The Big Picture of Itinerary Planning Cruise Down Under Conference

Transcription

1 The Big Picture of Itinerary Planning Cruise Down Under Conference Crystal Morgan Princess Cruises Director, Deployment Planning Perth, Western Australia September 4, 2014

2 Healesville Sanctuary

3 The Big Picture of Itinerary Planning The Cruise Industry The Big 6 How does Princess Cruises fit into the big picture? What is our dedication to this region? Deployment Drivers Itinerary Planning Seasonal Offsets Navigating the future

4 Cruise Industry 410 Ships (including River Cruises) Over 450,000 beds for estimated 21 Million passengers Source: CLIA 2014 State of the Industry Cruise Report

5 Global Cruise Itineraries & Ship Deployments Capacity Market Share Source: CLIA 2014 State of the Industry Cruise Report

6 The Big Passenger Carry

7 Carnival Corporation Brands 10 Brands and 100 Ships Carnival Cruise Lines Princess Cruises Holland America Seabourn P&O Cruises Cunard P&O Australia Costa Cruises AIDA Iberocruceros Another 7 ships by 2016

8 Princess Cruises Brand Pillars Transformative Experiences The service of a Consummate Host The comfort a Retreat at Sea The knowledge of Destination Experts

9 Caribbean Class (Caribbean, Crown, Emerald, Ruby) The Princess Fleet SHIP CLASS LOA GRT DRAFT PASSENGER 3 rd Royal (lower berth) Class in Royal Class 2017! 330 m 142, m 3,600 (Royal, Regal) Diamond Class (Diamond, Sapphire) Grand Class (Golden, Grand, Star) Coral Class (Coral, Island) Sun Class (Dawn, Sea, Sun) Pacific Class (Ocean, Pacific) 290 m 113, m 3, m 115, m 2, m 109, m 2, m 91, m 1, m 77, m 2, m 30, m 710

10 2015 Princess Deployment by Trade by ALBD SOUTH AMERICA, 3.0% CANADA/NE, 1.5% OTHER, 2.2% ALASKA, 14.0% HAWAII & PACIFIC, 8.2% MEXICO & COASTAL, 10.0% AUSTRALIA, 16.3% PANAMA CANAL, 4.3% OTHER ASIA, 3.5% JAPAN, 2.3% CHINA/TAIWAN, 2.9% EUROPE, 17.3% CARIBBEAN, 16.6%

11 Australia Homeports

12 Princess in Australia 300 AUSTRALIA PORT CALLS

13 Deployment & Itinerary Drivers

14 Deployment Planning Mission: To create commercially attractive, competitive and innovative deployments and itineraries that optimize net revenues, minimize costs and support the company s financial goals and brand position.

15 Deployment versus Itinerary de ploy 1) To spread out (troops) so as to form an extended front line; to arrange in a position of readiness; 2) or to move strategically or appropriately; 3) to spread out strategically or in an extended front or line; 4) to come into a position ready for use In the world of cruise lines, deployment means where we strategically position and move our ships globally in order to maximize our net contribution and maintain brand position. Trades = Deployments Alaska, Europe, Caribbean, Asia, South America, West Coast, World Cruise, Canada & New England, Australia & New Zealand, South Pacific, Hawaii, Panama Canal, Mexico

16 i tin er ar y Deployment versus Itinerary a detailed plan for a journey, especially a list of places to visit; plan of travel; a line of travel; route. Defined by: length, port content, start and end ports, seasonality, class of ship

17 What are the Key Drivers on Deployment? Commercial appeal Competitive Bed Supply Source market(s) Ship size and nautical limitations Positioning days between trades Geography and weather considerations Homeports and proximity to marquee destinations Congestion and availability Net Contribution margin Long Term Strategy Maintenance Periods

18 Itinerary Design Marquee ports and destinations Number of ports Mix of cultures, countries, experiences Shore excursion revenue potential less port costs Shoreside activities & infrastructure Competitive itinerary comparison Passenger Sourcing Timing in port and fuel consumption Geography Length of cruise Operational considerations

19 Port Ratings Measure the importance to the port in passengers buying decision Relative to the itinerary and entire experience

20 Net Contribution Margin Willingness to Pay versus Cost of Operation Value of the cruise line and industry All components of the cruise experience Ticket Yield Shorex Profit Onboard Revenue Fuel Port Cost Other Costs

21 Navigating the Future

22 As Asia Grows, Can Australia Grow? Third year in Asia Markets Diamond Princess dedicated to Japan Sapphire Princess dedicated to China and Singapore Scale up Asia with new and larger tonnage Australia and Pacific region is seasonal offset

23 Panama Canal Expansion Double the capacity of the Panama Canal by adding a third lane Allows for more flexibility with deployments Allow for post-panamax ships to move from Caribbean and Europe to Pacific without having to sail via South America or via the Suez Canal New tonnage to Australia and Asia source markets

24 Cruise Industry New Builds Australia Ports Need to Grow with the Industry BRAND AIDA 3,300 3,250 Carnival 4,000 HAL 2,660 MSC 8,640 4,140 NCL 4,200 4,200 4,200 P&O UK 3,611 Princess 3,600 RCI 4,184 9,500 5,400 Seabourn 604 Star Cruises 3,360 3,364 Grand Total 15,295 23,374 19,804 13, ship each 2016 RCI 2 ships 2017 MSC 2 ships ship each

25 Thank You!