An international cruise vacation company, Royal Caribbean Cruises has a portfolio of unique cruise lines with vacation choices for all kinds of travelers. Established in 1968, Royal Caribbean Cruises owns Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises. The Company is based in Miami, Florida and employs 65,000 people.
In addition, Royal Caribbean Cruises owns TUI Cruises via its 50% joint venture (JV) interest. Furthermore, the Company owns Pullmantur and CDF Croisières de France by way of its 49% JV interest.
Altogether, the Company’s six brands operate a combined total of 48 ships with an additional 11 on order. These brands call on about 490 destinations on all seven continents. Royal Caribbean International launched in 1969.
Regarding Celebrity Cruises, ten modern Celebrity ships offer luxurious cruise vacations. Their immersive cruise tour experiences sail into the heart of Alaska and the Canadian Rockies. In addition, Azamara Club Cruises sails two 700-guest ships globally. Pullmantur is the leader of the Spanish cruise market. Pullmantur is also Latin America’s preferred cruise line. Its four ships provide premier, all-inclusive service and authentic Latin enjoyment to Spanish-speaking guests.
CDF Croisières De France centers on serving the French market appropriately. CDF Croisières emphasizes French tastes, gastronomy and culture. It employs French as the exclusive language spoken on-ship. TUI Cruises (Germany-headquartered) focuses on German culture, cuisine and customs.
Earlier in October 2016, Royal Caribbean Cruises announced that the newest class of ships from the Company will be powered by liquefied natural gas (LNG). Moreover, these ships will introduce the use of fuel cell technology, which will considerably lessen greenhouse gas emissions. These ships will join the fleet of Royal Caribbean International. Fuel cells feature smoke-free exhaust.
Royal Caribbean signed a Memorandum of Understanding (MOU) with shipbuilder Meyer Turku for the new class of vessel under the project name “Icon.” These vessels will undergo delivery in the Q2’s of 2022 and 2024. Next year, the Company will commence testing fuel cell technology on an existing Oasis-class ship. In the next number of years, it will run progressively larger fuel cell projects on new Quantum class vessels being constructed.
In 2016, Royal Caribbean International launched the globe’s largest cruise ship (Harmony of the Seas). This cruise ship boasts the tallest slide at sea – The Ultimate Abyss. It features a nine-deck drop starting on Deck 16 and ending on Deck 6 (There is no Deck 13).
Royal Caribbean Cruises has its Double-Double program to grow shareholder returns. Its Double Double Program is centered on doubling the Company’s 2014 earnings per share by 2017 and increasing Return on Invested Capital (ROIC) to double digits. The Company has seen the Australia and China markets expand, with China increasing at an exceptional rate.
For Q3 2016, Royal Caribbean Cruises had adjusted Earnings Per Share (EPS) of $3.20. This represents and increase of 13% over the year prior. For Q3, onboard revenue yields grew 5%.
For 2017, Royal Caribbean Cruises is decreasing its exposure to the Eastern Mediterranean. However, it is bringing new ships to the Caribbean. Moreover, the Company is moderately growing the Asia-Pacific region. Royal Caribbean said that it has witnessed the Eastern Mediterranean market contract.