By Carly Wanna
Aug. 13, 2022 (Bloomberg) — Cruise ships are filling up again, but passengers are being reported faster than crew members.
Carnival Corp.’s Princess Cruises this week canceled 11 fall sailings on the Diamond Princess, saying it could not provide the level of service customers expect amid ongoing labor shortages. Norwegian Cruise Line Holdings Ltd., another major operator, told investors it had to limit Pride of America’s capacity due to staffing issues. The ship, which sails to the Hawaiian Islands, is required to have a crew that is mostly American citizens, a tall order in this tight job market.
“We’re not immune to it,” Norwegian Chief Executive Frank Del Rio said of industry-wide labor shortages.
Although cruise lines have relaxed requirements for Covid tests and reported stronger bookings, sailing has still been complicated. Norwegian shares fell 11% on August 9 after the company forecast a loss in the current quarter as it continues to face challenges such as the pandemic, the Russia-Ukraine conflict and “current macroeconomic conditions”. The stock has since recovered.
The Princess cancellations come after a difficult few months. P&O Cruises, another Carnival division, canceled seven voyages earlier this summer due to staff shortages. But other adjustments have been more subtle. Carnival Cruise Line, the company’s namesake brand, scaled back some of its offerings this summer, including suspending some special events like its loyalty parties, and instead offered perks like onboard credits or cocktail vouchers. Now, those events are back.
Still missing, and likely to disappear for the foreseeable future, are 24/7 pizzerias.
“There will be pizza available almost all the time most guests are awake,” Chris Chiames, a spokesman for Carnival Cruise Line, said in an email. The company also scaled back its birthday cakes and an extravagant chocolate buffet, cuts made in part due to lower staffing as well as general adjustments to meet guest demand, according to Chiames.
Carnival offered incentives, including bonuses and greater contract flexibility, to increase staff numbers. They are now discontinued.
Jim Walker, a maritime attorney based in Miami, Florida, estimates that less than 5% of cruise ship workers are US citizens or residents. He says the long hours and low pay make most crew positions unattractive to domestic workers.
Most crew members come from the Philippines, Indonesia, India and throughout the Caribbean islands, according to Walker. Generally, non-US citizens require a visa to work on ships traveling in and out of US ports.
The number of visas processed by the State Department dropped by as much as 90% during the pandemic, according to Jorge Loweree, managing director of programs at the American Immigration Council, an advocacy group. Around March, the department’s overall visa issuance returned to pre-pandemic levels, but Loweree says the agency faced a two-year backlog.
Long processing times have affected a range of industries, from health care to construction, and cost immigrants their jobs as they await renewal.
Nathaniel Derrenbacher, a spokesman for Royal Caribbean Cruises Ltd., the second-largest operator, said his company has not canceled any trips due to staffing.
“Like most businesses, we have faced challenges beyond our control as we restore our staff to full capacity,” Derrenbacher wrote in an email.
While cruise operators have tried to maintain their offerings, some passengers have complained of inadequate service. Linda Warhaftig said trash was littered on the decks of the Carnival Horizon and Conquest when she sailed on them in June. The 59-year-old, who has been on 65 cruises, said such a sight would have been unimaginable before the pandemic.
“After what I saw in June, I canceled my Carnival cruises for the rest of this year,” Warhaftig said.
Carnival spokesman Chiames said the line had an extremely busy summer, with most ships sailing full. “We know our guests deserve a great holiday and if there were times we fell short, we certainly apologize,” he said.
Despite the setbacks, bookings remain high and consumer sentiment is strong, according to Jefferies Group analyst David Katz.
“I think there is some expectation that service levels will still not be what they have been,” he said.
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