Royal Caribbean Cruises (RCL) 10 Aug 202020 Q2 Earnings call transcript

Good morning. My name is Shelby, and I will be your conference operator today. At this time, I would like to welcome everyone to Royal Caribbean's Group Business Update and Second Quarter 2020 Earnings Call. I would now like to introduce, Chief Financial Officer, Mr. Jason Liberty. Mr. yours. is floor the Liberty,

Thank you, joining first thank for everyone. earnings Good today, for morning, us and And our call. you Shelby. business quarter update

Michael Chairman Joining International Caribbean Mengolini, of Chief Fain, are President Carola and our Vice Relations. me Executive of Richard and Officer, Investor Bayley, our Royal President CEO and

During this been referring on investor our be posted few a call, to we website, will have slides, www.rclinvestor.com. which

is would I about we to our you to started, notice which Before our forward-looking statements, refer like on slide. first get

we as we action and this Richard can not are risks a and strategic will the the note reconciliation of then on in business. providing I begin follow overview call During recap on then and second of I guarantee liquidity results. we then will making give forward described to looking. will financial our filing a an Please involve call, be of discussing the be that will items disclosures. by update and found latest be our future certain an with quarter provide comments the up update all non-GAAP These other which defined, historical do our and do change. not environment the as circumstances are non-GAAP on are booking adjusted SEC that uncertainties. Also, will outlook. website. our Examples and statements our undertake do filings, measures, update our information in performance

questions. then We Richard? for the open will your up call

Jason, us for morning, morning. Thank joining and Thank you good you, everyone. this

businesses Every a on on most profound level. to importantly, even communities since days and been five been all of COVID-XX sometimes as individuals, an impact as probably like seems one eternity, challenge it While home-grown. been it's The on families, has months upended those lives. have as of us, us, every our definitely

for want have were on while us ago. From shore been monumental new loved health tirelessly at bid to protocols, acknowledge shipboard on some and foremost, these massive crew the worked to Royal from more During fleet-wide ones. just the have I of families more repatriation and have be or safely first that that developing our crew working over effort. home been five hailing Caribbean XX,XXX while the scenarios safety teams unprecedented side especially made to But and Group repatriations effort. unimaginable and working months, it to and crew we It's continues than raises, a a remotely. capital and of – their XX nations XX% or their To-date, all

work and was continue few and to task of with We still with last of countries, the crew across and regulations multiple countries. shifting with the restrictions very their to our expensive is reunite restricted family. a governments the complex It

process, has Our all Their their I the teams want challenges soul this patience and been shipboard simply have of particularly heart remarkable, understanding and were multitude been horrible way. to during overcoming their of that employees, the always our came our are who and operation. extraordinary. daily thank

While the that's and understanding everyone been helped these bulk are a accelerate there during actually have of to awful and else, for always vast the people exceptions, them time supportive really process. and

governments, the our our time have start that by capital liquidity get and we right. strong terms. we've over markets able get thinking we'll time extraordinary balance to onboard, financial access to with home, reputation the crew times. when operators to sheet, legal various vendors, get and teams joke as been our to have terrific our these our parallel, about been the we're others With negotiate can't to solid I to forward, welcome looking and shipyard improve last the I them working again. finance Lastly, working is clock, all In great Frankly, get the future. and crew enough brands, home round back a member and wait through to settled, we us

our debt action our burn. deferred To Moreover, and we of every these have level expense are of critical, are further or capital is improve accessing I but five the us of long five to month. months On goals. to our account expect how because of important These been by cancelled, have decisions. delayed don't cash the are have fleet this will single cash take efforts, all say epidemic. liquidity been in payments it these take can know the another are this teams top lay-up we operating capital get necessary these while have months of their can any this remember. whole expected beyond painful, most they Now conservation projects to to reviewing end, that end longest

most there service crisis that We say we program return of service our Now, must that there. us enjoyable guests the to our it's the October that to a with we voyages. strong we crew confident since figured believe rush for help to suspension make out that and will operations to offer experience until health began, seven our protocols is this and through fair the we XX of times, to uncertainty. get are have changes return lot healthy we they Against rightly But now not safety backdrop, that extended will still expect.

teams, exceptions. addressing cooperation extremely destination besides focus with Therefore, Line, of boarding, to As to is of Health Chief aspects: COVID-XX. and four the for guests recommendations program will and and visit the crew will and internal protocols I comprehensive enhancing Panel mentioned expert tasked upgraded complex. will of safety key any Cruise the recently this protocols prior onboard, for develop focus key all challenges enhanced we, Officer, this return set reports also that's have assembled multifaceted the special they Norwegian dedicated Sail Healthy an the a standards health before, our our processes and addressing screening we enhanced help in on service to new called procedures that of created raise and, We the recognize our We given lastly, program health panel us think of implementing of We've who protocols. address position fleet-wide. Public and aspects on Global

want all our to we expected do, and with As above go we us. measures beyond what's of

provide make most has know, some special those very As you a opportunities. of but of some more ship of real features challenging and it those

our with experience. imaginative And an options, the at the of arrival mind are and with we're via an reviewing our to touchless all the terminal core. so ships payment we check-in step open contact app every less From at looking

a at working to on where of the and the No muster will their we'll leisure. passengers way assembly enhancements be at their have TV on, the share when we many This interactive part one able more to developed new or our and time example, more is view crowds. station check-in their app innovative stateroom we're small then For safety information is right.

also many and has to new making problem. vaccines are ramping advances the coordinated and undergoing resources, signs a There as great such technology testing there sail important focus work new been are much the Never to with other some be we on positive drugs in Now prepare seem so to noteworthy protocols, and treatments, applied tracing trials, progress. before effort, are solve up clinical and horizon. are

you, the impact While significant, employees is that what at our of and are our this people, hasn't changed heart cruise guests is our COVID-XX's line.

been We little bookings are XXXX for surprised literally news. efforts, with and and we the very both no of have humble good seeing amount marketing with frankly,

But of is management me say into we than ever. science that of more a more bookings, before get heard an encouraging. is our half revenue You've and especially, the tone the second been of has that art true today XXXX, as than

the That inspired Families and is what come want and to want makes resilient. innovative, vacation. guests need Our back. us

disrupting are confident and display sure their strong cannot to determined men without the ever We be with to and appreciation massive have and and profound, after make of last that women way Caribbean expressing us. this is and choosing to of the will I life. in control impact that under are steps are society way The and it to of throughout our trying guests on ideas lives our circumstances. long This suffering Royal to come They who life end. our impact loyalty pandemic that vacation pain our such our my new more company. safe such continue feel the leave call to our taken than crisis with causing back and current

are that and We think we generation us will through get doing so our in to imprinted and of our imprinted today. amazing preserves manner many of the My and be parent's The generations so attributes Great doing a the experience with in the Depression with was that focus will indelibly experiences cruising. attention I current need this, affecting

information appropriately the Our as emerge. that will the I'm to are right demands of that we're task on confident ensure to we to responding the us taking innovatively available society today, to be rejoin steps do the think we and Cruising we can the of, industry ready economic but as pandemic of has of the so. rest phase of in any I acute impact society the taken as hard are recovery. this to Based

potential the fact, together, in offers near fulfill are aboard. and In safely the indicate them will has our be people social human pass together. need. to basic feel comes guests our be to society we will, this one experience of With Jason? acute Jason. be to meaningful enjoyable offer get animals, that People ready cruising for of the microphone that, phase, back past welcome way I'll the And and want the to the future back cruising bookings way we next year able to this same. once Humans a and being

you, Thank Richard.

and also, is employees to times. for and Before awe-inspiring incredible I started, and tireless really very stakeholders unprecedented our want efforts I Richard, appreciated. It their during thank like dedication get the

let's our second get now, the for So, into quarter. results

net to also asset the pandemic stunning The The this cruises of had reported impact our loss being recording we non-cash quarter quarter cancelled, illustrate a all for COVID-XX of impairment adjusted results billion. $X.X second With impact an the led $XXX.X business. of of on million.

housing, that our which relates XX% the quarter the our cost our and some quarter and quarter. almost Silversea's to important last cruise note, reductions one-time is cost had including decline is expenses. we Silversea's Also, and actually repositioning costs revenue costs included having that our more for net the Now that, we quarter. related versus driven to was for the It cruise by of than costs the continue lag, to of operating and total fleet previous XX% marketing significant that said cruise our incredible operation lag. repatriation When by impacted of by our crew. declined in the This quarter incur net significant versus in that layup, to suspension quarter quarter declined also

settle the was deal timing ships Silversea. was and our XXth their further various success. our way liquidity, paid believe in We the position levels remaining last that expect on it allow we layup. to not as call, Silversea as will these announced, to efforts accelerate that that and is We This events of relevant the structured we in that remaining of the July, our shares one-third since us shares. the long-term of move integration of happened stake further value decline Other million purchased form right the impact a X.X and did to for of

financial we action of a with and position. quarter end, take our Richard and this of of $X.X all of our our fourth morning, and of sheet, liquidity. liquidity, top we in operations. waivers credit export during approximately balance our new amended to as we this ended export facilities The pandemic, quarter remains a raised Now, credit the provide Moreover, debt XXXX. billion quarter, global are priority brands billion completed in suspension bank has finances our $XX to to since this holiday over billion our position evidence $X.X we for To we that XX-month decisive and during as assets bolster cruise strength amortization ensuring the continue our the we this liquidity covenant of announced to commercial strong been mentioned

the maturities upcoming XXXX. and remainder for our million moves, equaled $X.X billion $XXX these With of for XXXX

attributed that multi approximately prolonged million pertains suspension has burn this capital estimate our $XXX raises. increase the in million operations, average, inclusive the We expense As to during the cash range it per various on month, the of as our in cash of ships be, lay-up of month also to improved sequentially burn, of $XXX will entered each levels interest lay-up. to

of is new press in lower This is scheduled than release teams reducing As working and we inflows provide into this number commissions to mentioned the way like this position. around starting most is well now would bookings. range existing excludes I customer It's various – much quarter an number down, as with update are morning, cash improve levels settling from refunds first debt clock cost-effective business, worth noting actuals the this liquidity the that and the our burn, deposits, our now our the as the maturities, bring our lay-up. further as to capacity. to cash our as of fleet on of second

year. suspended most our of October. now XX% reduction we the to sailings, have capacity of have voyages canceled which the end for a To X,XXX We the date, in represents,

Odyssey which to October; XXXX; All Royal delayed period. in is an Silver includes we are the XXXX. first delivered which to and of we expecting the in XXXX fourth now expected average of months. end ships now delivered This quarter take and the in of between July planned be initially remaining of this XX Silver delivery of scheduled Dawn, XXXX to to only delivered to by is be Regarding expected quarter ships of Caribbean to on newbuilds, to Seas, of expected be order Moon, five are our other the the initially delivery but scheduled during of X be take ships

an provide in I'll XXXX for sailings. are what the Now environment update we on seeing demand

of suspension. quite uncertainty, of levels to new global for thereafter. COVID-XX Caribbean, back first cruising of the highlighting by cadence program. receiving first that volume have future double both for that to been quarter, levels encouraged and demand are for surge of we've is limited remarkable, activities guests cases with commented, higher humbled half XX% taking cruise earnings bookings Richard weeks cycle. the is the Given received bookings taking and eight no very our received news generally and more demand We and decline by strong of last call, Since been the a our is note marketing this global from bookings regarding since being rebooking from benefiting activity. This prior Bermuda. as The for the averaged place important has a the said, destinations the been determined end, of the during news we've XXXX, of XXXX. advantage the current than our with credits, seen situation and more have bookings core It's have those Shift bookings. of quite Lift Alaska XXXX continued of along cruise to than this To been softer summer the our That popular with & the been Europe, mid-may bookings

As factor negative for with made a including and when Pricing bookings historical is when book impact it slightly flat you is load is exclude result, yield the year-over-year cruise ranges. within our about bookings or future still up credits cumulative them. XXXX

canceled approximately at booked refund. billion have on sailings the million June with guests Approximately Regarding XX% our $XXX cash $X.X of balance to customer deposits, the end associated XXXX sales. was our of requested

third customer as to our for process further recently continue to decline the suspended we expect deposit during quarter balance sales. refunds We

The expect, remains fiscal we decrease for uncertain, we and of quarter to net guidance quarter extent to return to and timing the on the on timing our will provide second it a expect in service. XXXX was everybody are, to said the we frame magnitude of of the a just loss third year. basis We outlook, the therefore, adjusted US still for and I'll sailings. loss and the that, canceled to however, of third year. further and do in quarter. the the unable of recovery for GAAP quarter In both than smaller However, order depend incur remind the trajectory closing, that kind have all Having our be

a company. will session. a aggressively strategy period. from the of call I Lastly, are round health as while costs, up by service open to ask working managing a crisis and With and financial return people will highlight we for confident the that planning raising company. we the our navigate are question-and-answer stronger, that, more early that cash to resilient the Moreover, volatile a operator of comprehensive prepared our care to choppy taking this I'm emerge I'll clock

comes question from first Your UBS. of Robin Farley

that ask, else much. other restart China your And I And date or of are put I'm is that something saying they that wanted be restarting. in to and something one very haven't of whether in of? some have lines cruise guests line will that out, Caribbean, just would cruises is, out boarding, of other that of to some or potentially think that, some thinking just protocols part then, Thanks before Europe Europe it sourced I Great. cruise that. said question, lines the question Royal wanted lines my not about be primarily U.S. that would really two to CDC the other for and test in there related the kind

your on of done passengers something protocol Thanks. Is Just wanted restart? is to whether reasonable that reasonably can that kind US boarding. a get for that before for US take be

Hi, Robin, it's Michael.

you sailings with October, exceptions. of As our we've until suspended end the know, two

some of Australia is any of resume the not October, possible China it's China them the possibility. we'll operations potentially be happen Australia. I'm that's making statements operations going that and may uncertain and One but to also end that well before in and but It there's

So possibility occur. that's a may that

resulted in industry Europe terms to how occurring which – a governments to there's we've what very the receiving of different Obviously, be of very and with As of and end Cruise and European people seen what's the With guidelines what national lot industry individual it discussions the a been at that our protocols, I feedback. interactions relates environment series cruise regards we're what's seems some occurring. of July to relevant been has through in Line obviously we're in miscellaneous there's testing COVID companies think, the COVID protocols, returning between are it certainly of a experience both happening cruise for to with great sailing Union for time the and It's to for in operations. in now, and terms learning issued view Europe we're a returning of and cruise the as engaged in is companies what's to seeing Association discussions Europe, underway. in certainly, I is Europe, terms relates through think clearly discussions

had we've in formed, of have under of mentioned currently all that and we protocols the confidence the Richard with a earlier, panel review degree As our are panel.

So of multiple but testing with discussions is the ready very about service, is a We're at also the for will particularly which reached likely not to discussion. we testing the how it front another to part have that thinking, in we're of destinations yet release Caribbean in publish of our component and testing very protocols people seeing the returning. return world, But are it's relates point is as occur. around that to protocols for thinking much where

very Great. helpful. That's Okay.

Robin. you, Thank

helpful. you. Very Thank

Robin. Thanks,

Wieczynski Stifel. Your next Steven question is from of

guys. quarter. when of XX% that us versus XXXX negative unique breakeven-ish is about third ratio or bookings since to or that net of you deposits Can outflow indicated going positive? you refunds new go more are help the Hey, would expect think you ratio even morning. in still Good Jason, be that And May.

Yes. morning. and Steven, good Sure,

for asking we a typically sailings And a step our higher sailings our But for back, have under than cancellation and us you're and you're times they're lower those outflows. at historically have – guests they XXXX, our of canceling you tad active are time further when significant than seen. in look a of for you cancellation only when when little you more actually cash are are So where what obviously, first, are. period actually, half rates our back

when you're seeing of going so than in what that And taking sailings, more active type in out. is we're that situation for you're obviously is

now ratio the sailings. the of what time cancellation a is and little for getting to we're where year. we're And balance so in I XXXX my of into it's have begins million to of for back of and period encouraging we're XXXX think, ramp get further focus And what on we more, course, a only the seeing the not half customer we as And under canceling for bookings more year, and the think of to flip commentary around that the I so seeing up – only $XXX (XX:XX). just deposits around rates,

(XX:XX), I pretty I second probably are And Okay. guess you Sail mid-September, question question, it's when is And to it to the to submitting like looks what public if the [Panel] hear them But because you Michael. can them? Got wrapping going still for timeframe that to right? like you. once be take then the you up that it from Healthy back around to read and the plan comments And submit CDC. study that close expect seems they (sic) I've plan till guys think

CDC requested September The for public Steven. Yes, is comment, final and public date the XXst. comment

a is We're return. Our that final on right panel is up signed feel and the have we by month the of the plan working that's our through August. of to end hoping position towards panel we'll that month the

important that I So terms concluding August. work there's is there's occurring in this the think comment it's we with all comes of one dynamics what's come kind towards some of timing – will We a of just itself. starts of of think towards the obviously, note together how that play as opportunity September, there of our good the public to biggest end to end the together. know, the with concluding huge amount with of COVID uncertainty But that And out. how

open to with to people was what Europe in were opening and terms COVID that seen reflected of COVID. for because cruising flexible it decreased, – up Germany certainly particularly, for up in in the example, first as one we've Germany was occurring of seeing be So countries how

then meaningful end and together same time, at we're dialogue if into fortunate So towards some the that be hopeful September. everything entering of comes we're the we'll

it. Appreciate guys. Thanks great. Okay,

you sometimes date, then, new a get almost on. and then will to new and come will sense out a happen. of just move this that that's that. amplify end Steve, And protocols procedures that. the on And we'll there's There's

the of prevalence that one COVID seen more are about coming fall. be there'll kind society, and knowledge think and have ongoing process an about of vaccines. there'll protocols in this you about about out of that I the some and this things things is treatments be And have about then, we and

And to I start things think rather early light view a we says, than be so this be think, see a And start switch. continual as think changes as we'll there process. this some more and will I we that will we'll out, a dimmer Michael fall. But then and

is mantra our know improvement. You continuous

so be would all And that time. in one at mistake a it I think think, to it point ends

that, Okay, Thanks. guys. great. Appreciate

Thanks Steve.

is Barclays. next Your question of Hendrix Felicia from

Hi there.

Hi.

you regarding booking? who's can about it So, generation then, flat who cruiser. us just the the understand but tell Is is it kind of Jason year-over-year, also – the Michael, complexion compares XXXX, Millennials? the booking is kind commentary bookings maybe everyone's Royal just I you it – that for maybe tell us just to how guests? loyalty if is you And us, of Thanks. talked your it of XXXX? Is mean, pricing can help can Is that your

anxiety is opening I relatively how March. Yeah, since Jason, when to decrease in that conducting been in comments, of high relation research Felicia. mentioned because certainly, think, then COVID anxiety heightening. We've consumer his bookings Hi. is

direct are. vacations, the about we in. and is we between state cruising the into occurring bookings how And all what correlation they're that. see thinking how And optimistic what's see So of good the in we've is then they opportunities got and the how of they different that in live that, translates a course, coming of customer really viewing sense how

that's one we've So, that seen. thing

did customers huge we younger inclined be more saw that, we bookings is customers. were a that also thing loyalty but to from other The see response

and across the at go So, we say kind core cruises, key start I they're anxious brands it's us a confident bookings once people customers. very getting vacation. They that But loyalty is different that this board what the from moment cruising who would across will understand of feel the have response to that is. for comfortable different return everything behind on and

we is see in is bookings The by this hopeful of pent-up there's going as XXXX, you a when of certainly, people lot big summer. a to move lot be I'm which observation, lot of think other the kind our not there's off a look of we're a They've to my And into observation, decided going have really quarter activity summer. demand. I that at And written that summer vacation bump in for all know. have pretty nice Thank to vacation. XXXX, when bookings seems because to want that people the vacation we're a for see summer, of people I'm the a a XXXX want certainly that have And we hopeful year. But of next kind to go going summer great you. and look certainly, And you at be this our to popular. reasons

looking Felicia, start next summer. off vacation a just first, in forward to Thanks, Michael. I I'm saying, point, on your second will And

children. all So, actually commentary on the to from is our But pricing happy higher away get than side, these levels. XXXX on pricing

record So actually is high. the year same a last time

you at record with levels. above line a issued were which in tickets, we're we're those future if So exclude And record cruise XXX%, actually high. the

Okay. through look, look balance at. raise you want year, you sheet, all debt. the the That's on Jason, the There on can end to details looking on guys your depending have about news of you helpful. to which then which next liquidity some you to -- range more end of just, us articles And almost gets gave the you been

terms both and secured your us balance wondering capacity perspective? tell what if just unsecured in is you sheet So of could

seen them. the I've I'm well. articles sure. not Sure, sure source the quite I've seen as of article, the

return service situation about the where fluid. obviously (XX:XX) to remains we're So in

ways, Opco and governments look business other supportive. internally have We side, mean that unsecured. with us, capital, guarantee looking and we're our do on at would looking million that balance to is something We at bank of $X And to do incredibly the from to market at have I that further capital ETA non-capital then at then to which bolster we debt to been continue look markets what we've that, debt of different internally got by cost, debt about the the still in about able even support the liquidity. side, we on you the world available side, if And issue. on that is the be chose billion $XXX of when

have Of coming put would online. of are on ships assets, that considered. we online, come new that avenues course, be as course, security also there's ships able those on, leverage that could well some potentially we to And be as or then, other other

of focused making other gain like really pre-COVID metrics not this sure that and health financial see our leverage getting also are crater, but We soon levels. only that looks just side to on we and the we

So, of focus a that on general as the sheet. construct balance a lot just on

Thank Great. you much. very

is Your of Assia Research. next from question Infiniti Georgieva

mentioned you of what start Jason, guys. back into ships quantitative sort Is it you would Can capacity service Or morning, expand to whether little on figure deliveries. you there sailing give be Can come changes limited of for to the a secondly, us in early as I is initially? possible newbuild November the market hopefully a vessels, imagine number you ship XX? capacity, XX? bit that will assume. a of is at it to the some sales and Good delay when you those? And of older

Hi, morning. Assia and good

sizable able we've we on or forth. returns over strategic it to brand, good philosophy for make I fit plan of don't our ships generating we it's be and our is, a have a think, ship fortunate being modernizing been or the to by so if think to years So that really, difficult sell to typically and it

this that a We ships. sell actions we take ships. that. We're would, opportunities looked averaged course, typically and the update And investment would have evaluating comes Pullmantur there's two have scrapping one of on ships other three three to sell ships And in say, that information year. live, the are with or process. ships, community or I to we that as we in ships to time, – Certainly, the related currently already are are to

– exceptionally put do options. But course, all of of these these into ships, evaluating a ships we're so money And well. to want we we lot

I comment cash. sure to generate they much in the is would know to And whatever x it's with one hear, I be is is. it difficult so ships, terms ships, And a make eager it typically everybody to just of ramp-up. ship, decision I'm a depart so going y because The

and not pointed because off switch. few going Richard going – think we day it's to terms of to a to see starting a as of what on as how it's possibly think would And protocols be operation we've based any under is as of that going expect and our and bring will and demand And minutes backup. and fully everybody And be one. ramp ourselves that I determinant in us And backup come I forth light a the protocols ships be not is got dimmer, it's so type up light can to like, our switch, move to But fleet running. the ago that back quickly get health out to goal backup. on many that, doing. to it's we safety be

have almost you that bookings. currently, it the seems for entire fleet And available

shifted some a of may date. imagine on similar fair? similar be that itinerary, I a those So Is bookings on

as get to need ship by new itineraries, to certainly and forth. we'll market, more think by what whether changes our it's of guests made visibility and so to that, or come going if to Again, It's whether I more whether what's we evaluate it's when, on product, be in line to ships on Assia. possible, terms it's

Thank you, And Jason. luck to everyone. good

Appreciate it. Assia. Thanks

Your Wedbush. next question from of is James Hardiman

questions. Good Hey. taking for Thanks morning. my

break help So new $XXX there cash terms run briefly, et burn to sort cetera? way of CapEx, of What's million ship cost? that could interest what's $XXX the sort in What's rate? down us million any is Jason of monthly of you

burn had $XXX down we million overall. is running rate the Similar $XXX million million month. if $XXX it's SG&A, the before, break this it consider Sure. said to per to way. The $XXX I'll rate around million Well, somewhere in to you

it ways really in Our and in an brands, done way And our doing back that way and to to creative continue I running way. further incredible on timely no job burn the mean, minimizes cash a ability up a the ships our have get to find ships. reduce

think is is range. $XXX to we sure, million running the about I essentially numbers. $XXX And million so, an SG&A. these half in see about the is half running SG&A And of still for opportunity, and that other But

lot need as virus then process healthy there's handicapping control and you And through panel where about levels the the can State Do for the pieces? are perspective. should Michael be I'm much control helpful. a get of all virus or to assuming big versus need how in discussion think date, Maybe recommend sort Very think the guys to that thing of but a in XX we CDC. sail lot we Obviously, to a get there's safe? you that Florida? where about seeing through we is. virus fact from speak Do wants How Okay. focusing approval need that? whoever October better the to a with in by on virus you control lot to that we Should is I today, But XX recommending Richard, I we're of can't. do obviously, the things what – take to you there's this, can't are the think we those Europe we your is October specifically

relates destination. real It's a also COVID, pointed and you the Yeah. it's of to there's as as certainly out, thinking take It's origination, but of prevalence of in variables the account healthy puzzle, into real only the so the consider. many component it not – return to protocols a a in the

ministers the one is So, of where as for part we're you many a the dialogue America, the (XX:XX) with can we through and going South formed participating really to is the force now operations. imagine, working and these destinations, Central resume which to example, with of ministers all a of the CLIA prime countries how safely from FCCA, start thinking that literally tourism task in all on projects we're Caribbean, are of

it. in The high pointing as certainly, we protocol the exceptionally is have of hinder Royal states footprint worth if from that they by in and And market prevalence the think there reviewing States, think and point-by-point, our a we But out that the origination you are I is entire components is, single in sense to resumption yes, the tells is of market, have they team of step-by-step, I it's higher but this prevalence that their for be customers, that's United experts. obviously going operations. common origination of the just panel destination. – a country. the to COVID going density component of – then placed really is are in experts we draw So of And the them of well. front an every fields, certain extensive the is are international it sure But of course, do that's

on of have an it's prevalence determination ongoing the key point, kind So But think, I will return of service. to the process. a is COVID a the

you. Very helpful. Thank

You're welcome.

James. Thanks

is next question Conder Wells Tim Your from of Fargo.

operating let's some here, questions. And just about, maybe with we Jason, lines on we just thank And all XXXX, some needs. the the private color. sort cost some back saw the the probably as and you, XXXX? some we relative of demand. good following of cruise – think SG&A to islands agree Move gentlemen, Thank you. the totally in call structural When to on Jason as of that both those to levels that, of accommodate get some the and cruise side can for should that it how normal, XXXX, the well on pent-up with Michael, There's places

– changes will obviously of we've actions G&A a taken that our I be Well, standpoint, permanent terms Yeah. cost think structure. in on some – think we've in we structural

better. based running going know the continue is course, to be. of to exactly which and factors But that side, will and to the product and more might some ways of additional be costs our But of delivering some load a of to that of off in back will these out accordingly be it There pre-COVID up so to number trying margins and to will over Scores, we're also it – be have On forth of expense that to world, vacations the do that we to save very protocols, of the Promoter identify the going the money. period but of scale make to best be going getting continue is will Net time some sustainable what be There's dimmer strong goal relate example. sure while course, temporary back to there. we time, don't ourselves all for

those we And what that to go about the basis? structural, maybe year, off of the as below could best is Is some there you're of XXXX, we those then years sort ALBD but on XXXX obviously throughout to forward? any Okay. if – way, you're costs an XXXX, Jason, can XXXX that we're think let's above in whichever we – on be of whether ramping XXXX, basis, expect assume up in would ALBD seeing still benchmark be an

will find communicate structure what I to how volumes in it's be kind we and and a will going a sure the before we for here at here factor be ways a to it to on of need about when until try course, better the relate to the exactly – pre-COVID But a think become early comments kind days. is more Well, of have that financial guiding I'm it's my to of our load guidance little people I how too over know But basis bit time. time like will early that number. look I take and us the we levels would to – getting levels on back And health returning I to protocols would right, specific think cost efficient be. as of look Tim, have to start on volumes visibility, time and more to be staffing provide those and and earlier again, ramp-up. developing. necessary see we to we

you, Thank gentlemen. Fair. Okay.

Tim. for Thanks trying. Thanks,

Brandt from JPMorgan. is question of Montour next Your

details my taking for Thanks all everyone. morning, today. the Good and thanks questions, for

as marketing you the you. in you lot year of year of, a a marketing how a sort lift know there's moving that could pieces, order curious change at that Thank prior next assuming of do your no-sail look Just but get from years and strategy strategies? think prior XXXX, do you versus for, perspective, wave I season

our how with ironically we've spend. interesting been marketing been no it's well doing think, almost I Yeah, Brandt. Hi, bookings with

because the investment. much So that's lot our caused without CMO with bookings of and our have a been anxiety good organization marketing

between natural return marketing service. answer kind – the going when of the amount a to think really in of a to to and the pace I the investment return is, be there's relationship of we service

plans returning that. light I time. we how back what our over both So, a period won't relatively and a get think of this believer that And the to I of switch, Richard's I terms hope But of phase to Jason in will And that think a be will in phased-in pent-up will our again, be service once approach. a short point point, I'm to be my marketing this there's a demand. previous we're reflect then to also real will sense phasing, going be

optimistic feeling quite out. how may we're that So, about play

for summer follow-up, Thank XXXX, get just a sort that. looking you And you a booking a plan and at would about plans on of think any depth and get we could European to aren't Americans and are of say, Maybe to you for European-only sailings? contingency arm where willing breadth talk then scenario season or guys prime under you the flight? transatlantic if local marketing your let's

a question. and literally through outcomes, We great assumptions possible scenarios scenarios. have on worked different multiple multiple applying to these It's different Yes.

possible built have So asked we plans but other hope and types that it's out, outcomes. a of possibility. just what about We you doesn't for play

luck. Thanks all Right. and good

Brandt. Thanks

Thank you.

from next Morningstar. question Jaime Katz of Your is

if for with you the good my morning. Thanks TUI. questions. taking curious resumption cruising have on I'm Hi, any color of

started few has weeks since resumed? there weeks two ago. has been they think feedback I maybe any a ago, that And process

employed to actually, well seem of aspects both It's In have one that received and resumed. be also this. morning, TUI have protocols sure. Hapag-Lloyd brand been Yeah, health have well Jaime. our the as Good the been as cases, managing both

And have very so, good. reports been

have and relatively thing high been Score the customer one the forth outcome here. has that been Promoter better think is Net surveys so I and of

so, more resonating very an and vacation we've seen put able with And experience, our have is on well social that that some customers. we Germany what while a been distancing so forth, we've to installed protocol, is

and able the put haven't air, see more, resulted positive the still more they've it's days, things to feedback and able up vacation has fresh and So product in been beautiful very to customers. our that – experiences. stopped and early great on been they building that's beyond is They've but yet, from anywhere

ahead. Go you. Thank Okay.

we're one add understand, I It's just still COVID-XX think, learning important implications. to the about thing. would and all I

And as what see of through under so, this process. opportunity to we're does to certain the helpful circumstances happen us all is going really

think then Okay. is last to And the what quarter. impairment, allocated that I don't it's delineated

brands else? – or I the again sorry, was think all impairment Silversea. that was something there three Or across this across Was Silversea quarter?

with There's There we asset that And it recover relative that had through to No. we to that levels. ships also but business well, possible sold, for being Pullmantur under have to collections ventures (XX:XX). was us left restructured. seller then, under ships some we have the think have in that some is it do are for their some This also – – were that more of and as had of we there was was financing number joint years believe other we things some Pullmantur-related flushed of that don't kind there. impairment they

Okay. Thank you clarifications. the for

Sure.

of Badishkanian from Wolfe. is Greg question next Your

wondering you're summer beyond strength seeing actually of of I'm year? Wightman Jason, the a sort put first is guys just bookings relative Richard period stronger you and half could both the and of XXXX. on finer that, Hey, It's point guys. the for Good morning. that to Fred if in you back the bookings have the what on half relative Greg. about talked in

Yeah, sure.

bleeds a the the also little – year. one, into of I front it half bit more it's say So would

of will talked it And our it when mid It's this look at line where of be somewhat deal all the you the quarter, that's to by that just into across kind you that almost had pent-up if on strong season with So you the kind product, core it beyond. demand demand is this focused part has products. Michael about. them really consumer for time there's early, what second get and for see as of of kind of the

in forth. and so strength Alaskan there's So the products, Caribbean, products our European

kind that above and get demand thing, there's high So beyond these levels. it's clear just we consumers of willing one or at it's pay not our are and but as historical really mid-QX to

that Okay, cumulative versus pricing great. XXXX then we bit And saw quarter. soften on last just comment, did pricing what a

stable? the should as guys a FCCs we more continue Or that it pricing you think I to we are case. to would more But suggested number should cumulative more of that down redeemed? be be or and those continue expect should have come bit

Yeah, really question. good

application bookings what So, our that willing is on last of the have and But I year or cruise redeemed, we're that, than paid we time on mean, expect they as XX% that the effectively XXXX. get would that's I discount because more seeing impact for because think they're APDs, to FCCs guests strength of pay same the a going APD side, to on patterns with those the credit. in the an new

that because So I benchmark on there do of APD think that continued of will pressure just FCCs. be the application those

Thank Great. you.

Sure.

Ben Your Chaiken next Suisse. of question is Credit from

Hey, how it is going?

Ben. Hey,

between demand, You there for members. cohorts channels people mentioned using helped cruisers direct customer you I are seeing agent, that the you're some about mentioned the pent-up whether repeat there of previously. versus unique Is or, booking think travel it's with loyalty the for mix XXXX? example, example? you any change Is anything For

bookings various the Ben. terms Hi. is channels. in are everything coming how No, pretty of normal much through

occurring. trend think seen yet change that we've there's make kind nothing you So some of would

many one partners of of true think is thing stressed, I travel obviously distribution of our the because situation. our that are

Obviously, aware to our them as them travel we'll we this us, of no Because, we're the community. no, does be get all trying partner moment. change So and at booking as noticeable when want need to for that's something possibly us, be supportive can of. we're that behind to but

it. Got Thanks.

Great.

question Your comes Ciepiel last Cleveland Research. of from Vince

back to there's start folks path their who specific now? redeem of to folks a as back for right to clearer FCC-related? Curious, separately, you'd don't if to I taking And specified in question. FCCs then Thanks a wanted was FCCs, sailing, on know deposit customer applying the billion sailing percentage my how $X.X once much I maybe are FCCs. circle what take them the Hi. of

Sure.

of you FCCs about kind is billion our XX%, it of that $XXX FCCs. deposits, million of of think or customer so those XX% if are and about $X.X So about non-refundable

a of FCCs our And has about program, so, which and And unapplied about ones, been so third non-refundable also then the XXX% well, there's Cruise today. a those there's been although have far, applied. that we there's been been one the third – of XX% with course – have Confidence of that about are

Thanks.

We have. for And all you Carola the thank Well, call. assistance your very for Be Okay. today, be and with you a interest any for you day. follow-ups all Thank Shelby, the you great all you. thank we your might healthy. wish will all available participation in company. day,

and call. today's for Thank your Ladies concludes gentlemen, participation. conference you this

disconnect. may You now