Another sad cruise line update
Hit hard the cruise industry is struggling to survive. Five Cruise line are already over and out - done! More will have to file for bankruptcy in the coming month. Hundreds of ships are docked or on achor all over the world.
"Four other cruise lines — all Europe-based — have announced in recent months that they are going out of business or filing for the equivalent of bankruptcy due to financial troubles related to the coronavirus outbreak. Like Blount Small Ship Adventures, most are very small lines."
These companies are FTI (German), Birka (Swedish) and Pullmantur (Spain), as well as Cruise & Maritime Voyages (UK).
Cruise Law News 24.08.2020
Not paying is not a good sign
Some cruise line and even the big ones like Norwegian are surrounded by rumors that they can’t pay their creditors anymore. Some get loans for a while but if business continues they way it looks right now this money won’t be enough.
Talk of a possible collapse of Crystal Cruises was swirling on Thursday among travel agents and cruisers after the line’s parent company, Hong Kong-based Genting Hong Kong, disclosed that it had stopped making payments to creditors. The company is contending with a sharp loss of revenue due to the coronavirus crisis.
Queen Elizabeth cancels all World cruises until 2022
The first long term effects can be seen when companies like Cunard write of world cruises for the complete next year.
One of the world’s most iconic cruise vessels, Cunard Line’s Queen Mary 2, won’t sail again until at least April 18, 2021.
Neither will its sister, Queen Victoria, which will be on hiatus even longer — through May 16, 2021. A third Cunard vessel, Queen Elizabeth, won’t operate again until March 25, 2021.
That was the word early Tuesday from Cunard, which is making major coronavirus-related changes to its schedule for the coming year in a move that is likely to shock some of the brand’s biggest fans.
In addition to the long-term pause to its operations, the U.K.-based line said it would pull Queen Elizabeth back from its usual around-the-world itineraries for nearly all of 2021. Cunard instead will keep the vessel close to its home base in the U.K.
Carnival gets rid of 15 ships and the scrapyards around the world are getting busy. Some of the ships on the way to the scrapyard are Carnival Inspiration, Pullmantour Monarch, Carnival Fantasy, Orient Queen, Pullmantour Sovereign. And the list is getting longer.
River Cruising is not much better of.
The few companies that operate on European rivers are struggling to break even. Only German guests are filling ships up to the allowed (limited) numbers others are happy to operate on 50%. Closed ports, limitations for loading, embarkation and disembarkation as well as thousands of different rules ( state by state, province by province, city by city) are adding to the cost. All the different rules put a spotlight on the incompetence of politicians on local and government level. The covid 19 regulation of the city Regensburg state that the Sundeck of ships has to be closed after 22:00 at night. What does that have to do with Corona?
Empty cruise ships on achor - Bay of Manila
Interesting times - let's stay healthy and be positive.
Author: Stephan Busch, Academic Director at the State University for the Humanities Moscow RGGU, Faculty of Tourism & Hospitality and the Swiss International University earned his Master Certificate in Hospitality Management from Cornell University, USA. He has a diverse experience in launching operations, business development and service training- for hotel and cruise companies in Asia, Europe, Canada and Russia.