Royal Caribbean Cruise Lines 2011 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2011 Royal Caribbean Cruise Lines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

2011 ANNUAL REPORT 20
PART I
Year Ship
Entered or Will Approximate
Ship Enter Service1Berths Primary Areas of Operation
Azamara Club Cruises
Azamara Journey3  Europe, Caribbean, Asia, South America
Azamara Quest4  Europe, Asia, South America, Caribbean
Pullmantur
Ocean Dream5  Western/Southern Caribbean
Zenith   Europe, Middle East, Brazil
Empress   Europe, Brazil
Sovereign   Europe, Brazil
CDF Croisières de France
Horizon6  Europe, Brazil
Total 
1 The year a ship entered or will enter service refers to the year in which the ship commenced cruise revenue operations for the Company, which is the
same as the year the ship was built, unless otherwise noted.
2 Celebrity Xpedition was built in 2001.
3 Azamara Journey (formerly Blue Dream) was built in 2000.
4 Azamara Quest (formerly Blue Moon) was built in 2000.
5 Ocean Dream was built in 1981. In February 2012, we entered into an agreement to bareboat charter our ship Ocean Dream to an unrelated party for
a period of six years from the transfer date. The charter agreement provides a renewal option exercisable by the unrelated party for an additional
four years. We anticipate delivery of Ocean Dream will take place in April 2012.
6 Horizon was built in 1990. Horizon will be redeployed from Pullmantur to CDF Croisières de France in March 2012.
We have three ships on order, which are being built in
Germany by Meyer Werft GmbH. The expected dates
these ships will enter service and their planned number
of berths are as follows:
Expected to Approximate
Ship Enter Service Berths
Celebrity Cruises—
Solstice-class:
Celebrity Reflection 4th Quarter 2012 
Royal Caribbean
International—
Project Sunshine:
Unnamed 3rd Quarter 2014 
Unnamed 2nd Quarter 2015 
Total Berths 
In addition, in 2011, TUI Cruises entered into a con-
struction agreement to build its first newbuild ship,
scheduled for delivery in the second quarter of 2014.
TUI Cruises has an option to construct a second ship of
the same class, which will expire on October 31, 2012.
Seasonality
Our revenues are seasonal based on the demand for
cruises. Demand is strongest for cruises during the
Northern Hemisphere’s summer months and holidays.
In order to mitigate the impact of the winter weather
in the Northern Hemisphere and to capitalize on
the summer season in the Southern Hemisphere, our
brands have increased deployment to South America
and Australia during the Northern Hemisphere
winter months.
Passengers and Capacity
Selected statistical information is shown in the following table (see Description of Certain Line Items and Selected
Operational and Financial Metrics under Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations, for definitions):
Year Ended December 31,     
Passengers Carried     
Passenger Cruise Days     
Available Passenger Cruise Days (APCD)     
Occupancy     
Cruise Pricing
Our cruise ticket prices include accommodations and
a wide variety of activities and amenities, including
meals and entertainment. Prices vary depending on
the destination, cruise length, stateroom category
selected and the time of year the cruise takes place.
Although we grant credit terms to certain travel
agencies and tour operators in select markets outside
of the United States, our payment terms generally
require an upfront deposit to confirm a reservation
with the balance due prior to the sailing. During the
selling period of a cruise, we continually monitor and
adjust our cruise ticket prices for available guest
staterooms based on demand, with the objective of
maximizing net yields. Historically, we have opened
cruises for sale at least one year in advance and often
as much as two years in advance. Additionally, we
offer air transportation as a service for guests that
elect to utilize our transportation program. Our air
transportation program is available in major cities