After rumors of financial issues for months, Cruise West has stopped taking reservations, and they are terminating a world cruise partway through the sailing. (There is a story that the ship just put some people ashore in Canada.)
A recording on their phone number yesterday said the company is being “restructured under new ownership,” and while two sailings this weekend are scheduled to depart normally, “no new reservations will be taken until further notice.”
Cruise West has been a small high-end niche cruise line for years. The company sails a number of small ships, specializing in places that the larger ships can’t reach.
One of the company’s best ads for years was a picture of a speck on shore in Alaska, and then another picture of a bear up close on some rocks. The caption “Their bear. Our bear.”
Cruise West has also specialized in a casual experience, with guides who are experts in the areas they are sailing. The antithesis of the 4000 person ships with ice-rinks, climbing walls and glitzy entertainment and casinos.
On the other hand, since they don’t have the economies of scale (and all those other ways to separate passengers from their money) Cruise West sailings have deluxe prices, with very small basic cabins.
For the right client, however, someone who might never go on a standard cruise ship, they’ve been a dream vacation option. Plus, from a travel agent point of view, they’ve been easy and professional to work with.
It looks like the company is facing, how shall we put nicely, stormy seas.
The company’s first official statement said that Cruise West has not been sold, but that “additional assets may be sold and other steps are being pursued towards a restructure.” They said they would sail through October.”Cruise West executives will not respond to media inquiries or accept interviews at this time,”
There have been rumors in the travel industry for a while that the line was in trouble. Which brings up an unfortunate but necessary aspect of the travel industry. Once serious rumors of a company’s financial stability start, the situation is likely to degenerate.
From a travel agent’s point of view, it’s not that we wish these companies any harm, but it’s irresponsible at best and potentially financially disastrous at worst to sell the product of any travel company that could be in trouble, at least without divulging any known information up front.
Cruise West, themselves, starting in July was suggesting that clients pay with credit cards and take out third party insurance.
Financial rumors also swirled around Suntrips a couple years ago. The company had been delaying payments to travel agents for some time before they closed shop. No doubt agents booking away from Suntrips didn’t help, but these days, it’s scary enough with the companies we think are stable.
(Aloha Airlines, for example, shut down two years with no advance warning. Mexicana sent out more warning signs, but as a national carrier, they still probably lulled many into a false sense of security.)
A similar situation arises when it’s companies we’ve never heard of before. They may be fine, but with no data, usually the only recourse is to say that we can book them, but can’t vouch for anything and recommend third party insurance.
At this point, third party insurance companies have covered Cruise West for existing bookings, but it’s anyone’s guess if they will cover bookings when and if the company’s reservations offices open again.
It’s a slippery reputational slope. it’s going to be tough to convince travel agents to take the chance that any restructuring will hold.
For now, however, for fans of the line’s small ship casual cruising, it’s not an optimistic time.
Janice Hough is a California-based travel agent a travel blogger and a part-time comedy writer. A frequent flier herself, she’s been doing battle with airlines, hotels, and other travel companies for over three decades. Besides writing for Travelers United, Janice has a humor blog at Leftcoastsportsbabe.com (Warning, the political and sports humor therein does not represent the views of anyone but herself.)
