Cruise Lines Boost Revenue with Private Island Investments

Major operators like Royal Caribbean and Carnival are enhancing private island experiences to capture more market share and increase direct bookings.

Royal Caribbean's $250 million investment in CocoCay has set a new standard, resulting in a 43% increase in ticket revenues since 2019.
Carnival and Norwegian are following suit, with Carnival investing $600 million in its new private destination, Celebration Key, in Grand Bahama.
Private island passenger capacity has risen by 41% year over year, with total visits to these destinations reaching about 10 million.
The shift towards private islands is impacting traditional Caribbean stops, with some destinations seeing a decline in cruise visits since 2019.
Direct bookings are on the rise, allowing cruise lines to save on travel agent commissions, though companies are cautious about acknowledging this shift.