About to pull the trigger and then …….

[pappy1022]

I was about to book a 2023 cruise with Regent and then I read where Crystal is filing for bankruptcy and Regent is temporarily taking 2 ships out of service because of staffing issues. Who knows for sure how this all turns out but now I am back on the sidelines as far as cruising, waiting for things to shake out. I don’t feel comfortable giving any cruise line my money to hold for almost 2 years not knowing what their financial situation will be or what the product will become. My hope and expectation is that things will normalize over time but I thought that a year ago and can’t believe things have actually gotten worse since last year. I realize that bankruptcy doesn’t necessarily mean that a company will cease operations. Some companies do come out of bankruptcy stronger than before. Cruise companies have taken out extreme debt to stay afloat. I believe that Regent long term debt ballooned to $11.8 billion by November 2021. So, what are the possible outcomes for cruise lines if they do declare bankruptcy and/or continue to rely on debt to keep them afloat? What is the risk to individual deposits and payments? Many times a bankruptcy decision reduces the amount of payments to suppliers and I would assume customers who have provided payments. 

[CJANDH]

43 minutes ago, pappy1022 said:

Regent is temporarily taking 2 ships out of service because of staffing issues.

Did you hear this from an independent source or from postings on this board?

[BQEC]

Following. Booked on Explorer MIA-MIA, 3/3/2022. 

[Pcardad]

50 minutes ago, pappy1022 said:

I was about to book a 2023 cruise with Regent and then I read where Crystal is filing for bankruptcy and Regent is temporarily taking 2 ships out of service because of staffing issues. Who knows for sure how this all turns out but now I am back on the sidelines as far as cruising, waiting for things to shake out. I don’t feel comfortable giving any cruise line my money to hold for almost 2 years not knowing what their financial situation will be or what the product will become. My hope and expectation is that things will normalize over time but I thought that a year ago and can’t believe things have actually gotten worse since last year. I realize that bankruptcy doesn’t necessarily mean that a company will cease operations. Some companies do come out of bankruptcy stronger than before. Cruise companies have taken out extreme debt to stay afloat. I believe that Regent long term debt ballooned to $11.8 billion by November 2021. So, what are the possible outcomes for cruise lines if they do declare bankruptcy and/or continue to rely on debt to keep them afloat? What is the risk to individual deposits and payments? Many times a bankruptcy decision reduces the amount of payments to suppliers and I would assume customers who have provided payments. 

Crystal is mainly in trouble due to their parent company (a shipbuilder) running out of cash. Regent is not taking two ships out of service - they are delaying the start dates on them. Omicron is already slowing down. If you can handle the flight then book something that will sail in the next 30 days...there are cabins available. Then you greatly shorten your risk window.

[bbtondo]

1 hour ago, pappy1022 said:

I was about to book a 2023 cruise with Regent and then I read where Crystal is filing for bankruptcy and Regent is temporarily taking 2 ships out of service because of staffing issues. Who knows for sure how this all turns out but now I am back on the sidelines as far as cruising, waiting for things to shake out. I don’t feel comfortable giving any cruise line my money to hold for almost 2 years not knowing what their financial situation will be or what the product will become. My hope and expectation is that things will normalize over time but I thought that a year ago and can’t believe things have actually gotten worse since last year. I realize that bankruptcy doesn’t necessarily mean that a company will cease operations. Some companies do come out of bankruptcy stronger than before. Cruise companies have taken out extreme debt to stay afloat. I believe that Regent long term debt ballooned to $11.8 billion by November 2021. So, what are the possible outcomes for cruise lines if they do declare bankruptcy and/or continue to rely on debt to keep them afloat? What is the risk to individual deposits and payments? Many times a bankruptcy decision reduces the amount of payments to suppliers and I would assume customers who have provided payments. 

I understand  how you feel and  I also share some of the same concerns about the cruising industry. 

[RetiredandTravel]

I would guess that the people who lent the cruise lines money have made sure they are on the top of the list in the case of any bankruptcy.   Another guess is people who gave down payments on a cruise wouldn't fare very fell.  Pcardad's suggestion makes the most sense to me, shorten the window. 

[Got2Cruise]

There are insurance policies that cover for bankruptcy. That’s why you should always purchase insurance from a third party. 

[RetiredandTravel]

1 minute ago, Got2Cruise said:

There are insurance policies that cover for bankruptcy. That’s why you should always purchase insurance from a third party. 

 

ty

 

Is that an industry standard for independent travel insurance or do you have to buy a specific policy?

 

We usually buy the travel insurance right before the final payment, probably makes sense after first payment.  Of course, in normal situations,  if you buy the insurance after first payment and cancel you are out the insurance money. 

[Karan T]

57 minutes ago, RetiredandTravel said:

 

ty

 

Is that an industry standard for independent travel insurance or do you have to buy a specific policy?

 

We usually buy the travel insurance right before the final payment, probably makes sense after first payment.  Of course, in normal situations,  if you buy the insurance after first payment and cancel you are out the insurance money. 

Not necessarily out the money.  We have had to cancel insurance several times and have received vouchers for a future travel.

[wcsdkqh]

While not directly related to Regent, this story indicates the kind of financial trouble at least one Cruise line is in.

 

https://www.foxnews.com/us/cruise-ship-diverts-bahamas-miami-unpaid-fuel-bills

[Dolebludger]

On a positive note, I think we would all agree that Regent (and the other two NCLH lines) is is much better financial shape than Crystal. Crystal’s parent company is an Asian company in very poor financial condition. Moreover, the Crystal’s two primary ocean cruise ships are old and outdated (though well maintained). Most cabins are small by current standards, and too many lack balconies. 
 

The main concerns  when considering a cruise on Regent (and on many other lines) are cruise cancelations for non-financial reasons, closed ports, shortened itineraries, unreliable air transportation, and the spread of Omicron despite good control efforts. 
 

Regarding travel insurance, we have bought policies that cover bankruptcy and operations cessation by any carrier involved since we narrowly escaped loss from the bankruptcy of Renaissance back in 2002. I don’t know the company names, but your TA can identify them.

[wristband]

Pay by credit card - ensures a full refund if the company files for bankruptcy. 

 

I recall back when Renaissance went kaput while its ships were at sea, leaving crew stranded and unpaid.  Not to gloat - VISA repaid every dime on our future REN bookings.  It took some time for things to be resolved but we were financially made whole.

[RachelG]

I would not hesitate to book with Regent.  In fact, have 6 future cruises booked with them.  They are in a way better financial situation than Crystal.  When Crystal cancelled my cruise last year, it took over 6 months to get my money back.  Contrast Regent and Oceania, where it only took a couple of weeks.

[BQEC]

Agreed. Regent is one of the few good guys when it comes to refunds, extending payment terms and future cruise credits. 

[Bellaggio Cruisers]

There is always someone that is a downer…..

[RJ2002]

6 hours ago, pappy1022 said:

 and then I read ... Regent is temporarily taking 2 ships out of service because of staffing issues. 

 

5 hours ago, CJANDH said:

Did you hear this from an independent source or from postings on this board?

 

I would also be interested in the source of this speculation.

[Shippy]

5 hours ago, CJANDH said:

Did you hear this from an independent source or from postings on this board?

Which 2 ships ??

[Medeba]

5 minutes ago, Shippy said:

Which 2 ships ??

Navigator and Voyager.  There is a CC news article about this dated 20 January.

[flossie009]

6 hours ago, pappy1022 said:

Regent is temporarily taking 2 ships out of service

Correction: Regent has delayed the restart of two ships, Navigator & Voyager, until March 9th and March 26th respectively.

[RetiredandTravel]

Its not unusual for any cruise line to be bringing ships on line over the next 3-6 months.  I certainly wouldn't construe that as financial hardship.  If NCLH is in severe financial hardship you'll probably see a quick sharp decline in the stock price.  The recent decline is attributed to Omicron and impacted all cruise stocks.  With the addition of the Splendor and Grandeur it wouldn't be surprising if Regent mothballed the Navigator at some point.

 

Thank you wristband I did not know that about credit cards. 

 

 

Edited January 23, 2022 by RetiredandTravel

[Dolebludger]

We find that the best credit card for consumer protection is American Express. And their offices are the easiest to contact by phone in the event of a problem. 

[purpleally]

I’m fine with people who are reluctant to book cruises. I quite enjoy sailing on a ship which is only at 50% capacity. 

[RetiredandTravel]

44 minutes ago, Dolebludger said:

We find that the best credit card for consumer protection is American Express. And their offices are the easiest to contact by phone in the event of a problem. 

 

Yes, AMEX Platinum has a maximum $10k per cancellation.  Not sure if that's the same on a bankruptcy.  AMEX has  great benefits  if you travel frequently.

[Pcardad]

Many of you probably have Private Banking arrangements. Speak to your account manager and see if they have a special card you are eligible for.

 

[Aloha 1]

We were schedule on Voyager, 2/28 Barcelona to Jerusalem. Received notice of cancellation on 1/6 due to delaying Voyager's restart. The reason I received from my Regent contact was not enough crew available due to difficulty getting them out of their home countries to the ship due to Omicron.

Regardless, we immediately booked Explorer, 2/21 MIA to MIA because it's been almost 3 years since we've been at sea and, dang it, that's enough! I don't even care if I don't get off the ship.

 

Those who choose to wait, fine. But time is a finite quantity and we don't want to waste any more of it.