Royal Caribbean Extends Operations Suspension Due to Coronavirus (revised)
The coronavirus pandemic, compelled Royal Caribbean Cruises Ltd. RCL to extend the halt of global cruise operations — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises.
However, the company is providing guests with the flexibility of receiving full credit fare that can be transferred to a future sailing date in 2020 or 2021, in a program called Cruise with Confidence. It also offers confidence to its customers by allowing cancellations 48 hours prior to any sailing.
The coronavirus outbreak, which is spreading at an alarming rate, infected more than 800,000 people worldwide and the death toll has crossed 42,000. Notably, the company’s decision is in sync with the unpredictable circumstances evolving from the global crisis.
Notably, chairman and CEO of Royal Caribbean, Richard Fain stated, "Guests are reacting positively to our Cruise with Confidence policy, because it enables them to make informed decisions and to better manage complicated travel plans during this unprecedented time of uncertainty."
Travel Restriction Hurts Cruise Industry
President Trump has put restriction on passengers travelling from 26 European countries to the United States. Trump stated, “We made a lifesaving move with early action on China. Now we must take the same action with Europe.”
Clearly, bookings for the broader business are going to be negatively impacted thanks to travel restrictions to contain the spread of the contagion.
Other major cruise operators that have been affected are Carnival Corp. CCL and Norwegian Cruise Line Holdings Ltd. NCLH. So far this year, shares of Royal Caribbean have plummeted 75.9% compared with the industry’s decline of 58.8%.
Zacks Rank & a Key Pick
Royal Caribbean currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the same space is Camping World Holdings Inc. CWH, sporting a Zacks Rank #1.
Camping World Holdings’ 2020 earnings is expected to surge 163.6%.
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NOTE: This article is being republished to correct an error. The original version, published earlier today, April 1, 2020, should no longer be relied upon.
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Carnival Corporation (CCL) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Camping World Holdings Inc. (CWH) : Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
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