Carnival (CCL) extends shutdown in operations to comply with CDC protocols


In an attempt to comply with guidelines issued by the U.S. Centers for Disease Control and Prevention (CDC), Carnival Corporation & Plc CCL has recently announced the extension of the trip suspension for Holland America Line and Princess Cruises until April 30 and May 14, respectively. Earlier, cruise lines were suspended until March 31, 2021.

Canceled trips for Holland America Line include departures from Alaska through mid-May, the Mediterranean until early June, and some trips from Canada / New England. For Princess Cruises, cancellations include sailing in the Caribbean, the California coast, along with cruises to Alaska and Europe.

In this regard, Jan Swartz, President of Princess Cruises, stated: “We continue to prepare our ships for our return to service and look forward to seeing our guests on board again to create summer memories.”

However, cruise lines offer Future Cruise Credits (FCC) for your canceled trips. For Holland America Line, customers are entitled to 125% of future cruise credits depending on the mode of payment. For Princess Cruises, guests are entitled to a 100% FCC refund along with an additional 25% (non-refundable) of the amount paid. FCCs can be used to book any trip (subject to availability) with departure until December 31, 2022. However, guests can also get a refund upon request.

Reserve trends for 2021

The cruise industry is stalled by the coronavirus-induced crisis. The pandemic affects Carnival’s global operations and reserves. However, it cannot yet predict the return of the entire fleet to normal operations.

However, the company claimed that its accumulated advanced reserves for the second half of 2021, currently available for sale, are at the upper end of the historical range. However, the prices of these reserves have dropped by half digits compared to the second half of 2019 on a comparable basis. This reflects the effect that future cruise ship credits previously canceled apply.

The story goes on

Price performance

In terms of price performance, Carnival shares have gained 30.7% in the last three months, compared to 22% growth in the industry. In particular, the company is witnessing improvements in ticket prices for its US and EAA brands, with strong improvements in ticket prices in its deployment in the Caribbean. In addition, he is optimistic about his innovations that include Ocean Medallion, PlayOcean and OceanView. These new offerings are expected to accelerate and expand participation, thus improving the customer experience. This, along with the start of vaccine deployment, is likely to increase investor sentiment. In addition, earnings estimates for 2021 have increased over the past 30 days.

Carnival: which shares space with Norwegian Cruise Line Holdings Ltd. NCLH i Royal Caribbean Group RCL in the Zacks leisure and recreation industry – currently ranks # 3 for Zacks (wait).

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