Sign up for your FREE personalized newsletter featuring insights, trends, and news for America's aging Baby Boomers

Newsletter
New

I've Been To Royal Caribbean Private Islands 3 Times. It's No Surprise The Cruise Line's All-in On Private Destinations.

Card image cap

Cruise travelers love Royal Caribbean's profitable, resort-like Perfect Day at CocoCay private island — so much so that the company is now expanding its destination portfolio.

Brittany Chang/Business Insider

  • I've been to Royal Caribbean's private island, Perfect Day at CocoCay, three times.
  • The cruise line has seen strong demand for voyages to the profitable resort-like port.
  • Royal is set to debut three resorts through 2027 as it competes in the growing cruise-owned destinations market.

Royal Caribbean is poised to build a vast and highly profitable vacation network — driven not solely by its cruise vessels but by its land-based portfolio.

The company's planned three Icon Class ships are expected to launch through 2027, coinciding with the debut of its next three private ports: Royal Beach Club Paradise Island in 2025, Royal Beach Club Cozumel in 2026, and Perfect Day Mexico in 2027.

At first glance, it may seem ironic for a vacation-at-sea company to invest millions into land-based destinations.

So, to understand Royal Caribbean's real estate conquest, look at the accomplishment of its first private island, Perfect Day at CocoCay.Most of Royal Caribbean's Caribbean cruises include a stop at its private island, Perfect Day at CocoCay.

Brittany Chang/Business Insider

Jason Liberty, president and CEO of Royal Caribbean Group, told analysts in October that its continued success can be partly attributed to its highest-rated port, Perfect Day at CocoCay.

I've visited the in-demand destination three times since 2022. It's no surprise the 5½-year-old Bahamian retreat has become the inspiration for the company's quickly growing private port-folio.

I relish the thrill of ultra-planned, stress-inducing travel where my survival relies on Google Maps and Translate.Perfect Day at CocoCay has several complimentary beaches.

Brittany Chang/Business Insider

However, behind this superiority complex, I also secretly love indulging in a vacation.

Not an emotionally taxing trip — a mushy-brained break where I get to rot on the beach and indulge in frivolous luxuries like guiltless naps and sugary beverages.

That about sums up why cruisers love Royal Caribbean's private island.

Some travelers criticize CocoCay for being an inauthentic Bahamian experience. While true, and for better or worse, that was never its promise.

The island was designed as an extension of Royal Caribbean's ships — a beach resort on steroids.

CocoCay is best for travelers who crave the conveniences of an all-inclusive resort: secure confinement, glittery beaches, and easy food and beverage kiosks.Thrill Waterpark has 14 slides.

Brittany Chang/Business Insider

The island has options for every type of paradise-seeking traveler. And much like going on a cruise, there's no need for planning as part of your visit (save for excursions like entry to its beach clubs). It's all set out for you.

For kids, CocoCay has a waterpark, a zipline, a water playground, and easygoing activities like ping-pong tables.

For adults, the island has two pool clubs: a boozy Vegas-style party at Hideaway Beach and a pricier high-end retreat at Coco Beach Club.

For traditionalists seeking a no-frills beach day, CocoCay's sandy waterfront is lined with innumerable lounge chairs and slow-sloping banks.

Plus, the island feels relatively safe.Perfect Day at CocoCay is a day's voyage from Florida's popular cruise ports.

Brittany Chang/Business Insider

Several popular cruise ports are in destinations where the US Department of State has issued travel advisories, such as Mexico's Ensenada, Baja (Level 3 — "reconsider travel" ) and Manzanillo, Colima (Level 4 — "do not travel").

The agency also suggests travelers "exercise increased caution" when visiting the Bahamas, home of CocoCay.

Yet, the island felt like one of the safest places I've recently toured.

CocoCay is only accessible by Royal Caribbean Group's ships.Hideaway Beach has a swim-up bar.

Brittany Chang/Business Insider

As such, the only people there are its staff and the ship's crew and guests.

My biggest fear there? Getting a sunburn.

That's great news for concerned parents traveling with children or folks who may have read one too many cruise-related horror stories.

Most importantly, for Royal Caribbean, it's a proverbial goldmine.Guests can splurge on private cabanas.

Brittany Chang/Business Insider

Travelers love splurging during their daylong visit. The island doesn't require third-party excursion operators, allowing Royal Caribbean to maximize these profits.

Sections like the waterpark and beach clubs cost money to enter, from about $100 per person for the former to upward of $300 for Coco Beach Club.

Free parts of the island also have eye-catching upgrades, such as snorkeling equipment and costly cabanas.

Expect more opportunities to spend big at Royal Caribbean's coming properties.Renderings of the "Royal Beach Club at Paradise Island" show a sprawling beachfront property lined with cabanas, lounge chairs, and pools.

Royal Caribbean International

Liberty told analysts that the cruise giant is "very mindful of having sizable significant returns" as it relates to its private properties. (It recently acquired the land for Perfect Day Mexico for $292 million.)

The company is using what it learned from CocoCay to design the Mexico location, which would also have free and paid amenities.

The same can't be said for the coming Royal Beach Club Collection.

The inaugural Paradise Island resort would accommodate about 4,000 guests a day. All would have to pay to enter, which would it a strong revenue driver.

For travelers, CocoCay is convenient, safe, amenity-rich, and beloved.Perfect Day at CocoCay has a free pool with a swim-up bar.

Brittany Chang/Business Insider

For Royal Caribbean, the island is a source of demand and increased revenue.

These private ports are a win-win all around, although competition could soon be stiff.

Carnival Corp is also racing to expand its private port portfolio.

The competing cruise giant plans to debut its $600 million private resort, Celebration Key, in 2025 and expand its existing private island, RelaxAway, Half Moon Cay, in 2026. It's already selling 2026 itineraries that include both destinations, starting at about $350 per person for a four-day sailing.

Read the original article on Business Insider


Recent