Royal Caribbean Cruise Lines 2011 Annual Report Download - page 17

PART I
ROYAL CARIBBEAN CRUISES LTD. 13
Health, Safety, Security and Environmental Policies
We are committed to protecting the safety, environ-
ment and health of our guests, employees and others
working on our behalf. We are also committed to
protecting the marine environment in which our ships
sail and the communities in which we operate, by
reducing/mitigating adverse environmental conse-
quences and using resources efficiently. As part of
this commitment, our Safety, Environment and Health
Departments oversee our maritime safety, global
security, environmental stewardship and medical/
public health activities. These departments are com-
prised of technical experts in our focus areas of:
Regulatory and Policy Development; Compliance and
Incident Prevention; Incident and Situation Response;
and Business Stewardship. We also have a Maritime
Advisory Board of experts as well as the Safety,
Environment and Health (SEH) Committee of our Board
of Directors which oversee these important areas.
Following the recent grounding of the Costa Concordia,
we announced a comprehensive review of safety and
emergency response procedures across all of our
brands to identify lessons learned and best practices
to further protect the safety of all of our passengers
and crew. This review is being overseen by the Safety,
Environment and Health Committee of our Board
of Directors and its Chairman, Mr. William K. Reilly.
Mr. Reilly was recently co-chair of the United States
Government’s “National Commission on the BP
Deepwater Horizon Oil Spill and Offshore Drilling.”
Strengthen and Support Our Human Capital
Our employees, both shipboard and shoreside, are
our most valuable resources. We strive to identify, hire,
develop, motivate, and retain the best employees, with
backgrounds and perspectives as diverse as our guest
base. Attracting, engaging, and retaining key employ-
ees has been and will remain critical to our success.
We continue our focus on providing our employees
with a competitive compensation structure, develop-
ment and other personal and professional growth
opportunities in order to strengthen and support our
human capital. We are also committed to ensuring the
very best leaders are developed and selected to lead
the enterprise now and in the future. To that end we
pay special attention to identifying high potential
leaders and develop deep bench strength so these
leaders can potentially assume multiple leadership
roles throughout the organization. We strive to main-
tain a work environment that reinforces collaboration,
motivation, and innovation and believe that maintain-
ing our vibrant and distinctive culture is critical to the
growth of our business.
Strengthen Our Consumer Engagement to
Enhance Our Revenues While Expanding and
Diversifying Our Guest Mix With a Greater Focus
on International Expansion
We are focused on further strengthening our consumer
engagement with the ultimate goal of increasing
revenues and yields while continuing to diversify our
guest mix. We increase revenues and yields through
various programs prior to, during and after a cruise
vacation aimed at increasing our ticket prices and
occupancy. In 2012, we plan to continue to strategi-
cally invest in a number of potential revenue enhancing
projects, including revitalizing several of our vessels,
enhancing our customer loyalty programs, introducing
new onboard revenue initiatives and implementing
various information technology infrastructure invest-
ments which we believe will provide opportunities for
increased ticket and onboard revenues.
We sell and market our global brands, Royal Caribbean
International, Celebrity Cruises and Azamara Club
Cruises, to guests outside of North America through
our offices in the United Kingdom, France, 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
more quickly to local market conditions and better
understand our consumer base in each respective
market. We further extend our geographic reach with
a network of 39 independent international represen-
tatives located throughout the world covering 50
countries. Historically, our focus has been to primarily
source guests for our global brands from North
America. Over the last several years, we have contin-
ued to expand our focus on selling and marketing our
cruise brands to countries outside of North America
through fleet innovation and by responding to the
itinerary preferences and cultural characteristics of
our international guests. In 2012, Royal Caribbean
International will focus on the development of key
markets in Southern Europe, particularly France,
where we established a new office in 2011, and Asia,
where we seek to establish a leading position in the
Chinese market. In 2012, Celebrity Cruises will have
additional product offerings in Australia and Asia.
We are focused on expanding our Pullmantur brand
into other cruise markets. When we acquired Pullmantur
in 2006, it was a brand primarily targeted at the
Spanish cruise market. Since then, Pullmantur has
evolved and we are focused on selling and marketing
the brand to guests in Portugal and Latin America
with particular emphasis in Brazil.
We also 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 our other custom-tailored brands