<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                       ----------------------------------

                                    FORM 10-Q
(Mark One)

[X]      QUARTERLY report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934

                  For the quarterly period ended March 31, 2001

                                       OR

[ ]      TRANSITION report pursuant to Section 13 or 15(d) of the
         Securities Exchange Act of 1934

               For the transition period from          to
                                              --------    --------

                         Commission file number 0-26420
                                                -------

                         AMBASSADORS INTERNATIONAL, INC.
                         -------------------------------
             (Exact name of registrant as specified in its charter)

          Delaware                                               91-1688605
-------------------------------                              ------------------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)

Dwight D. Eisenhower Building
   110 South Ferrall Street
      Spokane, Washington                                          99202
-------------------------------                              -----------------
   (Address of principal                                         (Zip code)
     executive offices)

Registrant's telephone number, including area code: (509) 534-6200

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X]   No [ ]

Indicate number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practical date:

            Common shares outstanding as of April 24, 2001: 9,687,713

<PAGE>   2

AMBASSADORS INTERNATIONAL, INC.
FORM 10-Q QUARTERLY REPORT

Table of Contents



PART I   FINANCIAL INFORMATION

Item 1.      Consolidated Financial Statements (unaudited)

                Consolidated Balance Sheets
                Consolidated Statements of Operations
                Consolidated Statements of Comprehensive Loss
                Consolidated Statements of Cash Flows
                Notes to Consolidated Financial Statements

Item 2.      Management's Discussion and Analysis of Financial
             Condition and Results of Operations


PART II      OTHER INFORMATION

Item 6.      Exhibits and Reports on Form 8-K


SIGNATURES

<PAGE>   3

AMBASSADORS INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, 2001 and December 31, 2000
(dollars in thousands)

<TABLE>
<CAPTION>
                                          March 31,        December 31,
                                          2001             2000
                                          ------------     ------------
<S>                                       <C>              <C>
ASSETS

Current assets:
   Cash and cash equivalents              $     56,118     $     38,071
   Restricted cash equivalents                     112              112
   Available-for-sale securities                91,504           87,240
   Accounts receivable                           5,414            4,146
   Prepaid program costs and expenses            9,512            6,839
   Deferred income taxes                         1,330              355
                                          ------------     ------------
         Total current assets                  163,990          136,763

Property and equipment, net                      4,535            4,604
Other investments                                3,726            3,406
Goodwill and covenant not-to-compete,
    net of $3,287 and $3,035 of
      accumulated amortization                  22,474           22,722
Deferred income taxes                              788              788
Other assets                                       103              107
                                          ------------     ------------
         Total assets                     $    195,616     $    168,390
                                          ============     ============
</TABLE>


The accompanying notes are an integral part of the consolidated financial
  statements.

<PAGE>   4

AMBASSADORS INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED), CONTINUED
March 31, 2001 and December 31, 2000
(dollars in thousands)


<TABLE>
<CAPTION>
                                           March 31,        December 31,
                                           2001             2000
                                           ------------     ------------
<S>                                        <C>              <C>
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable                        $      2,874     $      4,344
   Accrued expenses                               5,324            5,489
   Participants' deposits                        68,106           35,358
   Note payable, current portion                    200              200
   Foreign currency exchange contracts            3,563              928
                                           ------------     ------------
         Total current liabilities               80,067           46,319

Note payable, due after one year                    200              200
                                           ------------     ------------
         Total liabilities                       80,267           46,519
                                           ------------     ------------
Total stockholders' equity                      115,349          121,871
                                           ------------     ------------
         Total liabilities and stock-
            holders' equity                $    195,616     $    168,390
                                           ============     ============
</TABLE>


The accompanying notes are an integral part of the consolidated financial
  statements.

<PAGE>   5

AMBASSADORS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)
for the three months ended March 31, 2001 and 2000
(in thousands, except per share data)

<TABLE>
<CAPTION>
                                             2001          2000
                                           --------      --------
<S>                                        <C>           <C>
Revenues                                   $  8,069      $  5,541
                                           --------      --------
Operating expenses:
   Selling and tour promotion                 4,697         4,299
   General and administrative                 5,463         4,654
                                           --------      --------
                                             10,160         8,953
                                           --------      --------
Operating loss                               (2,091)       (3,412)
                                           --------      --------
Other income:
   Interest and dividend income               1,731         1,095
   Other, net                                   333            41
                                           --------      --------
                                              2,064         1,136
                                           --------      --------
Loss before income taxes                        (27)       (2,276)
Income tax benefit                                9           774
                                           --------      --------
Net loss                                   $    (18)     $ (1,502)
                                           ========      ========
Net loss per share - basic and diluted     $    nil      $  (0.16)
                                           ========      ========
Weighted-average common shares out-
   standing - basic and diluted               9,570         9,505
                                           ========      ========
</TABLE>


The accompanying notes are an integral part of the consolidated financial
  statements.

<PAGE>   6

AMBASSADORS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
for the three months ended March 31, 2001 and 2000
(dollars in thousands)

<TABLE>
<CAPTION>
                                               2001          2000
                                             --------      --------
<S>                                          <C>           <C>
Net loss                                     $    (18)     $ (1,502)

Unrealized loss on foreign currency
   exchange contracts, net of income tax
   benefit of $975 and $362                    (1,660)         (615)

Unrealized loss on marketable equity
   security, net of income tax benefit
   of $851                                         --        (1,449)
                                             --------      --------
Comprehensive loss                           $ (1,678)     $ (3,566)
                                             ========      ========
</TABLE>

The accompanying notes are an integral part of the consolidated financial
  statements.

<PAGE>   7

AMBASSADORS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
for the three months ended March 31, 2001 and 2000
(in thousands)


<TABLE>
<CAPTION>
                                                      2001          2000
                                                    --------      --------
<S>                                                 <C>           <C>
Cash flows from operating activities:
   Net loss                                         $    (18)     $ (1,502)
   Adjustments to reconcile net loss
      to net cash provided by operating
      activities:
         Depreciation and amortization                   572           586
         Amortization of unearned compensation           148            --
         Other, net                                       --            64
         Change in assets and liabilities:
            Accounts receivable                       (1,268)       (1,317)
            Prepaid program costs and expenses        (2,673)       (3,668)
            Accounts payable and accrued
               expenses                               (1,635)         (434)
            Participants' deposits                    32,748        31,630
                                                    --------      --------
                  Net cash provided by
                    operating activities              27,874        25,359
                                                    --------      --------
Cash flows from investing activities:
   Purchase of property and equipment                   (255)         (209)
   Purchase of available-for-sale
      securities                                     (25,967)      (13,066)
   Proceeds from sale of available-for-
      sale securities                                 21,703        26,484
   Purchase of other investments                        (320)           --
   Net cash paid for acquisition of
      subsidiaries and covenant-not-to-
      compete agreements                                  --           (15)
   Change in other assets                                  4             1
                                                    --------      --------
                  Net cash provided by
                  (used in)investing activities       (4,835)       13,195
                                                    --------      --------
</TABLE>

<PAGE>   8

AMBASSADORS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED
for the three months ended March 31, 2001 and 2000
(dollars in thousands)

<TABLE>
<CAPTION>
                                                2001          2000
                                              --------      --------
<S>                                           <C>           <C>
Cash flows from financing activities:
   Dividends paid on common stock             $ (5,133)     $     --
   Payments on long-term debt                       --           (50)
   Proceeds from exercise of stock
      options                                      141            61
   Purchase and retirement of common
      stock                                         --          (235)
                                              --------      --------
               Net cash used in financing
                activities                      (4,992)         (224)
                                              --------      --------
Net increase in cash and cash
   equivalents                                  18,047        38,330
Cash and cash equivalents, beginning
   of period                                    38,071        18,461
                                              --------      --------
Cash and cash equivalents, end of
   period                                     $ 56,118      $ 56,791
                                              ========      ========
</TABLE>


The accompanying notes are an integral part of the consolidated financial
  statements.

<PAGE>   9

AMBASSADORS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.    BASIS OF PRESENTATION

      The consolidated financial statements included herein have been prepared
      by Ambassadors International, Inc. (the Company), without audit, pursuant
      to the rules and regulations of the Securities and Exchange Commission.
      Certain information and footnote disclosures, normally included in
      financial statements prepared in accordance with accounting principles
      generally accepted in the United States of America, have been condensed or
      omitted as permitted by such rules and regulations. The Company believes
      the disclosures included herein are adequate; however, these consolidated
      statements should be read in conjunction with the financial statements and
      the notes thereto for the year ended December 31, 2000 previously filed
      with the Securities and Exchange Commission on Form 10-K.

      In the opinion of management, these unaudited, consolidated financial
      statements contain all of the adjustments (normal and recurring in nature)
      necessary to present fairly the consolidated financial position of the
      Company at March 31, 2001 and the consolidated results of operations,
      comprehensive loss and cash flows for the three-month periods ended March
      31, 2001 and 2000. The results of operations for the periods presented may
      not be indicative of those which may be expected for the full year.


2. PRINCIPLES OF CONSOLIDATION

      Ambassadors International, Inc. (the Company) is an educational travel,
      travel services and performance improvement company. The Company's
      operations are classified in the following segments:

      -     Ambassadors Education Group -- Organizes and promotes international
            educational travel and sports programs for students, athletes and
            professionals.

      -     Ambassadors Performance Group - Develops, markets and manages
            meetings and incentive programs for a nationwide roster of corporate
            clients utilizing incentive travel, merchandise award programs, and
            corporate meeting management services.

      -     Ambassadors Services Group - Provides comprehensive hotel
            reservation, registration and travel services for meetings,
            conventions, expositions and trade shows.

      The Company was founded in 1967 and was reincorporated in Delaware in
      1995. The Education Group represented the entire operations of the Company
      until 1996 when the Performance Group commenced operations. The Services
      Group commenced operations in 1998.

      The consolidated financial statements include the accounts of Ambassadors
      International, Inc. (the Company) and its subsidiaries. All significant
      intercompany accounts and transactions are eliminated in consolidation.

<PAGE>   10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

3.    PER SHARE DATA:

      Net loss per share - basic is computed by dividing net loss by the
      weighted-average number of common shares outstanding during the period.
      Net loss per share - diluted is computed in the same manner as net loss
      per share -- basic as the inclusion of additional common shares that would
      have been outstanding if the dilutive potential common shares had been
      issued are antidilutive due to the net loss.

      The following table presents a reconciliation of basic and diluted
      earnings per share (EPS) computations and the number of dilutive
      securities (stock options and stock grants) that were not included in the
      dilutive EPS computation because they were antidilutive (in thousands,
      except per share data):

<TABLE>
<CAPTION>
                                                          March 31,
                                                    ---------------------
                                                      2001         2000
                                                    --------     --------
      <S>                                           <C>          <C>
      Numerator:
         Net loss for basic and
            diluted earnings per share              $    (18)    $ (1,502)
                                                    ========     ========
      Denominator:
         Weighted-average shares
            outstanding -basic                         9,570        9,505
         Effect of dilutive common
            stock options                                 (A)          (A)

         Effect of dilutive stock
            grants                                        (B)          --
                                                    --------     --------
         Weighted-average shares
            outstanding - diluted                      9,570        9,505
                                                    ========     ========
      Net loss per share - basic
            and diluted                             $    nil     $  (0.16)
                                                    ========     ========
</TABLE>

      (A)   For the three months ended March 31, 2001 and 2000, respectively,
            the effects of 184,915 and 30,529 stock options have been excluded
            from the calculation of diluted loss per share because their effects
            would be anti-dilutive.

      (B)   For the three months ended March 31, 2001, the effects of 110,000
            stock grants have been excluded from the calculation of diluted loss
            per share because their effects would be anti-dilutive.

<PAGE>   11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

4.    BUSINESS SEGMENTS:

      The Company operates the Education Group, Performance Group and Services
      Group segments. Corporate and Other consists of general corporate assets
      (primarily cash and cash equivalents, investments and goodwill) and other
      activities which are not directly related to the Education, Performance
      and Services Groups. Selected financial information related to these
      segments is as follows (in thousands):


<TABLE>
<CAPTION>
                           Education     Performance     Services     Corporate
                           Group         Group           Group        and Other     Total
                           ---------     -----------     --------     ---------     --------
      <S>                  <C>           <C>             <C>          <C>           <C>
      March 31, 2001
      --------------
      Revenues             $  1,939      $  4,128        $  2,002     $     --      $  8,069
                           ========      ========        ========     ========      ========
      Operating income
         (loss)            $ (2,817)     $  1,326        $    248     $   (848)     $ (2,091)
                           ========      ========        ========     ========      ========
      March 31, 2000
      --------------
      Revenues             $    181      $  3,360        $  1,868     $    132      $  5,541
                           ========      ========        ========     ========      ========
      Operating income
        (loss)             $ (4,026)     $  1,137        $    100     $   (623)     $ (3,412)
                           ========      ========        ========     ========      ========
</TABLE>

5.    DIVIDEND:

      On February 12, 2001, the Company declared a special dividend because of
      the non-recurring profit achieved by the Company on the sale of its
      investment in GetThere.com during the year ended December 31, 2000. The
      $5.1 million dividend was paid during the first quarter of 2001 to
      shareholders of record on February 28, 2001.

6.    SUBSEQUENT EVENT:

      The Company is considering a transaction in which it would spin-off its
      wholly owned subsidiary, Ambassadors Education Group, Inc. ("Education
      Group"). Pursuant to this potential spin-off, the stockholders of the
      Company would receive a distribution of all of the common stock of the
      Education Group. If the spin-off occurs, the Company expects that a public
      market would exist for Education Group's common stock and, therefore, each
      stockholder would then own shares of common stock of two publicly-held
      corporations. If the spin-off occurs, the Education Group will file to
      register its shares with the Security and Exchange Commission and file an
      application to have its common stock

<PAGE>   12

      listed on Nasdaq.


Item 2. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

This Quarterly Report on Form 10-Q contains forward-looking statements. A
forward-looking statement may contain words such as "will continue to be," "will
be," "continue to," "expect to," "anticipates that," "to be" or "can impact."
Management cautions that forward-looking statements are subject to risks and
uncertainties that could cause the Company's actual results to differ materially
from those projected in forward-looking statements.

COMPARISON OF THREE MONTHS ENDED MARCH 31, 2001 TO THE THREE MONTHS ENDED MARCH
31, 2000


GROSS PROGRAM RECEIPTS

Gross program receipts increased to $27.8 million during the first quarter of
2001 from $17.4 million during the first quarter of 2000. This $10.4 million
increase is the result of a greater number of programs operated by the
Performance and Education Groups.

NET REVENUE

Net revenue increased to $8.1 million during the first quarter of 2001 from $5.5
million during the first quarter of 2000. This $2.6 million growth is due to an
increased number of programs operated by the Education and Performance Groups.
These programs represent a change in the revenue mix, resulting in a decline in
the gross margin ratio to 29.0% during the first quarter of 2001 from 31.8%
during the first quarter of 2000.

SELLING AND TOUR PROMOTION EXPENSES

The Company's policy is to expense all selling and tour promotion costs as they
are incurred.

Selling and tour promotion expenses increased to $4.7 million during the first
quarter of 2001 from $4.3 million during the first quarter of 2000. This
increase of $0.4 million is due to the expansion of personnel costs within the
Education and Performance Groups to support the increased customer base.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses increased to $5.5 million during the first
quarter of 2001 from $4.7 million during the first quarter of 2000. This
increase of $0.8 million is due to higher personnel costs to support increased
number of programs operated in the Performance Group. In addition, the Education
Group's expenses also

<PAGE>   13

increased to provide for increased participant volume, and Corporate incurred
amortization of unearned compensation during the first quarter of 2001 related
to stock grants awarded in the latter part of 2000.

OTHER INCOME/EXPENSE

Other income in 2001 consisted primarily of interest income generated by cash,
cash equivalents and available-for-sale securities. At March 31, 2001, the
Company had $147.6 million in cash, cash equivalents and available-for-sale
investments, an increase of $22.3 million from $125.3 million at December 31,
2000. As a result, the Company realized interest income of $1.7 million during
the first quarter of 2001, compared to $1.1 million during the first quarter of
2000.

INCOME TAXES

The Company has recorded an immaterial income tax benefit for the first quarter
of 2001 in comparison to a $0.8 million tax benefit for the first quarter of
2000. Income tax benefits have been recorded based upon the estimated annual
effective income tax rate applied to the pre-tax loss.

SEASONALITY

The Company's businesses are seasonal. The majority of the Company's travel
programs occur in June through August and October of each year. The Company
historically has earned more than three-quarters of its annual revenues in the
second and third quarters, which has more than offset operating losses incurred
during the rest of the year. The Company anticipates that this trend will
continue for the foreseeable future. The Company's annual results would be
adversely affected if the Company's revenues were to be substantially below
seasonal norms during these periods. The Company's operating results may
fluctuate as a result of many factors, including the mix of Education,
Performance, and Services Group programs and services, the mix of programs and
program destinations offered by the Company and its competitors, the
introduction and acceptance of new programs and program enhancements by the
Company and its competitors, timing of program completions, cancellation rates,
competitive conditions in the industry, marketing expenses, extreme weather
conditions, international conflicts, timing of and costs relating to
acquisitions, changes in relationships with certain travel providers, economic
factors and other considerations affecting travel.

LIQUIDITY AND CAPITAL RESOURCES

The Company's business is not capital intensive. However, the Company does
retain funds for operating purposes in order to conduct sales and marketing
efforts for future programs and to facilitate acquisitions of other companies.

Net cash provided by operations for the first quarters in 2001 and 2000 was
approximately $27.9 million and $25.4 million, respectively.

<PAGE>   14

The increase of $2.4 million in operating cash flows from 2000 to 2001 primarily
relates to an increased volume of Education Group participants' deposits in
addition to the decrease in net loss for the quarter.

Net cash provided by(used in) investing activities for the first quarters in
2001 and 2000 was ($4.8 million) and $13.2 million, respectively. The decrease
of $18.0 million from 2000 to 2001 is primarily due to the purchase of
available-for-sale securities. The Company does not have any material capital
expenditure commitments for 2001. However, the terms of the Company's
acquisitions of certain businesses include contingent consideration.
Additionally, the Company is continuing to pursue further acquisitions of
related travel and performance improvement businesses that may require the use
of cash and cash equivalents. No such acquisitions are currently pending and no
assurance can be given that definitive agreements for any such acquisitions will
be entered into, or, if they are entered into, that they will be on terms
favorable to the Company.

Net cash used in financing activities for the first quarters of 2001 and 2000
was $5.0 million and $0.2 million, respectively. The increase of $4.8 million in
cash used in the first quarter of 2001 is due primarily to the payment of a
special one-time dividend (See Note 5).

In November 1998, the Board of Directors of the Company authorized the
repurchase of the Company's common stock (up to an approved amount) in the open
market or through private transactions. This repurchase program is ongoing. The
Company does not believe that any such repurchases will have a significant
impact on the Company's liquidity.

At March 31, 2001, the Company had approximately $147.6 million of cash, cash
equivalents and available-for-sale securities, including program participant
funds of approximately $68.1 million. Under the Company's cancellation policy, a
program participant may be entitled to a refund of a portion of his or her
deposit, less certain fees, depending on the time of cancellation.

Management believes that existing cash and cash equivalents and cash flows from
operations will be sufficient to fund the Company's anticipated operating needs,
capital expenditures, stock repurchases and acquisitions at least for the
ensuing year.

FOREIGN CURRENCY; HEDGING POLICY

The substantial majority of the Education Group's travel programs take place
outside of the United States and most foreign suppliers require payment in
currency other than the U.S. dollar. Accordingly, the Company is exposed to
foreign currency risk relative to changes in foreign currency exchange rates
between those currencies and the U.S. dollar. The Company has a program to
provide a hedge against certain of these foreign currency risks. The Company
uses forward contracts which allow the Company to acquire the foreign currency
at a fixed price for a specified period of time. Some of the Company's forward

<PAGE>   15

contracts include a synthetic component if a pre-determined trigger occurs
during the term of the contract. All of the Company's derivatives are designated
as cash flow hedges of forecasted transactions. The Company has a $50.0 million
credit facility to support foreign currency purchases and foreign exchange
forward contracts.

The Company accounts for these foreign exchange contracts and options with the
provisions of Statement of Financial Accounting Standards No. 133 (SFAS 133),
"Accounting for Derivative Instruments and Hedging Activities." For qualifying
cash flow hedge transactions, the effective portion of any unrealized gains or
losses on foreign exchange contracts are recorded as other comprehensive income
or loss and are accumulated as a component of stockholders' equity. The gains
and losses on the derivative instruments that are reported in other
comprehensive income are reclassified as earnings in the periods in which
earnings are impacted by the variability of the cash flows of the hedged item.
The ineffective portions of all hedges are recognized in current period
earnings. Unrealized gains and losses on foreign currency exchange contracts
that are not qualifying cash flow hedges as define by SFAS 133 are recorded in
the statements of income.


PART II - OTHER INFORMATION

Items 1, 2, 3, 4 and 5 are not presented as they are not applicable.

Item 6. Exhibits and Reports on Form 8-K.

            (a)  Reports on Form 8-K:

                  No reports on Form 8-K were filed for the three months ended
                  March 31, 2001.

<PAGE>   16

SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


AMBASSADORS INTERNATIONAL, INC.


Date: May 1, 2001          By: /s/ Jeffrey D. Thomas
                               ------------------------------------
                               Jeffrey D. Thomas,
                               Chief Financial Officer