, not suddenly a lot of ships coming back in the market."

 

[osborne66]

The other way like the airlines use - remove reservations that came in last until they get to the percentage required - ie 50%. This way it is not based on cost but who booked and paid for their cruises last. I was in an African country a few years back and the flight was oversold - they decided that everybody who's surname started with an N - Z would be removed from the flight - that included me!!!!!!!

 

Scouser 

[gerelmx]

If the cruise is full. Does that mean that some passengers will be expelled from the cruise?  who? when?

[Fouremco]

1 hour ago, osborne66 said:

The other way like the airlines use - remove reservations that came in last until they get to the percentage required - ie 50%. This way it is not based on cost but who booked and paid for their cruises last. 

In normal times, that might be an option, but Celebrity will want to maximize profits and will start from the cheapest bookings and work their way up. Not only does that give them the highest initial profit, but it pretty much guarantees a higher overall level of onboard spending.

[upwarduk]

He also said at the start of the interview that he didn’t know when cruising would start again.

[DrivesLikeMario]

Sailing on a ship that's at only 50% capacity sounds good to me.  I just wonder how they'd make the decision to get rid of some of the people.  Would they take out every other cabin's passengers so there's more social distancing?  Start with the inside cabins?  Go with who booked last or what?  I bet there won't be a hard rule; I think it'll be a subjective decision.  My November and January cruises look pretty empty as of now.  I wonder if they'll close those off soon?

[Baron Barracuda]

If only 50% load factor then what level of staff?  Obviously need fewer cabin stewards and wait staff but will need additional servers in Oceanview.  Don't want long lines at bars or Cafe al Bacio.  Knowing X they'll certainly keep all the art auctioneers  

[ipeeinthepool]

2 hours ago, mahdnc said:

 

 I think we don't expect that this is going to be that someday somebody blows a horn and all the ships start operating right away. We think that it will be a gradual start, a little bit like societies opening up gradually. And so we would imagine that we would start with smaller, with fewer ships and more likely to be more drive markets in the beginning, and it would then evolve and grow from there. 

 

I guess, I'm not really sure that I understand what markets he's talking about.  Is Miami/Fort Lauderdale a drive market?  Can enough people drive to southern Florida to make it work?  The other choice would be New York/New Jersey and Baltimore (1 RCL ship).  Do you really want to restart cruising with people from the country's biggest Covid hotspot? Or maybe Galveston for RCL ships?  Do that many people really drive to Galveston?

Edited May 22, 2020 by ipeeinthepool

[DENIE]

We had a Reflection cruise to the America's booked for November 2020.  After giving a lot of thought and reading a lot of opinions, we decided to cancel that one since all we had invested was a minimal refundable deposit.  Just too much unknown.  We had fears that the lines will still be trying to figure this all out.

 

That said, we bumped our now additional budget into the Reflection August 2021 Baltic cruise (booked on another cruise) and upgraded our accommodations, and invited my wife's sister to join us (she was going to be on the America's cruise as well). A lot remains to be seen how this all shakes out, but we felt more comfortable that things may be figured out by this time! 🙂

[Hawkstar33]

2 hours ago, ipeeinthepool said:

 

I guess, I'm not really sure that I understand what markets he's talking about.  Is Miami/Fort Lauderdale a drive market?  Can enough people drive to southern Florida to make it work?  The other choice would be New York/New Jersey and Baltimore (1 RCL ship).  Do you really want to restart cruising with people from the country's biggest Covid hotspot? Or maybe Galveston for RCL ships?  Do that many people really drive to Galveston?

Us covid hotspotters from Long Island are gonna miss you  when our ship pulls out.  Not everyone got sick.   But I do pray for you folks in Michigan with the dam disaster

 

 

[ipeeinthepool]

53 minutes ago, Hawkstar33 said:

Us covid hotspotters from Long Island are gonna miss you  when our ship pulls out.  Not everyone got sick.   But I do pray for you folks in Michigan with the dam disaster

 

 

 

Thanks for the support on the dam disaster. 

 

When the shipload of covid hotspotters pulls out, I hope you can find a port that will let you dock.

[upwarduk]

7 hours ago, upwarduk said:

He also said at the start of the interview that he didn’t know when cruising would start again.

When asked about return on August 1st:

”That’s a heavy responsibility,” Fain said of making sure that every precaution is being taken to guarantee the health and safety of guests and crew members. “The one thing we won’t do is rush to judgment on that. We will not go back before we’re comfortable.”

[excitedofharpenden]

You can watch the interview here.  I actually thought he came across much better than his two previous addresses to travel partners.  No false promises and empathic I thought. 

 

https://www.cnbc.com/video/2020/05/21/watch-cnbcs-full-interview-with-royal-caribbean-ceo-richard-fain.html?__source=sharebar|facebook&par=sharebar

 

Phil

[markyb]

Thank you for posting the link as we don’t get cruise industry content in UK business news do we. I also thought that he came across well considering all of his current challenges.

 

Mark

[BigAl94]

How can you ensure social distancing in the corridors to staterooms?

[ipeeinthepool]

2 minutes ago, BigAl94 said:

How can you ensure social distancing in the corridors to staterooms?

 

One-way corridors, just like grocery stores in the US

[jojo1966]

genuine question - do people really think that you can catch the virus just  by walking past someone in the space of 2 seconds?????

[ipeeinthepool]

Just now, jojo1966 said:

genuine question - do people really think that you can catch the virus just  by walking past someone in the space of 2 seconds?????

 

Maybe.  If someone coughs or sneezes as you walk past each other.  Timing is everything.

[yorky]

1 minute ago, jojo1966 said:

genuine question - do people really think that you can catch the virus just  by walking past someone in the space of 2 seconds?????

Possible but highly unlikely.

[verizon]

36 minutes ago, BigAl94 said:

How can you ensure social distancing in the corridors to staterooms?

Good question.

Celebrity can convert those Aft section cabins to premium cabins and make the corridors One Way Street on the Solstice class ships.😀

Another way to generate revenues.

[jelayne]

I just read an article about how the Las Vegas strip is working on a slow opening.  Things like limiting casino capacity to 50%, elevators to rooms carry 4 passengers,  4 players at roulette, 6 at craps, 3 at table games, dividers between dealer & player and between players.  Nightclubs, dayclubs, large venues and buffets will remain closed.  
The Bellagio  hotel will book 1200 of the 4,000 rooms (30%).  

The use of cell phones for check-in, room key and reading menus will be encouraged by some resorts.

The Wynn Resorts will use thermal imaging at every entrance to intercept those with a fever. 

I think when cruising starts we will see similar changes.

[Vagabond Knight]

I have no idea what they're going to do to reduce capacity if attrition due to guest cancellations doesn't work, but I would hope that some preference is given to people who've rebooked with FCC due to cancelled cruises.  They've already been disappointed/inconvenienced once, and they may have limited opportunities to use their credit.