G3 fall 2015 CRUISE SHIP DESIGN A.ALONSO

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1 G3 fall 2015 CRUISE SHIP DESIGN A.ALONSO

2 quality + the CRUISE LINE INDUSTRY safety + security customer satisfaction A happy guest not only spends more money, but will return again and again, thereby producing greater profits and converting cruise passengers into return stay-over guests. FCCA Service Excellence Program 1 Cruise Market Watch 2 FCCA Cruise Industry Overview 3 libary.duke.edu Brief History of Passenger Ship Industry 4 Meet and exceed int l & federal standards Regular safety inspections US Coast Guard annual exams CLIA Security Committee (inc. law enforcement + intelligence agencies) environment + + Strong record of developing & implementing sound environmental practices ship design entertainment amenities unspoken expectations Establishment of homeports to increase appeal through convenience, cost savings, and value - introduces leisure traveling to wider customer base = Training seminars re: customer wants, needs, habits; shares information with destination partners - service excellence & taxi pride Service quality extends to the services customers receive off the ship + + MOMENTS of TRUTH Int l, federal, state regulations met, sometimes exceeded public health + medical Programs that encourage passengers to go Green, from low energy lighting to recyclable clothes hangers Cruise line Environmental Committee meets regularly with US Coast Guard and EPA capabilities CLIA works with Centers for Disease Dontrol & Prevention frequently re: health and sanitation maintenance Regular health inspections/training Medical facilities working group

3 growth strategies Driven by shorter cruises, more local ports, more destinations, new on-board/on-shore activities that match demands of customers. 1 One of the fastest growing sectors of leisure travel market 3 passenger growth 7.2% annual passenger growth rate since M passengers carried a/o passenger growth attributed to increased significant passenger capacity in new ships miniature cities industry growth Headlined by Caribbean 2 as dominant cruise destination =37.3% of cruise ship itineraries >1/2 visitors to Las Vegas in 1 year, where only 45% of North American market has cruised = Opportunity to move ships to match demand for distinct advantage worldwide market share 1 passengers 10% 18% 23% revenue 12% 23% 22% 48% 42% south florida hub

4 s First ship, Song of Norway, was first to have glass-walled dining rooms and sun decks in middle of ship, among other first features First to offer ships specifically designed for warm-water year-round cruising Beat out Carnival in acquiring Celebrity Cruise Lines, increasing its market share and giving it presence in the premium market New expansion program added shopping malls, theaters, etc. history Founded by 3 Norwegian shipping companies Largest cruise line in the Caribbean, with weekly departures from Miami on 7- and 14-day vacations

5 values and operational strategies why not? NATION OF WHY NOT? = CUTTING EDGE FEATURES success strategies INNOVATION OF ON-BOARD PRODUCTS AND STATE-OF-THE-ART SHIPS VARIETY OF ITINERARIES AND PRICES ACQUISITION MAINTAIN STRONG RELATIONSHIPS WITH TRAVEL AGENCIES PRINCIPAL INDUSTRY DISTRIBUTION SYSTEMS SINGULARLY FOCUSED ON PROVIDING HIGHEST LEVEL OF SERVICE AND BEST VACATION EXPERIENCE ON LAND OR SEA CUSTOMER SERVICE IS OUR #1 PRIORITY. WE HAVE A VERY ROBUST CUSTOMER FEEDBACK SYSTEM [AND] OVER 90% HAVE SCORED OUR ON-BOARD SERVICE AS MEETING OR EXCEEDING THEIR -RCCL EXPECTATIONS. vision To always provide service with a friendly greeting and a smile, Anticipate the needs of our customers, Make all efforts to exceed our customers expectations, Take ownership of any problem that is brought to our attention, Engage in conduct that enhances our corporate reputation and employee morale, Committed to act in the highest ethical manner and respect the rights and dignity of others, And to be loyal to Royal Caribbean and Celebrity and strive for continuous improvement in everything we do. TARGET MARKET: UPPER END OF THE VOLUME MARKET AND THE LOWER END OF THE PREMIUM MARKET families, parents, kids and couples ages 25-54, male and female baby boomers generate higher levels of income and spend more on recreation and leisure than any other population segment 4 educational attainment: grad likelihood of retirement: high income likelihood: $100-$300k 1

6 celebrity brand guest profile guests value family life, stability, good old fashioned fun, simple pleasures, fine food & drink, low-risk adventures and excursions, R&R

7 JIM + ANN JONES Baby Boomers New grandparents South Florida residents Approaching retirement

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