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Carnival's Seabourn Halts Operations of Additional Cruises

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Owing to the unpredictable circumstances evolving from the coronavirus pandemic, Carnival Corporation & Plc’s (CCL - Free Report) Seabourn has halted cruise operations for three of its ships, namely, Seabourn Ovation, Seabourn Encore and Seabourn Quest.

Notably, operations for Seabourn Ovation, Seabourn Encore and Seabourn Quest have been effectively paused through Jan 3, Jan 6 and May 10, 2021, respectively.

Earlier, Seabourn had announced to pause its global ship operations from Mar 14 through May 2021. Depending on the ship, the company had cancelled all voyages for ships scheduled to operate during that timeframe.

President of Seabourn, Josh Leibowitz stated, "Our utmost priority is the health, safety and well-being of our guests, crew and the people in destinations. We recognize the long lead time for planning an ultra-luxury Seabourn experience and with that in mind, we proactively announce the cancellation of these additional voyages.”

Apart from operations, the company has revised its delivery date for its new ultra-luxury purpose-built expedition ship – Seabourn Venture – due to disruptions in overall construction and finishing process. However, delivery for the same is now scheduled for Dec 1, 2021.

Compensation Updates

Seabourn is offering re-accommodations and future cruise credits for its cancelled voyages.

Notably, for the affected voyages on Seabourn Quest's Antarctica, Amazon, Panama Canal, South America and Transatlantic cruises (scheduled between Nov 7, 2020 and Apr 25, 2021), the company is offering re-accommodation in the same suite as well as shipboard credit based upon the voyage length. The shipboard credit ranges from $300 per suite (for voyages up to 20 days in length) to $500 per suite (for voyages of 21 days or more).

For bookings on impacted cruises on Seabourn Encore and Seabourn Ovation, guests are entitled to 125% future cruise credits, depending on the type of the payment. With a validity of 12 months, the credits can also be used to book sailings departing through Dec 31, 2022.  Nonetheless, guests can also avail for a refund, upon request.

Carnival — which shares space with Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Royal Caribbean Cruises Ltd. (RCL - Free Report) in the Zacks Leisure and Recreation Services industry — has a Zacks Rank #4 (Sell) at present.

So far this year, shares of the company have plummeted 67.6% compared with the industry’s fall of 41%.

A Key Pick

A better-ranked stock in the leisure space is Twin River Worldwide Holdings, Inc. (TRWH - Free Report) , which carries a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Twin River 2021 earnings are expected to surge 273.5%.

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