Royal Caribbean Cruise Lines 2009 Annual Report Download - page 14

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Operating Strategies
Our principal operating strategies are to:
Manage operating expenditures and ensure adequate cash and liquidity
We are focused on maximizing the efficiency of our operating expenditures and ensuring adequate cash and liquidity. We are
continually committed to improving our cost focus and have implemented new cost-containment initiatives. To ensure adequate
liquidity, we discontinued our quarterly dividend commencing in the fourth quarter of 2008 and have tactically managed our capital
expenditures. We believe these strategies will enhance our ability to fund our capital spending obligations and improve our balance
sheet.
Brand Awareness and Market Penetration
We continue to increase the recognition and market penetration of our brands among consumers throughout the world. Royal
Caribbean International and Celebrity Cruises are established global brands in the contemporary and premium segments of the
vacation industry. Pullmantur is a widely recognized brand in the Spanish, Portuguese and Latin American contemporary cruise
markets. Azamara Club Cruises is designed to serve the up-market cruise segment. CDF Croisières de France is targeted to serve the
contemporary segment of the French cruise market.
We increase brand awareness and market penetration of our Royal Caribbean International brand through communication
strategies designed to emphasize its high quality and excellent-value cruise vacations. For instance, in 2008, Royal Caribbean
International launched a new brand campaign, “The Nation of Why Not.” This brand campaign highlights Royal Caribbean
International’s global destinations and innovative onboard amenities. Royal Caribbean International’s communication strategies target
adults and families who are vacation enthusiasts interested in exploring new destinations and seeking new experiences. These
strategies are also designed to attract first-time cruisers to the cruise vacation industry and to the Royal Caribbean International brand.
In order to attract the experienced cruiser who is seeking new experiences as well as first-time cruisers, Royal Caribbean International
provides multiple choices to guests through a wide array of itineraries, accommodations, dining options, onboard activities and shore
excursions. The hallmarks of the brand include friendly and engaging service, state-of-the-art ships, family programs, entertainment,
health and fitness and energizing onboard and shoreside activities designed for guests of all ages.
We increase brand awareness and market penetration of our Celebrity Cruises brand through consumer and trade campaigns
designed to broaden the recognition of its high quality cruise vacations and drive loyalty and brand preference by emphasizing the
personalized service and attention its guests receive. Celebrity Cruises’ communications target cruisers who seek upscale experiences
and appreciate a high staff-to-passenger ratio, spacious accommodations, fine dining and spa services. In the beginning of 2010,
Celebrity Cruises launched a new brand platform, “Designed for You” that frames how Celebrity Cruises understands what discerning
cruisers look for in a cruise experience and delivers it.
5
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manage the efficiency of our operating expenditures and ensure adequate cash and liquidity,
•
increase the awareness and market penetration of our brands throughout the world,
•
expand our fleet with the new state-of-the-art cruise ships currently on order,
•
expand into those new markets and itineraries that provide opportunities to optimize returns,
•
continue to expand and diversify our passenger mix,
•
protect the health, safety and security of our passengers and employees and protect the environment in which our vessels
and organization operate,
•
utilize sophisticated revenue management capabilities to optimize total revenue,
•
further improve our technological capabilities, and
•
maintain strong relationships with travel agencies, the principal industry distribution channel, while offering direct access
for consumers.