Written by Lacey Faltz
Last updated: Tuesday, October 29, 2024 at 8:55 a.m. ET
Cruise lines are looking to new destination types to boost revenue, and it’s not emerging destinations like Dominica or trending destinations like Costa Rica, but their own private islands.
Many of the major cruise lines now offer at least one private island experience in the Caribbean. Royal Caribbean was one of the first cruise lines to launch Perfect Day on CocoCay, and recently announced it would now build another Perfect Day experience. In Mexico. Disney Cruise Line has Lookout Cay, MSC Cruises has Ocean Cay MSC Marine Reserve, Norwegian Cruises has Great Stirrup Cay…the list goes on.
The reasons for its popularity and the economic benefit to cruise lines are pretty straightforward. Because cruise lines are destinations that are owned and operated by the cruise lines themselves, cruise lines can increase their revenue without paying government fees such as taxes and port fees.
“Perfect Day at CocoCay is a great addition to both our customers and our business,” said Royal Caribbean Group President and CEO Jason Liberty in announcing the route’s second Perfect Day destination. It brought about change.” “Travelers prioritize unique experiences and destinations in their booking decisions, so we are excited to expand our Perfect Day collection by creating Perfect Day Mexico to best serve guests looking to explore the Western Caribbean. Masu.”
‘Hurry! Junkanoo Celebration at Disney’s Lookout Cay at Lighthouse Point (Photo credit: Eric Bowman)
Private islands are part of the cruise line’s success, with Royal Caribbean’s expenses up 34 percent since Perfect Day at CocoCay opened in 2019, but revenue also up 43 percent, according to Reuters. did. Another important factor is that from July 2023 to July 2024, the number of visitors to private islands will outpace visits to non-private islands in the Caribbean, increasing by 41 percent to 18 percent year-on-year. That’s a percentage increase.
Despite this, private islands still accommodate fewer people due to capacity limitations. About 10 million people visited the island last year, compared to 57 million cruise passengers visiting other Caribbean destinations.
There are 12 private cruise destinations in the Caribbean, with more planned, like Carnival’s Celebration Key, which debuts in 2025 at a price tag of about $600 million. It is clear that cruise line private destinations are here to stay and are poised for continued growth.
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