One cruise line is celebrating an increase in bookings as it shares its third quarter results with stakeholders – but the reason for the heightened demand is somewhat surprising.
Indeed, Royal Caribbean’s current high book rate seem to be driven more by the innovation happening on land than by the experiences at sea.
The cruise line, which prides itself on offering some of the best family-friendly experiences at sea, has been expanding and improving its private island destinations – completing an extensive remodel of the existing Perfect Day at CocoCay in the Bahamas and announcing two new private island destinations that are currently in progress.
The focus on these shore-side experiences has proved to be beneficial, and has helped the cruise line accelerate its growth and profits, surpassing the strength seen during the same time period in 2023.
Looking ahead, the current financial status also spells good news for continued growth in 2025.
“The performance of our business continues to be robust, driven by strong demand and excellent operational execution,” said Naftali Holtz, chief financial officer, Royal Caribbean Group.
“Our strong booked position is exactly where we want to be to further optimize our yield profile and deliver on our formula of success – moderate capacity growth, moderate yield growth and strong cost discipline – positioning us to continue to deliver margin expansion and strong financial returns,” continued Holtz.
The previous quarterly report released in July of 2024 showed that the cruise line welcomed many more guests onboard its ships in the first half of the year than in the first half of 2023 and nearly doubled net profits – and the growth has continued to increase over the last quarter.
The outstanding showing at the time prompted Royal Caribbean to raise its full-year 2024 earnings plan, projecting an amazing 68% year-over-year increase, which still seems very possible considering the current quarterly update.
Royal Caribbean Expands Shoreside Presence
Perfect Day at CocoCay in the Bahamas, which is located about 55 miles northwest of Nassau on the Berry Islands, is already renowned as one of the best private island destinations out there.
In 2019, the cruise line completed a massive $250 million remodel of the private island destination to enhance the experience.
Since then, Royal Caribbean has continued to improve the island with new additions – such as the with the opening of the Coco Beach Club in 2021, which features a clubhouse restaurant, luxury lounging, a bar, and infinity pool.
Royal Caribbean’s Royal Beach Club Paradise Island
More recently in January of 2024, the island welcomed its first guests to the adults-only Hideaway Beach. Guests 18+ can visit this spot for music, an adults-only pool, and cocktails from a swim-up bar.
Read Also: Royal Caribbean Amenities You Should Pre-Book
Looking ahead, Royal Caribbean will be bringing the “Perfect Day” experience to two new destinations.
Construction began on April 22, 2024, for Royal Beach Club Paradise Island, which will be located near the cruise port on Nassau, Bahamas, and is expected to open sometime in 2025.
The 17-acre destination is designed to combine the best of the island’s stunning beaches with the cruise line’s signature family-friendly experiences to create the best beach day ever for all visitors.
Moving even further out, Royal Caribbean will also be opening its biggest private island destination ever in Mexico in 2027.
“Perfect Day Mexico” will be located on the sunny shores of Costa Maya and is being built in addition to Royal Caribbean’s new exclusive beach club, which is expected to open in Cozumel in 2026.
Source: Cruisehive.com