RC Group Current Financial Condition

[mariner6]

I am wondering if we (loyal RC cruisers) will notice less services and less quality of the product we are used to on future cruises due to the company's financial condition..

[Biker19]

Yes, though that was happening pre-Vivid as well.

[klfrodo]

My thoughts only

The only thing constant in life is change.

Covid-19 has changed everything we knew and loved in life

There WILL be changes in the cruise industry

Improvise, adapt, and overcome

[livingonthebeach]

When cruising resumes there will be lower capacity and possibly higher fares to offset higher costs and less passengers.  I hope the fares are not going to be prohibitively high but higher fares are a given down the road. 

[atanac]

29 minutes ago, livingonthebeach said:

 I hope the fares are not going to be prohibitively high but higher fares are a given down the road. 

Only if enough people are willing to pay them. If people can contain themselves and hold back supply

will supersede demand and fares should come down.

[Mapleleafforever]

6 minutes ago, atanac said:

Only if enough people are willing to pay them. If people can contain themselves and hold back supply

will supersede demand and fares should come down.

There will always be people willing to pay. When masks are no longer necessary due to less people on board I won't mind paying more. Just thinking about a 50% capacity Oasis or Freedom class has me pretty excited.......as long as no masks are needed. I don't mind doing all the testing and what not....just don't want to wear a mask on my vacation as I wear one in normal life daily. 

 

And Biker's absolutely right.

[mariner6]

My point is more about quality.

Quality of food, services, shows and quality overall.  Do you think quality will be less once Royal starts or less?..

[Milwaukee Eight]

4 hours ago, klfrodo said:

My thoughts only

The only thing constant in life is change.

Covid-19 has changed everything we knew and loved in life

There WILL be changes in the cruise industry

Improvise, adapt, and overcome

True

[livingonthebeach]

3 minutes ago, mariner6 said:

My point is more about quality.

Quality of food, services, shows and quality overall.  Do you think quality will be less once Royal starts or less?..

 

In order to make up lost revenue, they will have to lower costs and increase fares.  They can't spend at the level they were spending and be profitable.  It's simple math.  Lowering spending per passenger will likely translate into lower overall quality. 

 

As someone mentioned previously, RCG was already doing this Pre-Covid-19 and will more than likely continue on this path.  The interest cost alone on the debt they have piled on is staggering.  They will have to take it from another area in order to make the interest payments.  The costs associated with the Healthy Sail Plan are also going to put pressure on finding cost-saving measures.  There are savings they can realize in certain areas by offering less quantities -- the Windjammer comes to mind.  **Flame suit on**  LOL

 

[drsel]

They may follow Costas example and have restricted hours for dining.

just 2 hours for breakfast, 2 hours for lunch and 2 hours for dinner both in the buffet and in the main dining room.

Like 8.00 to 10:00 a.m. 12 to 2 p.m. and 7 to 9 p.m.

 

They may also charge for drinking water, ice cream, room service, steam and sauna, tickets for shows.

 

Ultimately, they may even charge for dining in the main dining room and keep only the buffet free! Lol

 

 

 

[livingonthebeach]

1 minute ago, drsel said:

They may follow Costas example and have restricted hours for dining.
just 2 hours for breakfast, 2 hours for lunch and 2 hours for dinner both in the buffet and in the main dining room.
Like 8.00 to 10:00 a.m. 12 to 2 p.m. and 7 to 9 p.m.
they may also charge for drinking water

 

Not only the restricted hours but now that self serve will not be allowed, there is going to be less waste by people piling their plate sky-high then leaving most of it to feed the garbage cans.  Less wasted food = more savings.  They are going to have to charge for somethings that were free in the past in order to become profitable again. 

[drsel]

I was about to say that they may have a plated service, instead of an unlimited buffet.
And issue coupons so that you cannot have a second helping.

One coupon for breakfast lunch and dinner for each day.
Also coupons for tea, coffee and dessert. No self service tea, coffee or juice.

[Hoopster95]

How much does a "plate of food" cost RCG to put in your hands in the WJ? I've seen estimates around $2-$3.

So removing a bit of extra food from gluttonous self-serve individuals will save RCG what... 50 cents?

Saving money has to be looked at at a much higher level in order to pay back billions of dollars at 12% interest rates.

 

For example... Perhaps think about not having to staff 1000 staff on a Vision Class ship? Daily wages for those 1000 staff? Feeding and housing those 1000 people? Transporting them to/from all over the world? Fuel for a ship? Mandatory 2 year drydock and maintenance, let alone service disruptions (ie. refunds, etc) when there's a mechanical failure? In my humble opinion, they'll be getting rid of the older ships in the fleet if cruising does not start until Q2 like many are predicting, thus saving 10's of millions of dollars in the process.

 

 

 

[HaveWeMetYet]

Here are some likely fees coming to most cruise lines.

Resort Fee that includes use of the pools, hot tubs, gyms, and shows.

Excess baggage fee at check in for more than 2 checked bags.

Baggage handling fee if you want the cruise line to deliver your bags when you leave. Free if you carry off.

Main Dining Room will be a fee area.

Increase in gratuities.

[klfrodo]

3 minutes ago, Hoopster95 said:

 

So removing a bit of extra food from gluttonous self-serve individuals will save RCG what... 50 cents?

 

 

 

 

 50 cents times 3000 passengers = $1,500 X 3 meals a day = $4,500 X 365 days a year = $1,642,500 on just 1 ship X 20 ships in the fleet,,, you're talking real money

[drsel]

 50 cents times 3000 passengers = $1,500 X 3 meals a day = $4,500 X 365 days a year = $1,642,500 on just 1 ship X 20 ships in the fleet,,, you're talking real money

I think a plated service would not only avoid wastage, it could also save them $2 per person.
$2 x 6000 x 3 x 365 x 20 ships.
Saving of 263 million dollars.

[Hoopster95]

1 hour ago, klfrodo said:

 50 cents times 3000 passengers = $1,500 X 3 meals a day = $4,500 X 365 days a year = $1,642,500 on just 1 ship X 20 ships in the fleet,,, you're talking real money

 

1 hour ago, drsel said:

I think a plated service would not only avoid wastage, it could also save them $2 per person.
$2 x 6000 x 3 x 365 x 20 ships.
Saving of 263 million dollars.

 

 

Lol.

Calculate 12% interest on $2.2 billion.

[mek]

6 hours ago, klfrodo said:

My thoughts only

The only thing constant in life is change.

Covid-19 has changed everything we knew and loved in life

There WILL be changes in the cruise industry

Improvise, adapt, and overcome

But, there are many of us who aren't willing to adapt in order to cruise. We may have to and be willing in our everyday lives to improvise, adapt, and overcome but we are not willing to spend $$$'s to do that.  I understand those who are, but cruising isn't the only vacation option and I think there will be a good portion of the cruising public who will just say, "no thanks," if the protocols are too restrictive or the quality of the product is diminished.

[ATC cruiser]

1 hour ago, drsel said:

I think a plated service would not only avoid wastage, it could also save them $2 per person.
$2 x 6000 x 3 x 365 x 20 ships.
Saving of 263 million dollars.

Not even close to that. Not all ships have 6000 passengers and all ships will be sailing at reduced capacity. On top of that not all people are wasting that much food each day. 

[taglovestocruise]

2 hours ago, HaveWeMetYet said:

Here are some likely fees coming to most cruise lines.

Resort Fee that includes use of the pools, hot tubs, gyms, and shows.

Excess baggage fee at check in for more than 2 checked bags.

Baggage handling fee if you want the cruise line to deliver your bags when you leave. Free if you carry off.

Main Dining Room will be a fee area.

Increase in gratuities.

Removing gratuities at end of cruise would compensate for all the above fees.  The few hundred who now remove grats will turn into a few thousand.  Time for the cruise lines to eliminate grats and pay a higher wage. Just make it part of higher cruise fares. 

[ONECRUISER]

2 hours ago, livingonthebeach said:

 

In order to make up lost revenue, they will have to lower costs and increase fares.  They can't spend at the level they were spending and be profitable.  It's simple math.  Lowering spending per passenger will likely translate into lower overall quality. 

 

As someone mentioned previously, RCG was already doing this Pre-Covid-19 and will more than likely continue on this path.  The interest cost alone on the debt they have piled on is staggering.  They will have to take it from another area in order to make the interest payments.  The costs associated with the Healthy Sail Plan are also going to put pressure on finding cost-saving measures.  There are savings they can realize in certain areas by offering less quantities -- the Windjammer comes to mind.  **Flame suit on**  LOL

 

Lowering overall Cruises has been going on since 1980-90's. Back then Room Attendant have 6-8 Cabins, work 16+ hrs a day and clean my room every time I left it. Use be Headliners were well known Entertainers, The Spinner's, Four Top's even had Monkees(-Davy) on one. One improvement WindJammer last 2 yrs Food and Choice is best it's been in 20 yrs... 

[jalves]

3 hours ago, mariner6 said:

My point is more about quality.

Quality of food, services, shows and quality overall.  Do you think quality will be less once Royal starts or less?..

No, I don't think so.  If they did the line would quickly get a reputation for poor quality and bookings will suffer.  They won't shoot themselves in the foot.

[livingonthebeach]

2 minutes ago, ONECRUISER said:

Lowering overall Cruises has been going on since 1980-90's. Back then Room Attendant have 6-8 Cabins, work 16+ hrs a day and clean my room every time I left it. Use be Headliners were well known Entertainers, The Spinner's, Four Top's even had Monkees(-Davy) on one. One improvement WindJammer last 2 yrs Food and Choice is best it's been in 20 yrs... 

 

Not to mention the chocolates on the pillows at turn down service....ah the good 'ole days!

[ONECRUISER]

Just now, livingonthebeach said:

 

Not to mention the chocolates on the pillows at turn down service....ah the good 'ole days!

Yes, included with turn down service! Fresh Fruit all day even in cheapest/smallest Cabin. Not to mention 5 Course Meal, Midnite Buffet and Tea Time every day!

[livingonthebeach]

2 hours ago, HaveWeMetYet said:

Here are some likely fees coming to most cruise lines.

Resort Fee that includes use of the pools, hot tubs, gyms, and shows.

Excess baggage fee at check in for more than 2 checked bags.

Baggage handling fee if you want the cruise line to deliver your bags when you leave. Free if you carry off.

Main Dining Room will be a fee area.

Increase in gratuities.

 

Don't know about some of these but there one thing for sure -- the shore excursions will be through the ship and they can charge whatever they want or you don't get off the ship.
 

Some activities which are included now could become for-a-fee activities.  I.e. lectures, classes,  etc.  I hope not, but they have to make their money back somehow.