Page |1 09/10/24

Tawara Cruises 2018 Annual Report

Produced by: ِAly Hassan
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.

Overview Our cruises are positioned at the middle and

upper end of the cruise holiday industry. They are
Our Fleet
Our ships operate on a selection of worldwide generally characterised by cruises that are 14 We currently operate 10 ships with a capacity of
itineraries that call on approximately 200 nights or shorter and feature a casual ambiance, approximately 16,150 berths. This
destinations on five continents. In addition to our as well as a variety of activities and count includes our two newest ships
headquarters in London and Florida, we have entertainment venues. Our brand appeals to which entered our fleet in November
offices and a network of international families with children of all ages, as well as both and December 2018. We expect to
representatives around the world which a popular older and younger couples. More families are introduce a further six ships by the
holiday choice due to its inherent value, extensive now cruising with children so the average age of end of 2022. We have four ships on
itineraries and variety of shipboard and shoreside a cruise passenger has therefore dropped. order with a capacity of approximately
activities. The following chart details our growth in The average length of cruise taken by our 12,200 berths. These ships are scheduled to enter
cruise passenger numbers (in thousands) over the passengers dropped below 10 days in 2018 for service in 2019 and 2020. Additionally, we signed
past five the first time in nine years. Durations were shorter a memorandum of understanding to build two new
years: for both summer and winter cruises primarily as a ships which are expected to enter service in the
Annual Growth result of more short cruises being scheduled. second quarters of 2021 and 2022, respectively.
13000 These shorter cruises help attract guests who are We are prioritising internet connectivity for our
12000 11500 new to cruising and will hopefully then return for passengers in 2019 and are upgrading our
11000 10600 10800 longer voyages.
9800 10100 systems and technologies across the entire fleet.
Passangers

10000 This investment will ensure that seamless, latest-

9000 generation connectivity is available to satisfy the
8000 needs of the modern-day holidaymaker. It will
7000 enhance the onboard experience and provide
6000
guests with fast and reliable web access and the
5000
2014 2015 2016 2017 2018

Aly Hassan SA189 54789

Page |2 09/10/24
ability to share cherished memories with friends  Shore excursions expanded the range of mini cruises we offer to
and loved ones even while at sea. appeal to the growing number of people wishing to
 Gift shop items
cruise for the first time. These trips last three
Sustainability  Casino gaming nights or under and offer a great way to try the
cruising experience for a fraction of the cost and
Commitment  Full service spas without a large commitment. Customers are able
We are making meaningful progress on our 2025  Internet and communication services to experience life on board and enjoy a well-
sustainability goals focusing on our environmental earned break without having to embark on a long
 Laundry and dry cleaning services journey that could take weeks. Mini cruises have
impact performance. This year we have reduced
our unit fuel consumption by 28%. We remain  Liquor and some non-alcoholic beverage also proved popular with guests wanting a few
committed to ongoing reduction in air emissions sales days away or experienced cruisers wanting to try
and are expanding our investment in the use of a new ship before booking a longer holiday. Taster
 Photo packages cruises operating last year were:
low carbon fuels. All of our new ships will be
powered by environmentally friendly liquefied  Specialty restaurants
natural gas (LNG). We have also introduced The Future
Many of these services are available for pre-
industry-leading shoreside technology to monitor Exciting times lie ahead for our company in 2019,
booking on the internet prior to embarkation.
real-time navigational performance and energy starting with the first two of our next-generation
These goods and services are provided either
use across our fleet. ships coming into service between June and
directly by us or by independent concessionaires,
from which we receive either a percentage of their December. We are continuing to build strategic
Cruise Pricing revenues or a fee. stakes and partnerships in key areas and we are
Our cruise ticket prices include accommodation further investing in new destinations. Our strategy
and a wide variety of activities and amenities, Themed Cruises is to attract an array of guests by providing a wide
including meals and entertainment. Prices vary variety of itineraries to destinations worldwide
Themed Cruises have become increasingly including Alaska, Asia, Australia, Bahamas,
depending on many factors including the
popular and we see this as the next area of growth Bermuda, Canada, the Caribbean, Europe, the
destination, cruise length, cabin selected and the
within the industry. These are primarily a regular Panama Canal and New Zealand with cruise
time of year the cruise takes place. Our payment
cruise with enhanced or additional programming lengths that range from two to 24 nights.
terms require an upfront deposit to confirm a
on board. A Themed Cruise gives guests the
reservation, with the balance due prior to the Interest in ocean cruising is projected to remain
opportunity to enjoy a favourite hobby or join in a
sailing. Our cruises are generally available for sale strong in 2019. Nearly half (48%) of non-cruisers
variety of courses to improve their knowledge,
at least one year in advance and often as much as expressed interest in taking an ocean cruise.
culture or history. They usually feature special
two years in advance of sailing. During the selling Based on our planned fleet enlargement and a
guests such as speakers and performers, or
period of a cruise, we continually monitor and focus on destinations, we intend to further extend
educational shore excursions. We have
adjust our cruise ticket prices for available cabins our ability to serve our guests and to stay on the
responded to the changing vacation patterns of
based on demand, with the objective of path towards becoming an even more global
today’s travellers by expanding our range of
maximising net yields. cruise line, strengthening our presence in key
Themed Cruises.
We earn substantially all of our cruise revenues markets. We believe we are well positioned to
from the sales of passenger cruise tickets and Taster Cruises attract new consumers to cruising and to continue
cancellation fees. While many onboard activities to bring loyal repeat guests back for their next
are included in the base price of a cruise, we Last year one in every three of our passengers cruising holiday.
realise additional revenues from: was on their first ever cruise. As a result we have

Aly Hassan SA189 54789