1. theroyal
caribbean(RCL)
SeanAccorsi
AliLin
AnastasiaPaluch
PeterSchepel
shehaniwimalawansa

2. RCLMap

3. CompanyProfile
American/Norwegiancruiseline
Inthehospitalityandthetourismindustry
Foundedin1968inNorway
PubliclytradedontheNYSEasof1993
Fivemainbrands:RoyalCaribbeanInternational,
CelebrityCruises,PullmanturCruises,Azamara
ClubCruises,andCDFCroisièresdeFrance

4. IndustryOverview
TravelAgentandCruiseLine
Surveyhavearatheroptimisticview
aboutthecruiseindustryinfuture
years
85.3%ofagentssaycruisesalesin2013willbeasgoodorbetterthan
2012
38%believe2013willbebetter
18.6%say2013willbetheirbestyearever.

5. RoyalCaribbean,
Corp;(NYSE:RCL)
!
2012A2013E2014E
EPS$1.71$2.35$3.14
P/ERatio20.3320.1214.21
S&PEPS90.3788.3791.67
S&PP/ERatio17.0319.1521.78
RelativePE130%97%65%

6. NYSE:RCL
continued...
MarketData
52WeekHigh:$44.09
52WeekLow:$31.35
MarketCap.(MM):$9.53B
SharesOut.(MM):219.94M
Avg.DailyVol.:1,884,880

7. NYSE:RCL
continued...
PricePerformance-ComparisontoS&P500

8. SWOTAnalysis:
strengths
Oneofthemostwellknownbrands
Secondlargestcruisecompanyintheworld
Fivelinesthatvarywithlocation,price,and
luxury
455portsin95countriesandallsevencontinents
Servicesappealtovariouspeopleofalleconomic
sectors

9. SWOTAnalysis:
weaknesses
Reliesonshipyardstoconstruct,repairand
revitalizevessels
Anyfinancialdifficulties,liquidations,orclosures
oftheseshipyardscanaffectthetimelydelivery
orcostsoftheships
Highlydependentontravelagencies,and
political/economicconditionsforbookings

10. SWOTAnalysis:
opportunities
Expandingintoothercountrieswithpotentialfor
growthandprofitability
ChinaandAustralia
ExpandingthePullmanturlinefurtherintoLatin
AmericadespitethetoughSpanisheconomy
Investinginfivenewshipstoenterthemarketby
2016

11. SWOTAnalysis:
threats
Significantthreatisdependencyonfuel
Safetyconcernsareofparamountimportance.
Strongcompetitioninthetraveleconomy;
CarnivalCruiseLineisthecompany’slargest
cruiseshipcompetitor.

12. Porter’sFiveForces
Stronginfluenceoninternalandexternal
operations
Recentriseinoilprice;loweramountof
berths
Jointventurecruiseline,TUICruises
SupplierPower

13. Porter’sFiveForces
Difficultthreatofnewentry
RCLisinauniqueposition
Stronganddurablebarrierto
entry
ThreatofNewEntrants

14. Porter’sFiveForces
Buyerleverageisextremelyhigh
Fiercecompetition
Volatilepricewars
Buyersareapowerfulforce
BuyerPower

15. Porter’sFiveForces
Highdegreeofrivalrywithawideclienteleoftravelers
Threesectorsofrivals:
(1)Directcompetitionwithvariouscruiselines;CarnivalCorporation
&plc(AidaCruises,CarnivalCruiseLine,Ibercruceros,P&OCruises
andPrincessCruises),DisneyCruiseLine,MSCCruises,Norwegian
CruiseLine,andOceaniaCruises
(2)Indirectcompetitionwithalargermarketinthetravelindustry;
variousairlines,land-basedresorthotels,andsightseeingdestinations
(3)Competitionwithintheorganization
DegreesofRivalry

16. Porter’sFiveForces
Highthreatofsubstitution
Varyingcruiselinesareequallycomparable
Threatofsubstitutiononcanalsobefoundinthe
generaltravelmarketfromairlineindustries,hotel/
resortindustries,totravelandsightseeing
industries
RCLhasaweakpower
ThreatofSubstitutes

17. Recommendation:
BUY
Price:$47.65
BestknownbrandintheCruiseLine
industry
Largeexpansionforpotentialnewgrowth
andprofitability
Industryestimatesfor2014areontherise
Theyhaveacurrentdividendof2.30%