The cruise industry has survived several near fatal blows. Will it survive the coronavirus?
Moody’s Investors Service lowered its outlook for the lodging and cruise industry last week to “negative” from “stable,” saying both industries face revenue losses in 2020 if the outbreak is not contained.
“The key question is what is their staying power,” Winston said. “How much cash do they have in the bank to stay afloat?” The outbreak comes after five or six years of growing profits and bookings for the cruise industry. Before the outbreak, a trade group for the cruise industry predicted 32 million passengers would sail on cruise ships worldwide in 2020, up from 30 million in the previous year.
Hoping to tap into a surging middle class in China, several cruise companies began in 2016 to add lines to serve Asian markets. Some cruise lines even revamped their ships to better serve Chinese customers. Royal Caribbean’s Quantum of the Seas swapped out a Johnny Rockets retro burger joint for a noodle restaurant and replaced the duty-free shop with a luxury leather boutique. The 1,100-foot ship was relocated from New Jersey to Shanghai as part of the effort to attract new passengers.
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