Travel Weekly webcasts: Calls for cheap fares for agents and predictions of growing demand for bo NCLH’S FRANK DEL RIO


Travel Weekly’s Lucy Huxley


TRAVEL AGENTS


Amanda Matthews


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Watch these and upcoming T


ravel Travel


Frank Del Rio


Weekly’s Lucy Huxley


Del Rio asserts NCLH ‘will not be casualty’


T


he Covid-19 pandemic will result in “casualties” in the cruise sector but Norwegian Cruise Line


Holdings brands will not be among them, according to its boss. President and chief executive


Frank Del Rio said: “There’s no question there are going to be casualties in this war. “Certain brands will go out of


business. Certain cruise ships that are on order will not be delivered. Marginal ships that were operating at a slight profit may not operate at a profit any longer in this more demand-constrained environment. “So yes, I think there will be


inventory leaving the system. But I’m very confident that the combination of only having 28 ships compared to some other companies that have many more; having the youngest fleet in the industry, which means more balconies, more of the venues that people want to enjoy, plus the nine vessels on order, means we will be able to succeed very well in the new environment ahead of us.” Del Rio confirmed he would not


10 4 JUNE 2020


delay or cancel any ship orders. The group has six on order for NCL, two for Oceania Cruises and one for Regent Seven Seas Cruises. He said a statement in early May


that the crisis, combined with debt maturities, was raising “substantial doubt over NCLH’s ability to remain as a going concern” was a “technical requirement of our chartered accountants”. He said $3 billion was raised “that same afternoon”, meaning “we can sustain ourselves for longer than 18 months with zero revenue”. Del Rio also said NCL would


“throw the kitchen sink” at bringing in new health and safety protocols because “the cruise industry cannot afford one more case of Covid-19”. He said lines would operate at


reduced capacity in the short term, and that social distancing measures would not need to be permanent. “Keeping our target customers


and past guests engaged and confident that they’re going to be healthy and safe and have a great time on board is going to be a constant


effort for a long time,” Del Rio added. i Business, page 31


Miles Morgan


Weekly webcasts at: go.travelweekly.co.uk/webcasts


‘Suppliers should offer cheap fares for agents’


I


ndependent agents are calling on hoteliers, operators and airlines to offer the trade free or significantly reduced travel


to help get the market moving as it emerges from the Covid-19 crisis. Designer Travel owner and


joint managing director Amanda Matthews said agents were eager to be “guinea pigs” and be the first back on planes and into resorts and hotels, so they can then explain how safe travelling is to their clients. Miles Morgan, chairman of


Miles Morgan Travel, agreed hoteliers should be encouraging agents to visit, and said airlines should offer the same – similar to ‘AD90s’ issued in times gone by where agents pay 10% of the fare. He said it was “crazy” that airlines would rather fly with empty seats than give agents cheap rates. Both agents said they are facing


“some tough conversations” about cancellations with customers who are worried about going on holidays as travel gradually restarts. Morgan said: “If the flights now


operate – and I’ve got lots of elderly customers – what happens if they actually don’t want to travel because they’re worried about it? And yet, the holiday company is saying, ‘well, this is still operating, so normal terms and conditions apply’. Matthews added: “Where


people have paid their balances for early July and August and think they fall into that category and can get a refund, then I think there will be some tough conversations that we’ve got to have with customers and suppliers. This is especially true for those older clients who are really fearful of leaving their house.” Matthews and Morgan both


agreed that there had been some “green shoots” in terms of new bookings coming in. They also called on Tui to allow


independent agents to take deposits at the same, lower rate offered to direct customers, after noting that the UK’s largest operator had been “more co-operative” with third-


party agents during the crisis. i Comment, page 12


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