Royal Caribbean Cruise Lines 2012 Annual Report Download - page 23

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19
Our brands, including our 50% joint venture TUI
Cruises, have five ships on order. Two ships on order
are being built in Germany by Meyer Werft GmbH,
two are being built in Finland by STX Finland and one
will be built in France by STX France. The expected
dates that our ships on order will enter service and
their approximate berths are as follows:
Ship
Expectedto
EnterService
Approximate
Berths
Royal Caribbean
International—
Quantum-class:
   Quantum of the Seas thQuarter 
   Anthem of the Seas ndQuarter 
Oasis-class(1):
   Unnamed ndQuarter 
TUI Cruises—
 Mein Schiff 3 ndQuarter 
 Mein Schiff 4 ndQuarter 
TotalBerths 
() InDecemberweorderedathirdOasis-classshipthrougha
conditionalagreementTheagreementissubjecttocertainclosing
conditionsandisexpectedtobecomeeffectiveinthefirstquarter
of
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 agen-
cies 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. In 2013, we plan to use
new optimization tools to set pricing and leverage
enhancements for the web and our reservation sys-
tems. 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 transpor-
tation as a service for guests that elect to utilize our
transportation program. Our air transportation pro-
gram is available in major cities around the world and
prices vary by gateway and destination. Generally,
air tickets are sold to guests at prices close to cost.
Passenger ticket revenues accounted for approxi-
mately 73% of total revenues in 2012, 2011 and 2010.
From time to time, we have introduced temporary fuel
supplements to partially offset a portion of fuel costs,
which result in an additional fee being charged to the
guests. While none of our brands are currently charg-
ing fuel supplements, we reserve the right to reinstate
our fuel supplements for one or more of our brands
and will continue to monitor our markets and review
our position based upon the appropriate facts and
circumstances.
Onboard Activities and Other Revenues
Our cruise brands offer modern fleets with a wide
array of onboard services, amenities and activities
which vary by brand and ship. While many onboard
activities are included in the base price of a cruise, we
realize additional revenues from, among other things,
gaming, the sale of alcoholic and other beverages,
gift shop items, shore excursions, photography, spa/
salon and fitness services, art auctions, catalogue gifts
for guests and a wide variety of specialty restaurants
and dining options. Royal Caribbean International,
Celebrity Cruises and Azamara Club Cruises offer
PART I