Royal Caribbean Drops ‘Cruise Line’ from Group Name

Independence of the Seas in Southampton photo credit Dave Jones.

Royal Caribbean Cruises Ltd, the world’s second-largest cruise line operator, will now go by the new moniker: Royal Caribbean Group.

With the new name comes a new identity, as well. The company’s logo has also been updated with the iconic crown and anchor emblem being sharpened and made more symmetrical. The crown will officially now reside inside a circle at all times.

Royal Caribbean Group sets sail with updated corporate identity

“The name is simpler, fresher and more modern. It’s also more descriptive—Royal Caribbean Group sounds like a parent company name, reflective of our growth and evolution since we last updated our identity more than 20 years ago,” said Royal Caribbean Group chairman and CEO Richard Fain.

Royal Caribbean Group’s flagship cruise line brands still include Royal Caribbean International, Celebrity Cruises, Silversea, Azamara, TUI Cruises and Hapag-Lloyd Cruises. Together, the brands operate 63 ships with an additional 16 on order as of July 10, 2020.

The new branding comes as the Royal Caribbean Group (NYSE: RCL) has suspended all sailings through September due to the COVID-19 pandemic. The voluntary suspension is in-line with the U.S. CDC required suspension for cruise lines operating out of the United States.

Royal Caribbean puts up 28 ships as collateral for $3.2bn bond

Fleet guide - Royal Caribbean Discussion - Royal Caribbean Blog
Royal Caribbean fleet fact sheet.

Royal Caribbean Cruises has launched a $3.2 billion bond offering while pledging 28 of its ships and “material intellectual property” as collateral.

The move followed the world’s second-largest cruise group forecasting heavy losses for the first quarter of the year as Covid-19 brought global sailings to a standstill.

The company expects to report a preliminary first-quarter net loss of $1.44 billion compared to a profit of $249.7 million a year earlier.

Royal Caribbean, which was forced to suspend its cruises globally and cut about 23% of its US workforce, said the health crisis has dented its quarterly net income by about $453 million.

Preliminary total revenue for the three months ended March 31 fell 16.7% to $2 billion against the same period last year.

Royal Caribbean declined to specify which ships it had pledged for its debt offering. It had vessels with a net book value of about $22.7 billion as of December 31, including Symphony of the Seas, the world’s largest cruise ship.

The net proceeds from the offering of the $3.3 billion notes will be used to repay a $2.35 billion 364-day loan.

The remainder will be used for “general corporate purposes, which may include repayment of additional indebtedness”.

The parent company of Royal Caribbean International, Celebrity Cruises, Azamara and Silversea, estimates its cash burn to be about $250 million to $275 million a month during a prolonged suspension of operations.

MSC To Be Third Biggest Luxury Player

2027 Luxury Market Breakdown

With MSC Cruises entering the luxury market with dedicated 1,000-guest ships, the family-owned company will be the third biggest luxury operator by 2027, according to Cruise Industry News estimates.

Viking Ocean will control most of the market pie, with 18 ships and an estimated market share of 35.7 per cent based on passenger capacity.

Silversea, with an aggressive newbuilding program and a new owner in Royal Caribbean Cruises, will be the second largest luxury line, with 12 ships and 13 per cent of the market come 2027, based on the existing cruise ship orderbook.

MSC Funnel

MSC Cruises is next, as the Italian brand will have four 64,000-ton luxury ships, 4,000 berths and just under 10 per cent of the luxury market, not including the company’s Yacht Club berths on its quickly-expanding fleet of megaships.

Crystal and Seabourn round out the top five, as both are expanding into the expedition market with new ships and Crystal has also committed to a new class of larger ocean-going vessels.