This financial analysis report examines two leading competitors, Royal Caribbean International and Carnival Cruise Line, within the cruise industry to assess the company's performance and financial health. The sector entered a major growth phase in the late 1960s and early 1970s, growing by more than 2,100 percent. The initial objective of the cruise industry was to develop a mass market since cruising was until then an activity reserved for an elite. One way to achieve this was through economies of scale, as larger ships were able to accommodate more customers and create additional opportunities for onboard revenue streams. The global growth rate of the cruise industry is sustainable and stable, around 7% per year, despite economic cycles of growth and recession. For example, the financial crisis of 2008-2009 had no impact on the demand for cruises. This highlights that the industry has until now been fundamentally supply-driven; ships are built and customers fill them through various marketing and discounting strategies. Cruise lines compete with other vacation alternatives, such as land-based resort hotels and tourist destinations for consumer leisure. The demand for such activities is influenced by general political and economic conditions. Businesses in the vacation market depend on consumer discretionary spending. Overall, 2012 was a very difficult year for the cruise industry. Carnival International is still recovering from the effects of the Costa Concordia sinking off the coast of Italy in January 2012. On the other hand, Royal Caribbean's biggest challenge in 2012 was due to one-time impairment charges of nearly $385 million. of dollars linked to the Spanish Pullma line.... .. middle of document ......t example of short-term concerns offering long-term investors the opportunity to make an excellent investment. Works Cited http://media.royalcaribbean.com/content/en_US/pdf/13034530_RCL_2012StwrdshpTwoPgrs_v4.pdf http://analysisreport.morningstar.com/stock/research?t=RCL&culture=en-US®ion=usa&cur=USD&productcode=MLE http ://answers.businesslibrary.uflib.ufl.edu/a.php?qid =76331 http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=RCL:NYQ http://www.miamiherald .com/2013/03/15/3289232/carnival-lowers-financial-outlook.html http://www.ukessays.com/essays/tourism/sustainable-measure-for-royal-caribbean-tourism-essay.php http ://beta.fool.com/ruperthargreav/2013/03/05/does-carnivals-current-ratio-present-problem/25676/ http://beta.fool.com/hoangquocanh/2013/03/20/- 161/27482/ http://beta.fool.com/kwmatt82/2013/ 23/01/royal-caribbean-gains-plus gros-meilleurs/22325/