2014 CLIA ANNUAL STATE OF THE INDUSTRY PRESS CONFERENCE

& MEDIA MARKETPLACE

Welcome to 2014 Media Marketplace

- Azamara Club Cruises

- American Cruise Line

- AMA Waterways

- Carnival Cruise Lines

- Costa Cruises

- Crystal Cruises

- Cunard Line

- Hurtigruten

- MSC Cruises

- Paul Gauguin

- Royal Caribbean

- Seabourn

- Tauck River Cruises

- Windstar Cruises

Port Representation

- Port Everglades

- South Carolina Port Authority

CLIA United Under One Banner

NORTH AMERICA • EUROPE • BELGIUM & LUXEMBOURG • FRANCE • GERMANY • NETHERLANDS • SPAIN • UK & IRELAND • BRAZIL • ASIA • AUSTRALASIA

December 17, 2012 Cruise Industry Forms Global Trade Association

New Association Model to Promote “One Industry, One Voice”

Global CLIA

NW & Canada

Brazil

Australasia

UK & Ireland

Asia

Netherlands

Europe

Belgium Germany

Spain

Alaska

Hawaii

France

Italy North America US

CLIA Members

250 Executive Partners (port authorities, destinations, and maritime and industry suppliers)

13,500 global travel agency members who reach over 50,000 agents

63 cruise line members, representing over 95% of global cruise capacity

Specialty Cruise Collection

CLIA Specialty Cruise Collection

Scenic, cultural shore activities and sightseeing

Attractive destination options

Smaller ship size and slower pace

Thematic itineraries

Inclusive pricing and offerings

Personalized service

Ability to meet and make new friends

Top consumer interest in specialty cruising:

Specialty Cruise Collection

Robust Investment for an Expanding Global Cruise Industry

2013 – 2014

29 new ships with 34,000+

beds

2015 - 2018 another 20 Ships

52,000+ beds

2014 16 new ships with 20,000

beds

2014 Global Fleet

410 Ships 467,629 beds

CLIA Member Lines New Ships (2014-2018)

1. Royal Caribbean Quantum of the Seas (4,100)

2. Norwegian Getaway (3,969)

3. Costa Cruise Diadema (3,700)

4. Regal Princess (3,600)

5. Pearl Mist (210)

6. Avalon Illumination (166)

7. Avalon Impression (166)

8. Avalon Poetry II (128)

9. Tauck ms Inspire (130)

10.Tauck ms Savor (130)

11.Uniworld S.S. Catherine (159)

12.AmaSonata (164)

13.AmaReina (164)

14.Silversea Silver Discoverer (128)

15.TUI Mein Schiff 3 (2,500)

16.Scenic Cruises Scenic Gem (126)

17.Royal Caribbean Anthem of the Seas (4,180)

18. Norwegian Escape (4,200)

19.American Cruise Lines (TBD)

20.American Cruise Lines (TBD)

21.Aida Prima (3,250)

22.TUI Mein Schiff 4 (2,500)

23.P&O Brittania (3,611)

24.Compagnie du Ponant Le Lyrial (265)

25.Carnival Vista (4,000)

26.Royal Caribbean Oasis Class 3 (5,400)

27.Royal Caribbean Oasis Class 3 (5,400)

28.Royal Caribbean Quantum Class (4,180)

29.Holland America Pinnacle Class (2,660)

30.Regent Seven Seas Explorer (738)

31.Seabourn (TBD)

32.Norwegian Bliss (Breakaway) (4,200)

33.American Cruise Lines (TBD)

34.American Cruise Lines (TBD)

35.Star Cruises (3,364)

36.AIDA (3,250)

Passenger Growth

ROW 14.8%

Europe 30.1%

N. America 55.1%

Passenger Sourcing (millions)

2014 Forecast: 21.7 Million

0

2

4

6

8

10

12

14

2007 2008 2009 2010 2011 2012 2013 (F) 2014 (Est)

Pas

sen

gers

400,000 growth in passengers

carried

Passenger Sourcing Continues to Diversify

Global Passenger Share

5 Year % Change

1 USA 51.7% 15.1%

2 UK & Ireland 8.1% 16.4%

3 Germany 7.7% 80.5%

4 Italy 4.0% 26.1%

5 Australia/New Zealand 3.6% 130.3%

6 Brazil 3.4% 1.3%

7 Canada 3.4% 84.8%

8 Spain 2.8% 20.7%

9 France 2.4% 67.7%

10 Scandinavia & Finland 1.6% 184.6%

$33 billion in global wages

$100 billion in economic impact

$42 billion U.S. economic impact

775,000 jobs around the world

356,000 jobs in the U.S.

$17.4 billion in U.S. wages

Global Economic Impact

Caribbean 34.4% 2013 37.3% 2014

Mediterranean 21.7% 2013 18.9% 2014

Europe w/o Med 10.9% 2013 11.1% 2014

Alaska 4.8% 2013 4.5% 2014

Asia 3.4% 2013 4.4% 2014

Australasia 5% 2013

5.9% 2014

South America 3.9% 2013 3.3% 2014 Other Markets

15.8% 2013 14.5% 2014

Global Deployment Capacity Market Share

2014 Itineraries

Travel Agents - 40 years of sustained commitment

In 2014:

- Redesigned Training and Certification

- Promote CLIA certification to consumers

- Cruise3sixty 10th anniversary

- 10 new courses and 25 ship inspections, more than any other conference

- National Cruise Vacation Week

- Global publicity to support agents

PORTS DESTINATIONS

TRAVEL SUPPLIERS BUSINESS SERVICES

PRODUCT SUPPLIERS

Global Executive Partner Program

A dedicated, global community of partners united in its

commitment to a strong, safe, growing industry

Engagement and influence with each other and the cruise lines

Events & Incentives at Sea

Employees choose cruising as top incentive choice 38.8% of employees prefer a cruise over land-based incentive options

8% of companies surveyed listed cruise ships as their first choice for a meeting venue 33% growth over 2009

Incentive Travel Buyers Handbook Nielsen Travel & Performance Group 2008

“ 44% of planners say they are considering a cruise incentive for the future.”

Corporate Meetings & Incentives 2007 Incentive Trends Survey

“ 51% of readers say they use cruises for all size groups.”

JIM BERRA

Chair, CLIA Marketing Committee

Chief Marketing Officer, Carnival Cruise Lines

Industry Trends & Outlook

Top 2014 Cruise Trends Continued development and availability of

technology to facilitate and lower the cost of onboard communications as well as to provide more efficient passenger servicing

Expectation of first-time passenger growth driven by the 95 million

Millennial generation based on

population size and positive experiences cruising with their parents

Top 2014 Cruise Trends Rebound in luxury cruising (luxury category ships, onboard upgrades) based on an improving economy and increased consumer confidence

Multigenerational and celebration travel increase for all passenger source markets

with larger sized family as well as social/ affinity groups traveling together

Top 2014 Cruise Trends Cruise lines offering more all-inclusive

options and packaging in accommodations, services and amenities for

increased ease in booking and ship enjoyment

Cruises increasingly attracting consumers

seeking active vacations with extreme excursions, longer stays in ports for sightseeing and high-energy onboard facilities

Top 2014 Cruise Trends Seeing the world in comfort and ease,

especially exotic locations, will continue to drive new itinerary creation and cruise ship deployment

Hot destinations for 2014 according to CLIA cruise line members include:

Trans Pacific, World Cruises, U.S. Rivers, South America, Antarctic, Middle East,

Canada/New England, Africa and Exotic Rivers

The Top Trend- Product Enhancements

What We Heard From Agents

Shorter cruises

More informal environments

Celebrations and multi-gen

Increased use in domestic (US/Canada) ports of embarkation

Boutique ships

Global expansion of destinations/itineraries

Exciting onboard innovation

Focus Across the Industry Aligns with What Motivates Consumers

Price

Family, friends bonding

Convenience of foreign travel

Special experiences

Value

Recommendations: Travel agents, F&F

Meeting new people

Multiple destinations

Ease of booking

These Trends are Helping to Attract First Timers

reported similar or increased

new cruiser sales

87.7%

Agents are Pretty Bullish on 2014

report 2013 overall travel & cruise sales ranged from good to excellent – best year ever

60%+

expect 2014 cruise sales to range from good to excellent

70%+

to drive good to better sales over 2013

95% An improving economy is seen by

The Industry is Well Positioned for Continued Growth

- Strong value proposition

- New and relevant product innovation for our guests

- Opportunities for global expansion and continued worldwide economic growth