Royal Caribbean Cruise Lines 2010 Annual Report Download - page 18

PART I
ROYAL CARIBBEAN CRUISES LTD. 15
at the Lawn Club. The Solstice-class ships are equipped
with solar foils and solar panels, another industry first.
Approximately 90% of the ships’ staterooms are out-
side and approximately 85% of the staterooms have
verandas. Celebrity Solstice, Celebrity Equinox, and
Celebrity Eclipse the first, second and third of the five
Solstice-class ships were delivered in 2008, 2009 and
2010, respectively. The remaining two ships, Celebrity
Silhouette and Celebrity Reflection, are expected to
enter service in the third quarter of 2011 and fourth
quarter of 2012, respectively. As part of our continu-
ous commitment to innovate our fleet, these two new
ships will introduce features not included on other
Solstice-class ships, including additional dining and
rest venues at the Lawn Club. Celebrity Reflection will
also offer new spa inspired suites and additional suite
and stateroom accommodations as the result of the
construction of an additional deck.
Azamara Club Cruises. In May 2007, Blue Dream was
redeployed from Pullmantur to Azamara Club Cruises,
and is sailing under the name Azamara Journey. In
September 2007, Blue Moon was also redeployed
from Pullmantur to Azamara Club Cruises and is sailing
under the name Azamara Quest. Before redeployment
to the Azamara Club Cruises brand, each ship under-
went renovations including the upgrade of guest
suites and staterooms, and the addition of two new
specialty restaurants.
Pullmantur. Pullmantur was founded in 1971. We
acquired Pullmantur in November 2006 and it currently
operates five ships which range in size from approxi-
mately 1,000 to 2,300 berths for a total of 7,650 berths.
In May 2007, Zenith was redeployed from Celebrity
Cruises to Pullmantur. Empress of the Seas and
Sovereign of the Seas were redeployed from Royal
Caribbean International to Pullmantur in March 2008
and November 2008, respectively. Upon the return of
Island Star in April 2009 from Island Cruises, the ship
was redeployed to Pullmantur and sailed under the
name Pacific Dream from May 2009 to October 2010.
Since then, the ship has been sailing under the name
Horizon. Before redeployment to Pullmantur, each ship
underwent renovations to incorporate Pullmantur’s
signature elements which include Spanish signage,
logos and expanded disco areas.
CDF Croisières de France. In November 2010, Bleu de
France was sold to an unrelated party. As part of the
sale agreement, we chartered Bleu de France from
the buyer for a period of one year from the sale date
in order to fulfill existing guest commitments. At the
end of the charter period, Pullmantur will redeploy
Horizon to CDF Croisières de France. Horizon will
undergo renovations, including the replacement of
carpets, fabrics and furniture.
Markets and Itineraries
In an effort to penetrate untapped markets and diver-
sify our customer base, we continue to seek oppor-
tunities to redeploy ships in our Royal Caribbean
International, Celebrity Cruises and Azamara Club
Cruises brands to new markets and itineraries
throughout the world. The portability of our ships and
our investment in infrastructure allows us to expand
into new markets and helps us reduce our dependency
on any one market by allowing us to create “home
ports” around the world. In addition, it allows us to
readily deploy our ships to meet demand within our
existing cruise markets.
Our ships offer a wide selection of itineraries that call
on approximately 420 ports. We are focused on opti-
mizing returns by operating in established markets
while growing our presence internationally. New ships
allow us to expand into new markets and itineraries.
Our brands have expanded their mix of itineraries,
while strengthening our ability to penetrate the Asian,
Caribbean, European, and Latin American markets
further. As we enter into new markets, we continuously
evaluate their current and expected performance in
order to enhance our revenues. In addition, in order
to capitalize on the summer season in the Southern
Hemisphere and mitigate the impact of the winter
weather in the Northern Hemisphere, our brands have
increased deployment to South America and Australia.
We continue to focus on the acceleration of Royal
Caribbean International’s, Celebrity Cruises’ and
Azamara Club Cruises’ strategic positioning as global
cruise brands. Royal Caribbean International has
increased its year-round deployment offerings for 2011,
including more drive-to and locally sourced products
for North American and international markets. In
December 2010, Allure of the Seas debuted from Fort
Lauderdale joining Oasis of the Seas with both ships
offering alternating Eastern and Western Caribbean
voyages allowing guests to enjoy the opportunity to
book back-to-back cruises.
In the summer of 2011, eleven of Royal Caribbean
International’s ships will sail in Europe, making the
brand an industry leader in European capacity during
the summer season. Approximately 70% of the eleven
ships will be dedicated to the European market for
guest sourcing. During the Northern Hemisphere’s
winter, Royal Caribbean International will increase its
capacity in Australia by redeploying a second ship.
Celebrity Cruises had a large portion of its fleet in
Europe in 2010. Celebrity Eclipse, the third vessel of
the Solstice-class, debuted in the second quarter of
2010 in Southampton for the summer season. This
was the first time in the brand’s history that it had a
dedicated product in the U.K. market. The year 2010
also marked the return of Celebrity Cruises to Bermuda