Royal Caribbean Expands

 

Monday, December 29th, 2008

Source: http://www.flickr.com/photos/tomsteiner/225919641/

Cruise ship stalwart Royal Caribbean is seeking to expand its operations in Australia and the South Pacific.  The company is already a major name in European and American markets.  It operates three brands: Royal Caribbean International, Celebrity Cruises and Azamara Cruises.  

The cruise industry has been growing rapidly in Australia.  Royal Caribbean decided that 2008 was the best time to establish an office in the economic capital of Sydney.  Not only will the new foothold help with marketing and brand management in Australia, it will allow Royal Caribbean to explore new routes in Oceania and the South Pacific.  The South Pacific has been growing in popularity as a cruise ship destination.  There are literally thousands of islands, many offering the beach and shopping experiences so popular with cruise ship patrons in other parts of the world.  

Developing these new destinations will make Royal Caribbean the first truly global brand in the cruise industry.  

Royal Caribbean is already in the South Pacific Market.  One of its largest ships, Rhapsody of the Sea, makes 17 trips per year between Australia, New Zealand and Hawaii.  

Also, new cruise ship terminals have opened recently in Hong Kong and Shanghai.  These and other ports of call on the Chinese coast have become attractive and popular destinations for cruisers.  A few years ago, only specialty cruises stopped in China.  Most companies preferred to focus on the Caribbean, the South Pacific and the Mediterranean.  Now Hong Kong, Shanghai, and secondary cities like Xiamen and Shenzhen are popular because of the shopping and sightseeing opportunities they offer.  Having a base in Australia will put Royal Caribbean closer to these new ports of call.  

Of course, the choice to expand their operations has been made during what will be the slowest high season in a long time.  Royal Caribbean is obviously  banking on a change in economic conditions.  But if things get better, they will be in a dominant position in Australia.       

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