Farewell Renaissance Cruises
Renaissance Cruises today
announced that it has filed for Chapter 11 reorganization and has
ceased all operations.
"Renaissance Cruises has very
reluctantly elected to seek court protection after exhausting every
other avenue to work out a comprehensive business solution," said
Manfred Urpsrunger, President and Chief Executive Officer for
Renaissance Cruises. He adds:
"In light of the severe,
unexpected drop in leisure travel following the terrorist attacks on
the United States and the immediate and adverse impact on the
Company's late stage recapitalization efforts, we concluded that
this was the only responsible action we could take to exit our
business in an orderly fashion while preserving value for our
investors. We want to thank our customers, travel agent partners,
and employees for their support over the last year, and assure them
that we are taking the necessary steps to minimize the impact of
this filing on them."
Renaissance is the fifth largest cruise
line in the world and is the largest cruise line ever to cease
operations. How this affects the rest of the cruise industry remains
to be seen. "While Renaissance only had two percent of the market in
a practical sense, it won't help the industry. It may make travelers
nervous about booking a cruise," says Brian Major, Cruise Editor at
Travel Weekly.
Several travel agents that I spoke with were
in shock at Renaissance's sudden departure. "This will leave a huge
gaping hole in the cruise product mix in that we can offer the
client," says Lucy Hirleman, CTC and President of Berkshire Travel
in Newfoundland, NJ. She adds, "The real loser is going to be the
consumer because the uniqueness of the Renaissance product addressed
an entire new market segment. That segment is the younger upscale
boomer (mid-30s to mid-40s) that wanted a more casual, yet elegant
cruising experience."
Travelers who are planning cruises in
the near future need to take extra precautions to avoid losing their
vacation investment. "Future cruise consumers need to take caution,"
warns Tim Rubacky, Cruisemates Consumer Affairs Editor. He says,
"Any passenger who is booked on a cruise line that is not one of the
big three (Carnival, Royal Caribbean/Celebrity, Princess), it is
strongly suggested that they purchase third party insurance to
protect against supplier default (a.k.a. bankruptcy)." He adds, "But
to be extra safe, all passengers should purchase insurance to air on
the side of caution."
Renaissance said that it is making
necessary provisions to return any passengers, who are on current
cruises or in transit, to homeports. Because none of Renaissance's
cruises departed from the U.S., the deposits of North American
vacationers with pending bookings would not be covered under the
Federal Maritime Commission's bond program. Customers with upcoming
bookings should contact their credit card companies and travel
agents for refund arrangements.
On a personal
note:
This is a very sad day for me. As an avid cruiser,
Renaissance had become my cruise line of choice. The ships,
itinerary, and personnel were first rate. Moreover, cruise
journalists everywhere are losing the best Public Relations Manager
in the business, Brad Ball, who was always there to answer questions
and promptly return phone calls to help us meet our deadlines. To
the Renaissance employees everywhere, you will be sorely
missed.
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