Royal Caribbean Cruise Lines 2014 Annual Report Download - page 15

14 Royal Caribbean Cruises Ltd.
PART I
Quantum-class ship, each of which is scheduled to
enter service in the second quarter of 2016 and our
fourth Oasis-class ship, which is scheduled to enter
service in the second quarter of 2018. Additionally, we
announced that we will redeploy Majesty of the Seas
from Royal Caribbean International to Pullmantur in
2016. Royal Caribbean International offers a variety
of itineraries to destinations worldwide, including
Alaska, Asia, Australia, Bahamas, Bermuda, Canada,
the Caribbean, Europe, the Panama Canal, South
America and New Zealand.
Royal Caribbean International is positioned at the
upper end of the contemporary segment of the cruise
vacation industry, generally characterized by cruises
that are seven nights or shorter and feature a casual
ambiance as well as a variety of activities and enter-
tainment venues. We believe that the quality of the
Royal Caribbean International brand also enables it to
attract guests from the premium segment, which is
generally characterized by cruises that are seven to 14
nights and appeal to the more experienced guest who
is usually more affluent. This allows Royal Caribbean
International to achieve market coverage that is among
the broadest of any of the major cruise brands in the
cruise vacation industry. Royal Caribbean International’s
strategy is to attract an array of vacationing guests by
providing a wide variety of itineraries and cruise lengths
with multiple innovative options for onboard dining,
entertainment and other onboard activities. We believe
that the variety and quality of Royal Caribbean Inter-
national’s product offerings represent excellent value
to consumers, especially to couples and families trav-
eling with children. Because of the brand’s extensive
and innovative product offerings, we believe Royal
Caribbean International is well positioned to attract
new consumers to the cruise vacation industry and to
continue to bring loyal repeat guests back for their
next vacation.
Royal Caribbean International has a ship upgrade
program designed to incorporate certain of the most
popular features of our newer ships across the fleet.
From 2011 to 2014, a total of 14 ships have been
upgraded under this program. An additional four
ships are currently undergoing or scheduled for
upgrades in 2015.
Celebrity Cruises
We currently operate 11 ships with an aggregate
capacity of approximately 24,900 berths under our
Celebrity Cruises brand, offering cruise itineraries
that range from two to 23 nights. In February 2015,
we entered into construction agreements with STX
France to build two new ships of a new generation
of Celebrity Cruises ships. These 2,900-berth ships,
being developed under the name “Project Edge,” are
expected to enter service in the second half of 2018
and the first half of 2020, respectively. In September
2014, we sold Celebrity Century to a subsidiary of
Skysea Holding International Ltd. (“Skysea Holding”).
As part of the sale agreement, we agreed to charter
the ship from the buyer until April 2015 to fulfill exist-
ing passenger commitments. As discussed further
below, we acquired a 35% equity stake in Skysea
Holding in November 2014. Celebrity Cruises offers
a variety of itineraries to popular destinations, includ-
ing Alaska, Asia, Australia, Bermuda, Canada, the
Caribbean, Europe, Hawaii, New Zealand, the Panama
Canal and South America.
Celebrity Cruises is positioned within the premium
segment of the cruise vacation industry. Celebrity
Cruises’ strategy is to target experienced cruisers and
quality and service oriented new cruisers by delivering
a destination-rich experience onboard upscale ships
that offer, among other things, luxurious accommoda-
tions, a high staff-to-guest ratio, fine dining, personal-
ized service and extensive spa facilities. In 2013, the
brand completed a ship upgrade program in order to
incorporate well-received concepts from its Solstice-
class ships.
Azamara Club Cruises
We currently operate two ships with an aggregate
capacity of approximately 1,400 berths under our
Azamara Club Cruises brand, offering cruise itineraries
that range from four to 20 nights. Azamara Club
Cruises is designed to serve the up-market segment
of the North American, United Kingdom and Australian
markets. The up-market segment incorporates ele-
ments of the premium segment and the luxury segment
which is generally characterized by smaller ships, high
standards of accommodation and service, higher prices
and exotic itineraries.
Azamara Club Cruises’ strategy is to deliver distinctive
destination experiences through unique itineraries
with more overnights and longer stays as well as com-
prehensive tours allowing guests to experience the
destination in more depth. Azamara Club Cruises’ focus
is to attract experienced travelers who are looking
for more comprehensive destination experiences, and
who seek a more intimate onboard experience and
a high level of service. In furtherance of this strategy,
Azamara Club Cruises includes as part of the base
price of the cruise certain complimentary onboard
services, amenities and activities which are not nor-
mally included in the base price of most other cruise
lines. Azamara Club Cruises sails in Asia, Northern
and Western Europe, the Mediterranean, South and
Central America, the less-traveled islands of the
Caribbean and North America.
Pullmantur
We currently operate three ships with an aggregate
capacity of approximately 6,200 berths under our
Pullmantur brand, offering cruise itineraries that range