Disney Cruise Line cancels sailings into December 2020

[Intr3pid]

It Is a reduction on cash though if they have to refund all those cruises, no? Especially since november cruises are now mostly after in PIF, not just deposit. And cash/liquidity is a big deal now.

That's true, but that has been an issue in every month or quarter. The cash outflow from the late summer cruises they cancelled after those PIF dates, for example, will hit this quarter's financials. In a way, they have to keep kicking the can down the road.

All that said, DCL's financials are immaterial to broader Disney financials. Almost a rounding error.

 

[DisBNewB]

There are no losses to book here. You don't record revenues until you provide the service. Until then, it's just a deposit.

Yes, this. There's no way that Disney or any of its parts operate on a cash basis, which means that, per accrual accounting, while money in the bank is good for cash flow purposes, cancellations of the December cruises would affect their 2021 FY regardless of whether they're cancelled now or after the close of the fiscal year.

Whether they're waiting because of something related to the visuals related to financials is another question altogether, which I can't answer.

 

[_auroraborealis_]

We rolled it, paid more for 3 additional cruises and added 2 additional cruisers.

But because they're in the future, they may not be accounted as revenue until the ship sails. RThere is booked revenue, but then there is revenue recognition. The rules on when revenue can be recognized vary across industries, and maps also to when expenses are recognized for the provision of the service. Until the service is provided, you have a claim to refund that typically means your funds won't show on the balance sheet in the next report period (Q4).

 

[Southern Pirate]

The November sailings were removed on 8/5, so that being the case they're overdue to be canceled. I suppose they could be waiting (hoping) for some good excuse, like another CILA announcement, or something from the CDC... just so they aren't the ones to blame for a round of cancellations. Their cancellations seem to be more reactive than proactive.

If Disney does cancel then they can't be blamed anyway. The only way for them to make money is to sail. What is holding them back is ports of call. Check your destination and you may just find out the ports are closed to large groups of tourists. Our next cruise is just a short one that we do in the winter but the Bahamas are not open yet for cruise ships.

 

[iannovich]

well there it goes...

https://disneycruiselineblog.com/20...ng-november-and-early-december-2020-sailings/

 

[ebockelman]

It's official on the Disney Cruise Line website now as well: https://disneycruise.disney.go.com/guest-services/advisory/

 

[ddonner]

I can't recall the wording before, but I didn't see any 125% credit. Did they take this away?

 

[T & R]

I can't recall the wording before, but I didn't see any 125% credit. Did they take this away?

It's still there. They put it in the cancellation e-mail you get.

"In light of this cancellation, we are offering Guests who have paid their reservation in full the choice of a 125% future cruise credit to be used for a future sailing prior to May 31, 2022, or a full refund. The credit has automatically been added to your account."

 

[ChicosWife]

• Disney Cruise Line Coronavirus (COVID-19) Travel Alert
  September 15, 2020
  
  Disney Cruise Line Extends Suspension of All Departures Through at Least December 6, 2020
  As we continue to refine health and safety protocols for our future return to service and await direction from the U.S. Centers for Disease Control and Prevention (CDC), Disney Cruise Line has decided to further extend its suspension of new sailings.
  Sailings are cancelled on board the Disney Fantasy through December 6; the Disney Dream and Disney Wonder through December 11; and the Disney Magic through December 12.
  Guests booked on affected sailings who have paid their reservation in full will be offered the choice of a cruise credit to be used for a future sailing or a full refund. Guests who have not paid their reservations in full will automatically receive a refund of what they have paid so far. Affected Guests and travel agents will receive an email from Disney Cruise Line outlining details and next steps.
  Guests who booked their reservation through a travel agent should contact them directly with any questions. Those who booked directly with Disney Cruise Line and have questions after receiving their email should call (866) 325-6685 or (407) 566-7797.
  Below is a list of impacted sailings:
  

  Disney Magic	Disney Wonder	Disney Dream	Disney Fantasy

  [TD]Sept. 13-18
  Oct. 2-12
  Oct. 12-17
  Oct. 17-22
  Oct. 22-27
  Oct. 27-Nov. 1
  Nov. 1-7
  Nov. 7-12
  Nov. 12-16
  Nov. 16-21
  Nov. 21-28
  Nov. 28-Dec. 3
  Dec. 3-7
  Dec. 7-12
  Dec. 12-17[/TD]
  
  [TD]Sept. 14-18
  Sept. 18-23
  Sept. 23-27
  Sept. 27-Oct. 4
  Oct. 4-9
  Oct. 9-12
  Oct. 12-16
  Oct. 16-18
  Oct. 18-23
  Oct. 23-28
  Oct. 28-Nov. 1
  Nov. 1-6
  Nov. 6-20
  Nov. 20-27
  Nov. 27-Dec. 1
  Dec. 1-5
  Dec. 5-11
  Dec. 11-15[/TD]
  
  [TD]Sept. 14-18
  Sept. 18-21
  Sept. 21-25
  Sept. 25-28
  Sept. 28-Oct. 2
  Oct. 2-5
  Nov. 1-8
  Nov. 8-13
  Nov. 13-16
  Nov. 16-20
  Nov. 20-23
  Nov. 23-27
  Nov. 27-30
  Nov. 30-Dec. 4
  Dec. 4-7
  Dec. 7-11
  Dec. 11-14[/TD]
  
  [TD]Sept. 12-19
  Sept. 19-24
  Sept. 24-29
  Sept. 29-Oct. 4
  Oct. 4-10
  Oct. 10-13
  Oct. 13-16
  Oct. 16-19
  Oct. 19-23
  Oct. 23-26
  Oct. 26-30
  Oct. 30-Nov. 2
  Nov. 2-6
  Nov. 6-9
  Nov. 9-14
  Nov. 14-21
  Nov. 21-28
  Nov. 28-Dec. 6
  Dec. 6-12[/TD]​
  
  
• Cruise Date Flexibility Option
  Guests now have the flexibility to change their sail date up to 15 days prior to departure for any cruises booked by October 31, 2020 for sailings through May 2021. Learn more about the Cruise Date Flexibility temporary booking policy.

 

[TheLorax]

Got my official email a few mintues ago. Our 11-14 cruise canceled. Said all Fantasy cruises thru Dec 6th .