Royal Caribbean Cruise Lines 2009 Annual Report Download - page 10

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PART I
As used in this Annual Report on Form 10-K, the terms “Royal Caribbean,” the “Company,” “we,” “our” and “us” refer to
oyal Caribbean Cruises Ltd. and the terms “Royal Caribbean International,” “Celebrity Cruises,” “Pullmantur,” “Azamara Club
Cruises,” and “CDF Croisières de France” refer to our cruise brands. In accordance with cruise vacation industry practice, the
term “berths” is determined based on double occupancy per cabin even though many cabins can accommodate three or more
p
assengers.
General
Royal Caribbean International was founded in 1968. The current parent corporation, Royal Caribbean Cruises Ltd., was
incorporated on July 23, 1985 in the Republic of Liberia under the Business Corporation Act of Liberia.
We are the world’s second largest cruise company operating 38 ships in the cruise vacation industry with approximately 84,050
berths as of December 31, 2009. We own five cruise brands, Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara
Club Cruises, and CDF Croisières de France. In addition, we have a 50% investment in a joint venture with TUI AG which operates
the brand TUI Cruises. Our cruise brands primarily serve the contemporary, premium and “up-market” segments of the cruise
vacation industry. Our ships operate on a selection of worldwide itineraries that call on approximately 400 destinations. We compete
principally on the basis of quality of ships, quality of service, variety of itineraries, choice of destinations and price.
We are a global cruise company serving numerous cruise markets throughout the world through our three main cruise brands,
Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. We have offices in the United Kingdom, Germany,
Norway, Italy, Spain, Singapore, China, Brazil, and Australia which focus on our international passenger sourcing. In addition, the
strategic acquisition of Pullmantur in 2006 provides us with a brand to serve the cruise markets in Spain, Portugal and Latin America.
Our launch of CDF Croisières de France in 2007 provides us with a custom tailored product targeted at the cruise market in France
and the formation of our joint venture with TUI AG in 2008 provides us with a custom tailored product targeted at the cruise market
in Germany.
Our commitment to acquire state-of-the-art ships, along with our maintenance programs and revitalizations to incorporate our
latest signature brand elements provides us with the flexibility to deploy our ships among our brand portfolio and expand into
growing international markets.
We believe cruising continues to be a widely accepted vacation alternative due to its inherent value, extensive itineraries and
variety of shipboard and shore-side activities. In addition, we believe that our products appeal to a large consumer base and are not
dependent on a single market or demographic. Further, we believe our global brands possess the versatility to enter multiple cruise
market segments within the cruise vacation industry.
Royal Caribbean International
Royal Caribbean International is positioned at the upper end of the contemporary segment of the cruise vacation industry,
although its quality enables it to attract consumers from the premium segment as well. This allows Royal Caribbean International to
achieve one of the broadest market coverage of any of the major cruise brands in the vacation industry. The contemporary segment is
served by cruises that are generally seven nights or shorter and feature a casual ambiance. The premium segment is served by cruises
that are generally seven to 14 nights and appeal to the more experienced guest who is usually more affluent. Royal Caribbean
International operates 21 ships with approximately 56,600 berths, offering cruise itineraries that range from two to 18 nights. Royal
Caribbean International offers a variety of itineraries to destinations worldwide, including Alaska, Asia, Australia, Bermuda, Canada,
the Caribbean, Europe, Hawaii, Latin America, the Middle East, the Panama Canal and New Zealand.
1
Item 1. Business