Making the Best of an Unfortunate Situation

March 25, 2005

Celebrity is doing all they can to make amends for a problem with one of their Millennium class vessels, Infinity. The 91,000-ton cruise ship is currently experiencing problems with its propulsion system and must enter dry dock to be repaired. To do so will mean that the 10-night cruise to Honolulu, Hawaii out of Ensenada, Mexico that was to leave on March 27th will be cancelled.

No doubt, many of the approximately 2000 would-be passengers are disappointed, but even when forced to cancel a cruise, Celebrity is striving to protect its well-deserved reputation for customer satisfaction. Not only will guests receive a full refund for their cruise, but they'll also get a free Celebrity cruise of 10 nights or less, departing on or prior to March 27, 2006 (excluding special holiday and Xpedition cruises).

Celebrity's show of good faith doesn't end with the customers, either. The travel agents who booked a passenger in one of Infinity's cabins will receive full commissions for the cancelled sailing, as well as a $50 rebooking fee per stateroom when the clients reschedule their cruise.

As you might imagine, the company will take a hit financially because of the situation with Infinity's propulsion system. Royal Caribbean Ltd. is expected to loose about 3 or 4 cents per share of earnings because of the situation; the stock's value is falling in New York Stock Exchange trading. Still, it is evident that the company is doing all they can to make sure the bumpy waters they're experiencing financially are not felt by their customers.

When it comes down to it, it's a matter of safety. In fact, ships frequently have to skip ports of call on a cruise because of dangers such as hurricanes, severe thunderstorms, and political turbulence. A problem with the ship itself is no different. "I apologize to our guests who are affected by this cancellation," Dan Hanrahan, President of Celebrity Cruises said. "Although the ship continues to operate safely, this is a matter than must be addressed now." Amid the customers' disappointment, it's still refreshing and encouraging when a company holds the safety of its customers in higher regard than its own bottom line.

Michael Gloss Jr.
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