2. Program Agenda Cruising outlook Deployment considerations Factors influencing selection of ports

3. Cruising Outlook

4. Strong Industry Fundamentals Long-term industry growth – Worldwide CAGR of 7.7% since 1990 * Great vacation product – 98% guest satisfaction for first time cruisers, which drives repeat business Product innovation Low penetration of vacation market Favorable demographics Consolidated industry Ability to absorb new capacity Proven resilience * Wahlstrom, R. “Cruise Market Watch Announces 2011 Cruise Line Market Share and Revenue Projections.” Cruise Market Watch. 16 Jun. 2011. http://www.cruisemarketwatch.com

5. Deployment Considerations

6. Deployment Factors Guest and vessel safety Two of the most critical factors in port selection Home port facilities Terminals Proper resources for baggage handling and screening Ample space for buses and taxis Good airlift at home ports Guest experiences (ports of call) What is there to do in the port? Marquee ports? Availability of berths / clear berthing policies Need for a dock and not tender facility important for larger ships

7. Deployment Factors...(cont.) Infrastructure / Port development Ports that keep up to date with new infrastructure developments are more desirable Establish a partnership with cruise companies Availability of compliant fuel Price and type of fuel available Customs and immigrations Some ports are required to comply with immigration/customs and/or other governmental regulations Seasonality / Holidays Attraction sites closing during peak seasons, making the port visits less desirable

8. Factors Influencing Selection of Ports

9. What Drives the Selection of Ports of Call? Guests’ and crew safety Tendency to avoid ports where there are safety incidents and well-being is compromised Government travel advisories – political matters, social unrest Vessel safety Deterioration of port infrastructure (channels, alongside depths, bulkheads) Accidents occurring – making the port unsafe for ships Guest satisfaction Repeat negative comments from guests regarding a port Access to attractions Time / Speed / Distance 17 knots x 14 hours = 200 nautical miles per night is optimal

10. Selection of Ports…(cont.) Berthing policy Ports with clear policies are preferred Advance communication of ship’s docking prior to call Port related taxes / fees Port fees are sometimes too high, causing us to look for alternatives (e.g. Alaska head tax) Labor related issues Labor strikes Inadequate safety procedures Inflexible and exclusive dock labor boards or union labor pools which may drive costs