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US relaxation of cruise rules promises ‘big boost’ to bookings

Norwegian Cruise Line Holdings expects “a big boost” to demand from a relaxation of Covid-19 protocols in US waters from March 1.

Passengers will no longer be required to wear face masks and children under 12 will be allowed on board following changes to the US Center for Disease Control (CDC) programme for cruise ships.

Frank del Rio, Norwegian Cruise Line (NCL) Holdings president and chief executive, hailed the changes despite admitting the company’s decision to opt into the CDC’s voluntary programme “was not easy”.

Cruise bosses have previously criticised the CDC for holding back the restart of the cruise sector.

Speaking as NCL Holdings reported a loss of $4.5 billion for 2021, del Rio said: “Our protocols are unmatched by anyone.

“I’ve been vocal on what we all suffered from the CDC, but we are making progress. From March 1 mask wearing will become optional and we’ll allow families to travel together regardless of age.”

He argued: “Not requiring masks is a first step. The CDC will evaluate these protocols. Its commitment to continue looking at protocols gives us hope [of a further relaxation].

“All the industry asks for is to be treated the same as everyone else.”

The company continues to insist passengers and crew on its cruise lines – Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises – are fully vaccinated.

Del Rio said: “On an NCL ship you can be assured 95% of the people around you are vaccinated. Norwegian will continue to require children over 12 be vaccinated. Oceania and Regent will require all passengers be vaccinated.”

He insisted: “Allowing children under 12 on board and not having to wear masks will be a big boost to demand. It will add fuel to the improvement in bookings.”

Del Rio added: “The CDC wants to get away from being seen as behind the times and being discriminatory toward the cruise industry. We need to build consumer confidence and we’re doing that.”

Asked whether the company’s cruise lines would return to 100% occupancy this year, del Rio said: “It’s too soon to know. We’re moving in the right direction overall.

“We had to endure two variants. Business was booking [last summer] and then Delta came along and just when we got out of Delta, Omicron came along.”

But he argued: “The view of the pandemic is rapidly changing. We see protocols being moderated. There are countries that have declared the end of the pandemic.

“Experts don’t believe there will be another major surge [of Covid-19], but we will see variants.

“Based on the assumption we don’t see another surge, 2023 can get the industry back to 2019 levels – it could be a fabulous year, a record year.”

For now, he said: “What our business needs is a few weeks quiet with no new variants or surges for confidence to take hold.”

Del Rio reported bookings for the first half of this year still “below the extraordinarily strong levels” of 2019 but at “substantially higher prices” even with the inclusion of future cruise credits (FCCs).

However, bookings for the second half of this year “are in line with the comparable 2019 period and at higher prices”, with bookings and prices for 2023 “at record levels”.

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