0:00
you're about to discover six signs that
0:03
strongly suggests that cruising is not
0:06
starting up anytime soon I'm Gary
0:10
Bembridge this is another of my cruising
0:12
tips for travelers I want to talk about
0:13
six signs that I've seen that I think
0:15
suggest really strongly that cruising is
0:18
not going to be starting up soon despite
0:20
what you're seeing in terms of when
0:22
cruise lines the same they're going to
0:23
be starting up again and in fact even
0:25
when you can be booking cruises not that
0:27
far out I believe very strongly there
0:29
are a couple of things that show that
0:30
this is just not going to happen despite
0:33
other people hoping that it will do at
0:36
the moment cruise lines are canceling
0:37
roughly month by month and that's really
0:40
not to do with when they think cruising
0:42
can start again but to do with managing
0:44
the whole process of cancellations and
0:47
every time they cancel there's an
0:48
enormous impact bear in mind is roughly
0:51
about 600,000 people normally on a
0:54
cruise every single week so every time
0:55
they cancel a couple of weeks that's an
0:58
enormous amount of money that's likely
0:59
to leave the corporation's it's also a
1:02
huge complex task so that's really why
1:04
they're doing it so let's take a look at
1:06
the six signs that I believe show really
1:09
strongly that cruising is not going to
1:11
be starting up for quite some time
1:12
starting with this one first of all the
1:16
cruise line executives are actually
1:18
saying as much they're basically saying
1:20
that cruising is not starting up soon in
1:23
all the interviews with the CEOs and the
1:25
chairman's of the cruise lines what
1:27
they're saying very clearly is they have
1:29
no idea when cruising is going to be
1:31
starting up again they have no idea when
1:33
it's going to be allowed they don't know
1:34
how many ships are gonna be involved
1:36
they don't know what regions are gonna
1:37
be involved they don't know what ports
1:38
are gonna be open they don't know what
1:40
the protocols are they just don't know
1:42
and there's a couple of key indicators
1:44
very specifically that I want to talk
1:46
about so if you actually look online
1:48
richard fain is the chairman and CEO of
1:51
royal caribbean he has a youtube channel
1:53
which is created which is called loyal
1:55
to you always where he posts updates and
1:57
in those updates he does talk about just
2:00
not really knowing how soon and when
2:02
quizzing will start up again so that's
2:04
of course different to a date that gets
2:06
published as they cancel cruises
2:07
secondly the time of recording there was
2:09
an interview with the CEO of the
2:11
Carnival Corporation so they
2:13
after carnival Cunard Princess Holland
2:17
America Seaborn Aida they basically have
2:21
50% market share of everybody who goes
2:23
cruising is on a carnival brand in the
2:25
recent interview Arnold Donald the CEO
2:28
basically said that he has no idea
2:30
increasing will start up again and a lot
2:32
of that's going to depend on when
2:33
they're allowed to start up again and
2:35
also when people I want to start
2:37
cruising again the CEO of Norwegian
2:39
Cruise Line Frank Del Rio as a Norwegian
2:41
they look after Norwegian Oceania region
2:44
seven seas again he in a recent
2:47
statement which was around when they had
2:49
to post an update on what's happening
2:51
with them financially he again said
2:53
there's a complete lack of clarity
2:55
around when crusing will be ready and
2:57
able and willing to start again even
3:00
closer to home to where I am at the
3:01
moment in the UK the managing director
3:03
of Fred Olsen cruises Peter dear he
3:05
again said we have no idea when the
3:07
virus is going to be in a situation when
3:09
the governments are going to allow us to
3:10
cruise again and so what they're
3:12
actually doing is they're don't even
3:13
announce changes they're just constantly
3:15
on a rolling basis out canceling cruises
3:18
30 days ahead so it's very clear that
3:20
the heads of the big cruising
3:22
corporations are saying they do not know
3:25
when cruising is going to start again so
3:27
those dates you see online for
3:28
resumption of service is literally a
3:31
placeholder it's helping them manage
3:34
expectations and certainly more
3:35
important managing the whole process of
3:36
cancellations following on for that the
3:39
second key sign is actually what
3:41
physically the cruise lines are doing
3:43
another lot of this stuff gets a large
3:45
amount of publicity but there's three
3:47
critical things that the cruise lines
3:48
are doing that really indicate that
3:50
they're not planning to be cruising soon
3:51
first of all all of the big corporations
3:54
are raising an enormous amount of money
3:56
now that's all coming from the private
3:59
sector because governments are not
4:01
providing in bailout money to Cruise
4:03
Lines because of the fact that they are
4:05
registered as flags of convenience in
4:07
kind of tax efficient tax haven centers
4:10
depending on what your views of those
4:11
are so they're not getting government
4:14
help they're going out and raising an
4:15
enormous amounts of money so if you look
4:16
at recent filings which they have to do
4:19
to the stock exchange in the US where
4:21
most of these corporations have are
4:22
listed you'll find that they're raising
4:25
billions of dollars to cover them for an
4:28
extended shutdown and depending on which
4:31
reports you'll see and some of the
4:32
analyst reports I've seen they're
4:34
talking about Cruise Lines having made
4:36
sure they can cover at least into next
4:39
year having no revenue so they've
4:41
structuring financially on the basis
4:43
they're gonna have no revenue so that's
4:45
one key indicator but probably even more
4:47
importantly is secondly they are
4:49
starting to move many of their ships
4:51
into what's known as a cold lay up now
4:54
cold lay up is when they basically turn
4:58
down a ship so they send all
5:00
non-essential crew home they've actually
5:01
keep maintenance crew engineering crew a
5:03
lot of the machineries shut down and
5:05
they're basically basically ticking over
5:07
at a really low level once you go into
5:09
cold lay up that takes a long time
5:12
there's a good couple of weeks to think
5:13
if the ships back and ready just from a
5:16
engineering point of view from a
5:18
maintenance point of view and then of
5:19
course actually from a crew point of
5:22
view that leads me on to the third thing
5:23
they're doing is all of the Cruise Lines
5:26
are doing in a massive massive move of
5:30
sending all of their crew home now
5:33
because of the restrictions in the US
5:34
when most these ships were is they can't
5:37
take them off the ship and fly them home
5:39
so all of the major cruise lines are
5:41
moving crew 'enter ships and sailing
5:43
them home so ships are heading towards
5:45
Europe they're heading towards Asia and
5:47
they're taking crew home so they're
5:50
basically sending crew home and there's
5:51
no plans to bring that crew back so if
5:54
there are plans to start selling in a
5:55
couple of weeks time or even a month's
5:57
time they would not be basically
5:59
stripping the ships of the ability to
6:01
enter service quickly and they certainly
6:03
would be keeping the crew onboard so
6:06
this very key things in place showing
6:09
that cruising is not able to start or
6:11
not plan to start quickly and easily
6:13
the third key sign is that there are no
6:16
key agreements yet on what the protocols
6:19
are going to be for who can go onboard
6:21
what the screening protocols are going
6:23
to be what the safety protocol is going
6:24
to be what the actual procedures are
6:26
going to be onboard so the whole
6:28
structure and processes and facilities
6:31
and the way that the onboard experience
6:32
is going to work has not been agreed and
6:34
creasing will not be allowed to start
6:35
until that's been agreed now in the US
6:38
which is really driving a
6:39
this the CDC the Center for Disease
6:41
Control has basically set down a remit
6:44
to the cruising industry where they're
6:45
talking about screening testing change
6:48
of the medical facilities to become much
6:50
more hospital like procedures in terms
6:53
of if outbreaks happen and having a
6:55
hospital area a quarantine area which
6:58
could be separate ships there's lots and
7:00
lots of discussions around medical
7:02
certificates for vulnerable and 70-plus
7:05
passengers none of that has been agreed
7:07
there's been lots of discussions around
7:08
what that could look like but has not
7:10
been agreed until those procedures are
7:12
agreed and signed off the no sell orders
7:14
are not going to be lifted and that
7:16
hasn't been agreed and if you look at
7:17
the different submissions and what the
7:19
different lines are saying they're all
7:20
saying slightly different things now of
7:22
course behind the scenes I'm sure
7:23
through clear the cruise line
7:24
Association they're having one point of
7:27
view on one perspective but the
7:28
procedures are not agreed and there is
7:31
some structural and financial and
7:33
resource and people issues around some
7:36
of these changes around having separate
7:38
hospital ships around creating more
7:41
medical centers which have the ability
7:44
to have ventilators intensive care units
7:47
and that has not been agreed whether
7:49
it's structural changes that have to
7:51
mean to the ship or just admin changes
7:53
that has not been agreed and that is a
7:55
key sign then until it's agreed cruising
7:58
will not be able to get back into
7:59
service the next key sign I believe very
8:02
strongly is showing that cruising
8:04
something to start soon is not only is
8:06
cruising not on the agenda but travel
8:09
generally is not on the agenda what
8:11
we're seeing is countries are starting
8:12
to look at easing lockdowns moving out
8:15
of the very strict lockdown but when you
8:17
look at what's happening their process
8:18
it's very tentative it's very slow it's
8:20
very cautious so not little shops are
8:23
opening in some countries headrests is
8:25
opening but what we're seeing is is a
8:27
very key message that social distancing
8:29
is gonna be a fundamental part of that
8:31
and there's going to be restrictions on
8:34
gatherings of people there's talking
8:36
about you know sports being played
8:38
behind closed doors without crowds even
8:40
talking about you know clubs and bars
8:42
being really restricted restaurants
8:45
being restricted anything where people
8:46
are coming together it's highly unlikely
8:47
that we're gonna see a sign off quite
8:50
soon and that you know large groups of
8:53
cruise ships when they can't even go to
8:55
concert venues or other venues or select
8:57
there of course in terms of social
8:59
distancing is how you can imagine that
9:00
on a cruise ship it's hot enough even on
9:03
land but when you've got big
9:04
concentrations of people and that still
9:06
has to be really worked through before
9:08
cruising can start what so importantly
9:10
linked to that is travel generally is
9:12
not opening we're already seeing that
9:15
the airlines are constantly postponing
9:18
and indicating that they don't believe
9:19
they're going to be running full
9:20
services the airline industry of course
9:22
is really important because a lot of
9:24
people will be flying into ports whether
9:25
that's cross border or even an internee
9:27
to get to the cruise lines and onto
9:31
so that infrastructure is not up and
9:32
running it's gonna be hard for cruisers
9:34
to start up until that whole
9:35
infrastructure is in place and even in
9:37
the airline industry they can't even
9:38
agree yet what the process is gonna be
9:40
for people boarding planes so the stores
9:43
are discussion around what those testing
9:45
or screening protocols are going to be
9:47
what we're also seeing many tourist
9:48
ministers across the globe are basically
9:52
indicating to people they shouldn't
9:53
really expect to be doing cross-border
9:55
travel in during this summer perhaps
9:58
even into the late part of the year
10:01
they're indicating that there may be
10:02
some potential to do more domestic
10:05
travel within a country which can be
10:07
more controlled so it's really hard to
10:09
see that cruising and travel generally
10:12
is really going to be unlocking anytime
10:14
soon also very interesting point is if
10:17
you think in the run-up to the shutdown
10:18
there was very strong restrictions on
10:20
movement of people around the world or
10:22
even boarding things like aeroplanes or
10:25
cruise ships where at that time they
10:28
were banning people who'd been to or
10:30
from China from South Korea from Vietnam
10:33
from Cambodia now if you look many
10:35
months later the big big areas that have
10:39
had huge issues with the virus
10:41
so in the United States in North America
10:45
those are big concentrations where the
10:47
virus has had a huge effect so it's also
10:50
very likely that you might find those
10:51
restrictions on letting people from
10:53
those countries move around and join the
10:55
cruisers so that is also a really
10:58
fundamental point is where they're
10:59
actually the key heart of cruising
11:01
passengers aren't allowed to move around
11:03
and I have seen some interviews with
11:04
some of the river cruising people in
11:06
Europe saying one of the
11:06
big challenges they think in starting
11:09
river cruising again is the bulk of
11:10
their passengers come from North America
11:12
but it's very likely that the borders in
11:14
Europe are going to be closed to people
11:15
coming from North America for quite a
11:17
long time sony towards the end of the
11:20
year the next key hurdle or sign that
11:22
cruising is going to struggle to start
11:24
anytime soon is this still a lot of
11:26
hostility and our political pressure on
11:28
the whole era of cruising so if you look
11:29
in Australia they started criminal
11:31
investigations into the Ruby Princess
11:33
and what happened around that whole
11:36
process of bringing over nineteen into
11:38
Australia we've seen a lot of hostility
11:40
still from the CDC in the u.s. which is
11:42
of course it's negotiating with the
11:44
cruise lines he looks on the statements
11:45
from the group within there that looks
11:48
after the cruising industry they've been
11:50
pretty hostile towards cruising still
11:52
see increasing it as a major challenge a
11:55
major issue in terms of keeping the
11:57
virus under control and spreading the
11:58
virus so there's a lot of hostility from
12:00
the sort of authorities that need to
12:01
sign off cruising starting and there's
12:03
no sign of that easing yet and I do
12:05
think the cruising is going to be low on
12:07
their priorities in terms of getting
12:08
that moving again and of course cruising
12:10
can't start until they've got all of
12:12
those authorities on side another key
12:14
sign is that despite all the excitement
12:16
of sitting with people like me and other
12:17
people to follow the channel and have
12:19
enthusiasm for cruising overall there's
12:22
not a huge energy and push for cruising
12:24
to start again of course those of us who
12:26
love cruising we have high energy and
12:28
interest in it starting but if you look
12:30
at some of the the stats for example in
12:32
some of the recent filings we've seen
12:34
that over fifty percent of people whose
12:36
cruises have been cancelled want their
12:38
money back they're not taking future
12:40
cruise credits which means a big chunk
12:41
of people are actually saying I want my
12:43
money I'm not preparing future cruise
12:45
credit because I'm not sure what I'm
12:46
going to be doing again the other thing
12:48
we're seeing is all the cruise lines in
12:50
their financial statements are talking
12:53
about 2020 being very very very soft in
12:56
terms of cruising lots people can't
12:58
sleep cruising as they can or shift
13:00
increasing when we look at next year
13:02
although the buzz has been around all
13:04
bookings are very strong when you look
13:05
at the data again through those
13:07
financial submissions is actually it's
13:09
pretty flat and what we're seeing is I
13:12
think quite a big issue because if you
13:14
think about the amount of people that
13:15
have future cruise credit even with the
13:17
50% of people taking it if they're
13:20
20:21 and it's pretty flat you there are
13:23
still signs that there's not a huge
13:24
amount of energy yet for a broader
13:26
perspective evils to give out to
13:28
cruising and one of things that the
13:29
cruise line CEOs have said linking back
13:31
to my first point is until the people
13:34
and public are really keen to get back
13:36
to cruising the way the cruising comes
13:38
back is going to be limited because they
13:40
can't actually go out all guns blazing
13:43
with lots of ships lots of regions if
13:45
there's not a huge amount of people who
13:47
want to go cruising there's a whole
13:48
bunch of signs out there that cruising
13:51
is not going to start for some time so
13:53
even if you get excited and you see the
13:56
new announcements of dates for a month
13:58
time about cruising started I think you
14:00
need to be extremely cautious because I
14:02
think that it's very unlikely that
14:04
cruising is going to start quickly of
14:06
course I may be proven wrong and a lot
14:07
of these things will be solved and
14:08
things will start moving quickly but
14:10
those are the signs that I see I have
14:12
loads more videos with lots of tips
14:15
advice thoughts about cruising and so I
14:17
need you watch another one of those