Executive Summary
Royal Caribbean is the second largest cruise line company in the world and it is in position to take advantage of a recovering industry that is once again attracting high numbers of people looking to spend money. Royal Caribbean has strong brand awareness in North America where a majority of cruises originate, but it also has a strong international reputation through the other brands it operates as well as its own increasing presence in the European and Asian market.
Royal Caribbean was hit hard by the downturn in the global economy and it continues to be in a weakened financial condition due to large investments in new ships and rising operating costs. However, the total revenue for the company is back on the rise
Royal Caribbean was one of the cruise lines, like Carnival, that helped give rebirth to the cruise industry. Royal Caribbean helped shape the cruise industry that we know today as it participated in the “megaship” resort style ship building in the 1980’s and 1990’s. The company focused on attracting a younger cliental to its ships in the mid 1990’s as it sought gain market share away from the ultra-competitive segment of retirees. “Rather than focusing on opportunities to socialize or nonstop activities, it positioned itself as "a vacation during which people can relax completely in their own way: with a trip to the spa, a jog around the deck, or a day on the white sands of an island beach” (Business & Company Resource Center, n.d.). Since the early 1990’s Royal Caribbean has been steadily increasing the number of ships to its fleet as well as acquiring new brands to service specific markets. Today, Royal Caribbean is the second largest cruise company in the world employing over 57,000 people and operating 40 ships that service over 400 ports on all seven continents. “Our [Royal Caribbean] brands include Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises along with our Pullmantur brand, which has been custom tailored to serve the cruise markets in Spain, Portugal and Latin America and our CDF Croisières de France brand which provides us with a custom tailored product targeted at the French market”