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We aim to be the leading provider of high-quality mini-cruise and passenger transport services, as well as the leading provider of ro-ro cargo services on selected routes, in the Baltic Sea region. Even though our business has grown rapidly in the last decade, we believe that there are additional growth opportunities in the region over the coming years. The cornerstones of our operating strategy are described below:
• Continue to invest in our fleet
We believe that continued investment in new vessels and upgrades to existing vessels are critical to our ability to maintain market leadership and further expand our business. Our newer vessels are designed to increase efficiency and profitability by increasing passenger traffic while reducing operating costs per passenger. We believe that the introduction of additional modern vessels equipped with improved onboard amenities will lead to increased per passenger spend and will attract a broader customer base. In addition, the higher comfort, safety and environmental standards of our newer vessels will further strengthen our brand association with high-quality products and services.
• Build upon strong positions on existing routes
We are the market leader on all of the routes that we currently operate. We will seek to maintain and strengthen our overall market share and volumes in both passenger and cargo traffic on our designated routes by continuously improving comfort and quality standards and providing convenient and reliable timetables for our service. We actively market our existing product offering throughout the Nordic and Baltic countries through our own sales agencies and through affiliations with travel agencies.
• Pursue new growth opportunities in the Northern Baltic Sea region
We continuously evaluate potential growth opportunities presented by introducing new routes, products and services. We believe that the growth in tourism and commerce with and among the Baltic countries provides us with opportunities to introduce new routes and services. Following the deliveries of the new vessels, some of our older vessels will become available for traffic elsewhere. We also seek growth opportunities in travel-related products and services that will support our cruise and passenger transport business. For example, the operation of Tallink City Hotel and the new Tallink Spa and Conference Hotel which is due to open in the spring of 2007 support our cruise business by offering high-quality overnight accommodation in Tallinn that can easily be combined with our ferry products. We believe that travel services, such as innovative and varied travel packages, including cruises, hotel stays and cultural experiences, provide further opportunities to attract new groups of customers and improve our profitability.
• Maintain profitability through efficient and flexible management, while seeking revenue growth
We aim to focus on growth opportunities that will allow us to maintain and improve our profitability. We have a tradition of efficient and flexible management of our assets, including the ability to introduce profitable new routes and to transfer and relocate our vessels to new routes or, for example, charter operations, in order to seek the highest available return from our assets. Our onshore and management organizations are lean, which enables us to operate efficiently and to make quick decisions in response to market developments and opportunities. |