Mounting debts force Cruise Control to seek rescue package

THE cruise industry is playing a waiting game over the fate of the largest UK independent cruise agent, Cruise Control.

As Travel Weekly went to press, attempts were being made to agree last-ditch rescue packages to save the Romford-based retailer from failure.

There had been reports ABTA was reviewing its bond in light of mounting debts, after monitoring the company for nearly two months and requesting an extra bond in September.

A £3 million package from International Rescue – a company that specialises in salvage deals for failing companies – was rejected on Tuesday. But on Wednesday afternoon, ABTA’s legal team was in talks again with Cruise Control and potential investors to stave off the collapse.

Cruise Control, which has 250 staff and a customer database of around 250,000, is believed to be £8 million-10 million in debt, with up to £50 million in forward bookings.

The agency said in a statement it was currently negotiating a short-term financing deal. “It is confident of a successful outcome in the next few days for all concerned due to the support of its loyal suppliers and the industry at large.”

However, most cruiselines have now barred Cruise Control from selling their products due to delayed payments, including P&O Cruises, Royal Caribbean, Island Cruises, Thomson Cruises and Norwegian Cruise Line.

Reports are rife in the industry of Cruise Control overspending on marketing, as well as balances being demanded from customers well in advance, in some cases up to 12 weeks ahead of departures.

Complete Cruise Solution head of sales Giles Hawke said: “We’re still working to get payments on passengers they owe for.”

Carnival Cruise Lines director of sales and marketing Lynn Narraway said: “It’s disappointing because the industry is so buoyant with growth year on year. We’re playing a waiting game until we have further information.”

Non-ABTA companies such as Royal Caribbean and NCL could be most at risk of losing money as they may not be eligible for payouts on unfulfilled bookings. However, both said they will honour future bookings.

Passenger Shipping Association Retail Agents scheme general manager Bryony Coulson said Cruise Control managing director Paul Moore should be commended for introducing a huge amount of new cruisers to the market, but added: “Getting new business is expensive, and once you get the customer, you need to retain them with customer service skills and training – there is no short cut.”

Cruise Control has been operating since 1998 and, according to its website, takes 16% of all cruise bookings in the UK. It has previously voiced ambitious plans to set up a US retailer based out of Miami and targeted a 230% UK growth rate last year.