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The Street
The Street
Daniel Kline

Royal Caribbean bets big on a new concept and Carnival follows

Perfect Day at CocoCay, a $250 million reimagining of Royal Caribbean's private island in the Bahamas, set a new standard and left rival cruise lines lacking a similar asset.

Prior to Royal Caribbean  (RCL)  adding a dock that could accommodate two of its largest ships, visiting any cruise line's private island meant taking a tender — a small boat — from the ship to the island. 

That made some passengers already unwilling to go because, while you may not get seasick on a massive cruise ship, a tender ride can be a very different story. 

Related: Carnival and Royal Caribbean add new nonsmoking areas

Both Carnival Cruise Line (CCL) and Norwegian Cruise Line  (NCLH)  still use tenders to reach their private islands. And, once you get there, they basically offer a beach day with some food, maybe some music, drinks, and not much else. MSC Cruises does dock at its Ocean Cay Marine Preserve, but it can only accommodate one ship at a time, and like Carnival and Norwegian, it's basically just offering a beach day (albeit a very nice one in all three cases).

Perfect Day at Coco Cay lets passengers walk off the ship (or take a tram) and then choose their experience. They can opt for the traditional beach and BBQ offering across multiple beaches. 

In addition, they can swim in the largest pool in the Caribbean, all without paying any extra money. If they want more, however, CocoCay offers an added-fee waterpark, a quiet Beach Club that offers an upgraded lunch, or the new Hideaway Beach, an adults-only area with a beach, heated pool, its own dining options, and a DJ that gives a little bit of a day club feel.

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All of those, of course, cost extra (prices vary based on demand). CocoCay, however, has consistently been Royal Caribbean's highest-rated destination. That's something the company plans to build on, and Carnival has plans to follow.

The Beach Club at CocoCay costs extra.

Image source: Daniel Kline/TheStreet

Royal Caribbean adding Beach Club experiences  

Many Royal Caribbean, Carnival, Norwegian, and MSC cruise ships stop in either Nassau or Cozumel. Those are both ports where frequent cruisers might just stay on the ship. In Cozumel, many book private beach club experiences not through the cruise line.

After seeing the success of CocoCay, Royal Caribbean created a new concept, the Royal Beach Club, and it's already working on one for Paradise Island, a short trip from Nassau, and has plans for another in Cozumel. 

"When we think of the Beach Club portfolio that we're planning on developing, along with Perfect Day, they're incredibly complementary destination experiences and they fit really in the sweet spot of our demographics and really in terms of what our guests are seeking, looking for when they go on a Caribbean cruise, they really knock it out of the park in terms of satisfying that demand, that need. So very similar type of product, different vibe," Royal Caribbean International CEO Michael Bayley said during his company's first-quarter earnings call.

Bayley sees the private island and the Beach Clubs as related, but different experiences.

"Perfect Day is a full day for thrill and chill and the Beach Club is, as you imagine, just an incredible day at the beach, which is what most guests are seeking in the Caribbean. And it's curated by Royal Caribbean. It's a stunning experience. And of course, it's very authentically connected to the culture, for example, in the Bahamas or Mexico," he added.

Related: Get the best cruise tips, deals, and news on the ships from our expert cruiser

CocoCay will have 3.2 million visitors in 2024, up from 2.6 million in the previous year.

"People want to sail on the ships that go to Perfect Day and they want to sail on the ships that go to the Beach Club," Bayley added.

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Carnival tries to build a CocoCay rival

Carnival has been slowly sharing plans for Celebration Key, its own take on a CocoCay-like experience that will feature pools, a water park, and multiple dining options. It's on an island, but it's not a private island as it's being built on a section of Grand Bahama.

"Honoring the natural beauty and culture of Grand Bahama, Celebration Key will deliver endless opportunities for relaxation and recreation across five distinct areas called portals, featuring the largest freshwater lagoons in the Caribbean, a breathtaking white sand beach, an exclusive adult-only private club, spaces designed to maximize family fun and a variety of dining venues and libation stations all in one breathtaking place," the cruise line shared.

Celebration Key, which is clearly the cruise line seeing what has worked for its rival and building on it, will open in July 2025.

Carnival ships will dock at an adjacent cruise pier that can accommodate up to two of the cruise line's largest ships simultaneously. Celebration Key will also include an events pavilion dedicated to hosting weddings, vow renewals, and other special celebrations.

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