3 craig milan 2011 0616 - panel 2 - canada new england mega trends


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3 craig milan 2011 0616 - panel 2 - canada new england mega trends

  1. 1. Presented by: Craig Milan President, Royal Celebrity Tours Royal Caribbean International C anada / N ew E ngland M ega T rends
  2. 2. C ontents <ul><li>RCCL’s future plans for Canada / New England </li></ul><ul><li>Canada / New England highlights and challenges </li></ul><ul><li>Region’s past performance </li></ul><ul><li>E.C.A. </li></ul>
  3. 3. R CCL’s F uture P lans f or C anada / N ew E ngland
  4. 4. F all 2 012 C anada / N ew E ngland S eason P rogram <ul><li>New guest sourcing from local Quebec City market on open jaw cruises </li></ul><ul><li>Addition of two (2) new ports-of-call in the region </li></ul><ul><ul><li>Gaspe – visited by Celebrity Summit and Brilliance of the Seas </li></ul></ul><ul><ul><li>St. Pierre and Miquelon – visited by Brilliance of the Seas </li></ul></ul><ul><li>First time, ten (10) and eleven (11) night round-trip itineraries from Quebec City </li></ul><ul><li>Increase in number of calls from 103 to 120 between 2011 and 2012, and addition of home port in Quebec City </li></ul>
  5. 5. 2 012 R CCL’s S hips i n C anada / N ew E ngland R egion <ul><li>Jewel of the Seas </li></ul><ul><ul><li>Offering seven (7) night sailings from Boston; visiting Bar Harbor, Halifax, Portland and Saint John, New Brunswick </li></ul></ul><ul><li>Enchantment of the Seas </li></ul><ul><ul><li>Sailings of eight (8) nights starting from Baltimore; stopping by Bar Harbor, Boston, Halifax, Newport, Portland, and Saint John, New Brunswick </li></ul></ul><ul><li>Brilliance of the Seas </li></ul><ul><ul><li>Never before offered, two (2) round-trip cruises of eleven (11) and ten (10) nights starting from Quebec City, going to Charlottetown, Corner Brook, Halifax, Saguenay, St. Pierre Miquelon and Sydney </li></ul></ul><ul><ul><li>New Open Jaw cruises leaving from Bayonne to Quebec City </li></ul></ul><ul><li>Celebrity Summit </li></ul><ul><ul><li>Sails from Bayonne, offering three (3) fourteen (14) night cruises in the Fall making calls in Portland, Bar Harbor, Halifax, Charlottetown, two (2) days in Quebec City and a new stop in Gaspe </li></ul></ul>
  6. 6. R CCL C alls i n C anada / N ew E ngland Port Name Number of Calls 2011 2012 Bar Harbor, Maine 19 15 Boston, Massachusetts 20 17 Charlottetown, Prince Edward Island   3 7 Corner Brook, Newfoundland   2 Gaspe, Canada *** NEW ***   5 Halifax, Nova Scotia 19 18 Newport, Rhode Island   1 10 Portland, Maine 19 15 Quebec City, Quebec   3 6 Saguenay, Quebec, Canada   2 Saint John, New Brunswick (Bay of Fundy) 16 12 St. Pierre and Miquelon *** NEW ***   2 St. John's, Newfoundland   1 2 Sydney, Nova Scotia 2 7 Total 103 120
  7. 7. C anada / N ew E ngland H ighlights a nd C hallenges
  8. 8. R egion’s H ighlights <ul><li>Interesting ports offering a wide variety of cultural, historical, adventure, relaxation, shopping, and delicious regional cuisine </li></ul><ul><li>Tours are mostly tailored to the more mature cruise guests, hence offering less adventurous activities than in other ports </li></ul><ul><li>New port infrastructure in the Canada / New England region </li></ul><ul><ul><li>Portland – Approval of $6.5M bond for new mega-berth for docking cruise industry’s largest ships </li></ul></ul><ul><ul><li>Boston – Opening of $11M new terminal upgrade </li></ul></ul><ul><ul><li>Quebec - $1.9M terminal upgrade </li></ul></ul><ul><ul><li>Saint John - $4.5M funding to expand cruise berth and passenger handling capacity </li></ul></ul><ul><ul><li>Sept-Iles – Inaugurated new $20M-plus cruise wharf </li></ul></ul>
  9. 9. R egion’s C hallenges <ul><li>High volume of senior guests as cruises often occur during the fall. Spend can not be as great as in other itineraries. </li></ul><ul><li>Region’s weakness in appealing to the family market ( Disney’s offer of first 2012 Summer cruise program for Canada will help this) </li></ul><ul><li>Overcrowded marquee ports such as Bar Harbor and Halifax; limiting berths and tour activities for larger ships </li></ul><ul><li>High port related costs in certain ports </li></ul><ul><li>Inconsistency of port infrastructures and guest experiences </li></ul><ul><li>Making Summer season as popular as the Fall sailings </li></ul>
  10. 10. C anada / N ew E ngland R ecent P erformance
  11. 11. R egion’s O verall Appeal <ul><li>High guest satisfaction across all ports </li></ul><ul><li>Best guest rated cruise region </li></ul><ul><li>Great tour partners and outstanding guest services </li></ul><ul><li>Very stable cruise destination </li></ul>
  12. 12. R CCL C anada / N ew E ngland P ort A ppeal Port Name   2009 2010 Bar Harbor, Maine 8.3 8.3 Boston, Massachusetts 7.6 7.9 Charlottetown, Prince Edward Island 8.6 8.6 Halifax, Nova Scotia 8.5 8.4 Newport, Rhode Island 7.7 7.9 Portland, Maine 7.7 7.8 Quebec City, Quebec * 8.8 8.7 Rockland, Maine 7.5 7.5 Saint John, New Brunswick (Bay of Fundy) 8.1 8.0 St. John's, Newfoundland 8.5 8.2 Sydney, Nova Scotia 8.3 8.2 Total 8.1 8.1
  13. 13. R CCL C anada / N ew E ngland P ort S atisfaction Port Name   2009 2010 Bar Harbor, Maine 8.5 8.5 Boston, Massachusetts 8.2 8.6 Charlottetown, Prince Edward Island 8.6 8.7 Halifax, Nova Scotia 8.4 8.8 Newport, Rhode Island 8.3 8.5 Portland, Maine 8.0 8.4 Quebec City, Quebec * 9.4 9.6 Rockland, Maine 8.3 8.0 Saint John, New Brunswick (Bay of Fundy) 7.8 8.0 St. John's, Newfoundland 7.6 7.7 Sydney, Nova Scotia 8.0 8.3 Total 8.3 8.5
  14. 14. N ew E. C .A. R egulations
  15. 15. E. C .A. <ul><li>E.C.A. regulations affect ships sailing within 200 nautical miles off the coast of the US and Canada </li></ul><ul><li>2012 - E.C.A. in effect : Requires ships to burn low sulfur fuel oil or LSFO at a maximum of 1.0% sulfur </li></ul><ul><li>Represents increase in fuel costs of 10% over current costs </li></ul><ul><li>Compliant fuel not available in many ports </li></ul><ul><li>2015 – E.C.A. changes : Sulfur limits increase, requiring ships to burn fuel (Marine Gas Oil – MGO ) at a maximum of 0.1% sulfur </li></ul><ul><li>New 2015 limits represent 50% increase in fuel costs </li></ul>
  16. 16. C ruise L ines a re A ddressing E. C .A. <ul><li>Invest in exhaust gas scrubbers: Burn less expensive fuel and clean the exhaust to the equivalent of higher cost fuels set out in the regulations </li></ul><ul><li>Technology is currently expensive and not commercially ready for ships </li></ul><ul><li>Modify deployment </li></ul><ul><ul><li>Minimize number of ships in E.C.A. areas </li></ul></ul><ul><ul><li>Reduce time spent in E.C.A. regions </li></ul></ul>
  17. 17. M erci !...T hank Y ou !