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oyal

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(RC

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RC

L M

ap

Com

pan

y P

rofil

e

Am

erican/Norw

egian cruise line

In the hospitality and the tourism industry

Founded in 1968 in Norw

ay

Publicly traded on the N

YSE

as of 1993

Five main brands: R

oyal Caribbean International,

Celebrity C

ruises, Pullmantur C

ruises, Azam

ara C

lub Cruises, and C

DF C

roisières de France

Indu

str

y O

vervie

w

Travel Agent and C

ruise Line

Survey have a rather optimistic view

about the cruise industry in future years85.3%

of agents say cruise sales in 2013 will be as good or better than

2012

38% believe 2013 w

ill be better

18.6% say 2013 w

ill be their best year ever.

Royal C

arib

bean

, C

orp; (N

YS

E: R

CL)

!

2012 A2013 E

2014 E

EP

S$1.71

$2.35$3.14

P/E

Ratio

20.3320.12

14.21

S&

P E

PS

90.3788.37

91.67

S&

P P

/E R

atio17.03

19.1521.78

Relative P

E130%

97%65%

NYS

E: R

CL

con

tinu

ed...

Market D

ata

52 Week H

igh:$44.09

52 Week L

ow:

$31.35M

arket Cap. (M

M):

$9.53BShares O

ut. (MM

):219.94M

Avg. D

aily Vol.:

1,884,880

NYS

E: R

CL

con

tinu

ed...

Price P

erformance - C

omparison to S

&P

500

SW

OT A

nalysis

: str

en

gth

s

One of the m

ost well know

n brands

Second largest cruise company in the w

orld

Five lines that vary w

ith location, price, and luxury

455 ports in 95 countries and all seven continents

Services appeal to various people of all economic

sectors

SW

OT A

nalysis

: w

eakn

esses

Relies on shipyards to construct, repair and

revitalize vessels

Any financial difficulties, liquidations, or closures

of these shipyards can affect the timely delivery

or costs of the ships

Highly dependent on travel agencies, and

political/economic conditions for bookings

SW

OT A

nalysis

: opportu

nitie

s

Expanding into other countries w

ith potential for grow

th and profitability

China and A

ustralia

Expanding the P

ullmantur line further into L

atin A

merica despite the tough Spanish econom

y

Investing in five new ships to enter the m

arket by 2016

SW

OT A

nalysis

: th

reats

Significant threat is dependency on fuel

Safety concerns are of paramount im

portance.

Strong competition in the travel econom

y;

Carnival C

ruise Line is the com

pany’s largest cruise ship com

petitor.

Porte

r’s

Fiv

e F

orces

Strong influence on internal and external operations

Recent rise in oil price; low

er amount of

berths

Joint venture cruise line, TU

I Cruises

Supplier Power

Porte

r’s

Fiv

e F

orces

Difficult threat of new

entry

RC

L is in a unique position

Strong and durable barrier to entry

Threat of N

ew E

ntrants

Porte

r’s

Fiv

e F

orces

Buyer leverage is extrem

ely high

Fierce competition

Volatile price w

ars

Buyers are a pow

erful force

Buyer Pow

er

Porte

r’s

Fiv

e F

orces

High degree of rivalry w

ith a wide clientele of travelers

Three sectors of rivals:

(1) Direct com

petition with various cruise lines; C

arnival Corporation

& plc (A

ida Cruises, C

arnival Cruise L

ine, Ibercruceros, P&O

Cruises

and Princess Cruises), D

isney Cruise L

ine, MSC

Cruises, N

orwegian

Cruise L

ine, and Oceania C

ruises

(2) Indirect competition w

ith a larger market in the travel industry;

various airlines, land-based resort hotels, and sightseeing destinations

(3) Com

petition within the organization

Degrees of R

ivalry

Porte

r’s

Fiv

e F

orces

High threat of substitution

Varying cruise lines are equally com

parable

Threat of substitution on can also be found in the

general travel market from

airline industries, hotel/resort industries, to travel and sightseeing industries

RC

L has a w

eak power

Threat of Substitutes

Recom

men

datio

n:

BU

YPrice: $47.65

Best know

n brand in the Cruise L

ine industry

Large expansion for potential new

growth

and profitability

Industry estimates for 2014 are on the rise

They have a current dividend of 2.30%