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Monday, May 6, 2024

Cruise Industry Hits COVID Snag Yet Again

 Despite updated guidance from The Centers for Disease Control and Prevention which urges passengers to avoid cruises regardless of vaccination status, Santa Clarita-based Princess Cruises is preparing for its spring travel season and the debut of its latest ship.

“Between Nov. 30 and Dec. 14, 2021, 162 COVID-19 cases were reported to CDC by cruise ships operating in U.S. waters. Between Dec. 15-29, 2021, 5,013 COVID-19 cases were reported to CDC, 31 times the number of cases from the first two weeks of December to the last two weeks of December,” Jade Fulce, public affairs specialist for the CDC, said in an email. 

The sharp increase in cases, attributed in large part to surges of the omicron variant and close living accommodations aboard ship, caused the CDC to increase the Cruise Travel Health Notice (THN) to Level 4, or “very high risk” of transmission on Dec. 30. The updated guidance urged Americans to avoid cruise travel, regardless of vaccination status, just months after the industry had begun restarting trips paused by the original restrictions put in place at the start of the pandemic. 

In response, Miami-based Royal Caribbean Group has canceled sailings on board eight of its ships, spanning from early January through late April. Norwegian Cruise Line similarly canceled voyages on approximately half of its fleet this spring. 

Princess Cruises has not canceled voyages, despite an outbreak reported on board the Ruby Princess in recent weeks, and is instead offering promotions on travel and preparing for the debut of its newest ship this March, the Discovery Princess.

Princess Cruises declined to comment specifically for this article, with a spokesperson instead referencing statements released by the Cruise Lines International Association.

“The decision by the CDC to raise the travel level for cruise is particularly perplexing considering that cases identified on cruise ships consistently make up a very slim minority of the total population onboard – far fewer than on land – and the majority of those cases are asymptomatic or mild in nature, posing little to no burden on medical resources onboard or onshore,” read the CLIA statement cited by Princess. 

Controlled environment

On board the Ruby Princess, more than a dozen vaccinated passengers tested positive for COVID-19 during a recent trip after a random sampling of 25 percent of the ship’s passengers. The Ruby Princess has a capacity of 3,080 guests. It is unclear how many passengers were on board this voyage, but recent reports from Carnival Corp. & plc, the parent of Princess Cruises, indicate it was approaching 90 percent of the company’s capacity in December. 

“No setting can be immune from this virus – however, it is also the case that cruise provides one of the highest levels of demonstrated mitigation against the virus,” the CLIA statement referenced by Princess continued. “Cruise ships offer a highly controlled environment with science-backed measures, known testing and vaccination levels far above other venues or modes of transportation and travel, and significantly lower incidence rates than land.”

In an effort to spur more travel after the 19-month hiatus, Princess announced on Dec. 16 a new promotion, which runs through March 2, that includes a stateroom location upgrade, free wi-fi, included gratuities, and beverage and dining packages. The Discovery Princess, the latest addition to its fleet, has also continued its sea trials ahead of its debut in March, signaling the company’s commitment to its maiden seven-day Mexican Riviera cruise sailing roundtrip from Los Angeles on March 27.

Carnival Corp. & plc, in its most recent financial statements, reported a GAAP net loss of $2.6 billion and adjusted net loss of $2 billion for the fourth quarter of 2021. Its stock, which reached a low of $13.17 in March 2020, has recovered to $21.40 per share, still a shadow of the $43.53 it was worth prior to pandemic lockdowns and the shutdown of the industry. In filings released Dec. 20, the company indicated that cumulative bookings for the second half of 2022 and first half of 2023 are at the higher end of historical ranges and at higher prices as compared to 2019 sailings.

“We achieved 4 percent higher revenue per passenger day in our fourth quarter compared to a strong fourth quarter of 2019, while at the same time ramping up occupancy and capacity,” Chief Executive Arnold Donald said in a statement. “In fact, Carnival Cruise Line experienced another quarter of double-digit revenue growth per passenger day compared to 2019 … which is a testament to the fundamental strength in demand for our cruise product.”

In order to sail with Princess Cruises, passengers must provide proof they have received their final dose of a COVID-19 vaccine at least 14 days before the beginning of the cruise, as well as proof of a negative viral COVID-19 test (PCR or antigen) taken within two days of embarkation. Passengers are also required to wear a face mask indoors at all times and outdoors when physical distance cannot be maintained.

The CLIA statement referenced by Princess continued: “While we are disappointed and disagree with the decision to single out the cruise industry – an industry that continues to go above and beyond compared to other sectors – CLIA and our ocean-going cruise line members remain committed to working collaboratively with the CDC in the interest of public health and safety.” 

In March 2020, outbreaks aboard the Diamond Princess and Grand Princess were directly named in the CDC decision to halt cruise travel. The outbreaks led to at least seven confirmed deaths and the first death of COVID-19 known in the state of California at the time. No deaths have been reported on board Princess ships in relation to the latest outbreaks. 

Katherine Tangalakis-Lippert
Katherine Tangalakis-Lippert
Katherine Tangalakis-Lippert is a Los Angeles-based reporter covering retail, hospitality and philanthropy for the San Fernando Valley Business Journal. In addition to her current beat, she is particularly interested in criminal justice topics, health and science stories and investigative journalism. She received her AA in Humanities from Moorpark College in 2016, her BA in Communication from Cal Lutheran University in 2019 and followed it up with a MA in Specialized Journalism from USC in the summer of 2020. Through her work, Katherine aspires to help strengthen the fragile trust between members of the media and the public.

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