Summary
Royal Caribbean Cruises Ltd. (RCL) has announced a significant expansion of its fleet with the order of a new, larger vessel named the 'Ultra Voyager'. This new ship, scheduled for delivery in May 2006, will be approximately 15% larger than the existing highly successful Voyager-class ships, capable of carrying 3,600 guests. Management highlights that this larger capacity is expected to result in lower per-berth capital and operating costs, providing enhanced economies of scale. The company also secured an option for a second Ultra Voyager for a 2007 delivery, indicating a strategic move to leverage its proven ship designs for future growth. In addition to the new order, RCL disclosed that it will not be exercising options for two Radiance-class vessels. This strategic decision, coupled with the Ultra Voyager order, suggests a focused approach on maximizing the efficiency and profitability of its largest ship classes. The new order will contribute to an estimated 3% capacity growth in both 2006 and 2007, signaling a moderate but deliberate expansion plan for the company.
Key Highlights
- 1RCL ordered a new, larger ship, the 'Ultra Voyager', for delivery in May 2006.
- 2The Ultra Voyager will be approximately 15% larger than existing Voyager-class ships.
- 3The new ship will have a capacity of 3,600 guests and 1,400 crew.
- 4Management expects the Ultra Voyager to offer lower per-berth capital and operating costs, improving economies of scale.
- 5The company has an option for a second Ultra Voyager with a 2007 delivery.
- 6RCL will not exercise options for a fifth and sixth Radiance-class vessel.
- 7The Ultra Voyager order is expected to contribute to a 3% capacity growth in 2006 and 2007.