Royal Caribbean Cruise Lines 2014 Annual Report Download - page 22

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Royal Caribbean Cruises Ltd. 21
PART I
Our brands, including our 50% joint venture, TUI Cruises, have seven ships on order. Two ships on order are being
built in Germany by Meyer Werft GmbH, three are being built in Finland by Meyer Turku shipyard and two are being
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:
Anthem of the Seas ndQuarter 
Ovation of the Seas ndQuarter 
Oasis-class:
Oasis 3 ndQuarter 
Oasis 4 ndQuarter 
TUI Cruises (50% joint venture)—
Mein Schiff 4 ndQuarter 
Mein Schiff 5 rdQuarter 
Mein Schiff 6 ndQuarter 
Total Berths 
In addition, we reached conditional agreements with STX France to build two ships of a new generation of Celebrity
Cruises ships, known as “Project Edge.” The agreements are subject to certain conditions to effectiveness expected
to occur in the second quarter of 2015. The ships will each have a capacity of approximately 2,900 berths and are
expected to enter service in the second half of 2018 and the first half of 2020, respectively.
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 focused on
deployment in Australia and Latin America during that period.
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
many factors including the destination, cruise length,
stateroom category selected and the time of year the
cruise takes place. Although we grant credit terms in
select markets mainly 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. During 2014,
we developed and implemented revenue management
tools that enabled us to better understand and react
to the current demand and pricing environment. His-
torically, we have opened cruises for sale at least one
year in advance and often as much as two years in
advance. Our air transportation program 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%, 72% and 73% of total revenues in 2014,
2013 and 2012, respectively.
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,
internet and other telecommunication services, gift
shop items, shore excursions, photography, spa/salon
and fitness services, art auctions, catalogue gifts for