The COVID's Omicron variant impacts the cruise industry as a whole and the Royal Caribbean Group in particular.

The variant significantly changed the situation.

From a long-term perspective, Royal Caribbean's business is strong with the short-term impact that we see now.

Royal Caribbean Group published its press release just hours before the U.S. Centers for Disease Control and Prevention (CDC) raised its cruise recommendation to level 4 "High Risk" and advised not to cruise even vaccinated guests.

As previously reported, Omicron is significantly more infectious compared to other COVID variants. It has become the dominant form of COVID-19 in the US and worldwide, including cruise ships. The good news is that those with Omicron had less severe symptoms. Royal Caribbean points out that cruises remain a few places to relax, knowing that almost everyone you meet is fully vaccinated.

Regarding recent experiences on board with their ships, Royal Caribbean said it is consistent with their observations.

The number of people that are tested positive is increased. At the same time, the number of sick people on board doesn't grow.

Since the resumption of cruises to the United States in June 2021, Royal Caribbean has transported 1.1 million guests. 1,745 people tested positive, which is 0.162 percent.

In addition, most of these cases had no symptoms or only mild symptoms, and only 41 people were hospitalized. None of those infected with Omicron needed to be taken to the hospital. Almost everyone (kids are excluded) on board was vaccinated and tested negative before boarding.

According to Richard Fain, chairman and CEO of Royal Caribbean Group, "Omicron is having a big short-term impact on everyone, but many observers see this as a major step towards COVID-19 becoming endemic rather than epidemic. We don't like to see even one case, but our experience is a fraction of the comparable statistics of virtually any other comparable location or industry. Few businesses are subject to such intense scrutiny, regulation, and disclosure requirements by so many authorities, and we welcome that scrutiny because of our commitment to safety. We intend to maintain our goal of delivering the safest vacation on land or sea and will constantly adjust our procedures to accomplish this even in the face of Omicron's amazing transmissibility."

Dr. Calvin Johnson, the Chief Medical Officer of the Royal Caribbean Group, said that the company is guided by the constantly evolving information about the Omicron variant of COVID. "Our case count has spiked, but the level of severity is significantly milder," he said. "We will remain nimble and in constant contact with health authorities. For example, even before Omicron, we have been giving all our crewmembers booster shots as they become eligible."

After a solid weekend of cyber sales, Royal Caribbean Group faced a reduction in the number of bookings and an increase in cancellations for near-term sailing.

At the same time, the number of cancelations is lesser than in the case of the Delta variant.

The number of bookings in the first half of 2022, as expected, remains below historical levels. Due to high demand from the critical US market, bookings for the second half of 2022 are within historical limits.

Royal Caribbean Group said that the tourism industry is experiencing significant disruptions due to Omicron's spread. Such disruptions are especially noticeable during the holiday season as demand increases.

Similar problems affect the capabilities of the company's onboard service. Also, e company is experiencing service disruptions at selected destinations and has canceled or significantly changed 16 of its 331 destination calls to date.

Royal Caribbean Group expects these disruptions to continue in the near future and decrease as the world adjusts to current trends.

Feel free to discuss options for your travel in 2022 with me.

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