RCC is the second largest global operator of cruise ships and holds a market share of about 35% in the oligopolistic North American cruise market. The company may face a considerable decline in its earnings due to increasing fuel prices.
Dominant business position Strong brand recognition Consistent increase in revenues
Increasing expenses Low efficiency Inadequate presence in high growth European market
Favorable demographic trends Marketing alliances Improved cruise passenger traffic
Weather conditions Severe competition High fuel prices
Dominant business position RCC is the second largest global operator of cruise ships measured by capacity and market capitalization. The company controls 35% of North American capacity. It has 29 cruise ships with about 60,000 berths. The company has a market capitalization of $9.6 billion. The strong business position provides the company with a competitive edge over its peers. Strong brand recognition The company enjoys strong brand recognition in the industry. Royal Caribbean International was named Best Overall Cruise Line (by Travel Weekly), Best Large Ship Design, Best Caribbean Itinerary, and Best Family Cruise in 2003. In the 2003 Condé Nast Readers’ Choice Awards, Celebrity Cruises was selected as the Best Premium Brand in Industry. The company’s seven celebrity ships ranked among the top nine in Best Large Ships category of Condé Nast Traveler awards. The company owns strong brands and has cultivated a positive reputation among customers. Consistent increase in revenues
Royal Caribbean Cruises © Datamonitor Page 5
ROYAL CARIBBEAN CRUISES
The company has witnessed a continuous increase in its revenues since 2000. Its revenues increased at a compounded annual growth rate (CAGR) of 9.7% over the period 2000-2003. Furthermore, RCC is expected to increase its revenues by...