Royal Caribbean Cruise Line has had to concede defeat in its attempt to create an insurance package to protect agent partners dynamically packaging cruise.
The line was urged to do something to help agents after last year’s Icelandic ash cloud crisis that hit a year ago today and saw thousands of cruise holiday plans ruined by cancelled flights.
Agents putting together their own packages found themselves liable to pay for replacement flights or the cost of cancellation as they had taken on the role of principal. This was a particular problem in Ireland which suffers from a lack of airlift and where Royal Caribbean has a major presence.
Jo Rzymowska, UK general manager of Royal Caribbean, said she had spent months with lawyers and its insurance partner Mapfre Assistance trying to thrash out suitable business to business insurance cover.
“Mapfre were very good in helping guests through the ash cloud crisis. What we wanted to secure, but it proved legally and financially impossible, was a B-B policy for trade partners. So we recommend trade partners to sell a business to consumer offering.
“What we have seen [as a result of the ash cloud] is an increase in our fly/cruise business partly because of an increase in our European deployments but also because the ash cloud has made trade partners and guests far more aware of the benefits of being full protected.
“The benefit of booking a fly/cruise package with us is you are fully covered and it includes transfers and overnight stays.”
Agents in Ireland said without some form of protection another ash cloud closure could put them out of business and Royal Caribbean did relax its cancellation rules. However rival operator Complete Cruise Solution, which has a predomonantly ex-UK programme in the summer, did not change its policies and said agents had to accept the responsibilities of being the tour operator.
Fears over the safety of flying saw air space across the UK and Europe closed for six days from April 15 last year, leaving carriers with a bill for £2.2 billion. The European Commission announced this week it would revise its Regulation 261/2004 on denied boarding, cancellation and delay which extended compensation to passengers affected by the ash.
Despite the huge problems the crisis cause it was said to have been not wholly negative for the trade. Carlson Wagonlit Travel director of programme management Nigel Turner said the industry could take heart from its handling of the crisis and draw important lessons.
“We could have helped so many more people if we’d had their mobile numbers,” he said. “We had online tracking which shows where all our travellers are. But tens of thousands of people started jumping in cars or taking trains, so we only knew where they were supposed to be.
“Then the goal posts changed every day. We would re-book people and the shutdown would carry on. It multiplied the problems. At the same time we had people trying to book new trips. We wanted to say, ‘Stop making bookings’.
“However, staff really enjoyed the challenge – working as real consultants, talking to travellers, solving problems. The feedback was fantastic. It proved our value. You hear people say all the time, ‘Why not book online?’ But who is going to help when things go wrong? In a world of technology, the ash crisis reinforced the value of relationships. Our value is not just in savings.”