Royal Caribbean Cruise Lines 2013 Annual Report Download - page 17
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Pullmantur
During 2013, we operated four ships with an aggre-
gate capacity of approximately 7,650 berths under
our Pullmantur brand, offering cruise itineraries that
ranged from four to 12 nights throughout South
America, the Caribbean and Europe. One of these
ships, Zenith, was redeployed from Pullmantur to
CDF Croisières de France in January 2014. Pullmantur
serves the contemporary segment of the Spanish,
Portuguese and Latin American cruise markets.
Pullmantur’s strategy is to attract cruise guests from
these target markets by providing a variety of cruising
options and onboard activities directed at couples
and families traveling with children. Over the last
few years, Pullmantur has systematically increased
its focus on Latin America. In recognition of this,
Pullmantur recently opened a regional head office in
Panama to place the operating management closer
to its largest and fastest growing market.
In order to facilitate Pullmantur’s ability to focus on
its core cruise business, in December 2013, Pullmantur
reached an agreement to sell the majority of its inter-
est in its land-based tour operations, travel agency
and Pullmantur Air, the closing of which is subject to
customary closing conditions. In connection with the
agreement, we will retain a 19% interest in the non-core
businesses. We will retain ownership of the Pullmantur
aircraft which will be dry leased to Pullmantur Air.
CDF Croisières de France
In January 2014, we redeployed Zenith from Pullmantur
to CDF Croisières de France. As a result, as of January
2014, we operate two ships with an aggregate capac-
ity of approximately 2,750 berths under our CDF
Croisières de France brand. During the summer of
2014, CDF Croisières de France will operate both
ships in Europe and, for the first time, the brand will
operate in the Caribbean during the winter of 2014.
In addition, CDF Croisières de France offers seasonal
itineraries to the Mediterranean. CDF Croisières de
France is designed to serve the contemporary seg-
ment of the French cruise market by providing a brand
tailored for French cruise guests.
TUI Cruises
TUI Cruises is designed to serve the contemporary
and premium segments of the German cruise market
by offering a product tailored 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 1 and Mein Schiff 2, 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. 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 market penetration rates
are still low and 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.
The following table details market penetration rates
for North America and Europe computed based on
the number of annual cruise guests as a percentage
of the total population:
Year
North
America() Europe()
() Source: International Monetary Fund and Cruise Line International
Association based on cruise guests carried for at least two con-
secutive nights for years 2009 through 2012. Year 2013 amounts
represent our estimates. Includes the United States of America
and Canada.
() Source: International Monetary Fund and CLIA Europe, formerly
European Cruise Council, for years 2009 through 2012. Year 2013
amounts represent our estimates.
We estimate that the global cruise fleet was served
by approximately 436,000 berths on approximately
269 ships at the end of 2013. There are approximately
26 ships with an estimated 71,000 berths that are
expected to be placed in service in the global cruise
market between 2014 and 2018, although it is also
possible that ships could be ordered or taken out
of service during these periods. We estimate that
the global cruise industry carried 21.3 million cruise
guests in 2013 compared to 20.9 million cruise guests
carried in 2012 and 20.2 million cruise guests carried
in 2011.
PART I