Royal Caribbean International (RCI) CEO Michael Bayley has compared the cruise industry’s fight against the recent collapse of Delta Air Lines (DAL) and the possibility of a similar scenario to the Second World War. Bayley expressed concern that the $1.6 billion loss suffered by Delta after a computer glitch made the carrier lose $50 million to $60 million a day could lead to a “wave of bankruptcies” within the cruise industry.
When Delta debuted a fare variant that could be booked only on Tuesdays and Wednesdays, it stirred up the industry’s latest battle over pricing. Delta has since dropped the fares, but Royal Caribbean boss Richard Fain thinks the industry is facing a repeat of World War II.
In an exclusive interview with CNBC, Royal Caribbean CEO Richard Fain compared the cruise industry to the U.S. aircraft industry during the Second World War in the context of a war between cruise line corporations in a battle for a major Delta Air Lines customer.
Richard D. Fain, Royal Caribbean Group President and CEO, talked about the company’s fight against the Delta variation and COVID-19 in general in a video uploaded to Royal Caribbean’s Loyal to you Always YouTube channel, the official channel for Royal Caribbean International’s trade loyalty program.
Mr. Fain thinks that vaccines are the only way to win this war, and that the struggle the cruise industry is fighting with the Delta version is comparable to the battle the Allies and Germans waged during WWII.
Mr. Fain sees the parallel: “I love historical views, and the best analogy I can think of is the fight of the bulge.” It may be an exaggerated analogy, but the similarities to our present predicament are striking and instructive.”
The Delta Variant is proving to be a significant impediment to growth.
Richard Fain talked only a few weeks ago about the fight that was nearly finished. Believing that the worst was over, we believed that the virus had been partially contained and that the world would return to normal with the use of available vaccinations.
Also see: The World’s Largest Cruise Ship Returns to Puerto Rico
The Delta version, on the other hand, has certainly thrown a wrench in the works. Delta is much more infectious than previous generations of COVID, resulting in yet another large increase in cases. The Royal Caribbean Group is seeing a drop in reservations, and the ongoing legal issues are affecting its business:
“Fortunately, the vaccinations are still extremely effective, and overall hospitalizations and deaths have been kept to a minimum. Well, even with this considerably more hazardous version, we’re still below last winter’s high, which has impacted our bookings and your company, particularly for this year and next.”
It hasn’t swayed the CEO’s conviction that this is just another battle in the industry’s and the world’s struggle against a shared foe.
“Like World War II, we’re up against a formidable and determined foe.”
In his video, the CEO of the world’s second-largest cruise line draws similarities between the soldiers’ battle against German forces during WWII and how Americans are battling COVID now:
“Towards the conclusion of World War II, the fight of the bulge was a massive German assault against American troops near Belgium. Our soldiers were greatly outnumbered and outgunned when the assault came as a complete surprise. It was feared that if the Nazis beat our soldiers there, they would divide the allied forces in two, prolonging the war.”
“They were rescued because everyone worked together. They’re heroes and they’re determined, and they’ve saved the lives of many people who might otherwise have perished in a longer conflict. There are some eerie similarities between our present struggle against COVID and our previous battles. For starters, we’re facing a strong and determined foe, just as in World War II.”
ackats / Shutterstock.com / ackats / Shutterstock.com / ackats / Shutterstock
Despite the fact that America is a nation that admires the rugged individual, Richard Fain thinks that the country now has to unite and do what is right. As a result, everyone who is able should get vaccinated.
“We don’t have an option except to do all we can to fight this pernicious illness. I hope and believe that America will rise up and be counted once again. Second, we can only win if we work together. We all need to get vaccinated, much like the American warriors who shortened the war by their efforts during the fight of the bulge, we all need to do our part to limit COVID by getting the vaccination, not for ourselves, but for our loved ones and friends.”
Also see: Which Royal Caribbean Cruise Ships Are Back in Service?
The FDA’s recent clearance of the Pfizer vaccine is a significant step forward, which Richard Fain applauds. The company’s future is bright, and although bookings aren’t quite there yet in the short term, long-term prospects are promising.
Despite a spike in hospitalizations and deaths, which happened mostly among individuals who decided not to get vaccinated, Richard Fain thinks the end is close. “Please wash your hands and dammit,” Richard Fain says at the end of his video message. Vaccinate yourself.”
Delta Air Lines has become the latest casualty in the ongoing battle between the cruise industry and the major airlines over the controversial practice of selling tickets through third-party resellers. Delta is in the unenviable position of having to deal with the fallout of the practice, which is having a deleterious effect on its bottom line.. Read more about royal caribbean group philippines and let us know what you think.
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