MARKET INSIGHT

Share

Image: Francesco Bonino / Shutterstock.com

MARKET INSIGHT

in association with

Covid-19 outbreaks on cruise ships could be devastating for the wider industry

C

ovid-19 has been detected on at least two cruise ships in the Arctic and the Pacific, just weeks after cruising holidays restarted. This could lead to more restrictions being put in place and consumer confidence falling to an all-time low.

In June, the Norwegian Government officially announced that it will allow Hurtigruten and other cruise lines to carry foreign passengers along the coast of Norway. Ships are not allowed to make port calls or land passengers or crew. However, they will be able to offer activities in Norwegian waters, such as kayaking, using the ships’ equipment.

Just over a month later, at least 41 passengers and crew on a Hurtigruten cruise tested positive for Covid-19. In total, 178 passengers were allowed to leave the ship in Tromsø, Norway, triggering a complex operation to locate them to contain any potential spread. Meanwhile, 340 passengers and crew were confined on a cruise ship in Tahiti after one traveller tested positive for coronavirus.

There has been lots of attention on the stringent measures and positive work that cruise ships are doing to prevent outbreaks onboard. However, this appears to not have worked. According to GlobalData’s latest Coronavirus Recovery Consumer Survey, 78% of global respondents are still ‘extremely’ or ‘quite’ concerned about the ongoing pandemic. These latest cases could easily destroy the little confidence that consumers had in the industry, something that would be devastating for cruise companies.

The latest news could mean that many customers that were not deterred from cruising after the initial outbreaks in February may decide to no longer travel.

Cruise companies are under serious financial strain

Carnival Corporation lost $4.4bn in the quarter ending 31 May. Meanwhile, Norwegian Cruise Line Holdings revealed a 2nd quarter net income loss of $1.9bn.

These figures highlight the enormous financial pressure that Covid-19 has put cruise companies under. Companies will be desperate for business to carry on as usual, but the latest outbreak will only hinder the process. If there are more high-profile outbreaks on cruise ships it could make it extremely difficult for the industry to recover.

Cruise companies need to ensure they have covered all bases when rolling out enhanced health procedures. Customer confidence is going to be low, so this provides an opportunity for companies to regain trust by ensuring all concerns have been addressed going forward.

This article was originally published on Ship Technology on 6 August. 

For more market data and analysis visit GlobalData's Travel & Tourism Intelligence Centre.

Cover image credit: Uniworld

Cover image credit: Uniworld

SHARE THIS ARTICLE

Go to article: Home | Beyond The HorizonGo to article: In this issueGo to article: Continental Company InsightGo to article: ContinentalGo to article: SikaGo to article: ContentsGo to article: WMF GroupGo to article: The briefing on the cruise industryGo to article: AmolloGo to article: Covid-19 executive briefingGo to article: The administration of Cruise & Maritime Voyages may be a sign of things to comeGo to article: Covid-19 outbreaks on cruise ships could be devastating for the wider industryGo to article: Norwegian: a major cruise casualty of coronavirus?Go to article: C.C. Jensen WindowsGo to article: Telehealth on cruise ships: a safer way to handle sick passengers?Go to article: MKN Maschinenfabrik Company InsightGo to article: MKN Maschinenfabrik Kurt NeubauerGo to article: Q&A: ship design standards post-Covid-19 with ForeshipGo to article: Antti-TeollisuusGo to article: Cruise ships post-Covid-19: five ways the passenger experience will changeGo to article: Ponant: sailing into a new era of cruising in France and IcelandGo to article: Scarlet Lady: on board Virgin Voyages’ inaugural ship Go to article: Enter ConsultingGo to article: Cruise Ship Interiors Awards: spotlight on the trends making waves Go to article: SimCoVrGo to article: Expansion on track: Port Everglades’ new infrastructure projectsGo to article: Global markets and indices powered by GlobalDataGo to article: Macro-economic indicators (1 of 2) powered by GlobalDataGo to article: Macro-economic indicators (2 of 2) powered by GlobalDataGo to article: EventsGo to article: Next issue