Cruise ships’ reputation as floating luxury hotels is a big attraction for travellers but may be a major drawback if an incident occurs.
With thousands of people confined together, possibly days away from the nearest port, events such as a disease outbreak, storm or safety failure can be hard to deal with.
Companies can suffer serious reputational damage if they are thought to have caused the incident or failed to manage the situation effectively. Whatever happens on board is likely to be filmed and posted on social media with the potential to quickly snowball.
These concerns were underlined in our 2023 Reputational Risk Readiness survey, in which customer abuse, employee abuse and bodily injury emerged among the top reputational risks.
Based on the findings of our survey, and our experience of cases and claims, we’ve identified key risks facing cruise lines – along with steps you can take to prevent them and minimize the fallout if they happen.
Outbreaks of food poisoning or contagious diseases can quickly spread and lead to accusations of poor hygiene and safety practices on board.
In one incident in 2023 around 700 passengers and crew were infected with COVID-19 while on a cruise in the Pacific. In another, almost 500 passengers were infected with norovirus during a cruise in the Caribbean in 2019.
Incidents such as physical or sexual assaults, fires and injuries caused during severe storms, can all be very damaging to a cruise line’s reputation.
In one incident in 2023, more than 100 passengers suffered broken bones and injuries when their cruise ship entered rough seas. Although these events may not be caused by the company, you can still receive negative publicity, leading to a loss of trust.
There have been numerous cases of alleged discrimination against ethnic minorities, LBGT+ passengers and disabled people on cruise ships in recent years, as well as cases of assault by crew members. Such incidents can be hugely damaging when most people carry smartphones and can record and publish videos in minutes.
The risk of terror incidents is ever present in an increasingly unstable world. Active assailant attacks were the second biggest concern in our Reputational Risk Readiness survey, reflecting worries that companies could be perceived to handle the situation badly or contribute to a lapse in security.
Large cruise ships have many shops, restaurants and health and beauty providers on board, selling products that could potentially be contaminated and harmful.
Any incident such as an allergic reaction to a food item served on board to botched cosmetic treatments can be be highly embarrassing it it makes the rounds on social media.
WTW has partnered with some of the global leaders in this field to develop a holistic solution that can help prevent a reputational crisis happening and help you recover if an incident does occur.
Prevention: We’ve partnered with Polecat to develop a risk monitoring tool powered by artificial intelligence (AI) that allows you to track live sentiment and get ahead of any brewing story before it hits the headlines. Algorithms synthesize data from online and social media channels into dashboards and risk alerts for relevant media.
Risk quantification: Our Reputational Risk Quantification Model gives you an evidence-based value for the potential reputational damage likely to follow incidents most relevant to your business. This is based on statistical analysis, events data and our experience of reputational risk. The model can also help you map any gaps in mitigation and design a targeted program of reputational risk protection.
Reputational risk benchmarking: Our Reputational Risk Benchmarking Portal provides a picture of your company’s resilience against reputation risk. By completing a simple questionnaire, you’ll get a report detailing your reputation risk maturity score, benchmarking your approach against some of the world’s leading companies, and providing best practice recommendations on how to improve.
Risk transfer: Our reputational risk insurance solution offers cover for loss of gross profit as a result of a significant adverse publicity event. Perils covered include damage by association with an affiliated business. Immediate interim payments are available to get through the crisis with support spread over up to 12 months to help you stay afloat in the aftermath.
Response: WTW offers access to experienced crisis communications specialists who have managed crisis situations of all types around the world, from advice on media handling and strategy to leadership statements and speeches.
Rehabilitation: Our specialists will work with you over the longer term to develop campaigns and communications to help you turn the tide of public opinion back in your favor.
To find out more about our Reputational Crisis Insurance and Risk Management Solution, please get in touch.
