Why Royal Caribbean Is Sending Nearly All Its Ships to a Private Island

Jason Liberty, president and CEO of Royal Caribbean Group, told analysts in October 2024 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.

This wasn’t a physically exhausting or emotionally taxing trip. Visiting here is 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. That may be true in some cases, but was also never its promise.

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

The island has options for every type of 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.

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.

The island felt like one of the safest places I’ve recently visited.

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.

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

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 rentals, such as snorkeling equipment and costly cabanas.

Liberty told analysts in 2024 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 will accommodate about 4,000 guests a day. All would have to pay to enter, which would it a strong revenue driver.

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.

Norwegian Cruise Line’s Great Stirrup Cay, in the Bahamas, is currently in the middle of an upgrade. The company is building a new pool and pier to keep up with all the competition for private resorts.