Royal Caribbean CEO Richard Fain said that the company did not suffer from staffing problems in the US. According to Fain, they were able to recruit overseas workers when the travel industry struggled to open roles.
No Staffing Problems for Royal Caribbean
In his interview on CNBC’s “The Exchange”, Fain said that job openings at the company are “so desirable” for foreign workers. Fain explained that “We’ve had no difficulty recruiting and…I think it’s because we’re just seen as such an attractive job for people all over the world”.
According to Fain, “We really had essentially no problem in attracting…talent”. He added that “The people that provide service are what makes the company so successful”.
Billions in Losses
When the cruise industry stopped because of the COVID19 pandemic, the cruise industry turned to debts to survive. According to its third-quarter earnings released on Friday, Royal Caribbean reported $19.88 billion in long-term debt.
However, Fain said that Royal Caribbean is “in the process of reducing” the debts. The company also plans to wipe out pandemic-related debts within the next 24 months.
Even if the industry resumed its operations, “bookings this year continued to be weak” according to Fain. But things are different next year. Fain said that “But next year the bookings are remarkably strong”.
$1.4 Billion Loss
In Royal Caribbean’s third-quarter financial report, the company reported a $1.4 billion loss. But even with losses, the company remained optimistic. For instance, more than 500,000 people already cruised across the Royal Caribbean Group’s brand. And by the end of the year, the company expects over 1 million passengers to have sailed under their brand.
Ship capacity is currently at approximately 44% on average. However, some sailings such as the Freedom of the Seas had 87% capacity.
The cruise line is also communicating with the US Centers for Disease Control and Prevention. The CDC recently announced the extension of the Conditional Sailing Order until January. However, the Conditional Sailing Order comes with a few improvements favorable to cruise operators.
