"Islands on Steroids": How Cruise Lines Are Investing in Their Own Destinations

During a recent vacation, Jared Huff had the opportunity to explore a private island in The Bahamas, which he described as his personal playground. The 20-year-old from Knoxville, Tennessee, enjoyed a variety of activities such as jet skiing, visiting a waterpark, and relaxing on the beach at Royal Caribbean’s Perfect Day at CocoCay. After spending hours there, he returned to the Wonder of the Seas ship. This experience was part of a June cruise with his girlfriend and her family.

Huff shared his thoughts on the unique experience, stating, “Even the themes of, like, the slides and the beaches, it just seemed like an extension of the cruise ship, which is kind of a different vibe than other ports and was cool for me to experience.”

Private islands have become a significant attraction for cruise lines, offering exclusive experiences that complement their traditional sea-based offerings. These destinations are packed with activities and have been well-received by guests. While the high seas have long been the primary domain for cruise lines, many are now investing more in land-based destinations to enhance their overall offerings.

A major new competitor to CocoCay is Carnival Cruise Line’s Celebration Key, which will launch later this month on Grand Bahama. It features five distinct areas or “portals” across 65 acres. Here’s why cruise lines are betting big on private island destinations:

Why Are Cruise Lines Leaning Into Private Islands?

For decades, cruise lines have had exclusive destinations, but Royal Caribbean was the first to elevate these private islands significantly. In 2019, following a $250 million renovation, the company relaunched its private island, previously known as CocoCay. The destination includes water slides, pools, a zip line, cabanas, dining venues, and bars, creating a “mini Caribbean” theme park.

Patrick Scholes, a lodging and leisure analyst with Truist Securities, noted that Royal Caribbean took a lot of risk with this move, and it paid off. He said, “They took a lot of risk and nobody really believed them until they saw it, and lo and behold, it was a real grand slam.”

Royal Caribbean International’s chief marketing officer, Kara Wallace, told USA TODAY that CocoCay is “the No. 1 highest-rated destination” among more than 250 ports visited by its ships. Scholes added that competitors like Carnival took inspiration from Royal Caribbean’s success.

Carnival Corp. mentioned that its Princess Cays destination in the Bahamas, established in 1992, was one of the earliest private island destinations in the industry. The company has seven destinations in the Caribbean and Mexico, with its flagship brand, Carnival Cruise Line, visiting most frequently. The company plans to enhance its destinations and market them as the new Paradise Collection by Carnival.

What Are the Benefits of Cruise Line Private Islands?

Owning or leasing a destination allows cruise lines to control almost every aspect of the guest experience, from ship schedules to facility aesthetics and food and drink pricing. While many activities and amenities are complimentary, others come at an additional cost, such as excursions, cabana rentals, and beach club passes. Admission to CocoCay’s Thrill Waterpark, for example, costs extra, though prices vary by season.

The availability of land in the Bahamas and the government’s willingness to work with cruise lines make it an attractive choice. Plus, it’s easy to access: Bimini, where Virgin Voyages’ The Beach Club at Bimini is located, is just 50 miles from Florida.

Marilyn Macallair, a cruise travel analyst for Phocuswright, noted that private islands can offer a more predictable and convenient alternative compared to traditional ports, especially given the challenges of overtourism and geopolitical impacts on itineraries.

Future of Cruises: Are Mega-Ships Here to Stay?

For passengers, the exclusivity of private islands is part of the appeal. Scholes noted that it makes this kind of experience relatively accessible compared to other trips. “It's a really affordable way to go to a private island in the Caribbean for the day, whereas room rates and flights are really, really expensive,” he said.

However, the highly-managed setting can also be a drawback. While cruise lines often integrate local cultural elements, some visitors may find the immersion lacking compared to other ports of call. Huff, for example, said he wouldn’t go on a cruise solely for the purpose of visiting CocoCay, preferring more culturally immersive experiences.

Royal Caribbean emphasized its goal to amplify the local cultures of the destinations it visits. At its upcoming Royal Beach Club Paradise Island, the cruise line will work with local artisans, vendors, and suppliers to bring in their products, feature local entertainment, and offer Bahamian food alongside American fare.

Are Cruise Lines Adding More Private Islands?

Celebration Key is not the only land-based project underway. Carnival Cruise Line and Holland America Line recently announced enhancements to the private Bahamas destination Half Moon Cay. The changes, including a new pier, added lunch venues, and a new name, RelaxAway, Half Moon Cay, will be completed by summer 2026.

Norwegian Cruise Line Holdings Ltd., parent company of Norwegian, Oceania Cruises, and Regent Seven Seas Cruises, will add a new welcome center, an island-wide tram system, and an extensive new pool area to its Bahamas island, Great Stirrup Cay, set to debut in the fourth quarter of 2025.

Royal Caribbean has several land-based projects launching over the next few years, including Royal Beach Club Paradise Island in December, Royal Beach Club Cozumel in 2026, and Perfect Day Mexico in 2027. The company will also open a destination on the island of Lelepa in Vanuatu in 2027.

MSC Group is developing an island near its existing Bahamas destination, Ocean Cay MSC Marine Reserve, according to Travel Weekly.

Scholes believes the market may eventually become oversaturated with private islands, but he notes that this is unlikely to happen for at least five years due to the lengthy development process. “We're not at that point yet,” he said.