Out of the Box Consulting

1. A3 Nick D’Urbano Kevin Gardner Gregory Karan Shanmugarajah Adam Skoreyko Out of the Box Consulting

2. Roadmap Recession Strategy New Value Proposition Premium European Leader Goals Peak Recovery Trough • Economic implications • Pricing strategy • Reallocate capacity • New markets & demographics • A culture of tech & green • Positioning • New marketing plan • Capacity outlook Deliverables Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

3. Recession Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

4. Recession So far we are approximately 17 months into the recession Can’t time the market Plan for 5 years, Expect 2 years Abnormal recession, Abnormal consumer response Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

5. Recession So far we are approximately 17 months into the recession Can’t time the market Plan for 5 years, Expect 2 years Abnormal recession, Abnormal consumer response Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

6. Recession Value Proposition Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

7. Recession Value Proposition Objectives Spur Demand Increase Margins • Spur Demand: Maintain Loyalty (USA) • Too difficult to acquire new customers • Induce returning visits • Increase Margins • Increase yield/customer • Separation from deep discount pricing Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

8. Recession Value Proposition Objectives Spur Demand Increase Margins • Communication Strategy • “Thank You for Being a Loyal HAL Customer” • Attract existing customers • Leverage DRM and CRM systems • Thank you letters • Less discounts and more on-board amenities • to attract customers • Free credits (casino, stores, drinks, excursions) Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

9. Recession Value Proposition Objectives Spur Demand Increase Margins • Reducing Supply Reduce Need to Discount • Leads to higher price point • Preserves brands “prestige” factor • Redistribute Supply • Redeploy vessel to Europe • Specifically the Noordam • No balance sheet space for buying • Lower opportunity cost • Good fit with European market Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

10. Roadmap Recession Strategy New Value Proposition Premium European Leader Goals Peak Recovery Trough • Economic implications • Pricing strategy • Reallocate capacity • New markets & demographics • A culture of tech & green • Positioning • New marketing plan • Capacity outlook Deliverables Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

11. New Value Proposition New Customer Demographics Baby Boomers (Euro) Affluent emerging professionals New Value Technology & Environment • Heavy Investment in IT & New Forms of Communication • Twitter • Social networking  ning.com • Custom log-in page on ship • CRM to customize delivery Create a culture of technology Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

12. New Value Proposition New Customer Demographics Baby Boomers (Euro) Affluent emerging professionals New Value Technology & Environment Green Initiatives: Taking a Leadership Role • Flight/Hotel 205kg/day Cruise 230kg/day • Fort Lauderdale and Copenhagen • shore power upgrades • Water Purification • Soy Inks • Ship to Shelter Option to purchase off-sets Promote environmental efforts Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

13. Roadmap Recession Strategy New Value Proposition Premium European Leader Goals Peak Recovery Trough • Economic implications • Pricing strategy • Reallocate capacity • New markets & demographics • A culture of tech & green • Positioning • New marketing plan • Capacity outlook Deliverables Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

14. Carnival Product Portfolio HAL can expand to Europe and not hurt Carnival’s structure Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

15. What European Countries? Legend 3 = High 1 = Low • HAL already present in Denmark • BMW Metric used as a “sanity check” Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

16. Positioning Map in Europe Segment Hapag-Llyod (4) Fred Olsen (5) Luxury Phoenix Reisen (1) Azamara (2) HAL’sZone of Strategic Fit Premium MSC (9) MSC (9) MSC (9) MSC (9) MSC (9) CDF Croisière France (1) Norwegian (11) Pullmantar (6) Thomson (5) Transocean (1) Contemporary Discover (1) Norway U.K. Germany France Spain Country Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

17. Marketing in Europe How do Europeans choose their vacations? #1 Word of Mouth: 29.3% #4 Travel Agents: 11.4% What type of holidays would travelers give up? #1 Winter: 41.6% #2 None: 18.8% Most important consideration when selecting? #1 Value: 33% #2 Price: 16% Main European periods for holiday travel? #1 August: 27% #2 July 24% Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

18. Marketing in Europe Goals Premium “GO-TO” European Cruise Line Objective StrategicFocus • Positioning Tactics Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

19. Marketing in Europe Goal Objectives StrategicFocus • Gain Distribution Networks • Leverage Carnival’s other lines • Travel agents less important • Online vacation websites • Create Brand Awareness • Limited brand equity • Need to generate buzz • Drive to Website • Best reach in international market Tactics Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

20. Marketing in Europe Goal Objectives StrategicFocus • Holland America Line • “Up-Selling” is a key focus • Value proposition • Carnival (CCL) • Fits with cluster strategy • Leverage CCL’s current operations in Europe Tactics Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

21. Marketing in Europe • Interactive • 3-D • Tiles on the floor • Walk around and see different images • Big Idea: “The Cube” Goal Objectives StrategicFocus • Features? • Destinations • Activities • Testimonials • Where? • Metropolitan cities • High traffic areas • How are you attracting people? • Pixmen • Teaser: Web (What’s in the Cube?) Tactics Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

22. The “Cube” Marketing Concept What’s in the Cube? What’s in the Cube? • Created by • Sid Lee Inc. • Ad agency • Successes in • New York • Boston Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

23. European + Premium Capacity Recession Strategy New Value Proposition Europe Expansion Conclusion

24. Carnival Total Capacity Recession Strategy New Value Proposition Europe Expansion Conclusion

25. Final Thoughts  Recession Strategy • Increasing margins • Survival and positioning for growth  New Value Proposition • Prepare for Europe • Leverage technology and “green”  • European marketing plan Europe Expansion Holland America Line  Market leader for Europe in premium division Out of the Box Consulting Recession Strategy New Value Proposition Europe Expansion Conclusion

26. Holland America Line Thank you very much! Any Questions? No matter where you go, enjoy excellence. Out of the Box Consulting

27. Appendices Roadmap Product Portfolio Conclusion MTKG: Germany SAP History What Countries? Why not the BRIC MKTG: U.K. Recession outlook Positioning Map Information Source MKTG: Norway Balance Marketing: EuroData Holiday Draw Backs MKTG: Spain Recession: Object. Marketing: Goal Considerations MKTG: France Recession: Demand Marketing: Objective Risks & Mitigations Green Marketing Recession: Margins Marketing: Strategy Cruise Sales Region Carbon Credit Capacity On-shore Power Technology Marketing: Tactics Out of the Box Consulting Social Networking Sustainability Marketing: Cube

28. Why not the BRIC? Out of the Box Consulting

29. Information Source Out of the Box Consulting

30. Holiday Draw Backs Out of the Box Consulting

31. Most Important Consideration Out of the Box Consulting

32. Cruise Sales by Region Out of the Box Consulting Source: Marketing

33. How to market sustainability Out of the Box Consulting

34. Marketing in Germany Out of the Box Consulting

35. Marketing in U.K. Out of the Box Consulting

36. Marketing in Norway Out of the Box Consulting

37. Marketing in Spain Out of the Box Consulting

38. Marketing in France Out of the Box Consulting

39. Carbon Credit Average House Carbon Level/365 days= 2800kg/365 = 7.7kg/day Average Air Travel Level= 1971 kg CO2 Total for Air Travel and Home for 10 days= 2048 kg CO2 Carbon Level per Day at Sea = 230 kg C02 Total for Sea Travel for 10 days= 2300 kg CO2 Source: Center for Alternative Technology

40. On-shore Power • Terminal 91 is currently scheduled to go on-line in Seattle at the end of April 2009 • Average savings of 87 tons of CO2 per call with Holland America in 2006 • Reduced pollution can be accounted for because when in port, emissions from the ship can be eliminated thanks to the shore power, according to the Port of Seattle. • Lighting, pumps, ventilation, and refrigerators are a few of cruise • ships major power users that can take advantage of the new technology.

41. Social Networking • Ning.com offers a customizable social networking front-end that can be used as an alternative to a external solution • Ability to integrate into the existing website and servers for HAL • Can be used in conjunction with a log-in screen aboard HAL vessels • Twitter can be used pre-trip, during trip and post-trip in different capacities • Pre-trip implementation would involve itinerary updates and travel warnings • During trip implementation would allow activity updates and potential up sells • Post-trip would involve survey follow-ups and alerts about future trips and promotions

42. Risks & Mitigation Metrics Risks Ship is delayed in production Impact Fuel costs Probability Seasonality Timing Pirates Terrorism

43. Risks & Mitigation Ship is delayed in production • Creates backlog in capacity • Opportunity + refund costs Apply a heavy penalty for delayed contracts Impact Probability Timing

44. Risks & Mitigation Fuel costs • Large fluctuations in price • Unpredictable Fuel surcharge – hedge – repurchase Impact Probability Timing

45. Risks & Mitigation Seasonality • Leads to wide shifts in demand • Uneven capacity utilization and scheduling problems Expand coverage to other area’s of Europe & Caribbean Impact Probability Timing

46. Risks & Mitigation Pirates • Increasing activity • Increase in violence Ensure due diligence for dangerous routes with the Navy Impact Probability Timing

47. Risks & Mitigation Terrorism • Potential target with huge impact • Operation in hostile environment Create a system of best practices to ensure appropriate protocol and training Impact Probability Timing

48. Various Comparative Capacity Totals