Sea Marketing and advertising.

1. CRUISING A PERFECT COMMUNICATIONS PLATFORM FOR ADVERTISERS By J.P Solero Dec 08

2. THE CRUISE INDUSTRY Between 1995 and 2005 demand for cruising worldwide more than doubled from 5.7 million to 14.4 million passengers. Over the same period the number of Europeans taking cruise holidays around the world more than trebled from 1 million in 1995, and in 2006 it reached 3.4 million Europeans. Europeans now account for 23% of cruise passengers worldwide, compared with just 19% 10 years ago. In 2007, 4.0 million passengers took a cruise. In 2007 the most popular country for cruise ports of call in Europe was Italy with 8.0 million passengers. Spanish ports, including the Canary Islands, are the second most popular welcoming 5.0 million cruise passengers. Greece with 2.5 million welcomed the third largest number of cruise visitors in Europe. During 2007 Spain received 3.547 cruise ships (14%more vs 2006 ) and 5.0 million passengers (23% more vs 2006). In Addition, 518.000 Spaniards took a cruise in 2007.

3. THE CRUISE INDUSTRY IN EUROPE Cruise companies, shipbuilding yards and cruise passengers now account for €10.6 billion of direct expenditure in Europe, €2.3 billion more than 2005, which is a 27% increase. During 2006 the global cruise industry spent an estimated €4.1 billion on cruise ship construction and maintenance in Europe. This is almost a €1 billiion more than in 2005. At the end of 2006, European shipyards were under contract to build 36 cruise ships with a combined value of €14.9 billion through to 2011. The cruise industry is responsible for 225,586 jobs across Europe – a 20% expansion compared with the 187,252 jobs connected to the industry in 2005. At the end of 2006 there were 44 cruise lines in Europe with a fleet of 118 ships, and capacity for 100,000 passenger berths. Another 47 vessels with capacity for 51,300 berths were deployed in Europe by non-European lines.

4. THE CRUISE INDUSTRY FUTURE We estimate now that soon a worldwide level of 15.9 million passengers will be reached of which 64% from the US and 29% from Europe. In 2020 cruise industry could reach 20 million passengers of which 5,9 million in Europe. European market grew 17% between 2006 and 2007. Spain represented 32% (518.000 passengers) of total European market.

5. THE COMPANIES IN THE CRUISE INDUSTRY We can estimate 500 cruise ships operating around the world but only between 350 and 400, will remain operative in 2015 due to technical requirements. There are around 80 cruise companies operating in the market. Two companies handle 65% to70% of the market basically operating in US/Latin America and Europe: - Carnival Cruises (US). - Royal Caribbean (US).

6. CARNIVAL PROFILE Carnival, through its brands, handles 50% of the European market. The company operates 84 ships across 12 brands. Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of cruise brands in North America, Europe and Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn Cruise Line, AIDA Cruises, Costa Cruises,Iberocruceros, Cunard Line, Ocean Village, Swan Hellenic, P&O Cruises and P&O Cruises Australia. Another 16 ships are on order to enter service by 2009.

7. ROYAL CARIBBEAN PROFILE Royal Caribbean Cruises Ltd., incorporated on July 23, 1985, is a cruise company with 35 cruise ships and 71,200 berths. The Company operates five brands: Royal Caribbean International, Celebrity Cruises, Pullmantur Cruises, Azamara Cruises, and CDF Croisieres de France. The ships operate on a selection of worldwide itineraries that call on approximately 380 destinations. In Europe the Royal Group ( RC + Celebrity) has 15% of the offer. In Spain with the purchase of Pullmantur in 2006 they will handle 50% of the market and 200.000 passengers.

8. THE EUROPEAN CRUISE MARKETShare of market

9. CRUISE DESTINATION PER COUNTRY

10. CRUISE LENGTHS IN DAYS THE AVERAGE IS 7 DAYS

11. CRITERIA FOR MAKING CRUISE DECISSIONS Note: data used is based on a 10 point scale where “10” is “most influenced” and “1” did not influenced at all.

12. CRUISE MARKET IN SPAIN The Spanish market increased by nearly one third in 2007 to reach 518,000 passengers, an increase of 127,000 passengers on 2006, the highest increase of the European markets with the exception of the UK. Nearly three quarters of Spanish cruisers (74%) took to the Mediterranean and the Atlantic Islands while 18% of passengers headed for Northern Europe. The market leader is Pullmantur, acquired by Royal Caribbean Cruises in 2006. The top three brands Pullmantur, Costa and Iberocruceros (which is a part of Costa s.p.a.) accounted for 76% of the market in 2007. Following the acquisition by Royal Caribbean, the Pullmantur fleet was changed. In 2007, Blue Dream and Blue Moon were transferred to Azamara Cruises, while MS Oceania II (for 2007) and Celebrity’s MS Zenith joined Pullmantur. In 2008, Empress of the Seas and Sovereign of the Seas from Royal Caribbean International will join the Pullmantur fleet as will MS Ocean Dream, but the Pacific and Holiday Dream will leave the fleet. Iberocruceros, a new brand of Costa Crociere, was created in September 2007, operating exclusively in the Spanish market, has 2 ships, the Grand Mistral and the Grand Voyager but a third ship, the Grand Celebration, will begin operating in spring 2008.

13. NEW SHIPS In the next four years 35 new ships will be part of the market with an average of passenger per ship of 2,800 reaching the 5,400 in some cases as: - Allure of the seas - Oasis of the seas

14. THE CRUISE INDUSTRY PASSENGERS PER 100 m LENGTH • 1991 Costa Clásica 590 • 1998 Grand Princess 890 • 2003 Carnival Glory 1.030 • 2006 Freedom of the Seas 1.290 • 2009 Genesis 1.500 Ships continue to improve space/capacity.

15. THE LATEST GENERATION OF SHIPS TECHNICAL INFORMATION Class and type: Oasis Class cruise ship Tonnage: 220,000 GRTLength: 1,181 ft (360 m)Beam: 154 ft (47 m)Height: 213 ft (65 m) above water lineDraft: 30 ft (9 m)Decks: 16 Passenger DecksCapacity: 5,400 passengers double occupancyOwner: Royal Caribbean InternationalOrdered: February, 2006Builder: Aker Yards, Turku, FinlandCost: USD 1.2 billion (EUR 755 million)Laid down: 2007-12-11 Maiden voyage: December 12, 2009 (planned)

16. THE CRUISE SHIPS OF TODAY

17. THE CRUISE SHIPS OF TODAY

18. THE CRUISE SHIPS OF TODAY

19. SHIP SPACE Latest ships have more than 25,000 square meters of public space. The number of passengers per cruise has gone from 450 in the small ones to more than 5,000 in latest ships with an average per cruise of 1,100 passengers.

20. MARKET SUMMARY The advertising industry has not consider seriously cruise market as a potential growth for their business mainly due to a lack of information. Latest ships are like big neighborhood spaces. In 2007, advertising investment in out-of-home media worldwide was $29 billion while on-line reached $30 billion. In Spain, outdoor was € 600 million and on-line € 400 million; being the only two media gaining market share in advertising industry. In four to five years, Europe will have 150 cruise ships and more than 7 million passengers embarking in a growing market. CRUISING CAN BE AN EXCEPTIONAL PLATFORM TO MEET ADVERTISERS EXPECTATIONS.

21. THE ADVERTISING It is responsibility of advertising experts to organize advertising / communication plans for the cruise industry. The ship has to be considered and treated as an advertising support and a plan to exploit it is needed in order to generate additional income for the cruise industry.

22. ADVERTISINGTHE KEY CONSIDERATIONS The advertising can not be intrusive during the cruise time. Advertising and promotional activities should fit into the leisure atmosphere. We will be working in the advertainment - digital communication world.

23. THE ADVERTISING Advertisers are demanding new media opportunities to reach their targets. The cruise industry, through 300, ships is reaching more than 13 million people. The conditions offered by a cruise is unique in the advertising industry. You have a captive target, in most of the cases for 3 to 7 days, ideally positioned to receive messages in a relax atmosphere. You can reach all members of the family You can interact with them and obtain valuable data. You can also make consumer segmentation trough the price of the cabins and the cost and type of the cruise destination. You can impact the target on board through different support activities. It is necessary to work on the data to introduce advertisers and media to our potential as a new advertising support. Cruise marketing has to lead the advertising/communication business and play an important role in the advertising market.

24. THE ADVERTAINMENT THE ADVERTISING OF THE FUTURE THE ADVERTAINMENT Agustín Medina “To mix or to melt advertising with the entertainment, the message of the contents of the media, is the common denominator of this way of facing up the advertising communication. The dream of every advertiser. His advertising has to be an indissoluble part of the content, without interrupting the enjoyment of the audience, but oposite side, contributin to encrease the realism of the proposal of the entertainment.”

25. The concept advertainment comes from the combination of two words in English, advertising (publicity) and entertainment. The idea of this concept is to advertise at the same time you entertain FUNDAMENTALS In general, the ADVERTAINMENT entertains, and while it entertains you, his potential client or consumer, fixes his brand, and it generates an exchange, entertainment for brand, brand for entertainment. For the attention of the users, the supplier of the entertainment has to generate interest in the participation of the users through the offer of a prize, competitions, rankings etc. The games are generated based in concepts of the product or event, to become a communication system. The power of the Advertainment The Advertainment allows introducing corporative values and attributes of the products between the attention fields of advertising favorable to a consumer segment very similar. It binds the brand with an exclusive experience in a market of clone products. It links up with the most elusive audience to the traditional media. It loyalties his audience and it fulfills into virtual communities build looking forward to his brand. Once it is locate, it can develop several bi directional strategies of communication and marketing in the web. It allows generating a user’s base, with a little engagement with the brand.

27. Sampling.

28. Meetings with passengers.

29. Mobile activities.

30. Travel incentive.

32. DIGITAL SCREEN ADVERTISING/INFORMATION PANEL ADVANTAGES - Personalization wifi, wi-way o GPRS. - Consumer interaction,Internet, bluetooth, SMS, MMS. - Impact measure trough Eye-Tech. - Antivandalic Screen Advertising + Information

33. THE ADVERTISING ON BOARD EVENTS Brands can use the ship for different purposes depending on their company / brand strategy. The use of the boat as a unique place for conventions and events will be increased trough advertising trade presentations. Thematic boat areas for cruises will be studied and developed taking in consideration not only CONSUMER PREFERENCES but ADVERTISERS opportunities.

34. EVENTS/ THEMATIC Thematic Cruises in development today

35. Events& Activities

36. Events

37. Events & Activities

38. Events Events & Activities

39. CURRENT CRUISING THEMES & EVENTS Carnival Cruise Lines "Whodunit Mystery Cruises" on eight three-day voyages from Long Beach aboard the 2052-passenger Paradise until December 2009. Soap opera cruise. Cruise Director's Bloggers Cruise from New Orleans next February. $250,000-in-prizes PokerPro Challenge no-limit Texas Hold'em poker tournaments on most voyages of most ships; newly-installed poker tables display players' commitments, table stakes, pot amount, and community cards. Celebrity Cruises Soap Opera Cruise. Stars from dramas including All My Children, As the World Turns, Days of Our Lives, General Hospital, Guiding Light, and The Bold and the Beautiful. Celebrity Century. January 22 from Miami. Cruise West Eight photographic cruises during 2009 in association with Pentax, featuring hands-on instruction and workshops. Crystal Cruises Fashion and Style. Ancient Civilizations. Emerging Artists. Photography. Chance and Fortune, with gaming pros and gambling classes and tournaments. Wine and Food Festival. Film and Theater Festival. Mind, Body, and Spirit. Golf. Ballroom Dance. Big Band. Jazz. Cabaret at Sea. Smithsonian Journeys. Creative Learning Institute. Crystal President's Cruise. "Playing by Ear," "Exploring Chords 101," and "Exploring Chords 202" subjects of new Passport to Music programs on more than a dozen Crystal Cruises through year-end. The advanced piano and organ classes are being offered in conjunction with Yamaha. Cunard Line National Symphony Orchestra performances and lectures. The Royal Astronomical Society star navigation, discussion groups, formal lectures. British theater. Polar exploration. Maritime studies. Aeronautics and space. Art-architecture-music of the Near East. Sports history. Geology and geophysics. Ecology. Politics. Literature. Medicine. Crime. Economics. Holland America Line Culinary cruises, featuring more than 70 guest chefs from all over the U. S. throughout the 2009 cruise season. Presented in new on-board Culinary Arts Centers. Hurtigruten Classical Music. Singles. Self-Discovery. Birding. 0Mount Everest. Big Bands. Red Hatters. Killer whale safaris. Arctic Snow Hotel Adventure. North Cape and Ice Hotel Experience. Opera Beneath the Polar Sky. Bridge. Watercolors and Art. Winter Digital Photography.

40. CURRENT THEMES & EVENTS Majestic America Line Civil War. Quilting. Gardens. Bluegrass Jamboree. Great Steamboat Race. Fall Foliage. Veterans Reunion. Country Music. MSC Cruises Dance and Dance Instruction. Big Band featuring 15-piece Les De Merle Big Band in February. Baseball on five departures in 2008 - 2009. Classical Music Concerts and Lectures. Food and Wine. Hobbies — including photography, well being, astrology, astronomy. Norwegian Cruise Line Health-wellness-cooking. Conservation. Oceania Cruises Culinary cruises featuring famous chefs. Computer software. iPod. Adobe Photoshop. Video editing. Peter Deilmann Cruises 13-day Baroque Music Festival honoring Georg Friderich Handel on the 250th anniversary of his death. Deutschland. May, visiting London, Scotland, Ireland, Germany, and Belgium. On-shore opportunities to see the Royal Philharmonic, the London Symphony, and L'Elisir D'Amore at the Royal Opera House. Golf. Gardening. Equestrian Riding. Hiking. Cycling. Wellness Spa. Wine. Classical Music and Jazz. Princess Cruises ScholarShip@Sea, featuring lecturers and experts in Culinary arts, Visual/creative arts, Photography, and Computer technology, plus courses or lectures on maritime history, science, politics, nutrition, geography, health and fitness. Regent Seven Seas Cruises "Circles of Interest": Photography, film, yoga, music, art-design-museums, exploration-wellness, jazz, Baltic culture, antiques, film, PBS personalities, chocolate, food and wine, fashion, Australian food and wine, art-architecture, literature-architecture. Royal Caribbean Cruises Nickelodian Family Cruises. Two 2009 seven-day trips, one from Los Angeles, one from Port Canaveral. Will offer families opportunities for quality time. Nickelodeon is a kids' entertainment channel that reaches about 230 million homes across the world. On-board treats on the June and July cruises: interactive games, meet-and-greets by Nickelodeon stars, screenings and premieres of new TV shows, and visits with Nick characters. Seabourn Cruise Line Culinary. Shopping. Silversea Cruises Sixteen-day Los Angeles to Papeete "Enchanted Polynesia" segment of 92-day Grand Pacific Voyage, March to June 2009.

41. THE ADVERTISING ON BOARD MOBILE ACTIVITIES With the objective of combining passenger leisure and generate income we can create different alternatives through passengers phones creating, for instance, on board clubs so they can know the passengers with same hobby (cards, sailing, travel, reading, etc.) and make specific meetings with them. A list of mobile capabilities will be developed. Additionally we will create a data base for marketing purpose.

42. THE ADVERTISING ON BOARD SAMPLING Sampling is a growing practice amongst advertisers. A cruise is the perfect place to try the product at all levels. You can interact with the product in an exceptional relaxed situation. A captain’s welcome pack can be created where the passenger receives product samples like soft drinks, cosmetics, snacks, magazines, coupons, etc

43. THE ADVERTISING ON BOARD MEETINGS WITH PASSENGERS Advertiser use groups to sell their products, especially when they need to explain in depth about its benefits. 25 person conference rooms can be rented for that purpose having daily meetings which allow passengers the opportunity to learn about interesting new products in a relaxed atmosphere.. For instance, Nestlé launch a new chocolate and, through videos, explain the history of chocolate and offer product trials. Or a bank card company explains in depth why they should join them. A publishing company might invite authors to read extracts from their new books.

44. THE ADVERTISING ON BOARD Travel Incentives. The incentive is a way to integrate, motivate and engage the objectives of the company to the employee is being referred to lately as one of the best weapons in the HR department. Tailor madepresentations should to be prepared for Human Resources managers. The cruises have to play a much more active role by opening customer opportunities it can offer and its contents.

45. THE ADVERTISINGHOW TO EXPLOIT THE NEW AREAS The fixed outdoor will be offered as an exclusive to main outdoor companies. As they do on land they will have to pay a fee if they want to operate on our ships. They will have to install the digital supports (with naval accommodation supervision) maintain and commercialize the spaces. To make this operation successful we need to offer them the number of ships, destinations, space per ship, passenger and port data, length of the cruise, capacity per boat, technical data, etc. so they can judge media potential. The part of entertainment will be coordinated from the marketing dept. of the cruise company rating the different activities.

46. ACTION PLAN Study Carnival’s current work and activities implemented in marketing / advertising area at international level while defining opportunities. Prepare a document to be presented to outdoor media companies and advertisers to get their reactions and offer. This document has to be done with a global perspective for the future with a potential of 350 ships around the world used as advertising support and a growing market of 15 million passengers. Use Spain as a test market implementing an advertising plan on selected ships. If successful Spain will develop the European on-board, cruise advertising. This study can be done through consulting services or through the creation of a new job inside a client structure.

47. REVENUES FROM ADVERTISING We will have to develop rates for all different levels support and activity. We will present to the 3 international leading outdoor media companies our plan and will listen to their comments or proposals regarding the fixed outdoor on decks. The rest of the activities to be rated for advertisers consideration. Our objective is to consider the ship as one of the least expensive media in terms on cost per impact due to his unique and outstanding benefits.

48. INTERNATIONAL OUTDOOR COMPANIES JC DECAUX with € 2 billion billings operating in Europe, the U S, South America and Asia ( 54 countries and 9.000 workers). CLEAR CHANNEL with income of $3.3 billion operating in Europe, the US, ASIA and South America (in 64 countries). VIACOM OUTDOOR with income of $2.0 billion operating in North America, Europe and Asia (10.000 workers). They reach around 150 to 175 million people.