In 2019, just before the Covid pandemic, Royal Caribbean completed a massive $250 million renovation of its private island Perfect Day at CocoCay. At the time, the move seemed made to give the cruise line's passengers the best possible private island experience.
Before Perfect Day at CocoCay's remodel, private islands were essentially beach days. You had to get into them and once there, apart from the bars, some children's play equipment and a barbecue lunch, the beach was really the only activity.
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Royal Caribbean dramatically changed that with its investment in CocoCay. The cruise line added a dock that can accommodate two of its largest ships, as well as the largest pool in the Caribbean, a water park for an additional fee, a beach club for an additional fee, zip lines and a hot air balloon experience (both which also have an additional cost).
This year, Royal Caribbean also added Hideaway Beach, an adults-only section of CocoCay for an additional fee. Guests can still enjoy a classic beach day if they choose, but they can also do much more, making Perfect Day at CocoCay more of an extension of their ships than just a beach day.
CocoCay's expansion was part of a much broader strategy for the cruise line, and that appears to be a plan its main rival, Carnival Cruise Line, is also pursuing.
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Royal Caribbean has a plan
Royal Caribbean has only been building very large cruise ships. It has several ships on order in its largest class, the Icon class, and a new ship in its second largest class, the Oasis class ship on order. Those ships can't visit many smaller ports, and Royal Caribbean plans to build multiple CocoCay-style ports to accommodate them.
Royal Caribbean International CEO Jason Liberty explained the cruise line's private destination plans during his second quarter results call.
“We also continue to lead the vacation industry with new and exciting experiences on our ships and our portfolio of private destinations. Perfect Day at CocoCay continues to perform exceptionally well and we are reaching important milestones with the opening of the Royal Beach Club Paradise Island in 2025 and the opening of the Royal Beach Club Paradise Island in 2025. Beach Club in Cozumel, Mexico, opening in 2026,” he said. “These new experiences uniquely position us to continue taking advantage of land-based alternatives.”
As part of its strategy to capture customers from theme parks and other land-based rivals, Royal Caribbean has also been offering more short sailings that stop at CocoCay.
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He noted that the cruise line is using its newest ship, the Oasis-class Utopia of the Seas, strictly for 3- to 4-day Caribbean cruises.
“Our short Caribbean cruise product is an important entry point for new cruisers and new to the brand, with almost 7 and 10 guests following in these categories and always gearing more towards younger customers. Younger consumers find this product particularly attractive. In fact, approximately 40% of guests following this demographic have indicated that they intend to book a short vacation in the next 12 months. Additionally, 90% of guests browsing our. short product intend to travel again and about half plan to return for a longer cruise,” he added.
However, some of the cruise line's current customers do not like this strategy, as they would prefer classic 7-day cruises on the newer ships. The decision to debut Utopia on short cruises and move her predecessor, Wonder of the Seas, to 3- to 4-day cruises from Miami in 2025 is considered controversial by many.
Carnival is betting heavily on the Caribbean and short cruises
While Carnival has not decided to dedicate its newest ships to short Caribbean cruises stopping at its private islands, it will increase its 3-, 4-, and 5-day voyages. In the 2026 season, the cruise line will keep Carnival Conquest in Miami, sailing short cruises, while Carnival Glory and Carnival Freedom will sail similar itineraries from Port Canaveral.
“Carnival has added more three-, four- and five-day cruise options to some of the Bahamas' most popular destinations,” according to a statement of the company.
All of these voyages will stop at Celebration Key, Carnival's upcoming new private destination that will clearly borrow heavily from what Royal Caribbean has built at CocoCay. The cruise line will also add a dock on Half Moon Cay, its current private island, to enhance that experience for passengers as well.
“These voyages provide our guests with many options to enjoy a getaway, with all the vibrant onboard activities they know and love, plus a visit to the picturesque ports of The Bahamas, including our new flagship destination, Celebration Key,” he said. Carnival's vice president of itineraries. Fred Stein Planning.
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Carnival has also increased its planned sailings to Celebration Key from 400 to 500 for the 2025 season.
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