Crystal is suspending operations for its ocean and expedition ships through April 29, 2022, with river cruises suspended through the end of May 2022.
The company announced in a letter to guests today that “Suspending operations will provide Crystal’s management team with an opportunity to evaluate the current state of business and examine various options moving forward.”
The Wall Street Journal reported that Crystal’s parent, Genting Hong Kong says that it will run out of cash by the end of this month, putting the fate of Crystal in question. That’s not to say that Crystal is dead in the water.
Of course, one option is that creditors will demand that Crystal permanently cease operations and sell off assets. But another option is that creditors opt to continue operating the company (basically funding operations) and then sell to a suitable party. Companies like Sycamore Partners, which bought Azamara last year, could be potential buyers.
The latter option would make the most sense to us largely because of the brand reputation that Crystal has build during its three decades of operation. We expect to know more about Crystal’s direction, perhaps as early as the end of the week, but the larger story may take longer to unwind.
For our part, we’re hopeful that the talented and passionate team at Crystal will prevail. On the oceans and rivers, Crystal has given many of us avid cruisers some of the best cruise experiences of our lives. I can’t imagine that anyone, competitors or otherwise, who has a heart and soul would want to see Crystal and its employees sink.
Crystal is the first major cruise company to be claimed by the Covid-19 pandemic. Our hope is for survival and a happy outcome.
Gary Roth says
I hate to see any business go out of business, but I am not surprised about Crystal. Just about every travel company is facing a grueling financial situation. Many travel industry companies are privately owned, owned by private equity funds or hedge funds so they don’t need to inform the public about their financial situation. Lots of travel companies issued lots of future travel credits to try to keep the money they collected and keep the customers loyal. Many of them paid the travel advisor commissions before the clients traveled to help the travel advisors stay loyal to them. The bookings for 2022 are strong, but how much of that is new revenue or is it money they spent since March of 2020? Genting Hong Kong is the first causality, but not the last. When it comes to trip insurance, the key factors are COVID coverage and Financial Default cover average.
Ralph Grizzle says
Thanks for these insights Gary. Also, I had not thought of Financial Default coverage. Yep, seems that is equally important these days as well.
Sonia Kruger says
Heartbreaking news! Let us hope and pray that this fear pandemic will be over soon!
Bobby Borges says
This is the result of shutting down the world. We put all these restrictions in place and then we wonder why this is happening. I think this is the first, but not the last company to have to go thru this. My advice is use any credits you have as soon as you can.
Jef Huber says
Well, Bon Voyage Crystal! You’ll be missed by your loyal aging past passengers. Sorry to say, I bet Viking Cruises is having the last BIG LAUGH as they Strongly Warned Crystal, if they try to come into their (River) waters they will Bankrupt them, with a new Ocean liner Division with #1 Ratings and Lower Prices. So, it may not just have been Covid-19 but Viking Cruises dominance and competition to defend their Rivers by going after all Crystals Luxury Ocean market share in return building an Ocean Liner Division to counter their River Boat entry. Anyhow, as a Luxury Travel Agent from Club Cruise, I saw this coming long before Covid-19, when all our Luxury clients literally jumped ships for 30%-40% lower fares and newer ships with Viking Oceans.
P.s. Hi Ralph Grizzle — Good to see your still in the Cruise News Publication Biz – You did our Club Cruise newsletters for us in the 1990’s, about 25 years ago. Cheers!
Catherine Deblois says
We sailed Crystal in November 2019 and found many passengers to be terribly snobby. Sad to see the end of a cruise line but lines have to attract other passengers.
James says
Genting went bankrupt not Crystal……. Crystal is a brilliant brand with amazing people connected to it. I really hope it survives this unfortunate situation.
Timothy Rinkoski says
Crystal had issues prior to the Pandemic. They had 5 Presidents before the Pandemic and now are on six. The crew is the best in the World but should not be the only reason they stay in the business. The management had too many inconsistencies. The first owner NYK did not want to spend money on new ships and sold off the company to GENTING who then hired a management team that did not know the luxury market. The expansion into River ships, a yacht, the plane and let’s not forget the USS United States sent the company into too many directions. Finally, a new ship design included condominiums which were over the top. They now have a 28+ old ship and one half the age. The richer ships have the best potential to be sold. The planes were sold to GENTING in 2021. The Expedition ship is the most valuable but the Serenity still has a great life ahead. The River ships can be sold to an upscale operator that can sell the higher end market whether that is incentive or group business.
Right now if they mess up how they handle the guests they will find this will only cause more issues to keep their base of customers!
Ralph Grizzle says
Well said Timothy. Many of us in the industry were scratching our head when Crystal was expanding so rapidly, so I certainly relate to your citing their breathless expansion as troublesome for the company’s well-being. Thanks for the additional info and your insights.
JAMES WALTER HILL says
To have a leader fail actually can INCREASE the pressure on surviving competitors who have to “try harder ” to give clients the confidence to book and to have belief that others will not fail……
Ralph Grizzle says
Well said. And very true.
Ed Rumen says
Competition encourages all cruise lines to look for unique ways to attract paying customers and set themselves above the others for offering the best value for the cruising dollar. To have a leader in the river cruise industry fail, lessens pressure on surviving competitors to “try harder” to attract clients.