Impact of COVID-19 on the Global Cruise Industry: Hot Topic Brief - Issue 5

Impact of COVID-19 on the Global Cruise Industry: Hot Topic Brief - Issue 5

  • May 2020 •
  • 23 pages •
  • Report ID: 5909083 •
  • Format: PDF
Impact of COVID-19 on the Global Cruise Industry: Hot Topic Brief - Issue 5

Summary
COVID-19, commonly referred to as the Coronavirus, is dominating headlines the world over. The travel & tourism sector is suffering significant disruption and the cruise industry is being greatly impacted.

Key Highlights
- Royal Caribbean has provided a business update. Royal Caribbean Cruises Ltd has reported a net loss of US$1.4 billion for the first quarter of 2020. The company expects non-operating expenses of between $590 million and $610 million for the remainder of the year. RCCL estimates its cash burn to be, on average, in the range of approximately $250 million to $275 million per month while operations are suspended, highlighting the significant financial burden caused by COVID-19. The company said its future focus now turns to four key principles: ensuring the safety of guests and crew, proactively enhancing liquidity, protecting the Company’s brands, and defining and preparing for a "new normal.“
- Cruise suspensions are being extended. Virgin Voyages has further delayed the start of cruises until the autumn with sailings scheduled before October 16th will be cancelled. Meanwhile, Norwegian Cruise Line Holdings has extended its suspension of cruises across its three brands’ fleets until July 31st. Royal Caribbean has also extended suspensions to July 31st but remains confident that cruises will return to the Asian and European markets first.
- Demand is beginning to increase. Cruise & Maritime Voyages (CMV) has reported there is increasing demand for no-fly cruises from UK ports in 2021. In particular, Northern Lights itineraries are attracting interest which will be welcome news for Scandinavian and Scottish tourism boards. There seems to still be a demand for cruises, however, companies may have to come up with unique ways of attracting customers as the market begins to saturate due to the inevitable drop in passenger numbers.

Scope
- This report provides insight into the current state of play, offers a look at potential future scenarios and assesses the actions that cruise lines can take to mitigate the impact of COVID-19.

Reasons to Buy
- Gain an overview of the current global COVID-19 situation
- Understand the impact that COVID-19 is having on the industry
- Explore future industry scenarios
- Assess possible mitigating actions
- Compare key industry players’ actions
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