Global Deployment Trends & Port Considerations - Australian Cruise … · 2020-01-03 · 4 Industry...
Transcript of Global Deployment Trends & Port Considerations - Australian Cruise … · 2020-01-03 · 4 Industry...
Global Deployment Trends
& Port Considerations
Presented by Craig Milan
Senior Vice President - Land Operations
Royal Caribbean Cruises, Ltd.
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Industry Overview
Considerations for Global Expansion
RCL’s Deployment Trends
RCL’s International Overview
Australasia Considerations
Port Considerations
Cruise Industry Overview
4
Industry Snapshot
Over 17.8 million worldwide guests in 20091
7.2% average annual passenger growth rate since 19902
267 ships with approximately 373k berths in 20093
23 new ocean-going vessel deliveries 2010-2012
Increasing capacity allows cruise lines to expand beyond their traditional markets like never before
2008 2009
North America 10,352 10,459
UK 1,477 1,533
Continental Europe 2,945 3,409
Asia (excluding Japan) 850 890
Japan 195 195
Australasia 342 370
Latin America and others 940 984
Total 17,101 17,840
Year-on-year increases 4.1% 4.3%
1Source: Seatrade Cruise Review June 2010. 2Source: CLIA 2010 Cruise Market Overview 3Source: Royal Caribbean Cruises, Ltd. 2009 Annual Report
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Strong Industry Fundamentals
Long-term industry growth
Great vacation product
Product innovation
Low penetration of vacation market
Favorable demographics
Consolidated industry
Ability to absorb new capacity
Proven resilience
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North American market CAGR since 1970 8.3%; only 0.6% from 2005-2009
145 ships with approximately 228k berths in 2009
14 new ships expected to be placed in service in North America 2010-2013
Cruise Industry Largest Market
1Source: Royal Caribbean Cruises, Ltd. 2009 Annual Report
Year Global Cruise Passengers
Weighted Average Supply of Berths
Marketed Globally
North American Cruise
Passengers
Weighted-Average Supply of Berths
Marketed in North America
2005 14,818,000 288,000 9,909,000 190,000
2006 15,309,000 304,000 10,080,000 201,000
2007 16,586,000 327,000 10,330,000 212,000
2008 17,184,000 347,000 10,093,000 219,000
2009 17,340,000 363,000 10,169,000 222,000
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Industry Trends
Ships are getting bigger, which increases the requirements on port infrastructure to adequately support calls
12 out of 23 ships scheduled for delivery through 2012 will exceed 100,000 gross tons
Cruise lines are partnering with ports to build piers and infrastructure capable of servicing larger ships (e.g. St. Thomas, Falmouth, Roatan, Cozumel, Kusadasi, etc.)
RCL partnered with Port Everglades to build a terminal capable of servicing an Oasis class vessel
Deployment of more ships beyond the Caribbean & North America
Targeting non-US source markets
Building stronger relationships with suppliers and customers
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2010 Deliveries
Cruise Line Ship Gross Tonnage Lower Berths Price (in Millions)
AIDA AIDAblu 71,000 2,174 $525
Celebrity Celebrity Eclipse 118,000 2,850 $698
Costa Deliziosa 92,700 2,260 $500
Cunard QE 92,000 2,092 $700
HAL Nieuw Amsterdam
86,000 2,100 $567
MSC Magnifica 90,000 2,550 $400
NCL Norwegian Epic 153,000 4,200 $1,200
P & O Azura 116,000 3,076 $695
RCI Allure of the Seas 225,000 5,400 $1,500
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2011 Deliveries
Cruise Line Ship Gross Tonnage Lower Berths Price (in Millions)
AIDA AIDAsol* 71,000 2,174 $557
Celebrity Celebrity Silhouette*
122,000 2,850 $698
Carnival Carnival Magic* 130,000 3,652 $859
Costa Cruises
Costa Favalosa* 114,200 3,012 $726
Disney Disney Dream* 128,000 2,500 $899
Seabourn Cruise Line
Seabourn Quest 32,000 450 $290
* Identical ship to be delivered in 2012
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10 Largest Cruise Ships Afloat
Cruise Line Ship Gross Tonnage Lower Berths LOA (in Meters)
RCI Oasis of the Seas 225,000 5,400 362
RCI Freedom Class (3) 158,000 3,643 339
MSC Fantasia 138,000 3,300 333
Carnival Carnival Dream 130,000 3,650 306
Celebrity Solstice Class (3) 122,000 2,850 315
Princess Caribbean Princess 113,000 3,600 290
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10 Largest Ships to be Launched
Cruise Line Ship Gross Tonnage Lower Berths LOA (in Meters) Launch Year
RCI Allure of the Seas 225,000 5,400 362 2010
NCL Norwegian Epic 153,000 4,200 330 2010
Princess TBD 138,000 3,600 TBD 2013
Princess TBD 138,000 3,600 TBD 2014
Carnival Carnival Magic 130,000 3,650 339 2011
Carnival TBD 130,000 3,650 339 2012
Disney Disney Dream 128,000 2,500 340 2011
Disney Disney Fantasy 128,000 2,500 340 2012
Celebrity Celebrity Silhouette
122,000 2,850 315 2011
Celebrity TBD 122,000 2,850 315 2011
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-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Gu
ests
(000's
)
North America
Europe
Latin America
Asia
Industry Guest Growth by Region
12.1% CAGR
7.0% CAGR
6.0% CAGR
4.9% CAGR
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International vs. N. America
Global Cruise Line Lower Berths
Source: Internally Calculated using Global Fleet Model and Guest Sourcing Assumptions
0
100
200
300
400
500
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Lo
we
r B
ert
hs
So
urc
ing
(00
0’s
)
North
America
Berths
International
Berths
CAGR 08-12
North America 3.5%
International 10.5%
Global Cruise Line Capacity
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Various Ships at Nassau
Oasis of
the Seas
Considerations for
Global Expansion
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Overall itinerary fit (time, speed, distance)
Guest air and ground transportation to/from turn ports
Provisioning capacity/availability
Emergency airlift capability
Population in catchment area around the home port
Clear berthing policy
Confirmation of preferred berth 2-years in advance
Global Deployment Considerations
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Not all guests are the same!
Sales and Marketing programs tailored to reach the local market in the local language while maintaining consistency within the company’s overall brand strategy and Web presence
Shore excursion products relevant to the local market price points and in their language
Onboard cuisine incorporating local tastes for food and beverage
Onboard entertainment offerings (shows, music, TV) available in local languages
An international network of representatives to serve guests within local markets
Compelling itineraries to meet guest preferences
Global Sourcing Considerations
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Visa requirements for guest, crew, and corporate personnel
Regulatory requirements related to environment, manning, immigration, casino and onboard shops, etc.
Taxation issues and special payment methodologies
Security operations in foreign environments
Influencing foreign legislation as a cruise company or through regional cruise shipping associations
Global Operation Considerations
RCL’s Deployment Trends
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Big Brands Moving East
Repeat Customers Seeking New Experiences
Lines looking for Fuel-Economy Routes
Industry Sourcing New Customers from New Source Countries
New Ship Displacement Factor
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New Ship Displacement Evolution
Oasis 6,000 pax to Miami
Freedom 4,000 pax to UK
Voyager 3,300 pax to Civita
Brilliance 2,200 pax to Dubai
Legend 1,800 pax to Shanghai
Sovereign to Pullmantur
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RCL Summer Deployment
2004 2010 2011
Mediterranean 6 ships 8 ships 13 ships
Caribbean 10 ships 9 ships 6 ships
Alaska 6 ships 5 ships 5 ships
Baltic 3 ships 5 ships 5 ships
Bermuda/New England 2 ships 3 ships 3 ships
Asia/Australia 1 ship 1 ship
Mexico (Pacific) 1 ship
Total 27 ships 32 ships 33 ships
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RCL Winter Deployment
2004 2010 2011
Caribbean 22 ships 23 ships 22 ships
South America 1 ship 4 ships 4 ships
Asia/Australia 3 ships 4 ships
Mediterranean 1 ship 2 ships
Middle East 1 ship 1 ship
Mexico (Pacific) 3 ships 1 ship
Hawaii-California 1 ship
Total 27 ships 33 ships 33 ships
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0
50
100
150
200
250
300
350
400
450
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year
Po
rts
of
Ca
ll
0
5
10
15
20
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30
35
40
45
50
55
60
Tu
rn P
ort
s
# Ports # Turn Ports
RCL Port Trends 2000 to 2011
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RCL International Deployment: 2004
14,000 berths
Europe (Summer)
Splendour Brilliance Jewel Galaxy Millennium Constellation
South America
Infinity
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60,000 berths
RCL International Deployment: 2011
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Fort Lauderdale, Florida
Miami, Florida
Port Canaveral, Florida
San Juan, Puerto Rico
Barcelona, Spain
Rome, Italy
Bayonne, New Jersey
Baltimore, Maryland
Sao Paulo, Brazil
Venice, Italy
Sydney, Australia (#21)
Top 10 RCCL Home Ports for 2011
Port of Barcelona, Spain
RCL’s International
Overview
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International Market: Overview
Half of RCL’s fleet to be positioned in international markets in 2011
Making calls in over 200 international ports
In 2004: carried 70,000 non-U.S. guests
2011 projection: carrying 1,800,000 non-U.S. guests
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International Market: Deployment Highlights
Independence – the largest ship targeting the UK market
Celebrity Eclipse – sailing out of Southampton, England started July 2009 targeting UK guests
Rhapsody, Radiance, Century – summer Australasia sailings targeting local and international markets
Legend – year round in the Asian market targeting mostly mainland Chinese
Brilliance – Middle East sailings from Dubai targeting Russian, UK, and Italian guests
Galaxy / Mein Schiff – catering entirely to the German market
CDF Croisieres de France – catering entirely to the French market
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International vs. USA: RCL Stats
Calendar year
Include all brands, Royal Caribbean International, Celebrity Cruises , Azamara Cruises, Pullmantur ,
Assumes Island Cruises until 2010 @50%, 500% of TUI
RCL Sourcing Mix Summary
International
51%
18%
USA
04A 05A 06A 07A 08A 09A 10F 11E 12E
PC
D's
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RCL’s 2011 International Guest Market Mix
UK
30%
Brazil
10%
Nordic
7%Spain
6%
Germany
6%
Mexico
4%
Australia
4%
Puerto Rico
4%
China
4%
Italy
3%
Singapore
2%
LACAR Irs
8%
EMEA Irs
7%
APAC Irs
5%
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International Offices
2008 Singapore, Singapore Shanghai, China Stockholm, Sweden Barcelona, Spain Madrid, Spain
2009
Gosford, Australia
Sydney, Australia
Beijing, China
Guangzhou, China
Sao Paulo, Brazil Manchester, U.K.
2010
Mexico City, Mexico 2004 London, UK Oslo, Norway Frankfurt, Germany Genoa, Italy Paris, France
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48 unique International Representatives (IR’s) worldwide
Act as our representatives for Sales & Marketing activities
Partners with RCL to develop ideas and strategies to manage our international guests (some have been partners for 30 years)
Instrumental in creating brand awareness & creating global coverage for our global brands
Sell our products locally to increase RCL’s market share
penetration
RCL’s International Representatives Network
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Royalcaribbean.es
Royalcaribbean.co.uk
Royalcaribbean.com.br
Royalcaribbean.com.espanol
Web Globalization
Considerations in
Australasia
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Region Overview
All cruise lines servicing the region are increasing berths and/or length of season through 2012
Increasing demand for capacity in Australasia from foreign source and local markets
Double digit growth of Australian cruisers each year for 5 consecutive years through 20091
Australian cruisers increasingly choosing regional itineraries vs. North America, South America, and Europe1
South Pacific cruises 38% sourced from Australia in 20091
1Source: International Cruise Council Australia April 16, 2010 media release “Record Number of Australians Run Away to Sea in 2009”
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Radiance and Century join Rhapsody in Australia for 2011-12 season!
Rhapsody will be targeted towards the local market
3-14 night itineraries including New Zealand, South Pacific and Queensland
Radiance & Century will offer a combination of local and global sourced products
2-18 night itineraries including New Zealand, South Pacific, Tasmania and Circumnavigation
RCL Triples Capacity in Australia
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Many strong itineraries & destinations exist in the region (Trans-Tasman, Pacific Island, Circumnavigation, Indonesia, etc.)
Develop additional turn ports
• As Sydney becomes saturated, Melbourne, Brisbane, Cairns could be beneficiaries.
Develop infrastructure for larger vessels at ports of call
• Maritime considerations
• Shoreside considerations
Additional berth options in Sydney
• We need another large ship berth east of the Harbour Bridge!!!!
Additional revenue streams from development to recover cost
Regional Opportunities & Challenges
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Can be a large burden
Australia Passenger Movement Tax of $47 per guest has highest impact
Taxes and Port Costs
Turn Port Cost Comparison
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Syd
ney, A
ustra
lia
Sao
Pau
lo (S
anto
s), B
razil
Sea
ttle,
Was
hing
ton
Baltim
ore,
Mar
ylan
d
Cop
enha
gen,
Den
mar
k
Bar
celona
, Spa
in
Oslo,
Nor
way
Ven
ice,
Italy
Hon
g Kon
g, C
hina
Sha
ngha
i, China
Hon
olulu,
Oah
u, H
awaii
Fort L
aude
rdale,
Florid
a
Tampa
, Florid
a
Nor
folk, V
irginia
Per
th (F
rem
antle
), Aus
tralia
Lisb
on, P
ortu
gal
Tokyo
(Yok
oham
a), J
apan
Sto
ckho
lm, S
wed
en
Singa
pore
BEIJIN
G (T
IANJIN),
CHIN
A
Kao
hsiung
, Taiwan
, China
*Port costs based on Vision Class ship: GRT 78,000 Berths 2,000
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Australia & New Zealand (Trans-Tasman)
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Australia (Circumnavigation)
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South Pacific Islands
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Southeast Asia
Maritime Feasibility
Considerations
Voyager Class
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Voyager Class Ship – minimum requirements
Turning basin diameter: 460 meters
Basin depth: 11 meters
Channel width: 122 meters
Channel depth: 12 meters
Alongside depth: 10 meters
Air draft: 65 meters
Navigational Considerations
Rome (Civitavecchia), Italy
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18 meter wide finger pier
Pier length: 325 meters
SWL 100 tons per bollard
6 bow, 6 stern, and 4 spring lines
12 to 18 foam filled fenders (8’ x 13’) 30 meters apart
2 to 3 gangways
Dockside Considerations
Bayonne, New Jersey
Voyager Class Ship – minimum requirements
Turn Port
Development Considerations
Voyager Class
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Wide apron for provisioning logistics
Twenty 20-foot equivalent (TEU) container storage/staging
High volume fresh water hook-ups
Adequate employee and passenger parking spaces
Staging area for 20 buses, 20 taxis and 20 private pick-ups simultaneously
Crane availability
Trash disposal
Pier Servicing Considerations
Port of Baltimore, Maryland
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Security
X-ray scanners and metal detectors (6 each)
Adequate spacing for queuing of guests, machines, and personnel (10,000 ft2)
Embarkation Area
Space for check-in and waiting areas (40,000 ft2)
Counter space for 50 multilingual check-in agents
Ethernet/wireless network capability
Ability to connect with ship
Luggage Handling
Ability to conduct simultaneous handling
of embark and debark luggage
60,000 square feet of air-conditioned
laydown area with 6 scanners
Avoid use of airport-style carousels
Security, Check-in & Luggage Considerations
Port Canaveral, Florida
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Terminal Facility
Multi-function facility to generate revenue year-round
Separate facilities for embarking and debarking guests
2 to 3 entry and exit points
Additional seating capacity (1,500 guests)
Arrival Experience
High volume airlift of airlines to nearby airports
Hotel and pier proximity to local airport
Signage in English and local language
Separate staging areas for cars, taxis,
and buses for loading and unloading
Sufficient space for guest dropoff
with adequate traffic flow
Terminal & Arrival Experience Considerations
Galveston, Texas
Modern Turn Port Terminal
Design
Port Everglades
Florida
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Guiding Principles
Keep it simple!
Zero lines – no waiting
Large space that feels intimate
Flexibility of terminal for any class of ship
Multi-use facility
Signage!
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PEV Terminal 18
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PEV Terminal 18 – Bus & Provision Route
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PEV Terminal 18 – Guest Drop-off/Pick-up
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PEV Terminal 18 – Loading Area
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Terminal Main Entrance
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Atrium View of Check-in Area
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Mobile Gangways
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Debark Area
Port of Call
Development Considerations
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Interesting destination ports with culture, history, adventure, shopping, relaxing, and cuisine
Tours tailored for local and international guests
Hire and train enthusiastic guides
Staging area for shore excursions
Quality shore excursion buses
Visitor information center near dock
Free shuttle service to city center
Guest Experience Considerations
Alaska Seaplane Excursion
Modern Port of Call Design
Port of Roatan
Honduras
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Port of Roatan
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Town Center – 32,000 sq ft commercial space
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Transportation Area – 3 acres
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Waterfront Area – Pedestrian-friendly
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Global Deployment Trends
& Port Considerations
Presented by Craig Milan
Senior Vice President - Land Operations
Royal Caribbean Cruises, Ltd.