Royal Caribbean announced its fourth quarter financial results with CEO Richard Fain stating that the cruise company received revenues of $2,000,000,000 with net profits of $288,040,000. Royal Caribbean’s fourth-quarter profits and revenues reportedly exceeded Wall Street estimates,

Mr. Fain told CNBC that the company met its lofty three-year goals of “double earnings” and a “double-digit” return on invested capital. In response the Royal Caribbean executive stated yesterday that Royal Caribbean employees will each receive a bonuses in the amount of 5% of their annual salary.

Investor Place reports that the cruise line will be distributing the bonus to its 66,000 employees. This Roya; Caribean CEO Richard Fainwill include shore-side and shipboard employees. This bonuses will be in the form of “equity grants” which will vest over three years. RCL reports that total spending on the bonuses will be $80 million.

Crew members state that their annual minimum guaranteed salaries range from $500 to $600 a month for a pot-washer to around $800 to $1,300 for a waiter, cabin attendant or bar tender. These Royal Caribbean ship  employees typically work contracts of around 6 to 8 months straight which turns out to working approximately 9 months a year. So a 5% bonus turns out to be around $225 to $270 for a pot-washer to around $350 to $550 for waiters, cabin attendants and bartenders, to be paid over the course of three years.

Meanwhile, CEO Fain reportedly sold 20,000 shares of Royal Caribbean Cruises stock in a transaction on January 16th. The stock was sold at an average price of $128.10, for a total transaction of $2,562,000.00. Following the sale, the chief executive officer now directly owns 807,741 shares of the company’s stock, valued at $103,471,622.10, according to SEC records. Ms. Fain indirectly owns another 216,206 shares which, at a price of $128.10 each, have a value of $27,695,988.60. Mr. Fain’s’ direct and indirect holdings of RCL stock are valued at $131,167,610.70, at the price of $128.10 a share.

RCL shares are now worth around $132 a share, up approximately $4 more a share since last week, so Mr. Fain’s RCL total RCL shares are now worth around $4,000,000 more than they were at the time of the sale last week.

The point is, that although it’s to be commended in theory that crew members will be rewarded for their hard work with bonuses, the amounts to be paid to the crew in question are rather minuscule, especially because they are to be paid over the course of the next three years rather than in a single check now. The bulk of the $80 million to be paid in bonuses will primarily go to the higher paid shore-side workers. So be sure to tip the crew members with cash when you cruise.

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Photo credit: CNBC

KIRO TV reports that the Grand Princess cruise ship experienced a problem with one of its engines and was required to return to port in Seattle for almost four hours.

The U.S. Coast Guard said that a port-side engine "died" on the cruise ship around 4:50 PM after the the ship left Seattle heading on an Alaskan cruise. 

KING 5 news station says that a tug had to assist the ship back to port.

Grand Princess

The cruise ship has two shafts and two fixed propellers.

Princess Cruises spokesperson Julie Benson said in a prepared statement:

“Grand Princess has returned to the Port of Seattle, in consultation with the U.S. Coast Guard, following an earlier issue with one of the ship’s motors. At no time was guest safety impacted as the ship had propulsion and steering control. As a precaution the ship is returning to port for a safety check and we hope to depart again later this evening. We will keep passengers fully informed.”

The KIRO television station reports that Ms. Benson also said "several similar incidents" have happened with Grand Princess before.

A passenger, identified as David Meers, was critical of the cruise line’s lack of communications. He reportedly said “thirty or forty minutes into the cruise, the ship listed to one side. Shortly after that, we turned around. We started asking the crew members what happened, and nobody seemed to know anything.” 

It was 40 minutes after turning around that the captain announced there was a propulsion alarm that required them to go back to Seattle. For the next 4 hours, the passenger said there was little communication at all, about any possible changes to their itinerary or whether customers would be compensated for the delay. He said “it certainly left a lot of confusion, among the folks that we were asking. And most of the passengers around us were also very confused.” 

To Princess’ credit, the cruise line communicated with this passenger via Twitter saying: @DavidMeers Hi David, we apologize for the delayed start to your vacation (1/2) and later @DavidMeers Grand Princess is returning to port for an inspection due to a technical issue, and we hope to depart later this evening (2/2).

After the unspecified repairs, the cruise ship left Seattle around 10 PM. 

The passenger’s last tweet?  @PrincessCruises Glad it wasn’t more serious. All is well that ends well. Enjoyed the beautiful Seattle skyline again.

The mechanical problem seems to have been fixed with the ship sailing at 22 knots to Alaska.

 

Photo Credit: Wikipedia / Ivan T.