In 2019, just before the Covid pandemic, Royal Caribbean completed a massive $250 million overhaul of its Perfect Day at CocoCay private island. At the time, the move seemed like it was made to give the cruise line's passengers the best possible private island experience,
Prior to the Perfect Day at CocoCay remodel, private islands were essentially beach days. You had to tender into them, and once there, aside from bars, some kids' 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, an added-fee waterpark, an extra-cost beach club, zip lines, and a hot air balloon experience (both of which also cost extra).
This year Royal Caribbean also added Hideaway Beach, an adults-only extra fee section of CocoCay. Passengers can still have a classic beach day if they choose, but they can also do a lot more, making Perfect Day at CocoCay more an extension of its ships rather than just a beach day.
Expanding CocoCay was part of a much bigger strategy for the cruise line, and that appears to be a blueprint its chief rival, Carnival Cruise Line, is also following.
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Royal Caribbean has a plan
Royal Caribbean has only been building very large cruise ships. It has multiple ships on order in its largest class, Icon class, and one new ship in its second-largest class, Oasis-class ship ordered. 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 its second-quarter earnings call.
"We also continue to lead the vacation industry with exciting new 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 on Royal Beach Club Paradise Island opening in 2025 and Royal Beach Club in Cozumel, Mexico opening in 2026," he said. "These new experiences uniquely position us to continue taking share from land-based alternatives."
As part of its strategy of taking 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 3-4 day Caribbean cruises.
"Our short Caribbean cruise product is an important entry point for new-to-cruise and new-to-brand with nearly 7 and 10 guests following in these categories and always skewing more toward younger customers. Younger consumers find this product particularly appealing. In fact, approximately 40% of guests who follow in this demographic have indicated that they intend to book a short vacation in the next 12 months. Moreover, 90% of guests who sail on our short product intend to cruise again with roughly half planning to return for a longer cruise," he added.
Some of the cruise line's existing customers, however, do not love this strategy as they would prefer classic 7-day cruises on the newest ships. Many consider the decision to have Utopia debut doing short cruises and moving its predecessor, Wonder of the Seas, to 3-4-day cruises from Miami in 2025 controversial.
Carnival bets big on the Caribbean and short cruises
While Carnival has not decided to devote its newest ships to short Caribbean cruises that stop at its private islands, it will be increasing its 3, 4, and 5-day sailings. In the 2026 season, the cruise line will be keeping 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 most popular destinations in The Bahamas,” according to a statement from the company.
These sailings will all stop in Celebration Key, Carnival's upcoming new private destination which clearly will borrow heavily from what Royal Caribbean has built at CocoCay. The cruise line will also be adding a dock at Half Moon Cay, it's current private island to improve that experience for passengers as well.
“These sailings give our guests many options to enjoy an escape, with all the vibrant onboard activities they know and love, plus a visit to the picturesque ports of The Bahamas, including our premier new destination Celebration Key,” said Carnival Vice President of Itinerary Planning Fred Stein.
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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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