121 Mar.

25

Tawara Cruises 2018 Annual Report

Produced by: Tanmay
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 inherent value, extensive itineraries

and variety of shipboard and shoreside
summer and winter cruises primarily as
a result of more short cruises being
Our ships operate on a selection of activities. The following chart details scheduled. These shorter cruises help
worldwide itineraries that call on our growth in cruise passenger attract guests who are new to cruising
approximately 200 destinations on five numbers (in thousands) over the past and will hopefully then return for
continents. In addition to our five years: longer voyages.
headquarters in London and Florida, Our cruises are positioned at the
we have offices and a network of middle and upper end of the cruise
international representatives around holiday industry. They are generally
the world which primarily focus on characterised by cruises that are 14
Our Fleet
sales and market development. We nights or shorter and feature a casual
believe cruising continues to be a We currently operate 10
ambiance, as well as a variety of ships with a capacity of
popular holiday choice due to its activities and entertainment venues. approximately 16,150
Our brand appeals to families with berths. This count
children of all ages, as well as both includes our two newest
older and younger couples. More ships which entered our
families are now cruising with children fleet in November and
so the average age of a cruise December 2018. We expect to
passenger has therefore dropped. introduce a further six ships by the end
The average length of cruise taken by of 2022. We have four ships on order
our passengers dropped below 10 days with a capacity of approximately 12,200
in 2018 for the first time in nine years. berths. These ships are scheduled to
Durations were shorter for both enter service in 2019 and 2020.

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Additionally, we signed a memorandum Our cruise ticket prices include  Specialty restaurants
of understanding to build two new accommodation and a wide variety of
Many of these services are available for
ships which are expected to enter activities and amenities, including
pre-booking on the internet prior to
service in the second quarters of 2021 meals and entertainment. Prices vary
embarkation. These goods and services
and 2022, respectively. depending on many factors including
are provided either directly by us or by
the destination, cruise length, cabin
We are prioritising internet independent concessionaires, from
selected and the time of year the cruise
connectivity for our passengers in 2019 which we receive either a percentage of
takes place. Our payment terms require
and are upgrading our systems and their revenues or a fee.
an upfront deposit to confirm a
technologies across the entire fleet.
reservation, with the balance due prior
This investment will ensure that
to the sailing. Our cruises are generally
Themed Cruises
seamless, latest-generation
available for sale at least one year in Themed Cruises have become
connectivity is available to satisfy the
advance and often as much as two increasingly popular and we see this as
needs of the modern-day holidaymaker.
years in advance of sailing. During the the next area of growth within the
It will enhance the onboard experience
selling period of a cruise, we industry. These are primarily a regular
and provide guests with fast and
continually monitor and adjust our cruise with enhanced or additional
reliable web access and the ability to
cruise ticket prices for available cabins programming on board. A Themed
share cherished memories with friends
based on demand, with the objective of Cruise gives guests the opportunity to
and loved ones even while at sea.
maximising net yields. enjoy a favourite hobby or join in a
Sustainability We earn substantially all of our cruise variety of courses to improve their
knowledge, culture or history. They
revenues from the sales of passenger
Commitment cruise tickets and cancellation fees. usually feature special guests such as
While many onboard activities are speakers and performers, or
We are making meaningful progress on educational shore excursions. We have
our 2025 sustainability goals focusing included in the base price of a cruise,
we realise additional revenues from: responded to the changing vacation
on our environmental impact patterns of today’s travellers by
performance. This year we have  Shore excursions expanding our range of Themed
reduced our unit fuel consumption by Cruises.
28%. We remain committed to ongoing  Gift shop items
reduction in air emissions and are  Casino gaming
expanding our investment in the use of
low carbon fuels. All of our new ships  Full service spas
will be powered by environmentally
Taster Cruises
 Internet and communication
friendly liquefied natural gas (LNG). services Last year one in every three of our
We have also introduced industry- passengers was on their first ever
leading shoreside technology to  Laundry and dry cleaning cruise. As a result we have expanded
monitor real-time navigational services the range of mini cruises we offer to
performance and energy use across our  Liquor and some non-alcoholic appeal to the growing number of
fleet. beverage sales people wishing to cruise for the first
time. These trips last three nights or
Cruise Pricing  Photo packages under and offer a great way to try the

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cruising experience for a fraction of Zealand with cruise lengths that range
the cost and without a large from two to 24 nights.
commitment. Customers are able to
Interest in ocean cruising is projected
experience life on board and enjoy a
to remain strong in 2019. Nearly half
well-earned break without having to
(48%) of non-cruisers expressed
embark on a long journey that could
interest in taking an ocean cruise.
take weeks. Mini cruises have also
Based on our planned fleet
proved popular with guests wanting a
enlargement and a focus on
few days away or experienced cruisers
destinations, we intend to further
wanting to try a new ship before
extend our ability to serve our guests
booking a longer holiday. Taster cruises
and to stay on the path towards
operating last year were:
becoming an even more global cruise
2014 2015 2016 2017
line, strengthening our presence in key
Guests 9800 10100 10600 10800 markets. We believe we are well
carried positioned to attract new consumers to
(thousan cruising and to continue to bring loyal
ds) repeat guests back for their next
cruising holiday.
Capacity 20300 20800 21200 21600
(2 people 0 0 0 0
per
cabin)

The Future
Exciting times lie ahead for our
company in 2019, starting with the first
two of our next-generation ships
coming into service between June and
December. We are continuing to build
strategic stakes and partnerships in
key areas and we are further investing
in new destinations. Our strategy is to
attract an array of guests by providing
a wide variety of itineraries to
destinations worldwide including
Alaska, Asia, Australia, Bahamas,
Bermuda, Canada, the Caribbean,
Europe, the Panama Canal and New

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