Cruise Lines Transform Islands into Private Playgrounds to Boost Revenue
From elaborate waterparks to exclusive beach clubs, cruise operators are investing heavily in private island destinations to enhance passenger experiences and capture additional spending.
Cruise lines are increasingly acquiring and developing private islands, transforming them into exclusive destinations for passengers. This trend, driven by the desire to create unique onboard experiences and generate additional revenue, sees companies investing millions in creating elaborate entertainment complexes and serene retreats.
Royal Caribbean's Perfect Day at CocoCay in the Bahamas, for example, has become a major draw. The 144-acre island, formerly Little Stirrup Cay, features a massive waterpark with tall slides, multiple pools, and adult-only areas. Opened in 2019 after a $250 million upgrade, it has become the cruise line's most popular global stop. Royal Caribbean is expanding this model with its Royal Beach Club concept, opening locations in Nassau and Santorini, with plans for eight such resorts by 2028, including sites in Mexico and Vanuatu.
This strategy allows cruise lines to offer passengers an 'in-house' land experience, capturing spending on specialized dining, drinks, and activities. For instance, waterpark passes at Perfect Day at CocoCay start at approximately £66 per person, while luxury cabanas can cost up to £3,000. The cruise lines also benefit from avoiding docking fees and mitigating concerns from local populations about over-tourism.
The practice of cruise lines owning private islands dates back to 1977 when Norwegian Cruise Line acquired Great Stirrup Cay. Since then, lines such as Princess Cruises, Disney Cruise Line, and Holland America Line have followed suit, often establishing resorts in the Bahamas, which has numerous islands available for lease or sale.
MSC Cruises reportedly invested $200 million in transforming a former industrial island into the marine reserve Ocean Cay. Virgin Voyages has established a beach club on Bimini, and Carnival Cruise Line launched its Celebration Key resort on Grand Bahama Island, featuring a large swimming lagoon and a long swim-up bar.
Beyond the Bahamas, other cruise lines have developed private destinations. Norwegian Cruise Line operates Harvest Caye in Belize, and Carnival Corporation brands share the Amber Cove resort in the Dominican Republic. This trend allows cruise operators to provide a curated experience, enhancing passenger satisfaction while simultaneously creating lucrative revenue streams.