Royal Caribbean Cruise Lines 2010 Annual Report Download - page 19

2010 ANNUAL REPORT 16
PART I
and the Northeast during the summer with seven night
cruises on Celebrity Summit and the offering of year-
round Caribbean cruising on Celebrity Solstice.
The Solstice-class expansion has allowed the brand
to broaden its mix of itineraries in 2011. This year will
mark the debut of Celebrity Silhouette, the fourth
Solstice-class ship, which will debut in Europe and
will provide sailings in the Northeast Caribbean in
the winter. During the 2011 summer season, all four
Solstice-class ships will be in Europe. During the winter,
Celebrity Cruises will also return to Australia and will
add incremental sailings to Hawaii.
In 2011, Azamara Club Cruises will continue to offer
more calls to “boutique” ports of call, including Rouen,
France, Paros, Greece and many other boutique ports
only accessible by smaller ships. The brand also con-
tinues to focus on more overnight calls and longer
stays in port. In 2011, Azamara Club Cruises’ deploy-
ment feature sailings in Western and Northern Europe,
Asia, the Mediterranean, the Panama Canal and the
less-traveled islands of the Caribbean. In the winter,
Azamara will return to South America, adding new
cruises to the Amazon. Also, Pullmantur and CDF
Croisières de France will continue to offer European
itineraries on all ships.
In an effort to secure desirable berthing facilities for
our ships, and to provide new or enhanced cruise
destinations for our guests, we actively assist or invest
in the development or enhancement of certain port
facilities and infrastructure, including mixed-use com-
mercial properties, located in strategic ports of call.
Generally, we collaborate with local, private or gov-
ernmental entities by providing management and/or
financial assistance and often enter into long-term port
usage arrangements. In exchange for our involve ment,
we generally secure preferential berthing rights for
our ships. During 2009, we assisted with the construc-
tion of a new port facility in Haiti which emerged
undamaged from the January 2010 earthquake. The
renovations allow Royal Caribbean International’s
Freedom and Oasis-class ships to dock at the newly
constructed pier without the need for tendering. The
renovations also included an overhaul of the facilities
and dining venues and a complete revamp of Labadee’s
shoreside areas, including the construction of new
bars, the replenishment of beach erosion, the con-
struction of an alpine coaster and two new meeting
areas which offer shopping, shows and cultural activ-
ities. We are also currently investing in the develop-
ment of a new pier and port facilities at the Port of
Falmouth, Jamaica, which will become operational in
2011. This will allow for the simultaneous berthing of
one Oasis and one Freedom-class ship along with the
addition of several new port and shoreside facilities.
Expansion and Diversification of our Passenger Mix
Passenger ticket revenues generated by sales origi-
nating in countries outside of the United States were
approximately 45%, 46%, and 40% of total passenger
ticket revenues in 2010, 2009 and 2008, respectively.
International passengers have grown from approxi-
mately 586,000 in 2006 to approximately 1.8 million
in 2010.
We sell and market our global brands, Royal Caribbean
International, Celebrity Cruises and Azamara Club
Cruises, to passengers outside of North America
through our offices in the United Kingdom, Germany,
Norway, Italy, Spain, Singapore, China, Brazil, Australia
and Mexico. We believe that having a local presence
in these markets provides us with the ability to react
faster to local market conditions as well as better
understand our customer base in each respective
market. We further extend our geographic reach with
a network of 41 independent international representa-
tives located throughout the world covering 60 coun-
tries. Historically, our focus has been to primarily
source passengers for our global brands from North
America. Over the last several years, we have and
continue to expand our focus to sell and market our
cruise brands to countries outside of North America
through fleet innovation and by responding to the
cultural characteristics of our global passengers.
We continue to look for opportunities to acquire or
develop brands custom-tailored to specific markets.
TUI Cruises, our joint venture with TUI AG, is a cruise
brand targeted at the cruise market in Germany. TUI
Cruises complements Pullmantur, which is targeted
at passengers primarily in Spain, Portugal and Latin
America and CDF Croisières de France, which is tar-
geted at passengers primarily in France.
Health, Safety, Security and Environmental Policies
We are committed to protecting the health, safety
and security of our guests, employees and others
working on our behalf. We are also committed to pro-
tecting the marine environment in which our vessels
sail and the communities in which we operate by
minimizing adverse environmental consequences and
using resources efficiently. As part of this commitment,
we established a unified internal department to over-
see global security, maritime safety, medical and
public health areas, and environmental stewardship.
This organization is comprised of technical experts in
each area focused on improving our prevention and
response procedures. Our rapid and corporate wide
approach to contagious disease challenges allows us
to minimize the impact of any outbreaks on our ships
and effectively use our medical and public health
expertise to meet the health care needs of our guests
and crew.