celebrity-cruises by cuiliqing

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									THE MARKET                                               HISTORY
From 2001 through 2003, the future didn’t look           John Chandris of the Greek Chandris
promising for the cruise industry. Sales were            shipping family founded Celebrity
down and the reluctance to travel was up because         Cruises in 1989 as a new, upscale
of 9/11, terror threats, the sluggish economy, the       cruise line focused on fine dining
SARS epidemic, and the Iraq War.                         and excellent service — a premium
    Ironically, the very reasons that made con-          experience at a premium price.
sumers less likely to hit the seas made them need            Sensing its potential, Royal
the stress relief of a cruise even more.                 Caribbean Cruises Ltd., the parent
    But travel aficionados eventually returned to        company of the Royal Caribbean
cruising in force. In fact, Cruise Lines International   International® brand, acquired
Association estimates that, in 2005, more than           Celebrity Cruises in 1997. Richard
11 million people will take a cruise. This unprece-      Fain, the chairman and CEO of
dented number could be attributed to baby boomers        RCCL, has since helped the com-
looking for new ways to get more out of their vaca-      pany’s revenues grow from $400 mil-
tions and their lives, but it probably has more to do    lion to over $4.5 billion.
with the growing trend of cruise vacations com-              Today, Celebrity Cruises proudly
peting directly against land-based vacations.            continues to offer unrivaled ameni-
    But nowhere is competition as fierce as within       ties, outstanding accommodations,
the cruise industry itself. The landscape is clut-       and impeccable service aboard
tered with cruise lines, ranging from value-priced       each of its ships.
mainstream products to luxury brands, and every-
thing in between.                                        THE PRODUCT
    Celebrity Cruises has carved out its own dis-        The Celebrity fleet today boasts nine
tinctive niche, offering more tastes of luxury in        ships, including the original Zenith®
more creative ways than any of its competitors.          and the sleek, larger Century-class
                                                         ships: CenturySM, GalaxySM, and
                                                         Mercury®. The innovative Millennium class was           specialty restaurants; full-service spas; and museum-
                                                         introduced during 2000–2002, and features Millen-       quality contemporary art collections featuring works
                                                         niumSM, Infinity®, Summit®, and Constellation®.         by such masters as Pablo Picasso, Jasper Johns,
                                                         The latest addition, Celebrity XpeditionSM, was         Andy Warhol, Roy Lichtenstein, and Peter Max.
                                                         launched in 2004; its smaller size and fewer select         The Celebrity fleet sails to over 125 destina-
                                                         amenities evokes the feeling of a more intimate and     tions, including popular spots in the Caribbean,
                                                         casual sailing experience.                              Alaska, the Bahamas, Bermuda, Europe, Hawaii,
                                                             Designed to be, literally, floating resorts, each   Mexico, the California coast, the Pacific North-
                                                         Celebrity ship offers its own variety of amenities,     west, and Canada/New England. Other sailings
                                                         including the award-winning cuisine of Master           offer even more exotic fare in South America,
                                                         Chef Michel Roux; Cova® Café Milano, the sea-           the Transatlantic, the Panama Canal, and the
                                                         going version of the stylish coffeehouse in the         Galapagos Islands.
                                                         fashion district of Milan, Italy; Michael’s Club            But perhaps more important than ship ameni-
                                                         jazz/piano bars; Martini and Champagne Bars;            ties or destinations is the indescribable Celebrity
                                                                                                                               experience itself. With Celebrity’s
ACHIEVEMENTS                                                                                                                   renowned personal service and spe-
Setting Celebrity Cruises apart from the compe-                                                                                cial attention to detail, each guest is
tition is its host of accolades. For the third con-                                                                            “treated famously” — made to feel,
secutive year, the discriminating readers of Condé                                                                             consistent with the brand name, like
Nast Traveler named seven Celebrity ships among                                                                                a “celebrity.”
“The Best in the World” based on five categories,                                                                                   In fact, the essence of a Celebrity
including itineraries, crew/service, staterooms/                                                                               cruise might best be summed up in its
design, food/dining, and activities/excursions.                                                                                tagline: “a true departure®”. A Celeb-
     Travel + Leisure also weighed in, rating Celeb-                                                                           rity cruise offers guests the ability to
rity Cruises number five out of the top-10 large-                                                                              relax, rejuvenate, and make lasting
ship cruise lines in 2004. And in 2002, Porthole                                                                               connections on one amazing vacation.
Cruise Magazine ranked Celebrity’s Olympic                                                                                     It’s a promise to treat each guest to a
restaurant on board MillenniumSM first out of the                                                                              once-in-a-lifetime experience: a true
top-10 “Most Scrumptious Restaurants at Sea.”                                                                                  journey out of the ordinary.



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RECENT DEVELOPMENTS                                                                                                                 “Celebrity difference”: the way
Celebrity Cruises is considered                                                                                                     each guest is “treated famously”
a “challenger” brand: not the                                                                                                       on board. Celebrity’s advertis-
largest, not the smallest, but                                                                                                      ing campaign in 2002, “Faces,”
one that faces competition from                                                                                                     did just that by showing that the
both. So, to distinguish itself                                                                                                     Celebrity staff is always one
and stay relevant, the cruise line                                                                                                  step ahead, ensuring that each
continually introduces innova-                                                                                                      guest’s vacation will be perfect.
tions and redefines the meaning                                                                                                     In television and print, guests
of “a true departure.”                                                                                                              were shown wearing T-shirts
     To that end, Celebrity Cruises                                                                                                 labeling them as the true
introduced its ConciergeClass®                                                                                                      celebrities, which intentionally
staterooms in 2003. This                                                                                                            connected the brand’s name
enhanced level of service treats                                                                                                    with the promised consumer
guests to amenities such as pri-                                                                                                    benefit: celebrity treatment.
ority embarkation and debarka-                                                                                                          “Faces” evolved into the
tion, and creature comforts in                                                                                                      “Treated Famously” campaign,
staterooms, including welcome                                                                                                       which focused on the difficulty
champagne and fresh fruits and                                                                                                      cruisers have assimilating into
flowers, massaging showerheads,                                                                                                     normal life after cruising with
fluffy robes, and even a menu                                                                                                       Celebrity. The campaign invited
of pillow options.                                        include cruise vacations in the enchanting             the viewer to appreciate the staff’s attentiveness,
     Consistent with the idea of extra pampering,         Galapagos Islands and land-based adventures at         remarkable knowledge of guests’ needs, and how
Celebrity introduced Acupuncture at SeaSM and the         Easter Island; the Matterhorn in Zermatt,              that personal attention would be missed.
Celebrity Discoveries Enrichment Series™ that             Switzerland; Houston Space Center; the Great
same year. Celebrity is the first and only cruise         Pyramids of Egypt; and diving certification with       BRAND VALUES
line to offer an acupuncture program, with                National Geographic in the Virgin Islands.             Celebrity Cruises is in the business of providing
licensed acupuncturists who help guests dissolve              Later in 2004, The Bar at the Edge of the          memorable vacations, but its vision is to do much
accumulated stress and restore balance and energy.        EarthSM was unveiled aboard Constellation® and         more than that. Everyone at Celebrity Cruises is
     Meanwhile, the Celebrity Discoveries Enrich-         Summit®. Created exclusively for Celebrity             committed to fulfilling dreams with remarkable
ment Series appeals to guests’ unique interests and       Cruises by Cirque du Soleil ®, the lounge is a des-    vacations, building memorable relationships with
tastes. Renowned speakers such as Walter Cronkite,        tination in itself, with surreal music, otherworldly   customers and employees, and providing superior
Dick Morris, and Dr. Ruth Westheimer have shared          characters, and a dreamlike environment designed       returns for shareholders. Caring is the core value,
their life stories, and experts on board cover topics     to inspire and engage guests.                          deeply rooted in everything that Celebrity Cruises
ranging from world finance and wines to astronomy                                                                does. The cruise line has adopted the following as
and politics. The program also expands guests’            PROMOTION                                              its guiding principles: to compete without com-
palates as much as their minds, with expert somme-        Less than 10 years ago, Celebrity Cruises was a        promise, to believe that cost constraints don’t
liers sharing their knowledge as guests sniff, swirl,     little-known brand. Since then, the cruise line has    mean thought constraints, and to focus on being
and taste the finest wines from Celebrity’s collection.   worked closely with its advertising and marketing      Celebrity in everything they do.
     In 2004, Celebrity launched three ambitious          agencies to build awareness. Celebrity Cruises
new programs, including Savor the CaribbeanSM, a                                                  ,
                                                          relies heavily on a combination of TV newspaper,
one-of-a-kind culinary experience at sea.                 and Web-based advertising, as well as direct mail,         THINGS YOU DIDN’T KNOW ABOUT
Developed in conjunction with Bon Appétit maga-           public relations, and collateral.                          CELEBRITY CRUISES
zine, these seven-night sailings include cooking               Historically, cruise lines have done a poor job
demonstrations by acclaimed chefs, lectures by            of differentiating themselves. Most brands fea-         r The inspiration for Celebrity Cruises’ “X”
noted culinary experts, and behind-the-scenes vis-        ture clichéd images of sandy beaches, palm trees,         logo comes from the Greek alphabet. “X” is
its to the best restaurants throughout the Caribbean.     and smiling couples. With the consumer percep-            the symbol for the Greek letter “Chi,” which
     Next, the cruise line created exotic travel          tion of sameness, cruise lines were forced to             is used in the Greek spelling of Chandris,
experiences called Celebrity XpeditionsSM, invit-         compete on price.                                         the name of the family that founded the
ing guests to be pampered in some of the most                  To break away from the competitive clutter,          cruise line.
unexpected places on earth. Celebrity Xpeditions          Celebrity’s advertising communicates the
                                                                                                                  r Along with its sister line, Royal Caribbean
                                                                                                                    International®, Celebrity Cruises has donated
                                                                                                                    more than $6 million to environmental organ-
                                                                                                                    izations that help protect coral reefs and
                                                                                                                    endangered aquatic life around the world.
                                                                                                                  r In 2002, Celebrity Cruises was the only
                                                                                                                    cruise line to receive the prestigious William
                                                                                                                    M. Benkert Award for Environmental
                                                                                                                    Excellence given by the U.S. Coast Guard.
                                                                                                                  r Celebrity’s shipboard crew members come
                                                                                                                    from 50 nations around the globe.
                                                                                                                  r The first two varietals from The Celebrity
                                                                                                                    Cruises Cellarmaster Selection™, the 2001
                                                                                                                    Sonoma County Cabernet Sauvignon and
                                                                                                                    the 2002 Russian River Valley Chardonnay,
                                                                                                                    won Gold and Silver, respectively, at the
                                                                                                                    recent American Wine Society Commercial
                                                                                                                    Wine Competition.




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