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Tawara Cruises 2018 Annual Report
Produced by: Muhammad Hassan Aijaz
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.
Our cruises are positioned at the middle and upper We have four ships on order with a capacity of
Overview end of the cruise holiday industry. They are generally approximately 12,200 berths. These ships are
Our ships operate on a selection of worldwide characterised by cruises that are 14 nights or shorter scheduled to enter service in 2019 and 2020.
itineraries that call on approximately 200 destinations and feature a casual ambiance, as well as a variety of Additionally, we signed a memorandum of
on five continents. In addition to our headquarters in activities and entertainment venues. Our brand understanding to build two new ships which are
London and Florida, we have offices and a network of appeals to families with children of all ages, as well as expected to enter service in the second quarters of
international representatives around the world which both older and younger couples. More families are 2021 and 2022, respectively.
primarily focus on sales and market development. We now cruising with children so the average age of a
We are prioritising internet connectivity for our
believe cruising continues to be a popular holiday cruise passenger has therefore dropped.
passengers in 2019 and are upgrading our systems
choice due to its inherent value, extensive itineraries The average length of cruise taken by our passengers and technologies across the entire fleet. This
and variety of shipboard and shoreside activities. The dropped below 10 days in 2018 for the first time in investment will ensure that seamless, latest-generation
following chart details our growth in cruise passenger nine years. Durations were shorter for both summer connectivity is available to satisfy the needs of the
numbers (in thousands) over the past five years: and winter cruises primarily as a result of more short modern-day holidaymaker. It will enhance the
cruises being scheduled. These shorter cruises help onboard experience and provide guests with fast and
attract guests who are new to cruising and will reliable web access and the ability to share cherished
hopefully then return for longer voyages. memories with friends and loved ones even while at
sea.
Our Fleet
We currently operate 10 ships with
Sustainability Commitment
a capacity of approximately 16,150 We are making meaningful progress on our 2025
berths. This count includes our two sustainability goals focusing on our environmental
newest ships which entered our impact performance. This year we have reduced our
fleet in November and December unit fuel consumption by 28%. We remain committed
2018. We expect to introduce a to ongoing reduction in air emissions and are
further six ships by the end of 2022. expanding our investment in the use of low carbon
Muhammad Hassan Aijaz ZM226 2333231
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fuels. All of our new ships will be powered by independent concessionaires, from which we receive in new destinations. Our strategy is to attract an array
environmentally friendly liquefied natural gas (LNG). either a percentage of their revenues or a fee. of guests by providing a wide variety of itineraries to
We have also introduced industry-leading shoreside destinations worldwide including Alaska, Asia,
technology to monitor real-time navigational Themed Cruises Australia, Bahamas, Bermuda, Canada, the
performance and energy use across our fleet. Caribbean, Europe, the Panama Canal and New
Themed Cruises have become increasingly popular Zealand with cruise lengths that range from two to 24
Cruise Pricing and we see this as the next area of growth within the
industry. These are primarily a regular cruise with
nights.
Our cruise ticket prices include accommodation and a enhanced or additional programming on board. A Interest in ocean cruising is projected to remain
wide variety of activities and amenities, including Themed Cruise gives guests the opportunity to enjoy a strong in 2019. Nearly half (48%) of non-cruisers
meals and entertainment. Prices vary depending on favourite hobby or join in a variety of courses to expressed interest in taking an ocean cruise. Based on
many factors including the destination, cruise length, improve their knowledge, culture or history. They our planned fleet enlargement and a focus on
cabin selected and the time of year the cruise takes usually feature special guests such as speakers and destinations, we intend to further extend our ability to
place. Our payment terms require an upfront deposit performers, or educational shore excursions. We have serve our guests and to stay on the path towards
to confirm a reservation, with the balance due prior to responded to the changing vacation patterns of becoming an even more global cruise line,
the sailing. Our cruises are generally available for today’s travellers by expanding our range of Themed strengthening our presence in key markets. We believe
sale at least one year in advance and often as much as Cruises. we are well positioned to attract new consumers to
two years in advance of sailing. During the selling cruising and to continue to bring loyal repeat guests
period of a cruise, we continually monitor and adjust Taster Cruises back for their next cruising holiday.
our cruise ticket prices for available cabins based on
demand, with the objective of maximising net yields. Last year one in every three of our passengers was on
their first ever cruise. As a result we have expanded
We earn substantially all of our cruise revenues from the range of mini cruises we offer to appeal to the
the sales of passenger cruise tickets and cancellation growing number of people wishing to cruise for the
fees. While many onboard activities are included in first time. These trips last three nights or under and
the base price of a cruise, we realise additional offer a great way to try the cruising experience for a
revenues from: fraction of the cost and without a large commitment.
Shore excursions Customers are able to experience life on board and
Gift shop items enjoy a well-earned break without having to embark
Casino gaming on a long journey that could take weeks. Mini cruises
Full service spas have also proved popular with guests wanting a few
Internet and communication services days away or experienced cruisers wanting to try a
Laundry and dry cleaning services new ship before booking a longer holiday. Taster
Liquor and some non-alcoholic beverage cruises operating last year were:
sales
Photo packages The Future
Specialty restaurants Exciting times lie ahead for our company in 2019,
starting with the first two of our next-generation ships
Many of these services are available for pre-booking coming into service between June and December. We
on the internet prior to embarkation. These goods and are continuing to build strategic stakes and
services are provided either directly by us or by partnerships in key areas and we are further investing
Muhammad Hassan Aijaz ZM226 2333231
