Reference no: EM133170544

Covid-19 Impact of Onboard Safety (ROYAL CARIBBEAN)- BASED ON THE ANSWER BELOW, WHAT ARE THE SOLUTIONS FOR THESE, USING PORTER FIVE FORCES ANALYSIS

As per CDC guidelines, the chance of getting Covid-19 on cruise ships is high because the virus spreads quickly among people in close quarters aboard ships. Therefore, people should avoid traveling on cruise ships, regardless of vaccination status. However, most people will still travel, regardless of the risks.

The outbreak of the Covid-19 pandemic has affected the hospitality industry the most, and the Royal Caribbean Group is not the exception. In December 2021, it was reported that Royal Caribbean Group was struggling: there was a rise in cancellations and a decrease in bookings, as Covid-19 cases rose in the U.S.

In January 2022, the two subsidiaries of Royal Caribbean Group - Celebrity Cruises and Royal Caribbean International, reported canceling cruises as Covid-19 spreads. First, the New York Times announced that Royal Caribbean International postponed some of its upcoming cruises because of the fast-spreading Omicron variant. Then, CNN reported that Royal Caribbean had canceled sailings of four ships due to Covid-19.

The company tends to return to profitability by wooing investors by leveraging its strong brand for financial guidance. The company also anticipates recovering by offering high prices for its upcoming cruises as the economy returns to normalcy.