Royal Caribbean Cruise Lines 2008 Annual Report Download - page 21

Royal Caribbean Cruises Ltd. 5
PART I
entertainment options, the upgrade of guest suites and staterooms,
the expansion of day spa and fitness center facilities, and in one case,
a new 73-foot midsection featuring 151 additional staterooms.
From 1999 through 2003, Royal Caribbean International introduced
its five Voyager-class ships. Each Voyager-class ship is approximately
140,000 gross tons with approximately 3,100 berths. The Voyager-
class ships introduced several product innovations to the marketplace,
including the cruise vacation industry’s first horizontal atrium, the
“Royal Promenade” (which is four decks tall, longer than a football
field and provides entertainment, shopping and dining experiences),
recreational activities such as ice skating, in-line skating, rock climb-
ing, miniature golf and full court basketball, enhanced staterooms,
expanded dining venues and a variety of intimate spaces.
From 2001 through 2004, Royal Caribbean International introduced its
four Radiance-class ships, a progression from the brand’s Vision-class
ships. Each Radiance-class ship is approximately 90,000 gross tons with
approximately 2,100 berths. The Radiance-class ships incorporate many
of the dining and entertainment options of the Voyager-class ships, as
well as offer a wide array of unique features. These features include
panoramic glass elevators facing outward to the sea, floor to ceiling
glass windows offering sea views and a billiards club featuring gyro-
scopic billiard tables. Royal Caribbean International has adopted the
product innovations of the Voyager and Radiance-class ships as signa-
ture elements of the brand.
In 2006, Royal Caribbean International launched the 3,600-berth
Freedom of the Seas, the first of three Freedom-class ships. The
Freedom-class ships are approximately 16% larger than the Voyager-
class ships and have some of the largest staterooms and balconies in
the industry, flat screen televisions, cell phone services and other ame-
nities. The launch of the Freedom-class ships also introduced several
new experiences to cruising, including a surf simulator and an inter-
active water park called the H2O Zone™. Royal Caribbean International
took delivery of a second Freedom-class ship, Liberty of the Seas, in April
2007 and the third Freedom-class ship, Independence of the Seas, in
April 2008.
Building upon the innovations of the Voyager and Freedom-class ships,
Royal Caribbean International will introduce a new class of ships in
2009. This new class of ships, the Oasis-class, will be approximately
220,000 gross tons each with approximately 5,400 berths. Each ship
will be 50% larger than the Freedom-class ships and will span 16 decks
and 2,700 staterooms. The new Oasis-class ships will introduce several
new experiences to cruising including the new neighborhood concept.
The neighborhood concept consists of seven distinct themed areas which
will include Central Park, a park open to the sky; Boardwalk, an outdoor
family-friendly area featuring a handcrafted carousel; AquaTheater, the
first amphitheater at sea; Rising Tide, a levitating bar; a sloped-beach
entry pool and many other new features. The Oasis-class ships will also
offer new categories in onboard accommodations including bi-level,
urban-style two bedroom/two bathroom suites and balcony state-
rooms facing some of the distinct neighborhoods. Royal Caribbean
International has contracts with a shipyard to build two Oasis-class
ships, Oasis of the Seas and Allure of the Seas, expected to enter
service in the fourth quarters of 2009 and 2010, respectively. See
Item 1A. Risk Factors regarding shipyards.
Celebrity Cruises. Celebrity Cruises was founded in 1990 and
operated three ships between 1992 and 1995. Between 1995 and
1997, Celebrity Cruises began its first capital expansion program, add-
ing three Century-class ships, which range in size from approximately
1,750 to 1,850 berths. During this time, Celebrity Cruises also disposed
of one of its original three ships.
From 2000 through 2002, Celebrity Cruises took delivery of four
Millennium-class ships. Each Millennium-class ship is approximately
90,000 gross tons with approximately 2,050 berths. The Millennium-
class ships are a progression from the Century-class ships and elevated
Celebrity Cruises’ position in the premium segment of the marketplace.
The Millennium-class ships build on the brand’s primary strengths,
including gourmet dining, spacious staterooms and suites with verandas
and spa facilities featuring a large hydropool with neck massage, body
jets and services including “acupuncture at sea.” On the Millennium-
class ships, an entire deck is dedicated to health and fitness. To further
enhance the onboard experience, Celebrity Cruises offers a more inti-
mate setting in piano, champagne, and martini bars and lounges.
In 2004, Celebrity Cruises continued to expand its product offerings
with the launch of Celebrity Xpedition, a 100-berth ship that offers a
more intimate experience onboard a smaller ship with sailings to the
Galapagos Islands.
From 2005 to 2008, Celebrity Cruises entered into contracts with a
shipyard to build five Solstice-class ships. The Solstice-class ships are
a new wide-body construction class of ships, and are approximately
122,000 gross tons each with approximately 2,850 berths. This new
wide-body construction design provides for many intimate areas
onboard the ship. The Solstice-class ships incorporate many new and
improved design features including the industry’s first ever “Lawn
Club.” The Lawn Club is over a half acre venue featuring live grass
for guest enjoyment. Celebrity Cruises also introduced the “Hot Glass
Show,” a fully functional glass blowing studio which operates at the
Lawn Club onboard Solstice-class ships. The Solstice-class ships are
also equipped with solar foils and solar panels, another industry first.
Approximately 90% of the ships’ staterooms are outside and approxi-
mately 85% of the staterooms have verandas. In 2008, Celebrity Cruises
took delivery of Celebrity Solstice, the first of the five Solstice-class ships.
Celebrity Equinox and Celebrity Eclipse are expected to enter service in
the third quarters of 2009 and 2010, respectively. Two unnamed ships
are expected to enter service in the third quarter of 2011 and the
fourth quarter of 2012, respectively.
In 2009, Celebrity Galaxy, a 1,850-berth ship currently part of Celebrity
Cruises, will be sold to TUI Cruises to serve as its first ship and will sail
under a new name beginning in May 2009.
Pullmantur. Pullmantur was founded in 1971 and currently operates
six ships which range in size from approximately 1,000 to 2,300 berths.
As a result of the acquisition of Pullmantur in November 2006, we
expanded our overall fleet by five ships and approximately 4,500
berths. Furthermore, Pullmantur purchased a 1,000-berth ship which
is currently sailing under the name Ocean Dream.