For several years, Adventure of the Seas has been sailing out of San Juan visiting Southern...

 

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For several years, Adventure of the Seas has been sailing out of San Juan visiting Southern Caribbean ports. Guests are sourced from the United States, Puerto Rico, and other markets. The company is considering replacing Adventure of the Seas with a newer and larger vessel, Freedom of the Seas, which would result in close to 20% increased capacity. Based on the information provided, please answer the following: 1. With the larger ship, which markets would you target to fill in the additional capacity? 2. Suppose all incremental capacity is sourced from the local market -what happens to the price per day for the San Juan product? Ships Comparison Adventure of the Seas Freedom of the Seas Voyager Class Market Performance by Seasonality Ship Offpeak Holidays Peak Class Freedom Class Market Pax Share Per Day Rate Pax Share Per Day Rate Pax Share Per Day Rate Age 15 years 10 years $117 $145 $168 $107 $11 U.S 63% 68% 51% Puerto Rico Other 21% $68 21% $94 24% Ship Capacity 16% $107 11% $137 25% Number of Staterooms by Cabin Type Suites AD FR 125 131 Balconies 638 738 Share of Bookings and Per-Day-Rate by Cabin Type Guest Onboard Per-Day-Spending Ocenviews 242 282 Interior 668 808 On Board Spending Cabin Type Suites Market US Puerto Rico Other Total 1673 1959 United States $63 87% 2% 11% $24 Balconies Oceanview Interior Puerto Rico Other Average 77% 7% 16% Number of Staterooms by Occupancy AD FR $4 64% 18% 19% Double 1141 1371 $53 52% 35% 14% Quad 532 588 Total 1673 1959 Puerto Rico $155 Cabin Type US Other $201 $192 $122 Suites Balconies $130 $96 Oceanview $98 $77 $94 Interior $90 $70 $83 For several years, Adventure of the Seas has been sailing out of San Juan visiting Southern Caribbean ports. Guests are sourced from the United States, Puerto Rico, and other markets. The company is considering replacing Adventure of the Seas with a newer and larger vessel, Freedom of the Seas, which would result in close to 20% increased capacity. Based on the information provided, please answer the following: 1. With the larger ship, which markets would you target to fill in the additional capacity? 2. Suppose all incremental capacity is sourced from the local market -what happens to the price per day for the San Juan product? Ships Comparison Adventure of the Seas Freedom of the Seas Voyager Class Market Performance by Seasonality Ship Offpeak Holidays Peak Class Freedom Class Market Pax Share Per Day Rate Pax Share Per Day Rate Pax Share Per Day Rate Age 15 years 10 years $117 $145 $168 $107 $11 U.S 63% 68% 51% Puerto Rico Other 21% $68 21% $94 24% Ship Capacity 16% $107 11% $137 25% Number of Staterooms by Cabin Type Suites AD FR 125 131 Balconies 638 738 Share of Bookings and Per-Day-Rate by Cabin Type Guest Onboard Per-Day-Spending Ocenviews 242 282 Interior 668 808 On Board Spending Cabin Type Suites Market US Puerto Rico Other Total 1673 1959 United States $63 87% 2% 11% $24 Balconies Oceanview Interior Puerto Rico Other Average 77% 7% 16% Number of Staterooms by Occupancy AD FR $4 64% 18% 19% Double 1141 1371 $53 52% 35% 14% Quad 532 588 Total 1673 1959 Puerto Rico $155 Cabin Type US Other $201 $192 $122 Suites Balconies $130 $96 Oceanview $98 $77 $94 Interior $90 $70 $83

Answer rating: 100% (QA)

1 In the case of the larger ships we will prefer to target the US market to fill in ... View the full answer