Royal Caribbean Cruise Lines 2012 Annual Report Download - page 16

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12
Azamara Club Cruises offers a variety of onboard
services, amenities and activities, including gaming
facilities, fine dining, spa and wellness, butler service
for suites, as well as entertainment venues. Azamara
Club Cruises also includes as part of the base price of
the cruise certain complimentary onboard services,
amenities and activities which are not normally
included in the base price of other cruise lines.
Pullmantur
We currently operate three ships with an aggregate
capacity of approximately 5,300 berths under our
Pullmantur brand, offering cruise itineraries that range
from four to 12 nights. As previously announced,
Monarch of the Seas will be redeployed from Royal
Caribbean International to Pullmantur in April 2013.
Pullmantur serves the contemporary segment of the
Spanish, Portuguese and Latin American cruise mar-
kets. Pullmantur also has land-based tour operations
and owns a 49% interest in an air business that oper-
ates four Boeing 747 aircraft in support of its cruise
and tour operations.
Pullmantur’s strategy is to attract cruise guests by
providing a variety of cruising options and land-
based travel packages. Pullmantur offers a range of
cruise itineraries to Brazil, the Caribbean and Europe.
Pullmantur offers a wide array of onboard activities
and services to guests, including exercise facilities,
swimming pools, beauty salons, gaming facilities,
shopping, dining, certain complimentary beverages,
and entertainment venues. Pullmantur’s tour opera-
tions sell land-based travel packages primarily to
Spanish guests, including hotels and flights mainly
to Caribbean resorts, and land-based tour packages
to Europe primarily aimed at Latin American guests.
In addition, Pullmantur owns a travel agency network
that offers a wide array of travel related products to
guests in Spain.
CDF Croisières de France
CDF Croisières de France currently operates the
1,350-berth Horizon. CDF Croisières de France is
designed to serve the contemporary segment of the
French cruise market by providing a brand tailored
for French cruise guests. CDF Croisières de France
offers seasonal itineraries to the Mediterranean and a
variety of onboard services, amenities and activities,
including entertainment venues, exercise and spa
facilities, fine dining, and gaming facilities.
TUI Cruises
TUI Cruises is designed to serve the contemporary
and premium segments of the German cruise market
by offering tailored product for German guests. All
onboard activities, services, shore excursions and
menu offerings are designed to suit the preferences
of this target market. TUI Cruises operates two ships,
Mein Schiff I and Mein Schiff II, with an aggregate
capacity of approximately 3,800 berths. In addition,
TUI Cruises has two ships on order, each with a
capacity of 2,500 berths, scheduled for delivery in
the second quarter of 2014 and second quarter of
2015, respectively. TUI Cruises is a joint venture
owned 50% by us and 50% by TUI AG, a German
tourism and shipping company that also owns 51%
of TUI Travel, a British tourism company.
INDUSTRY
Cruising is considered a well established vacation
sector in the North American market, a growing sec-
tor over the long-term in the European market and
a developing but promising sector in several other
emerging markets. Industry data indicates that a
significant portion of cruise guests carried are first-
time cruisers. We believe this presents an opportunity
for long-term growth and a potential for increased
profitability.
We estimate that the global cruise industry carried
20.8 million cruise guests in 2012 compared to 20.2
million cruise guests carried in 2011 and 18.8 million
cruise guests carried in 2010. We estimate that the
global cruise fleet was served by approximately
432,000 berths on approximately 282 ships at the
end of 2012. There are approximately 19 ships with
an estimated 65,000 berths that are expected to be
placed in service in the global cruise market between
2013 and 2017, although it is also possible that ships
could be taken out of service during these periods.
The majority of cruise guests have historically been
sourced from North America and Europe.
North America
The North American cruise market has historically
experienced significant growth. The compound
annual growth rate in cruise guests for this market
was approximately 4.5% from 2008 to 2012. We esti-
mate that North America was served by 144 ships
with approximately 212,000 berths at the beginning
of 2008 and by 146 ships with approximately 258,000
berths at the end of 2012. There are approximately
10 ships with an estimated 40,000 berths that are
expected to be placed in service in the North American
cruise market between 2013 and 2017.
Europe
As compared to North America, the European cruise
market represents a smaller but even faster growing
sector of the vacation industry. It has experienced a
compound annual growth rate in cruise guests of
approximately 7.6% from 2008 to 2012. This market
has recently experienced a number of challenges as a
PART I