Carnival Cruises 2008 Annual Report Download - page 9

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cruises from Southampton, England to the Mediterranean, the Atlantic Isles, the Baltic,
Scandinavia and the Norwegian Fjords for the majority of the year, and primarily operates
Caribbean cruises and a choice of world cruises during the winter.
P&O Cruises' ships deliver a world of extraordinary experiences for guests by ensuring
that they offer high quality, a distinctly British experience and a variety of choices.
Their fleet of ships are distinctly different from one another in both personality and
facilities. This allows the British guest to tailor their holiday by selecting the ship
that best reflects their own personality and matches their holiday requirements. It also
means that repeat customers can enjoy a new and exciting experience each time they sail.
Ventura and Oceana offer a more contemporary and innovative experience with an informal
atmosphere and range of alternative dining venues, from restaurants and food courts to
grills and bistros. The elegant superliners Arcadia, Aurora and Oriana offer a stylish and
classic cruise experience with their broad decks, traditional artwork and blend of formal
and informal onboard experiences. As the smallest ship in the P&O Cruises fleet, Artemis
offers a more traditional and intimate experience, her size enabling her to visit ports not
charted by larger vessels as well as fostering a real sense of camaraderie.
Cunard, which was launched in 1839 and has the Most Famous Ocean Liners In The WorldSM,
operates two premium/luxury ships that evoke a golden era of luxurious cruising with an
additional ship, Queen Elizabeth, contracted for delivery in 2010. Cunard's flagship, Queen
Mary 2, is the largest and grandest ocean liner in the world and operates the northern
transatlantic crossing route as well as a 90 day world cruise. Cunard's newest ship, Queen
Victoria is a marriage of heritage and innovation with a three tier grand lobby that offers
a sense of the lavish lifestyle that its guests will experience onboard. In 2009, Queen
Victoria, will embark on a 107 day world cruise prior to sailing out of Southampton
throughout the summer of 2009 on a series of Northern Europe and Mediterranean voyages.
Most of Cunard's non-world cruise voyages are six or 14 days.
The Ocean Village brand will be phased-out with the transfer of both its ships to P&O
Cruises Australia. The first ship will be transferred in November 2009. The second ship
will be transferred in November 2010. We have recognized the growth potential in the
Australian cruise market, and this decision is consistent with our strategy of redeploying
ships to growth markets to invest in brands which show the greatest potential.
Prior to the transfer, the two ships will offer one or two week cruises, together with
cruise and stay holidays, and operate out of Palma Majorca, Spain and Heraklion, Crete in
the Mediterranean for the 2009 summer season. The remaining ship will operate from Barbados
in the Caribbean during the winter 2009-2010 season and return to the Mediterranean for the
2010 summer season.
b. Southern Europe
The main countries in southern Europe for sourcing cruise passengers are Italy, France
and Spain. Together, these countries generated approximately 1.5 million cruise passengers
in 2007. Cruising by passengers from Italy, France and Spain combined increased by a
compound annual growth rate of approximately 12.6% between 2002 and 2007. We believe that
southern Europe has significant growth potential for the cruise industry, as the level of
market penetration is estimated at approximately 26% of North America. We intend to
increase our penetration in southern Europe through Costa, one of the most recognized cruise
brands marketed in Europe, which currently has the most cruise ships on order of any cruise
brand, and Ibero.