Royal Caribbean Cruise Lines 2009 Annual Report Download - page 5

otherwise. Europeans cruised Europe and North Americans
cruised the Caribbean. Second, the growing global appeal of
our product is bringing new guests into cruising. The cruise
secret is out beyond North America and the value, quality
and caliber of vacation that we offer is gaining acceptance
quickly. So much so that most of the net new capacity
we are launching is being dedicated to the international
markets. In short, Royal Caribbean’s globalization is working
in a big way; as we are expanding and diversifying our guest
sourcing globally, we are creating new demand for our
products in the process.
Our new hardware investments, in particular the Oasis- and
Solstice-class vessels, are performing well, both in terms of
profitability and guest satisfaction. They command significant
pricing premiums and are full of amenities, services and
activities that have never been seen before at sea. These
new vessels are beating our already high guest satisfaction
ratings and are significantly accretive to our corporate returns.
This is an example of the rare win/win for both guests and
investors alike.
Cost Control
Like many companies, Royal Caribbean used cost control
initiatives to support earnings during this terrible economic
cycle. We went above and beyond, reducing Net Cruise
Costs by 10% per unit in 2009. More importantly, we believe
much of the improvement made in our cost structure is
sustainable. We have already guided for flattish unit costs in
2010 and, longer term, we know that cost control will be a
significant tool for improving returns.
Safety, Security and Environment
Our commitment to the environment and the well-being
of our guests remain of the utmost importance to us at
Royal Caribbean and despite the tremendous energy that
was focused on navigating the economy during 2009,
our environmental and safety efforts are unwavering. We
continue to install state of the art wastewater treatment
plants across our fleet, our “Save the Waves” campaign
focuses on minimizing our environmental impact and we
are constantly investing in new policies and technologies,
be it camera installations in public spaces or the use of solar
power on our newest vessels. I am particularly proud of the
numerous “green” accolades that the Oasis of the Seas
has received.
Looking Ahead
I have dedicated a lot of this communication to the financial
aspects of the business as I think that is where most
people’s focus has been over the past year. But despite this
focus, much good is happening across the company; the
strongest brands in the cruise industry have been further
fortressed with the flawless introduction of Oasis- and
Solstice-class vessels; we continue to receive more than our
fair share of accolades and awards from the most preeminent
of reviewers; we are diversifying globally; and our guests are
happier than ever. With this momentum propelling us and a
resilient business model that is positioned to “pop” as we
see economic recovery, I can’t help but be very optimistic
about the future.
In closing, I’d like to thank the millions of guests who
entrusted us with the opportunity to provide an exceptional
vacation experience this year. And I would like to express
my sincere appreciation for the redoubling of efforts by our
employees, board of directors, investors and bankers in
navigating these unprecedented times.
Sincerely,
Richard D. Fain
Chairman and Chief Executive Officer
With our award winning fleet, focus on improved
shareholder returns and the momentum surrounding
our global diversification, I can’t help but be
very optimistic about the future.
Royal Caribbean Cruises Ltd. 3