Royal Caribbean Cruise Lines 2006 Annual Report Download - page 6

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Also at Royal Caribbean,
Majesty of the Seas completed a successful revitalization and returned to service for three- and four-night Bahamas
itineraries in February. This means we have renovated all four of our oldest ships over the past four years.
Celebrity Mercury went into dry
dock in April for refurbishment, receiving additional balconies and cabins, and updated retail shops.
Prior to the ship swaps, we are revitalizing Pullmantur’s Blue Dream and Blue Moon to transform them into Journey and Quest ,
respectively. Revitalization includes installing a number of distinctive new elements and converting a number of staterooms into mini-
suites. Meanwhile,
Celebrity Zenith is redeploying to Pullmantur later this year to cruise the Mediterranean, as will Royal Caribbean’s
Empress of the Seas in 2008.
Globalization: Deployment and Guest Sourcing
Our strategic growth plan is truly global. We continue to increase our presence in Europe, a key focus of the company. In 2007,
we will have 21 percent of our total fleet capacity sailing in Europe, up from 14 percent in 2006. We’ve also invested heavily in sales
and marketing infrastructure in Europe, and have grown our European-sourced guests over 30 percent per year each of the last two
years. We expect this growth will accelerate to 75 percent in 2007, from strong momentum with Royal Caribbean and Celebrity Cruises
and the addition of Pullmantur.
Specifically, Celebrity is capitalizing on its 2006 successes by continuing to expand and extend the profitable European season
with
Celebrity Century , Celebrity Constellation , Celebrity Galaxy and Celebrity Millennium . In 2007, European deployment for Celebrity
will represent over 25 percent of capacity.
Royal Caribbean International will continue to maintain the highest capacity overall in the Caribbean market out of Miami and Fort Lauderdale.
However, our capacity in the Caribbean market is relatively stable this year as we are shifting additional capacity to European and exotic
destinations. For example, Voyager-class
Navigator of the Seas deploys to Southampton, U.K., this summer and builds on the success of our
British offering pioneered by
Legend of the Seas .
In 2006, we served over 200,000 guests from the Latin America, Caribbean and Asia-Pacific region, the most guests ever from these regions.
To further develop the Latin American market, this winter we’re deploying Royal Caribbean’s Splendour of the Seas to South America and
Legend of the Seas to the Dominican Republic.
Island Cruises, our joint venture with First Choice Holidays PLC, also attracts guests from the United Kingdom and Brazil, serving the
contemporary cruise vacation segment in Europe and South America.
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New Build Program
Expected Approximate
Ship Delivery Date Berths
Royal Caribbean International
Freedom class:
Liberty of the Seas 2nd Quarter 2007 3,600
Independence of the Seas 2nd Quarter 2008 3,600
Project Genesis class:
Unnamed I 3rd Quarter 2009 5,400
Unnamed II 3rd Quarter 2010 5,400
Celebrity Cruises
Solstice class:
Celebrity Solstice 4th Quarter 2008 2,850
Celebrity Equinox 3rd Quarter 2009 2,850
Celebrity Eclipse 2nd Quarter 2010 2,850