About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises (collectively, the company’s ‘Global Brands’). The company also owns a 50% joint venture interest in TUI Cruises GmbH (‘TUIC’), which operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, the company’s ‘Partner Brands’). Together, the company’s Global Brands and the company’s Partner Brands have a combined fleet of ships in the cruise vacation industry. The company’s ships offer a selection of worldwide itineraries that call on more than 1,000 destinations on all seven continents. Global Brands The company’s Global Brands include Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. The company’s Global Brands possess the versatility to enter multiple market segments within the vacation industry. Although each of the company’s Global Brands has its own marketing style, as well as ships and crews of various sizes, the nature of the products sold and services delivered by the company’s Global Brands share a common base (i.e., the sale and provision of cruise vacations). The company’s Global Brands have historically sourced passengers from similar markets around the world and operated in similar economic environments with a significant degree of commercial overlap. Royal Caribbean International Royal Caribbean International is the world's largest cruise brand. The brand competes in both the contemporary family market and premium segments of the cruise vacation industry appealing to both families with children of all ages and older and younger couples. Royal Caribbean International offers cruises and land destinations that generally feature a casual ambiance, as well as a variety of activities and entertainment venues. Royal Caribbean International’s strategy is to attract an array of vacationing guests by offering a wide variety of itineraries to destinations worldwide, including Alaska, Asia, Australia, the Bahamas, Bermuda, Canada, the Caribbean, Europe, the Panama Canal and New Zealand, with cruise lengths generally ranging from two to 18 nights. Royal Caribbean International offers multiple innovative options for onboard dining, entertainment and other onboard activities. Because of the brand’s ability to deliver extensive and innovative product offerings at an excellent value to consumers, Royal Caribbean International is well positioned to attract new consumers to cruising and to continue to bring loyal repeat guests back for their next vacation. Royal Caribbean International operates ships. Additionally, Royal Caribbean International has ships on order. The ships on order include Icon-class ships, Star of the Seas and the third Icon-class ship, which are expected to be delivered in 2025 and 2026, respectively, and the company’s sixth Oasis-class ship, Utopia of the Seas, which is expected to be delivered in 2024. Celebrity Cruises Celebrity Cruises is positioned within the premium segment of the cruise vacation industry. Celebrity Cruises’ strategy is to target consumers by delivering a destination-rich experience on upscale ships that offer, among other things, excellent food and drink, elevated hospitality, world-class spaces and accommodations, and live entertainment. Celebrity Cruises offers a range of itineraries to destinations, including Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, New Zealand, the Panama Canal and South America, with cruise lengths ranging from three to 18 nights. Celebrity Cruises operates ships. Additionally, Celebrity Cruises has Edge-class ship on order, Celebrity Xcel, which is expected to be delivered in 2025. Silversea Cruises Silversea Cruises is an ultra-luxury and expedition cruise line with smaller ships, high standards of accommodations, fine dining, personalized service and exotic itineraries. Silversea Cruises delivers distinctive destination experiences by visiting unique and remote destinations, including the Galapagos Islands, Antarctica and the Arctic with cruise itineraries generally ranging from five to 24 nights. Silversea Cruises operates ships. Silversea Cruises has on order Evolution-class ship, Silver Ray, which is expected to be delivered in 2024. Partner Brands The company’s Global Brands are complemented by its interest in TUIC, the company’s 50%-owned joint venture that operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, the company’s ‘Partner Brands’). TUIC is a joint venture owned 50% by the company and 50% by TUI AG, a German tourism company, which is designed to serve the contemporary and premium segments of the German cruise market by offering products tailored for German guests. All onboard activities, services, shore excursions and menu offerings are designed to suit the preferences of this target market. TUI Cruises operates ships. Additionally, TUI Cruises has ships on order, some are expected to be delivered in 2024 and a ship is expected to be delivered in 2026. Hapag-Lloyd Cruises operates luxury liners and smaller expedition ships. Hapag-Lloyd Cruises did not have any ships on order as of December 31, 2023. Competition The company’s principal cruise competitors are Carnival Corporation & plc, which owns, among other brands, Aida Cruises, Carnival Cruise Line, Costa Cruises, Cunard Line, Holland America Line, P&O Cruises, Princess Cruises and Seabourn; Disney Cruise Line; MSC Cruises; Norwegian Cruise Line Holdings Ltd, which owns Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises; and Virgin Voyages. Operating Strategies The company’s operating strategies are to deliver the best vacation experiences responsibly; deliver a lifetime of vacations to the company’s customers; protect the health, safety and security of the company’s guests and employees; deepen the company’s customer relationships in order to increase frequency and repeat booking rates; focus on cost efficiency, adequate cash and liquidity, and strong balance sheet, with the overall goals of maximizing the company’s return on invested capital and shareholder value; protect the environment and communities in which the company’s vessels and organization operate, with a focus on decarbonization; invest in the company’s workforce in order to better serve the company’s global guest base and grow the company’s business, and promote gender equality, diversity and inclusion; increase the awareness and market penetration of the company’s brands globally; strategically invest in the company’s fleet through the upgrade and maintenance of existing ships and the transfer of key innovations, while prudently expanding the company’s fleet with new state-of-the-art cruise ships; capitalize on the portability and flexibility of the company’s ships by deploying them into those markets and itineraries that provide opportunities to optimize returns, while continuing the company’s focus on existing key markets; provide extraordinary destination experiences and state-of-the-art port facilities to the company’s guests; continue to deploy technology capabilities and advanced uses of data and analytics to deliver innovative customer experiences, as well as to create operational efficiencies; and maintain strong relationships with travel advisors, while enhancing the company’s consumer outreach and e-commerce programs. Guest Services The company handles virtually all travel aspects related to guest reservations and transportation, including facilitating guest pre- and post-hotel stay arrangements and air transportation. Royal Caribbean International, Celebrity Cruises and Silversea Cruises offer recognition and status upgrades to their guests through their loyalty programs, Crown & Anchor Society, Captain’s Club, and Venetian Society, respectively, to encourage repeat business. Crown & Anchor Society has approximately 19.2 million members worldwide. Captain’s Club and Venetian Society have approximately 6.1 million members combined worldwide. Members are awarded points or credits in proportion to the number of cruise days and stateroom category. The loyalty programs provide tiers of membership benefits which entitle guests to upgraded experiences and recognition relative to the status achieved once guests have accumulated the number of cruise points or credits specified for each tier. In addition, upon achieving a certain level of cruise points or credits, the Crown & Anchor Society and Captain’s Club members benefit from reciprocal membership benefits between the loyalty programs. Examples of the benefits available under the company’s loyalty programs include, but are not limited to, priority waitlist for shore excursions, complimentary laundry service, complimentary internet, digital discount vouchers, upgraded bathroom amenities, reserved seating on the pool deck, ship tours and, in the case of the company’s most loyal guests who have achieved the highest levels of cruise points or credits, complimentary cruises. The company regularly works to enhance each of its loyalty programs by adding new features and amenities in order to reward the company’s repeat guests. Operations Cruise Ships and Itineraries As of December 31, 2023, the company’s Global Brands and Partner Brands collectively operated ships with a selection of worldwide itineraries that call on more than 1,000 destinations in over 120 countries. As of December 31, 2023, the company’s Global Brands and the company’s Partner Brands had ships on order. The expected delivery dates for all of the company’s ships on order are subject to change due to events such as shipyard construction delays or agreed upon scope changes which impact the delivery timelines. In addition, in February 2024, the company entered into an agreement with Chantiers de l’Atlantique to build an additional Oasis class ship for delivery in 2028, which is contingent upon completion of certain conditions precedent, including financing. Seasonality The company’s revenues have historically been seasonal based on the demand for cruises. Demand is typically strongest for cruises during the Northern Hemisphere’s summer months and holidays. In order to mitigate the impact of the winter weather in the Northern Hemisphere and to capitalize on the summer season in the Southern Hemisphere, the company’s brands have focused on deployment in the Caribbean, Asia and Australia during that period. Trademarks The company owns a number of registered trademarks related to the Royal Caribbean International, Celebrity Cruises and Silversea Cruises cruise brands. The registered trademarks include the name ‘Royal Caribbean International’ and its crown and anchor logo, the name ‘Celebrity Cruises’ and its ‘X’ logo, the name ‘Silversea Cruises’ and its logo, and the names of various cruise ships, ship venues and other marketing programs. Regulation The company’s ships are required to comply with international safety standards defined in the International Convention for Safety of Life at Sea (‘SOLAS’), which, among other things, establish requirements for ship design, structural features, materials, construction, lifesaving equipment and safe management and operation of ships for guest and crew safety. The SOLAS standards are revised from time to time and incorporated in the company’s ship design and operation, as applicable. All of the company’s operations and ships are regularly audited by various national authorities, and the company is required to maintain the relevant certificates of compliance with the ISM Code (International Safety Management Code). Additionally, the company is required to meet, and the company fully complies with, the provisions outlined in the Standards of Training, Certification, and Watchkeeping for Seafarers (STCW). The company’s ships are subject to various security requirements, including the International Ship and Port Facility Security Code (‘ISPS Code’), which is part of SOLAS, and the U.S. Maritime Transportation Security Act of 2002 (‘MTSA’), which applies to ships that operate in U.S. ports. In order to satisfy these security requirements, the company implements security measures, conduct vessel security assessments, and develop security plans. The security plans for all of the company’s ships have been submitted to and approved by the Recognized Security Organization on behalf of the ships' flag state and are in compliance with the ISPS Code and the MTSA. The Cruise Vessel Security and Safety Act of 2010, which applies to passenger vessels which embark or include port stops within the United States, requires the implementation of certain safety design features as well as the establishment of practices for the reporting of and dealing with allegations of crime. The cruise industry supported this legislation and the company believe that the company’s internal standards are generally as strict or stricter than the law requires. The company’s ships are subject to the International Maritime Organization’s (‘‘IMO’’) regulations under the International Convention for the Prevention of Pollution from Ships (the ‘‘MARPOL Regulations’’) and the International Convention for the Control and Management of Ships Ballast Water and Sediments (Ballast Water Management Convention), in addition to other regional and national regulations such as EU Directives and the U.S. Vessel General Permit, which includes requirements designed to minimize pollution by oil, sewage, garbage, air emissions and the transfer of non-native/non-indigenous species. The company have obtained the relevant international compliance certificates relating to oil, sewage, air pollution prevention and ballast water for all of the company’s ships. The company is required to obtain certificates from the United States Federal Maritime Commission relating to the company’s ability to satisfy liability in cases of non-performance of obligations to guests, as well as casualty and personal injury. The company is also required by the United Kingdom, Norway, Finland, Iceland and the Baltics to establish the company’s financial responsibility for any liability resulting from the non-performance of the company’s obligations to guests from these jurisdictions. In the United Kingdom the company is required by the Association of British Travel Agents to provide performance bonds in varying amounts during the course of the year, up to £183 million during the peak season. Additionally, the company is required by the Civil Aviation Authority to provide performance bonds totaling £25 million. The company maintains with the Norwegian Travel Guarantee Fund performance bonds in varying amounts during the course of the year to cover the company’s financial responsibility in Norway, Finland, Iceland and the Baltics. History Royal Caribbean Cruises Ltd. was founded in 1968. The company was incorporated in 1985 in the Republic of Liberia under the Business Corporation Act of Liberia.