US travel media are reporting that luxury cruise line, Crystal Cruises, will shut down this week. Whilst at the start of the week it seemed that this might have been wild rumours, it now appears that it could well be the truth.
US website travelagentcentral.com has said that office employees at the company’s Miami headquarters have received termination notices.
Cruises International, which represents the brand in the South African market, was unable to give any comment until it had received an official statement from the cruise line, but Thaybz Khan, Head of Brand, said the GSA expected this was imminent and it would be able to share communications with the trade soon.
Reserve Accounts
On the cruise line’s website, there is a section entitled: “Statement on Crystal’s Reserve Accounts” posted in March 2021, see here. It says for the guests’ and travel partners’ confidence, Crystal had established secure, non-operating reserve accounts with its financial partners to hold all “refundable payments” allowing the company to process future refunds in a “timelier manner”. (Refundability appears to be determined by the applicable cancellation policies and contract terms).
The website says: “Refundable payments will be deposited in these new reserve accounts, and, along with additional channels of available funds and credit, will ensure 100 percent coverage of all refundable payments.”
In the FAQs section, the cruise line says all non-refundable payments received in accordance with our published, applicable cancellation policies, as well as air and insurance, are excluded from the reserve accounts
Under arrest
Crystal Serenity and Crystal Symphony were both arrested at Bimini, Bahamas, last week. Symphony diverted course from Miami where it was to have ended a cruise and sought refuge in the Bahamas instead. It was soon joined by sister ship, Serenity, which had been refused entry to Aruba. The two vessels were then arrested off Freeport, Bahamas, for unpaid fuel bills.
As the parent company, Genting Hong Kong filed a winding up of its assets, the cruise line announced it was suspending all operations. Liquidators are overseeing Genting HK’s assets, including Dream Cruises, Star Cruises and Crystal Cruises.
Informed cruising sources say it’s likely that Crystal's assets will be sold off individually rather than as a whole.
