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Royal looking to liquidate a significant portion of its global fleet?


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A bunch of sites like Duck have been listing cruise ships for years. Been many threads on this over the years when people freaked out seeing a ship they booked listed. Basically it is brokers looking for leads not an indication of cruise line plans to sell the pictured ships.


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56 minutes ago, Sunshine3601 said:

We would be very sad to see the radiance class no longer sailing with RCL.   We love this size ship.   Especially the Serenade and her sister the Jewel.    they are our favorites. 

 

I loved the Serenade last summer, and I'm booked on the Serenade again for a closed-loop from Vancouver in 2021. If other arrangements allow it, I hope to turn it into a side-to-side with a one-way northbound on Holland America's Noordam. Would happily go onto a Radiance northbound (intended for this summer, not happening) but in the week I'm looking at the Radiance is scheduled to sail southbound.

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Just now, Charles4515 said:

Been many threads on this over the years when people freaked out seeing a ship they booked listed. Basically it is brokers looking for leads not an indication of cruise line plans to sell the pictured ships.

 

Holland America had the Prinsendam for sale for six or seven years before it actually happened. The Rotterdam took over some of the itineraries, but was too large for others.

 

However, there is a thread on the Holland America board predicting that, based on inside information that is probably trustworthy, that Holland America intends to become a much smaller cruise line. Peculiarly, people on that board have been speculating that the largest and newest ships would be the first to go, which seems highly unlikely to me, although by RCI standards those ships, Koningsdam, Nieuw Statendam, and new Ryndam, aren't large.

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Holland America had the Prinsendam for sale for six or seven years before it actually happened. The Rotterdam took over some of the itineraries, but was too large for others.
 
However, there is a thread on the Holland America board predicting that, based on inside information that is probably trustworthy, that Holland America intends to become a much smaller cruise line. Peculiarly, people on that board have been speculating that the largest and newest ships would be the first to go, which seems highly unlikely to me, although by RCI standards those ships, Koningsdam, Nieuw Statendam, and new Ryndam, aren't large.


Not likely they would let go of the newer ships. The newer ships are more efficient, use less crew and produce more revenue per passenger.
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the Vision and Rhapsody tend to sail full. Many loyal to Royal prefer that class ship.....just sayin.....


They are not sailing full now.

If Royal has to downsize the business decision will not be based on what many loyal customers prefer. It will based on revenue potential. New ships are less expensive so operate per passenger. So older ships will go first.


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9 minutes ago, spunks said:

the Vision and Rhapsody tend to sail full. Many loyal to Royal prefer that class ship.....just sayin.....

 

But does that outweigh higher maintenance and operating costs as well as a higher crew to passenger ratio

 

Especially during a time where you are effectively getting zero revenue while still incurring daily operational expenses.

Edited by Beardface
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No argument from me. I realize that all ships have a shelf life and after so long they will be scrapped. The hulls begin to lose integrity from the elements as well as the effects of electrical currents.

 

Doug

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3 hours ago, kochleffel said:

so have Norwegian Bliss and Joy, I think only once each

I know Bliss called in Vancouver in May 2019 (I was on her for that one), she might have called there in September or October on the way South as well.  I believe she was scheduled again this year, and is scheduled next year as well.  They're one-way trips from LA, then she steams to Seattle overnight to start the Alaska season, or to LA after a trip from Seattle.

 

I just looked, the April 2022 Pacific Coastal trip on the Bliss is interesting - LA to Ensenada to Victoria to Vancouver.  Sail South to go North...

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Well you never know what will happen, China could start an Asian Cruise line to sail that part of the world, they could probably pick up some ships for not much money.

 

I did read that newer larger ships break even point was 30% vs smaller ships at 50%.

 

Who knows maybe they will come up with a small ferry that takes passengers from  Tampa to the ship that is docked/anchored on the other side of the bridge, kind of a like a super tender.  

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3 hours ago, Pumbaamd said:

A few years back (maybe 4 or 5) Majesty was announcing her final sailing 3 or 4 times. We wanted to do her final sailing and ended up re-booking her several times for that last one. Still waiting for it.

 

Did Monarch's final, that was lots of fun, and some tears. https://www.youtube.com/watch?v=SniS7UdxXPQ 

 

Sailed on Serenade in January. Monarch was with us in Panama (first pic)  and Colombia (2nd pic). She looks too good to go to the scrap yard.  :classic_sad:

Monarch 1 20 20.jpg

MN and SR 1 20 20.jpg

I was on that same january sailing on serenade and agree I thought she looked great!

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Ideas

 

Use them as floating hotels at their private islands

 

Lease them to tourism destination islands around the world to use as same

 

Develop as time share ships

 

Turn them into ownership vessels like The World

 

Start a new small ship company under the umbrella but with destination as the key with very long itineraries

 

Partner up with governments to turn them into part scientific vessels

 

There must be loads more ideas that are not 'off the shelf' to explore the benefits of before they are sold for scrap

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So how full would a ship need to be to break even on a voyage? At 50% capacity could they be profitable?


The investors expect to get something back in return. Break even is not good enough. So add six to eight percent to the break even capacity of a ship.


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3 hours ago, fla gang said:

So how full would a ship need to be to break even on a voyage? At 50% capacity could they be profitable?

Generally, a ship needs to sail at capacity to cover expenses with the fares.  Onboard revenue is the profit margin.  I would suspect that a true "break even" point would be around 80%, but that depends on the level of onboard revenue the passengers generate.

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10 hours ago, Charles4515 said:

Enchantment is not for sale to my knowledge- its coming to Baltimore.  Grandeur leaving


They would not be able to sail out of Baltimore if they sold all those ships. RCCL ships larger than Radiance Class can’t do that port.


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1 hour ago, chengkp75 said:

Generally, a ship needs to sail at capacity to cover expenses with the fares.  Onboard revenue is the profit margin.  I would suspect that a true "break even" point would be around 80%, but that depends on the level of onboard revenue the passengers generate.

So how does the casino work, and who funds the casino? I go on quite a few compd cruises but was never sure who pays a slot jackpot. Slot manufacture or cruise line? Thanks Chief

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So how does the casino work, and who funds the casino? I go on quite a few compd cruises but was never sure who pays a slot jackpot. Slot manufacture or cruise line? Thanks Chief


The suckers who play the slots.


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11 hours ago, Charles4515 said:

 


They would not be able to sail out of Baltimore if they sold all those ships. RCCL ships larger than Radiance Class can’t do that port.


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So be it, NJ right around the corner

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9 minutes ago, fla gang said:

So how does the casino work, and who funds the casino? I go on quite a few compd cruises but was never sure who pays a slot jackpot. Slot manufacture or cruise line? Thanks Chief

In most cases, the casino operator is a concessionaire to the cruise line.  They pay a concession to the line for the right to operate the casino, and then there is usually a percentage of the "take" paid to the line as well.

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