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Poseidonia Euro Cruise Overview 2012

Poseidonia Euro Cruise Overview 2012. John Tercek Royal Caribbean Cruises, Ltd. Sea Trade Europe 2010. Overview. Quick Industry Overview Annual RCCL update RCL’s Deployment Trends Mediterranean Routes European Cruise Challenges Greek cruise Challenges.

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Poseidonia Euro Cruise Overview 2012

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  1. Poseidonia Euro Cruise Overview 2012 John TercekRoyal Caribbean Cruises, Ltd. Sea Trade Europe 2010

  2. Overview • Quick Industry Overview • Annual RCCL update • RCL’s Deployment Trends • Mediterranean Routes • European Cruise Challenges • Greek cruise Challenges

  3. Cruise Industry Overview

  4. Industry Snapshot 19 million worldwide guests in 2012 $19 billion est Industry Gross revenue 7% average annual passenger growth rate since 19902 300 ships with approximately 400k berths in 2012 16 new vessel deliveries 2011-2012; 4 in 2013 1Source: Seatrade Cruise Review June 2010. 2Source: CLIA 2010 Cruise Market Overview 3Source: Royal Caribbean Cruises, Ltd. 2009 Annual Report

  5. Cruise Industry Trends • Ships are getting bigger, which increases weekly carrying capacity and efficiencies; but, places requirements on port infrastructure to adequately support calls • 12 out of 16 ships delivered 2011-2012 exceed 100,000 gross tons • Only 4 ships coming in 2013; slowdown in new-building cycle due to financial crisis & fleet consolidation; 2 to 3 year new-build slowdown • Recent 7 year market expansion: Mediterranean, Australia & Brazil NOW SLOWING • Diversification – current cycle starting 2013: redeployment of ships out of the Med back to Caribbean & Alaska; NOW ASIA-CHINA • Targeting non-US source markets for customers; increasingly taking the ships to the source markets. NOW CHINESE

  6. Cruise Industry World Deployment 2010 Operating Theater% Capacity million bed days • Caribbean 35% 40.9 • Mediterranean 25% 29.5 • Baltic & UK 9% 10.1 • Asia/Australia/India 10% 11.8 • Mexico Pacific/Hawaii 6% 7.2 • Alaska 6 % 7.2 • South America 5% 5.5 • Bermuda/New England 3% 3.1

  7. Cruise Industry World Deployment 2010 Operating Theater% Capacity million bed days • Caribbean 35% 40.9 • Mediterranean 25% 29.5 • Baltic & UK 9% 10.1 • Asia/Australia/India 10% 11.8 • Mexico Pacific/Hawaii 6% 7.2 • Alaska 6 % 7.2 • South America 5% 5.5 • Bermuda/New England 3% 3.1

  8. World Cruise Actual Source Markets (millions of customers sourced)

  9. World Cruise Actual Source Markets

  10. Populations of Potential Source Markets

  11. Strong IndustryFundamentals • Steady Long-term industry growth • Great vacation product & Value for Money • Product innovation: Regular new ships • Low penetration of vacation market (Sawgrass Mills shopping mall in Fort Lauderdale receives 18 million annually) • Favorable demographics: World is becoming middle class • Consolidated industry: Only 4 big cruise companies = 96% • Ability to absorb new capacity: supply driven business • Proven resilience: post 9/11; post 2009 recession

  12. Royal Caribbean Cruises Ltd. • 2nd largest cruise company. • 25% of worldwide cruise volume. • 44 ships, 6 brands. • 425 destinations. • 78,650 berth capacity. • 4.7 million total passengers in 2011. • 53,650 employees. • Raising the Bar – Oasis of the Seas.

  13. Royal Caribbean Cruises Ltd. Brands • Royal Caribbean International • Celebrity Cruises • Azamara Cruises • Pullmantur, S.A. • CDF Croisieres de France • TUI Cruises

  14. Royal Caribbean Cruises Ltd. Corporate Financial Highlights

  15. Royal Caribbean Cruises Ltd. Corporate Financial Highlights

  16. RCL’s Deployment Trends

  17. Drivers of Growth into new Destinations & Itinerary Routes • Repeat Customers Seeking New Experiences • Looking for Fuel-Efficient Routes: 17 knots x 14 hours= 200 nautical miles overnight is ideal route for fuel • Sourcing New Customers from New Source Countries (Australia, Mexico, Brazil, Chinese) • RCCL pushing into ASIA!

  18. RCL Summer Deployment

  19. RCL Summer Deployment

  20. Rhodos: RCCL Brands (total # passenger visits)

  21. Rhodos: Royal Caribbean Brand (# Passengers)

  22. Rhodos: Celebrity Brand (# Passengers)

  23. Rhodos: AZAMARA Brand (# Passengers)

  24. Rhodos: RCCL Brands (total # passenger visits)

  25. ALL GREEK PORTS: All RCCL Brands (total # passenger visits)

  26. European Cruise Overview Planning Parameters and Limitations: .

  27. Where Do We Cruise? Customer Interest: “We take our Customers where they think they want to go…” Customer Sourcing / Airlift / Homeports Weather & Seasonality: Northern / Southern Hemispheres Time / Speed / Distance Formula: 200 nautical miles /night Supportive Host Government Policies Safety & Security

  28. Mediterranean Venice, Italy French Ports Ravenna, Italy Livorno Barcelona, Spain Dubrovnik, Croatia Civitavecchia; Napoli Istanbul, Turkey Ajaccio, Corsica Bari Italy Valencia, Spain Palermo, Italy Athens Kusadasi Malaga, Spain Cagliari Bodrum, Turkey Catania Greek Islands Rhodes Haifa Algiers Tunis Tangiers; Ceuta Larnaca Valletta, Malta Heraklion Ashdod Alexandria Port Said Sharm ell Sheik

  29. RCL Summer Med Deployment: wow!

  30. Market Sector: MEDITERRANEAN Med Pros Customer Interest: HUGE Lots of Destinations Seasonality: 40-52 weeks Supportive Gov'ts & Policies Sourcing /Airlift/ Homeports: Barcelona! Civitavecchia! Venice! Malta! Savona! Napoli..

  31. Market Sector: MEDITERRANEAN • Med Cons • Operations: Some ports are getting crowded • Middle East Revolution: south Med may be a challenge in near term Med Pros Customer Interest: HUGE Lots of Destinations Seasonality: 40-52 weeks Supportive Gov'ts & Policies Sourcing /Airlift/ Homeports: Barcelona! Civitavecchia! Venice! Malta! Savona! Napoli..

  32. Mediterranean: No Fly Zone Venice, Italy French Ports Ravenna, Italy Livorno Barcelona, Spain Dubrovnik, Croatia Civitavecchia; Napoli Istanbul, Turkey Ajaccio, France Bari Italy Valencia, Spain Palermo, Italy Athens Kusadasi Malaga, Spain Cagliari Bodrum, Turkey Catania Greek Islands Rhodes Haifa Algiers Tunis Tangiers; Ceuta Larnaca 800,000 Valletta, Malta Heraklion Ashdod Alexandria Port Said 300,000 Sharm ell Sheik

  33. Mediterranean Home/Base Ports Marseille, France Venice, Italy Savona, Italy Barcelona, Spain Dubrovnik, Croatia Civitavecchia; Istanbul, Turkey Kotor, Montenegro Ajaccio, France Bari Italy Valencia, Spain Palma Mallorca Napoli Athens Kusadasi Malaga, Spain Cagliari Palermo, Italy Bodrum, Turkey Catania Greek Islands Rhodes Haifa Algiers Tunis Tangiers; Ceuta Larnaca Valletta, Malta Heraklion Ashdod Alexandria Port Said Sharm ell Sheik

  34. Mediterranean 7 day Routes Venice, Italy Savona Villefranche Barcelona, Spain Livorno Dubrovnik, Croatia Civitavecchia; Istanbul, Turkey Bari Italy Napoli Palma Mallorca Athens Kusadasi Santorini Catania Tunis Valletta, Malta Limissol, Cyprus Heraklion, Crete Alexandria, Egypt

  35. Mediterranean 7 & 14 day Routes Venice, Italy Savona Villefranche Barcelona, Spain Livorno Dubrovnik, Croatia Civitavecchia; Istanbul, Turkey Bari Italy Palma Mallorca Napoli Athens Kusadasi Santorini Catania Tunis Mykynos Valletta, Malta Limissol, Cyprus Alexandria, Egypt

  36. Mediterranean Challenging Ports 500,000 Venice, Italy Villefranche 1,000,000 800,000 Livorno, Italy Barcelona, Spain Dubrovnik, Croatia Civitavecchia; Istanbul, Turkey 2,500,000 Bari Italy Napoli Athens Kusadasi 1,300,000 Greek Islands Tunis 800,000 Valletta, Malta Santorini 700,000

  37. SELECT MEDITERRANEAN PORT VOLUMES

  38. SELECT MEDITERRANEAN PORT VOLUMES

  39. Biggest Issues Facing Continued Growth in European Cruise Markets • EU Economic Stability & USA Economic Recovery • “Tourism-Friendly” Resolution of Middle East & Africa Turmoil • Stabilization of Fuel prices; ECA Zones impact • Sourcing New Customers from New Source Countries (Russia, Eastern Europe, Turkey) • Necessary Infrastructure Expansion & Upgrade • Increasing Regulation and Port Expenses in Europe

  40. Popular Greek Ports Corfu Piraeus Mykonos Santorini Katakolon Rhodes Chania Iraklion

  41. Potential Greek Ports Thessaloniki Kavalla Igoumenitsa Volos Kos Kefalonia Napflion Patmos

  42. Biggest Issues Facing Continued Growth in Greece • Greek Political Stability & Social Stability • Piraeus Port Reliability & Athens Airport Expense $$ pushing homeporting to Crete…(Costa Cruises) • Greek Tourism Marketing. Must be more than Parthenon, Santorini & Mykynos • VISA waiver program to Source New Customers from New Source Countries (Russia, Eastern Europe, Turkey) • Infrastructure Expansion & Upgrade in destination ports • Port privatization initiative emphasizing Infrastructure expansion & enhancement and fresh promotion

  43. Issues Facing Cruise Sector Privatization in Greece • Port privatization initiative emphasizing Infrastructure expansion & enhancement and marketing/promotion • Fresh effort needed with private partners: get the message out to potential customers: Product, Packaging, Promotion • Greek Privatization Process: moribund • Privatization “Fast Track”: neither Fast nor on track • New Troika “Privatization Fund”; learn from Athens airport • Welcome interested qualfied investors instead of bureaucrats ?

  44. Posedonia Euro Cruise Overview 2012 John TercekRoyal Caribbean Cruises, Ltd. Sea Trade Europe 2010

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