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NEW YORK - Royal Caribbean Cruises, which has seen its stock take a big drop in the wake of the coronavirus outbreak, says that is has increased its revolving credit capacity by $550 million to bolster its liquidity.

The company says it is also reducing capital expenditures, operating expenses and taking other actions in an effort to improve liquidity by at least another $1.7 billion in 2020.

The company is also planning reductions to the 2021 capital expenditures and operating expenses.
 
I hope this is not a harbinger of things to come 😞
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They borrow to remain liquid (pay expenses/payroll/service debt). With the cancellation policy and reduced sailings, cash outlay at this time has to be much more than was expected. If they borrow again in the short run, worry.

Would think they would be making stronger offers ( OBC, Drinks, Dining) to retain bookings. So far zip.

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I'm thinking that this will mean things like adding some deeper discounts to the "add on" type services. Maybe dropping the prices at CocoCay or Labadee on cabanas so that they stay full. I also wonder if it means suspension of things like the Diamond Happy Hour on all ships or limiting suite lounge amenities too. 

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3 hours ago, CapeGal said:

NEW YORK - Royal Caribbean Cruises, which has seen its stock take a big drop in the wake of the coronavirus outbreak, says that is has increased its revolving credit capacity by $550 million to bolster its liquidity.

The company says it is also reducing capital expenditures, operating expenses and taking other actions in an effort to improve liquidity by at least another $1.7 billion in 2020.

The company is also planning reductions to the 2021 capital expenditures and operating expenses.
 
I hope this is not a harbinger of things to come 😞

P&O(Carnival) have offered us an extra £400obc to not cancel our 14 night cruise which we are very happy with, hopefully RCI will do something similar to retain bookings.

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18 minutes ago, Polly1922 said:

P&O(Carnival) have offered us an extra £400obc to not cancel our 14 night cruise which we are very happy with, hopefully RCI will do something similar to retain bookings.

What ship and when do you sail? That sounds very fair.

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4 hours ago, Jam0610 said:

They borrow to remain liquid (pay expenses/payroll/service debt). With the cancellation policy and reduced sailings, cash outlay at this time has to be much more than was expected. If they borrow again in the short run, worry.

Would think they would be making stronger offers ( OBC, Drinks, Dining) to retain bookings. So far zip.

 

Keep hope alive!  Got an e-mail this morning for my March 21st sailing offering me 40% off a photo package and 50% off an interwebs package.   😁

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37 minutes ago, di T said:

What ship and when do you sail? That sounds very fair.

 

Carnival has offered OBC for all sailings before May 31 if you don't cancel (had to book before policy was announced).  The amount varies by cruise length.

 

If you cancel by March 31, the entire cancellation penalty is given back to you as a FCC.  I am canceling my March 21 cruise but may roll the dice on my May 24 cruise. With any luck, maybe things will have calmed down by late May.  

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3 minutes ago, cruisinghawg said:

We will know it is extremely serious if they cancel any new builds with the contractors.

They may simply delay as airlines do.  Also, with the lowering of the fed rate, they may have gotten lower rates on their revolving line of credit.

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I'm not losing sleep over this - in fact, I think it makes sense.

 

What will be interesting is the effect on the upcoming beach clubs in Nassau, Antigua, Vanuatu, etc...

 

      --bruce T.

 

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2 minutes ago, nelblu said:

They may simply delay as airlines do.  Also, with the lowering of the fed rate, they may have gotten lower rates on their revolving line of credit.

 

👆 THIS 👆 times 2.  They may defer capital investments for those items generating less revenue.  And depending on what they expect as future ROI, lower interest rates may actually be a significant bonus.

 

     --bruce T.

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Of this total $1,100,000 was received as a salary, $3,500,200 was received as a bonus, $0 was received in stock options, $7,664,567 was awarded as stock and $157,948 came from other types of compensation. This information is according to proxy statements filed for the 2018 fiscal year.
 
Poor Baby, may have to take a salary cut!j
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5 hours ago, Polly1922 said:

P&O(Carnival) have offered us an extra £400obc to not cancel our 14 night cruise which we are very happy with, hopefully RCI will do something similar to retain bookings.

So if someone is legitimately so concerned about taking a cruise that they would consider cancelling,  how does the offer of OBC lessen that concern?

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11 minutes ago, Ocean Boy said:

So if someone is legitimately so concerned about taking a cruise that they would consider cancelling,  how does the offer of OBC lessen that concern?

We have no concerns about getting on the ship.

Lots of people on the P&O UK site got emails at 8am this morning offering cancellations with a mix of money back and FCC.

Lots of people expressed a desire not to cancel with the OBC offer.

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