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I'm Gary Bainbridge this is the fourth
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in my series of questions and answers
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around the whole cruisin shutdown and
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thanks for everybody who sent in
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questions in this particular episode I'm
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gonna focus on some very frequently
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asked questions that I'm getting one of
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which is around insurance the others
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around what happens if you make a
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selection or you're postponed accrues
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and then the Cruise Lines cancels also
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I'm going to talk a little bit about
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what's happening with new ships and what
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to expect and then very importantly I'm
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getting ocelot is how long do I think
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the shutdown is going to go for so let's
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start first of all with insurance I've
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been getting loads and loads of
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questions about insurance I'm certainly
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not a financial expert I the only thing
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I would say that I have found also from
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my own experience and also the
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experiences that people are having
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existing travel insurance and also
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certainly new policies do not seem to be
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covering the whole pandemic situation so
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if you want to chop and change your
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cruise cancel cruise because of the
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whole thing that's going on at the
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moment you like to find that your
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insurance will not cover that and pretty
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much seeing that if you want to make
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changes or you want to make claims
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specifically related to the whole thing
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that's going on at the moment you're
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probably going to find your insurance
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policy is not applicable the critical
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thing I would say is and I've said it in
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all the videos so far is the best thing
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you can possibly do is hold on and wait
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until the cruise line cancels because
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once the cruise line cancels most of
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them will offer cash as an option there
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are from much more generous terms in
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terms of extra onboard credit or various
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incentives so wait as long as you can
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hold your nerve if you possibly can that
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leads me on to the next point a lot of
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people have contacted me saying what
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they've done is they've got very nervous
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about travel they've got red jittery or
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parts of their group they're traveling
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with have got kind of nervous and
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they've gone in and taken the offer we
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can you know chop and change and cancel
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without a penalty and they've been given
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some sort of future cruise credit then
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what's happened as we've seen in the
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last week that I've been recording this
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is a cruise lines have then gone and
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canceled cruises for a whole nother
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month and they've offered much better
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once you've actually made a decision
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once you've got a effectively
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new arrangement with the cruise line
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they will not give you those added perks
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if they cancel the cruise you're on and
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some people contact me saying they
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literally they decided to take the new
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offer a day later the cruise line
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cancelled their cruise and they didn't
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offer them the better terms if you can
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hold your nerve and wait until cruises
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are canceled the other thing which is
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also sort of linked to that as a lot of
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people have said you know they've got
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perhaps cruises coming up in a couple of
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months time you know 60 to 90 days time
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should they pay their fine events
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because they worried about losing their
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deposits but they also don't want to pay
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in and pay final balances my point of
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view on that is if you have any idea or
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concern that you're not going to do a
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cruise is don't pay your final balance
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except you're gonna move your cruise
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into next year whatever but all of the
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Cruise Lines are offering that chance to
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move cruises with no penalty take that
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option now if you can now some cruise
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lines are ending that to the end of
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August at the moment some are doing to
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the end of September some of them are
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doing it any time this year but you have
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the opportunity to move your cruise and
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certainly if you're nervous about paying
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a final deposit and you're wondering
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what's going to happen with that you
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definitely shouldn't be doing that that
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leads me onto the question of course and
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the decision that everyone has to make
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is how long is the shutdown going to go
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on for at the time of recording this all
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the cruise lines had moved their cruises
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into the middle of May and the dates
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slightly differ the cruise lines had
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also started to announce that they
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Alaska season was not going to start
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until July because Canada's closed all
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their ports until the end of June so you
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then have to take a decision around when
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you think cruising's going to start up
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again my personal view is it's a long
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way off so although they've moved it to
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may I do think that the cruise lines
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what they're currently working on is a
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month by month basis that's partly
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because as we know everything's so
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uncertain at the moment also when they
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do cancel cruises for a month if you
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consider they've got you know weekly
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cruises going they have ships of two
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thousand four thousand five thousand
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people whole process of handling the
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volume of chops and changes and refunds
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so going month to month is what they're
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doing why do I think that the shutdown
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is going to last for much longer well
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first of all you need to be ramadi if
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not really the cruise lines decision
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when cruising starts again that is
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really going to be determined by
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government and government agencies so
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you're gonna need government agencies to
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agree to open ports for travels they're
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also going to decide that ports are
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going to be open for embarkation and
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disembarkation also you need in the
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places that cruisers are going to go to
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you need the ports to be open at this
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point in time it's hard to see there's
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going to be a lot of enthusiasm for
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opening ports early we've already seen
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as I mentioned earlier Canada's closed
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their ports already quite a while ago to
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July New Zealand's close into July
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Australia in the last week have said
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they're not going to have any ships
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until at least in the middle of June and
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all of these places are still rare
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locked down it's it's hard to see
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governments and agencies actually
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releasing that and opening up really
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early particularly in some countries
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where we talking about lock downs or
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severe restrictions even domestically
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and in your town and your home lasting
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and spreading through to June another
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couple of big indicators I think we've
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seen is from the cruise lines themselves
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in the last couple of days before I
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recorded this Carnival went out to the
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markets to raise four billion dollars to
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help with liquidity of him in the last
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video if you watch that I did talk about
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how they we're not going to get a
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bailout and maybe they wouldn't have to
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go out to the private sector they've
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done that and they're looking to raise
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four billion that four billion if you
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look at the submission they've made is
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to help cover them right through for up
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to and into next year at least in terms
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they've also in that filing that they're
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due for I think it's the SEC in the US
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there's a couple of really telling
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things they make it very clear there
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they have no idea about when governments
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are likely to lift restrictions secondly
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they have no idea at this point in time
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about what requirements will be made for
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screening passengers on board procedures
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and other restrictions that may come in
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place they also made it pretty clear
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that there's going to be a combination
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over the next couple of weeks and months
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of ships they keep ready and active to
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go into service and other ships that
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they're going to go into pretty much a
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real shutdown and very skeleton crew so
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they're going to have indicated already
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because the cost of running each ship
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for a month and keeping you're ready to
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go is one or two million dollars so
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they're going to try and minimize some
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some of the ships are gonna come out of
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service it sounds like also if we look
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at some other cruise line so for example
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saga here in the UK has indicated
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they've all you look to planning where
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they may have no cruising going right
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through for the next six months or so
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based on where they think the government
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may or may not end up letting travel
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start again we need to bear in mind that
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also there is a lot of restrictions
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heading into this shutdown around
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cruising if you remember very
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specifically most of the major
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governments I think the US the UK
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Australia so the big markets linked to
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cruising they all made it clear that
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people over 70 shouldn't go on cruises
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at all and that advice is still in place
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we have no idea and that's going to come
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off but certainly in if I look at the UK
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here you know the advice is still for
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people to stay at home if you're over 70
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or in the borough vulnerable Academy
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stood at least June at the moment that
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may change it make it shorter make it
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longer it's hard to see them lifting
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that restriction on people certainly 70
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plus until there's more immunity to
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those vaccines so it's hard to see those
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restrictions lifting quite quickly ports
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opening travel advisory opening Cruise
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Lines being ready to go Airlines ready
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to move passengers about so my sense is
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that it's going to last for longer and I
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think definitely any longer than the May
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period things gonna be very very
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challenging so that's one of the things
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I'm saying is if you can hold on a wait
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but if you're pretty sure that you are
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going to want to cruise you know at
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least push it to the later in the year
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maybe push it into next year if you're
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worried about that deadline coming to
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pay your final balance you probably
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don't want to be paying off for final
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balance at this point in time I'm
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guessing pretty sure with the amount of
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capacity that's going to be available
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which is again what Carnival Corporation
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referred to that they expecting lots of
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capacity people be slow to come back you
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if you want if it opens up much earlier
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your croutons are going to be very very
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happy for you to pull bookings forward
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that's my that's my view so certainly I
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think that we're looking at a longer
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period before Cruise is going to be able
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to start up again and I think the cruise
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lines are indicating that certainly
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they're now doing a month-to-month basis
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and I guess we're all living pretty much
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a month-to-month week to week base to
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see what's going to happen
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I've had a lot of questions also
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therefore linked out about what do I
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think is going to happen with river
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cruising my message on river cruising is
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pretty much the same and the advantage
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that river cruising companies have in my
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view is they're used to closing down for
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a couple of months a year so they close
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down at the end of the season last year
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they put all their ships into storage
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the crew go home so their running costs
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are pretty low obviously have lots of
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fixed costs with head office etc but
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their ships already kind of storage
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closed down and shut down and so they
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have perhaps less difficulty because
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they don't have to shut down ships as
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ocean do they have much more time to
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perhaps think about it and go up and
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running some of the cruise lines have
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already pushed that into July like
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Avalon many of them are now talking into
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I again think that we will see river
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cruising starting up at a much slower
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pace and much later in the year as well
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so I think river cruising in Europe if
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you look at what's happening at some of
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the key countries in Europe it's very
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very challenging and also as we come out
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of the lockdown some of the governments
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of Europe I'll talk about the way of
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ending some of the lockdown process is
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once they can do antibody testing so
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they're actually more clear about who
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can start moving around so I think it's
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quite a complex situation as governments
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look to release and get things moving
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again and I think cruising is going to
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fall in my view unfortunately lower down
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the priorities when it comes to getting
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travel moving and kicking off again I've
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been asked by many many people who have
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booked on maiden voyages because people
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love their maiden voyages for the many
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ships that are due to come what I think
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is going to happen all of the major
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shipyards have slowed down closed down
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and already a couple of companies have
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been very clear like I've seen some
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announcements this week from piano with
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I've seen saga make an announcement in
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fact today that I'm recording at that
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their ship is delayed so all of those
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big shipyards are struggling to meet
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things so I think if you're booked on a
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maiden voyage I think it's pretty
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certain that that's not going to happen
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and I guess over the next coming weeks
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and months we will start to see some of
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those being cancelled and moved around
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and reshuffled have you seen Carnival
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and big revamps of ships to relaunch
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ships they were announced that those
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aren't going to happen for a very long
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okay that's answered some of your
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questions I know some of this is perhaps
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being a little bit downbeat and you may
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have a completely different view you may
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think that I'm being too conservative
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too pessimistic about when I think Cruz
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is going to start again of course I love
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cruising I'm very excited about when
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things go back to normal we can start
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cruising again I just think that it's
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gonna take much longer if you have any
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questions or thought to you on my
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opinion please feel free to send those
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in I have lots of people who hate
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cruising watching these videos I have
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people who love cruising people who
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interested in cruising watching those
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please if you're going to leave comments
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it's great to have a debate let's try
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and be as civil and as friendly as we
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possibly can and have a good healthy and
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good discussion until then stay home
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stay safe and keep dreaming about the
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days when we can go of traveling and
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cruising the world again