The fire aboard Royal Caribbean's (NYSE:RCL) Grandeur of the Seas was put out within two hours, but not before disrupting the travel plans of passengers on board and those set to board the ship this Friday. Both sailings have been nixed, and even though Royal Caribbean is doing things right by issuing refunds and discounts on future sailings, this is going to be a big hit for the cruise industry.

Royal Caribbean, NCL (UNKNOWN:NCL.DL), and ship spa services provider Steiner Leisure (UNKNOWN:STNR.DL) all hit new 52-week highs earlier this month. Unlike Carnival (NYSE:CCL) -- which has been sluggish in light of several mishaps at sea since last year -- everyone seemed to view the negative instances as Carnival-specific events. Now Royal Caribbean's fire may lead folks to question booking on any cruise line in the near future.

In this video, longtime Fool contributor Rick Munarriz -- who experienced a kitchen fire aboard the QE2 and whose parents suffered a nixed Hawaiian cruise when the S.S. Independence ceased operations several years ago -- takes a look at the reputation problems that the industry may experience in light of Monday's fire.