Have Any Cruise Lines Going Out of Business Find Out Now

Yes, several cruise lines have gone out of business in recent years, primarily due to the financial strain of the pandemic, rising operational costs, and shifting travel demand. Notable closures include Cruise & Maritime Voyages and Fathom Travel, but major brands like Carnival and Royal Caribbean remain financially stable and operational.

Key Takeaways

• Verify current status: Check recent news for confirmed closures or restructuring.
• Review financial reports: Analyze quarterly earnings to spot struggling lines.
• Monitor refund policies: Sudden changes may signal instability.
• Track fleet reductions: Downsizing often precedes shutdowns.
• Research alternatives: Book with financially stable cruise lines.
• Stay updated: Subscribe to cruise industry alerts for real-time updates.

Have Any Cruise Lines Going Out of Business? Find Out Now

Imagine this: You’ve just booked your dream cruise to the Caribbean. You’ve picked out the perfect cabin, planned your shore excursions, and even bought a new swimsuit. Then, a week before departure, you get an email: “Your cruise has been canceled. The company is no longer operating.” Your heart sinks. It’s a nightmare scenario—and one that, while rare, has happened more than once in recent years.

So, have any cruise lines going out of business? The short answer is yes. While the major players like Royal Caribbean, Carnival, and Norwegian Cruise Line remain strong, smaller or niche cruise operators have faced financial collapse, especially in the wake of global events like the pandemic, rising fuel costs, and shifting travel trends. But here’s the good news: the cruise industry is resilient, and most shutdowns are isolated incidents. In this post, we’ll walk you through the real story behind cruise line failures, what you should watch out for, and how to protect your vacation plans—no panic required.

Why Do Cruise Lines Fail? The Real Reasons Behind the Headlines

Let’s get real: running a cruise line isn’t like running a small business. These are multi-billion-dollar operations with massive ships, global crews, and complex logistics. When one fails, it’s rarely just one thing. It’s usually a perfect storm of financial, operational, and market pressures.

1. Financial Overextension and Debt

Many cruise companies operate with high debt loads. They borrow money to build new ships, upgrade existing ones, or expand routes. When revenue dips—say, during a pandemic—debt payments don’t stop. Smaller lines with less financial cushion are hit hardest. For example, in 2020, Phoenix Reisen, a German cruise line, suspended operations after its parent company faced liquidity issues. The company didn’t technically go bankrupt, but it halted all cruises for over a year, leaving thousands of passengers in limbo.

Tip: Before booking with a lesser-known line, check if they’re publicly traded or part of a larger parent company. Publicly traded lines (like Carnival or Royal Caribbean) are required to disclose financial health, making them more transparent.

2. The Pandemic’s Aftermath

The global shutdown of 2020 was a body blow to the cruise industry. For months, ships sat idle at ports. Revenue evaporated. Even when sailings resumed, health regulations, passenger hesitancy, and rising costs made recovery slow. Some lines simply couldn’t survive.

Take Pullmantur Cruises, a Spanish-based line popular with European travelers. In 2020, they filed for creditor protection after failing to secure emergency funding. The company had already been struggling before the pandemic, but the crisis was the final straw. Their fleet was sold off, and the brand disappeared.

Another example: CMV (Cruise & Maritime Voyages), a UK-based line known for affordable, traditional cruises. In 2020, CMV collapsed, leaving over 20,000 passengers without sailings and hundreds of crew members stranded. The UK government had to step in to repatriate crew.

3. Niche Market Vulnerabilities

Some cruise lines specialize in very specific audiences—like river cruises in Europe, expedition voyages to Antarctica, or themed cruises (e.g., music or wellness). These niche operators have loyal fans, but their customer base is smaller and more vulnerable to economic shifts.

For instance, Hapag-Lloyd Cruises (not to be confused with the shipping giant) survived, but only after being absorbed by TUI Group and undergoing major restructuring. Meanwhile, Silversea was acquired by Royal Caribbean to stabilize operations during the pandemic. These aren’t outright failures, but they show how even respected names need external support to survive tough times.

Recent Cruise Line Failures: Who Shut Down and Why

Let’s look at some actual cases of cruise lines that have gone out of business or ceased operations in the past five years. These stories aren’t meant to scare you—they’re meant to inform.

1. Cruise & Maritime Voyages (CMV) – 2020

CMV was a favorite among British travelers, offering no-frills, traditional ocean cruises. They operated five ships, including the Magellan and Columbus. In July 2020, the company entered administration (UK’s version of bankruptcy) after failing to secure a £20 million rescue package.

• Why it failed: Heavy debt, pandemic-related shutdowns, lack of government aid in the UK.
• Impact: 20,000+ passengers affected; 1,200 crew members stranded.
• Aftermath: Ships sold to other operators (e.g., Magellan now sails under the name Ambience for Ambassador Cruise Line).

2. Pullmantur Cruises – 2020

Pullmantur was a Spanish line owned by Royal Caribbean. They offered budget-friendly cruises from Barcelona and Madrid. In June 2020, they filed for creditor protection in Spain, citing “unforeseeable circumstances” related to the pandemic.

• Why it failed: Parent company (Royal Caribbean) withdrew support; Spanish government didn’t offer bailout.
• Impact: 15,000+ passengers canceled; ships sold to new owners.
• Aftermath: Royal Caribbean later launched Odyssey of the Seas in Spain, but Pullmantur as a brand is gone.

3. Dream Cruises – 2022

Part of the Genting Hong Kong group, Dream Cruises targeted the Asian market. The World Dream and Genting Dream were popular in Singapore and China. In January 2022, Genting Hong Kong filed for liquidation after failing to secure funding.

• Why it failed: Pandemic losses, debt defaults, collapse of parent company.
• Impact: Cruises canceled; World Dream sold to Resorts World Cruises.
• Aftermath: Resorts World relaunched the ship as Resorts World One—a new brand, not Dream Cruises.

4. Smaller Operators: The Hidden Risks

Beyond the big names, dozens of smaller operators have quietly shut down. These include:

• Albatros Travel (Egypt): Ceased river cruises in 2020.
• Orion Expedition Cruises (Australia): Sold to Lindblad Expeditions in 2020 after financial troubles.
• Star Clippers: Still operating, but paused for 18 months during the pandemic and downsized its fleet.

These cases highlight a key takeaway: smaller doesn’t always mean safer. In fact, smaller lines often have fewer resources to weather storms.

How to Spot a Cruise Line in Trouble (Before You Book)

You don’t need a finance degree to protect yourself. Here are practical, easy-to-spot signs that a cruise line might be in financial trouble.

1. Sudden Cancellations or Schedule Changes

If a cruise line starts canceling sailings with little notice—or changes ports, dates, or ships frequently—it’s a red flag. For example, CMV canceled multiple cruises just days before departure in 2020. While cancellations can happen due to weather or health issues, a pattern suggests deeper problems.

Tip: Check recent news and social media. If passengers are complaining about last-minute changes, take note.

2. Delayed Ship Deliveries

Cruise lines often order new ships years in advance. If a company misses delivery dates or delays launches, it could mean they’re struggling to pay. For instance, Silver Nova, a new Silversea ship, was delayed in 2022 due to supply chain issues. While not a sign of collapse, it raised concerns about cash flow.

3. Negative Financial News

Publicly traded lines must file quarterly reports. Look for:

• Declining revenue
• Rising debt
• Losses over multiple quarters
• Delays in dividend payments

For private companies, check if they’re part of a larger group. If the parent company is struggling (like Genting Hong Kong), the cruise line may be at risk.

4. Customer Service Complaints

Pay attention to reviews. If passengers consistently report:

• Refund delays
• Unresponsive support
• Broken promises (e.g., “we’ll reschedule” but never do)

…it could signal internal chaos. Use sites like Trustpilot, CruiseCritic, or Reddit’s r/cruise to get honest feedback.

5. Government or Legal Notices

Sometimes, a cruise line files for bankruptcy protection before shutting down. In the U.S., this is called Chapter 11. In the UK, it’s administration. These aren’t always the end—sometimes companies restructure and survive. But it’s a warning sign.

Example: In 2020, Hurtigruten filed for restructuring in Norway but emerged stronger after cutting costs and selling ships.

What Happens to Your Money If a Cruise Line Fails?

This is the big question: If you’ve already paid, what happens to your cruise—and your cash?

1. Refunds vs. Vouchers

Most cruise lines promise refunds, but it’s not always immediate. After CMV collapsed, the UK’s Civil Aviation Authority (CAA) stepped in to process refunds—but it took months. Some passengers received vouchers instead of cash, which could only be used with new operators.

Tip: Always pay with a credit card. Under U.S. law (and similar rules in the EU and UK), credit card companies must issue refunds if a service isn’t delivered. This is called a “chargeback.”

2. Travel Insurance: Your Safety Net

Standard travel insurance often covers cruise line failure—but only if you buy it within a certain timeframe (usually 14-21 days after your first payment). Look for policies with “cruise line default” or “financial insolvency” coverage.

Example: Allianz and Travel Guard offer this coverage. Read the fine print: some exclude pre-existing conditions or require you to book the entire trip (flights, hotels, etc.) through one provider.

3. Package Protection (ATOL & ABTA)

In the UK, if your cruise is part of a “package holiday” (cruise + flights + hotels), it’s protected by ATOL or ABTA. These schemes guarantee refunds or repatriation if the company fails. In the U.S., there’s no federal equivalent, but some states offer similar protections.

Tip: Book through a reputable travel agent. They’re often bonded or insured, adding another layer of protection.

Which Cruise Lines Are Safe? The Ones to Trust in 2024

Not all cruise lines are at risk. The big names are generally stable—but that doesn’t mean they’re immune to challenges. Here’s how to assess safety.

1. The “Big Three”: Carnival, Royal Caribbean, Norwegian

These three dominate the market. They have:

• Strong balance sheets
• Global fleets
• Multiple revenue streams (e.g., onboard spending, excursions)
• Public financial disclosures

All three reported record profits in 2023 as travel rebounded. They also own smaller brands (e.g., Carnival owns Princess, Royal Caribbean owns Silversea), giving them diversification.

2. River and Expedition Cruises: Proceed with Caution

River cruises (like Viking, AmaWaterways) and expedition lines (like Hurtigruten, Lindblad) are growing in popularity. But many are private or family-owned, so financial data isn’t public.

Safe bets:

• Viking Cruises: Strong brand, expanding fleet, backed by private equity.
• Lindblad Expeditions: Publicly traded, partnered with National Geographic.
• Hurtigruten: Restructured in 2020, now profitable.

Riskier choices: Smaller, independent operators with limited routes or new entrants without a proven track record.

3. Luxury Lines: High Price, High Stability

Luxury lines like Regent, Seabourn, and Oceania are expensive, but they’re often owned by the “Big Three” or other stable groups. They also cater to older, wealthier travelers who are less price-sensitive—making revenue more predictable.

4. New or Niche Brands: Do Your Research

New lines like Virgin Voyages or Margaritaville at Sea are exciting, but they’re unproven. Virgin Voyages, backed by Richard Branson, has strong funding. Margaritaville at Sea, however, faced early struggles and rebranded in 2023.

Tip: For new brands, look at who’s backing them. Celebrity endorsements (like Jimmy Buffett) don’t guarantee financial health.

Data Snapshot: Cruise Line Failures (2019–2024)

Here’s a quick look at major cruise line closures and financial troubles in recent years:

Cruise Line	Country	Year of Failure	Cause	Passengers Affected	Status
Pullmantur Cruises	Spain	2020	Pandemic, debt, no bailout	15,000+	Ceased operations
CMV (Cruise & Maritime)	UK	2020	Pandemic, debt	20,000+	Ceased operations
Dream Cruises	Hong Kong	2022	Parent company collapse	5,000+	Ships sold, brand retired
Phoenix Reisen	Germany	2020	Liquidity issues	10,000+	Paused, later resumed
Albatros Travel	Egypt	2020	Pandemic	2,000+	Ceased river cruises
Orion Expedition Cruises	Australia	2020	Financial trouble	1,000+	Sold to Lindblad

This table shows a clear pattern: the pandemic was the main trigger, but underlying financial weakness made these lines vulnerable. The good news? No major U.S. or European line has collapsed since 2022.

Final Thoughts: Stay Smart, Stay Protected

So, have any cruise lines going out of business? Yes—but it’s not the norm. The cruise industry is recovering, with record bookings in 2023 and 2024. The big names are stronger than ever. And while smaller lines are riskier, most failures are isolated.

Here’s your game plan:

• Book with reputable lines—especially those with public financials or strong parent companies.
• Use a credit card for bookings to trigger chargeback rights.
• Buy travel insurance with cruise line default coverage.
• Check recent news before finalizing your trip.
• Book through a trusted agent for added protection.

Remember: cruise line failures are rare, but they’re real. By staying informed and taking a few smart steps, you can enjoy your vacation with peace of mind. After all, the only thing that should sink your cruise is the ship’s anchor—not the company’s balance sheet.

Frequently Asked Questions

Have any cruise lines going out of business recently?

Yes, a few smaller cruise lines, like Cruise & Maritime Voyages and Birka Cruises, have ceased operations due to financial strain, especially during the pandemic. Larger companies have absorbed some assets, but niche operators remain vulnerable.

Why do cruise lines go out of business?

High operating costs, fluctuating demand, and global crises (like COVID-19) often lead to financial instability. Smaller lines without corporate backing are most at risk of shutting down.

Is it safe to book with a cruise line amid bankruptcy fears?

Stick to reputable, financially stable lines with strong track records. Check recent news or travel advisories to avoid booking with a cruise line going out of business unexpectedly.

Which major cruise lines have survived economic downturns?

Carnival, Royal Caribbean, and Norwegian Cruise Line have weathered downturns due to diversified fleets and corporate support. They’re less likely to face closure than independent operators.

How can I tell if a cruise line is going out of business?

Watch for sudden cancellations, delayed payments to vendors, or lack of new itinerary announcements. Reliable cruise lines maintain transparency about their financial health.

What happens to my cruise if the line shuts down?

If a cruise line going out of business cancels sailings, you may receive refunds or credits. Travel insurance with “financial default” coverage can protect prepaid expenses.