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Virgin Voyage's financial situation


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Yeah, I can only imagine the stress for Branson and their management. What a time to start a cruise line!

 

Their current sale on new bookings (10% discount + up to $400 Sailor Loot through February 9th) is all about raising cash fast. Ditto for the BarTab promotion ($400 in future credit for $300 payment today through February 9th). The earliest sailings are cheaper but require full payment immediately. If they discount too much more, they make it harder to raise prices later (as well as damaging the upscale image they are going for by turning it into a cut-rate line).

 

I've noticed that their farther-out sailings now require higher minimum deposits (increased from 10% to 20%). If that gets raised too much, it defeats the purpose. Like, why would I decide to pay $675 deposit today for a $3,530 RockStar cabin voyage more than a year away? Just because it's 10% off and I get $400 SailorLoot? I'm not sure that's worthwhile. I'd rather not be locked-in and out-of-pocket. There will probably be future sales that can be taken advantage of closer to the sailing that don't require significant payments to be forked over now. 

 

Meanwhile, other threads have noted various perks that are being stripped from the experience to cut future costs. And of course they are offering upgrades & sailor loot incentives to encourage people with cancelled itineraries to make new reservations on future sailings rather than be refunded. 

 

I currently have two reservations with VV (one fully paid and one on 20% deposit). I'm doing my part to toss some money their way and take advantage of their current sales, but I'm also reminding myself that I am rolling the dice on an industry that is imploding... 

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2 hours ago, being_there said:

Yeah, I can only imagine the stress for Branson and their management. What a time to start a cruise line!

 

Their current sale on new bookings (10% discount + up to $400 Sailor Loot through February 9th) is all about raising cash fast. Ditto for the BarTab promotion ($400 in future credit for $300 payment today through February 9th). The earliest sailings are cheaper but require full payment immediately. If they discount too much more, they make it harder to raise prices later (as well as damaging the upscale image they are going for by turning it into a cut-rate line).

 

I've noticed that their farther-out sailings now require higher minimum deposits (increased from 10% to 20%). If that gets raised too much, it defeats the purpose. Like, why would I decide to pay $675 deposit today for a $3,530 RockStar cabin voyage more than a year away? Just because it's 10% off and I get $400 SailorLoot? I'm not sure that's worthwhile. I'd rather not be locked-in and out-of-pocket. There will probably be future sales that can be taken advantage of closer to the sailing that don't require significant payments to be forked over now. 

 

Meanwhile, other threads have noted various perks that are being stripped from the experience to cut future costs. And of course they are offering upgrades & sailor loot incentives to encourage people with cancelled itineraries to make new reservations on future sailings rather than be refunded. 

 

I currently have two reservations with VV (one fully paid and one on 20% deposit). I'm doing my part to toss some money their way and take advantage of their current sales, but I'm also reminding myself that I am rolling the dice on an industry that is imploding... 

True, I just wonder if they have much money or not left in the business.

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9 hours ago, being_there said:

I've noticed that their farther-out sailings now require higher minimum deposits (increased from 10% to 20%).

20% has always been the standard deposit.  I can't recall it ever being 10%, unless it was part of a limited-time promo.

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timf2001, You are correct. Thanks for pointing this out; I did not intend to misspeak. 

 

My original reservations made in 2020 took advantage of the "Half Off All Deposits Offer" and required only 10% deposits. I forgot this was the case when I made my post. My most recent reservations were made during their current "2021 Wave Offer" and required 20% deposits. 

 

They have been running promotion after promotion (understandably), which kind of makes you wonder what new offer will crop up as soon as the current offer expires February 9th. 

 

For anyone who wants to dig into the history of VV offers, you can find details of all promotions to date (both current & expired) on the VV website under "Offer Terms & Conditions". 

 

https://www.virginvoyages.com/Web-Marketing/promotions-terms-and-conditions.html

Edited by being_there
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Given their ownership structure, unless Bain decide to pull the plug (and there's no indication of that happening - they'd lose their whole investment) they should be fine.

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  • 1 month later...

I would not worry about this unless you see another stock sell off like he did back in May2020 with SPCE stock.    According to Virgin Group it would use the stake sale proceeds "to support its portfolio of global leisure, holiday and travel businesses that have been affected by the unprecedented impact of COVID-19"     So pretty sure those funds were shifted over to their Virgin Voyages sector since the airlines and train venture folded. 

 

Although the fleet is not bringing in any revenue and not spending on supplies like booze, food, etc; it does have a cost to keep them afloat and running.  This could become interesting as each new ship hits the water with no passenger revenue coming in.   

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