Royal Caribbean Cruise Lines 2014 Annual Report Download - page 17

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16 Royal Caribbean Cruises Ltd.
The following table details the growth in global weighted average berths and the global, North American and
European cruise guests over the past five years:
Year
Weighted-Average
Supply of Berths
Marketed Globally()
Royal Caribbean
Cruises Ltd.
Total Berths
Global Cruise
Guests()
North American
Cruise Guests()
European
Cruise Guests()
     
     
     
     
     
() Source: Our estimates of the number of global cruise guests and the weighted-average supply of berths marketed globally are based on a combi-
nation of data that we obtain from various publicly available cruise industry trade information sources including Seatrade Insider, Cruise Industry
News and CLIA. In addition, our estimates incorporate our own statistical analysis utilizing the same publicly available cruise industry data as a base.
() Source: CLIA based on cruise guests carried for at least two consecutive nights (see number 1 above). Includes the United States of America
and Canada.
() Source: CLIA Europe, formerly European Cruise Council, (see number 2 above).
North America
The majority of cruise guests are sourced from North
America, which represented approximately 55.7% of
global cruise guests in 2014. The compound annual
growth rate in cruise guests sourced from this market
was approximately 3.3% from 2010 to 2014.
Europe
Cruise guests sourced from Europe represented
approximately 29.7% of global cruise guests in 2014.
The compound annual growth rate in cruise guests
sourced from this market was approximately 4.2%
from 2010 to 2014.
Asia/Pacific
In addition to expected industry growth in North
America and Europe, we expect the Asia/Pacific
region to demonstrate an even higher growth rate in
the near term, although it will continue to represent
a relatively small sector compared to North America
and Europe. Based on industry data, cruise guests
sourced from the Asia/Pacific region represented
approximately 8.5% of global cruise guests in 2014.
The compound annual growth rate in cruise guests
sourced from this market was approximately 16.4%
from 2010 to 2014.
COMPETITION
We compete with a number of cruise lines. Our princi-
pal competitors are Carnival Corporation & plc, which
owns, among others, Aida Cruises, Carnival Cruise
Line, Costa Cruises, Cunard Line, Holland America
Line, Iberocruceros, P&O Cruises and Princess Cruises;
Disney Cruise Line; MSC Cruises; Norwegian Cruise Line
Holdings Ltd., which owns Norwegian Cruise Line,
Oceania Cruises and Regent Seven Seas Cruises. Cruise
lines compete with other vacation alternatives such as
land-based resort hotels and sightseeing destinations
for consumers’ leisure time. Demand for such activi-
ties is influenced by political and general economic
conditions. Companies within the vacation market are
dependent on consumer discretionary spending.
OPE R ATING STR ATEGIES
Our principal operating strategies are to:
• protect the health, safety and security of our guests
and employees and protect the environment in which
our vessels and organization operate,
• strengthen and support our human capital in order
to better serve our global guest base and grow
our business,
• further strengthen our consumer engagement in
order to enhance our revenues,
• increase the awareness and market penetration of
our brands globally,
• focus on cost efficiency, manage our operating
expenditures and ensure adequate cash and liquid-
ity, with the overall goal of maximizing our return on
invested capital and long-term shareholder value,
• strategically invest in our fleet through the upgrade
and maintenance of existing ships and the transfer
of key innovations across each brand, while pru-
dently expanding our fleet with new state-of-the-
art cruise ships,
• capitalize on the portability and flexibility of our
ships by deploying them into those markets and
itineraries that provide opportunities to optimize
returns, while continuing our focus on existing
key markets,
• further enhance our technological capabilities to
service customer preferences and expectations in
an innovative manner, while supporting our strategic
focus on profitability, and
PART I