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Tawara Cruises 2018 Annual Report
Produced by:Alaa Luai
Last year was another record year for the global cruise industry with cruising being one of the fastest growing types of holiday. The global popularity of cruise
holidays has grown 20% faster than land-based holidays over the past 10 years and since 2008 the European cruise market has expanded by a staggering 49%.
Over 25.8 million people worldwide took a cruise holiday in 2018, the largest number in the history of the cruise industry. These figures confirm the cruise industry’s
resilience to economic downturns and the value provided by this type of holiday.
During the past twelve months we have further consolidated our position as one of the world’s leading cruise lines. We delivered the most profitable year in our
history, achieving record net income of $1.8 billion. More repeat business appears to have been the key to this growth. These strong results are a credit to the
commitment and the passion of our 80,000 shipboard and shoreside team members which, when coupled with the support of our valued travel agent partners, are
the foundation of our sustained earnings improvement. It is through their collective efforts that we were able to overcome significant challenges during the year such
as the negative impact from fuel price increases and currency exchange rates.
The average length of cruise taken by our
Overview
Our ships operate on a selection of worldwide
Annual Growth 226000
passengers dropped below 10 days in 2018 for
the first time in nine years. Durations were shorter
itineraries that call on approximately 200 for both summer and winter cruises primarily as a
203000
destinations on five continents. In addition to our 205000 result of more short cruises being scheduled.
Passengers
headquarters in London and Florida, we have These shorter cruises help attract guests who are
offices and a network of international new to cruising and will hopefully then return for
105000 longer voyages.
representatives around the world which primarily 11500
focus on sales and market development. We 9800
believe cruising continues to be a popular holiday 5000 Our Fleet
choice due to its inherent value, extensive 1 2 3
itineraries and variety of shipboard and shoreside
activities. The following chart details our growth in Our cruises are positioned at the middle and
cruise passenger numbers (in thousands) over the We currently operate 10 ships
upper end of the cruise holiday industry. They are with a capacity of
past five years: generally characterised by cruises that are 14 approximately 16,150 berths.
nights or shorter and feature a casual ambiance, This count includes our two
as well as a variety of activities and entertainment newest ships which entered
venues. Our brand appeals to families with our fleet in November and December 2018. We
children of all ages, as well as both older and expect to introduce a further six ships by the end
younger couples. More families are now cruising of 2022. We have four ships on order with a
with children so the average age of a cruise capacity of approximately 12,200 berths. These
passenger has therefore dropped. ships are scheduled to enter service in 2019 and
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2020. Additionally, we signed a memorandum of at least one year in advance and often as much as educational shore excursions. We have
understanding to build two new ships which are two years in advance of sailing. During the selling responded to the changing vacation patterns of
expected to enter service in the second quarters period of a cruise, we continually monitor and today’s travellers by expanding our range of
of 2021 and 2022, respectively. adjust our cruise ticket prices for available cabins Themed Cruises.
based on demand, with the objective of
We are prioritising internet connectivity for our
passengers in 2019 and are upgrading our
maximising net yields. Taster Cruises
systems and technologies across the entire fleet. We earn substantially all of our cruise revenues Last year one in every three of our passengers
This investment will ensure that seamless, latest- from the sales of passenger cruise tickets and was on their first ever cruise. As a result we have
generation connectivity is available to satisfy the cancellation fees. While many onboard activities expanded the range of mini cruises we offer to
needs of the modern-day holidaymaker. It will are included in the base price of a cruise, we appeal to the growing number of people wishing to
enhance the onboard experience and provide realise additional revenues from: cruise for the first time. These trips last three
guests with fast and reliable web access and the nights or under and offer a great way to try the
ability to share cherished memories with friends Shore excursions
cruising experience for a fraction of the cost and
and loved ones even while at sea. Gift shop items
without a large commitment. Customers are able
Casino gaming to experience life on board and enjoy a well-
Sustainability Commitment Full service spas earned break without having to embark on a long
Internet and communication services journey that could take weeks. Mini cruises have
We are making meaningful progress on our 2025 Laundry and dry cleaning services also proved popular with guests wanting a few
sustainability goals focusing on our environmental Liquor and some non-alcoholic beverage days away or experienced cruisers wanting to try
impact performance. This year we have reduced sales a new ship before booking a longer holiday. Taster
our unit fuel consumption by 28%. We remain Photo packages cruises operating last year were:
committed to ongoing reduction in air emissions Specialty restaurants
and are expanding our investment in the use of
low carbon fuels. All of our new ships will be Many of these services are available for pre- The Future
powered by environmentally friendly liquefied booking on the internet prior to embarkation. Exciting times lie ahead for our company in 2019,
natural gas (LNG). We have also introduced These goods and services are provided either starting with the first two of our next-generation
industry-leading shoreside technology to monitor directly by us or by independent concessionaires, ships coming into service between June and
real-time navigational performance and energy from which we receive either a percentage of their December. We are continuing to build strategic
use across our fleet. revenues or a fee. stakes and partnerships in key areas and we are
further investing in new destinations. Our strategy
Cruise Pricing Themed Cruises is to attract an array of guests by providing a wide
variety of itineraries to destinations worldwide
Our cruise ticket prices include accommodation Themed Cruises have become increasingly
including Alaska, Asia, Australia, Bahamas,
and a wide variety of activities and amenities, popular and we see this as the next area of growth
Bermuda, Canada, the Caribbean, Europe, the
including meals and entertainment. Prices vary within the industry. These are primarily a regular
Panama Canal and New curZealand with cruise
depending on many factors including the cruise with enhanced or additional programming
lengths that range from two to 24 nights.
destination, cruise length, cabin selected and the on board. A Themed Cruise gives guests the
time of year the cruise takes place. Our payment opportunity to enjoy a favourite hobby or join in a Interest in ocean cruising is projected to remain
terms require an upfront deposit to confirm a variety of courses to improve their knowledge, strong in 2019. Nearly half (48%) of non-cruisers
reservation, with the balance due prior to the culture or history. They usually feature special expressed interest in taking an ocean cruise.
sailing. Our cruises are generally available for sale guests such as speakers and performers, or Based on our planned fleet enlargement and a
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focus on destinations, we intend to further extend
our ability to serve our guests and to stay on the
path towards becoming an even more global
cruise line, strengthening our presence in key
markets. We believe we are well positioned to
attract new consumers to cruising and to continue
to bring loyal repeat guests back for their next
cruising holiday.
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