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Tawara Cruises 2018 Annual Report

Produced by: Mohamed Waleed
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.
age of a cruise passenger has therefore We are prioritising internet connectivity for
Overview dropped. our passengers in 2019 and are upgrading our
Our ships operate on a selection of worldwide systems and technologies across the entire
The average length of cruise taken by our
itineraries that call on approximately 200 fleet. This investment will ensure that
passengers dropped below 10 days in 2018 for
destinations on five continents. In addition to seamless, latest-generation connectivity is
the first time in nine years. Durations were
our headquarters in London and Florida, we available to satisfy the needs of the modern-
shorter for both summer and winter cruises
have offices and a network of international day holidaymaker. It will enhance the onboard
primarily as a result of more short cruises
representatives around the world which experience and provide guests with fast and
being scheduled. These shorter cruises help
primarily focus on sales and market reliable web access and the ability to share
attract guests who are new to cruising and will
development. We believe cruising continues to cherished memories with friends and loved
hopefully then return for longer voyages.
be a popular holiday choice due to its inherent ones even while at sea.
value, extensive itineraries and variety of
shipboard and shoreside activities. The
Our Fleet Sustainability
following chart details our growth in cruise
passenger numbers (in thousands) over the
We currently operate 10 ships with a capacity
of approximately 16,150 berths. This count
Commitment
past five years: includes our two newest ships which entered We are making meaningful progress on our
our fleet in November and December 2018. We 2025 sustainability goals focusing on our
Our cruises are positioned at the middle and
expect to introduce a further six ships by the environmental impact performance. This year
upper end of the cruise holiday industry. They
end of 2022. We have four ships on order with we have reduced our unit fuel consumption by
are generally characterised by cruises that are
a capacity of approximately 12,200 berths. 28%. We remain committed to ongoing
14 nights or shorter and feature a casual
These ships are scheduled to enter service in reduction in air emissions and are expanding
ambiance, as well as a variety of activities and
2019 and 2020. Additionally, we signed a our investment in the use of low carbon fuels.
entertainment venues. Our brand appeals to
memorandum of understanding to build two All of our new ships will be powered by
families with children of all ages, as well as
new ships which are expected to enter service environmentally friendly liquefied natural gas
both older and younger couples. More families
in the second quarters of 2021 and 2022, (LNG). We have also introduced industry-
are now cruising with children so the average
respectively. leading shoreside technology to monitor real-

Mohamed, Sa6568, 78695

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

Mohamed, Sa6568, 78695