Floating Petri dishes? Coronavirus puts cruise industry in the dock - CTV News | Canada News Media
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Floating Petri dishes? Coronavirus puts cruise industry in the dock – CTV News

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HONG KONG, CHINA —
Deadly viruses, chickenpox outbreaks and mass cases of the runs: sometimes luxury cruise ship holidays are not the trips of a lifetime elderly passengers had hoped for.

Cruise-goers have fallen sick en masse in the past, their predicament on the high seas coming into sharp focus because the holidays can cost thousands of dollars and are often marketed as trips of a lifetime.

“Cruise ships are very prone to outbreaks of common cold and the vomiting virus,” said John Oxford, professor of virology at Queen Mary University of London.

“Invariably the ships are overcrowded and with so many passengers, hygiene levels can slip.”

The U.S. Centers for Disease Control and Prevention (CDC) logged eight outbreaks aboard cruise ships last year of the highly contagious norovirus, which causes vomiting and diarrhoea — hardly the stuff of a dream holiday.

Measles, E. coli, chickenpox and salmonella poisoning have all broken out on cruises in recent years.

“Unfortunately, the more elderly demographic found on a typical liner are more likely to be susceptible to anything which might present a serious health challenge,” warned Dr Simon Clarke, an associate professor at Britain’s University of Reading.

With global concerns mounting about the threat of the new coronavirus, an elderly Japanese man and woman died on Thursday having been on the virus-stricken Diamond Princess.

The vessel, moored in Yokohama, was by far the biggest coronavirus cluster outside the epicentre in China. Some have pointed the finger at Japan’s authorities for how they handled the 14-day quarantine of hundreds of passengers.

For now, U.S. authorities have recommended that travellers “reconsider” cruises to or in Asia, citing the risk of coronavirus-linked travel restrictions and quarantines.

Annual growth

Stewart Chiron, a leading industry expert, says that cruise ships are nothing like the hotbed of viruses that they are painted out to be and cruise lines take “extensive precautions to keep ships clean”.

“When viruses are introduced, cruise lines have various protocols and procedures to clean ships and prevent further spreading of the virus,” he added.

U.S.-based Chiron says that the image of thousands of people crammed together on board — ripe conditions for the spread of illness — is also wide of the mark.

“Cruise ships are much larger than most people realise. There’s plenty of space for passengers to spread out in to have enjoyable, healthy experiences,” he said.

According to Chiron, citing CDC figures, of the more than 31 million people who holidayed on cruise ships last year, there were 1,038 cases of norovirus, or 0.003 percent.

Chiron and other experts say that the cruise industry has successfully shrugged off past negative headlines and will quickly bounce back once the coronavirus passes.

Cruise Lines International Association, the world’s largest cruise industry trade organisation, says 17.8 million people took an ocean cruise in 2009, compared with last year’s 31 million, demonstrating its continually growing popularity.

About half of all passengers are from North America and analysts say they are unlikely to be perturbed by events on vessels in Asia.

“As with previous crises, there may be new-booking slowdowns as people get caught up in news cycles,” said Chiron.

“Once this period concludes, there will be a surge of bookings and booking patterns will return to normal.”

‘You’re trapped’

Tara C. Smith, professor of epidemiology at Kent State University in Ohio, is not so convinced.

“Granted, I could become ill via any type of travel or even via a staycation with my kindergartener,” said Smith, who trained in microbiology and infectious diseases.

“But cruise ships take those risks of background infection and amplify them due to the constant shared quarters of travellers on board.”

Smith conceded that coronavirus was an “extreme example” and said that most cruise passengers will experience no problems at all.

“But personally, I’d rather not take the risk,” she said.

“One never knows what infections might enter on a cruise ship and it’s a location where you’re trapped with all your fellow passengers.

“It just doesn’t sound like a fun vacation to me.”

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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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