RCCL's Organization
RCCL ships operated through two brands: Royal Caribbean International and Celebrity Cruises. The cruise industry was divided into four major market segments. Segments included contemporary, premium, luxury, and ultraluxury. RCCL Chairman and CEO Richard Fain noted RCCL had a higher price in each market segment it competed in but also offered a better quality and enhanced experience to its customers at each service point. Royal Caribbean International targeted the volume cruise vacation market in the contemporary and premium segments with 16 ships (two— to 16—day— long cruises, across—the—world itineraries, a variety of shipboard activities, amenities, services, and shore excursions) while Celebrity, with its nine ships, offered cruises to the high—end premium, luxury, and ultraluxury segments, targeting vacationers who wanted an enhanced experience (two— to 17—day cruises, gourmet dining, premium service, luxurious facilities, and modern vessels). Celebrity Cruises attracted more demanding and experienced cruisers from the contemporary— and premium—cruise categories.
Fain noted, “It was important to keep the individual personality of each brand and avoid too much homogenization.” Of course, there were some synergies across the two brands. Fain noted, for example, the Silverwhere program (a method for allocating optimal table-seating assignments) cost the same to develop whether it was used in one or 25 ships and thus was implemented in both brands' ships.