Despite the additional fees, private destinations are popular and can influence a traveler’s choice of cruise line.
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- Cruise lines are increasingly charging extra for amenities at private destinations.
- A day pass is required for admission to Royal Caribbean’s new Royal Beach Club Paradise Island.
- Some cruise lines no longer extend onboard beverage packages to their private islands.
Ryan and Kara Lambert had one destination in mind for their last cruise. The couple sailed to the Bahamas on Royal Caribbean International’s Wonder of the Seas to visit the Royal Beach Club Paradise Island, which opened in December.
“When I got on the tender and pulled up, I thought, ‘Oh, this is so exciting,’ because every time I[cruise]to Nassau, I always thought that little ship was an unused gem,” said Kara, 39.
The Lamberts, who create travel content on their YouTube channel, arrived around 8 a.m. and set sail shortly before 4 p.m. during their January voyage. The company’s private club for guests includes a beach, cabanas, and swim-up bar, all accessible by complimentary water taxi. Amenities are spread across three different areas: Family Beach, Chill Beach, and Party Cove (where the Lambert family spent most of their day).
But the couple, who live in Ottawa, Canada, said they spent a total of $930 on a bundle with passes to the Royal Beach Club (and alcoholic drinks there) and paid for those perks. Deluxe drinks package on board. Includes access to Hideaway Beach, an adults-only area at CocoCay’s private island, Perfect Day at CocoCay, which the cruise also stopped at.
“For a four-day cruise, that’s a big change,” said Ryan, 36.
Cruises are often promoted as all-inclusive experiences. But just as onboard add-ons can inflate the overall cost of a cruise, passengers can also incur additional charges at land-based destinations.
What does a cruise line’s private destinations include?
Jared Feldman, owner of travel agency Jafferdoma Travel, said there’s a difference between a private destination and a private trip. In the former case, he said, the destination is open to all guests and typically includes a complimentary buffet or other “basic meal” options, as well as pool and beach access. However, additional charges may apply for use of other facilities.
Norwegian Cruise Line’s then-president David J. Herrera told USA TODAY in July that the company’s soon-to-open Great Tides waterpark at Great Stirrup Cay on the Bahamas island would have additional fees, similar to Royal Caribbean’s Thrill Waterpark on Perfect Day. The latter, Hideaway Beach (opening in 2024), also has an additional fee. The 18+ Pearl Cove Beach Club on Carnival Cruise Line’s Celebration Cay on Grand Bahama Island also charges an additional fee. The club began accepting guests in July.
When it comes to beverages, Feldman said, “This is where the industry is divided.” In-flight drink packages, such as Royal Caribbean’s Perfect Day, may also apply on land, but not at other destinations, such as Celebration Key.
Norwegian also recently announced that it will no longer extend its in-flight drinks package offer to Great Stirrup Cay from March 1, as part of a wider transformation of the island.
In October, when the change was first reported, the cruise line told USA TODAY that “complimentary beverages, including water, iced tea, juice and more, will continue to be readily available on the island.” “Our beverage packages are priced between $23 and $30 per person per day, depending on the voyage master, (and) our onboard beverage packages offer unlimited premium beverages such as Gray Goose, Casami Gos and Woodford Reserve at our ship’s award-winning beverage venues, giving our guests an incredible value that far exceeds land-based vacation offerings.”
Norwegian said at the time that it planned to offer a separate drinks package for Bahamas destinations. “It will be interesting to see if other lines follow suit,” Feldman said.
Meanwhile, Feldman likens the Royal Beach Club Paradise Island to a shore excursion, designed to “compete with going to Atlantis for a day or going to Baha Mar for a day and having that resort-like experience.”
Passengers can choose from two-day passes. One includes alcohol and other drinks, and the other includes only non-alcoholic drinks (alcoholic drinks can be purchased a la carte, however). Both also cover dining, Wi-Fi, beach chairs, umbrellas, etc. Guests can hop into a cabana, daybed, or party deck, purchase a day pass, or even bundle passes with other purchases.
Royal Caribbean plans to open more Royal Beach Clubs in locations including Cozumel, Mexico and Santorini, Greece.
Although the Lamberts loved Paradise Island’s vibrant décor and friendly staff, they had mixed feelings about the listed price of about $199 per person just for a day pass with unlimited open bar and dining. For example, Kara found the meal “a little overwhelming” with few options for guests with dietary restrictions (she is a vegetarian and has a gluten allergy).
“‘Is it worth it?’ That’s a difficult question to answer because it depends,” she said. Travelers will have to make their own calls depending on their budget and priorities.
Royal Caribbean told USA TODAY that Royal Beach Club rates are dynamic and subject to change and encourages guests to check rates on the cruise line’s website or app when booking. Menu changes have also recently been made to add more variety.
“Royal Caribbean makes every effort to accommodate guest dietary restrictions to the extent possible,” the cruise line said in an email. “Royal Caribbean’s fleet and destinations offer a variety of gluten-free options. Before your vacation, please contact your travel advisor or certified vacation planner to notify Royal Caribbean of any dietary restrictions and update your reservation online using the Update Personal Information section or email special_needs@rccl.com to request that they be noted in your reservation details. This allows flight attendants to recognize and accommodate special dietary requests. ”
Why do cruise lines charge extra for private destinations?
Patrick Sholes, lodging and leisure analyst at Trust Securities, said luxury private islands and the type of destinations visited by cruise lines are relatively new developments. Royal Caribbean’s Perfect Day started that trend when it relaunched in 2019 after a $250 million renovation.
“And I think what they discovered is that if you teach them the basics and they want something more, if they want to get away from the crowd, customers will pay for that,” he said. “And for cruise lines, that extra dollar is a very high profit margin, over 70%, 80% profit margins, because it’s a very high fixed cost business.”
“In less than four weeks, Royal Beach Club has already become Nassau’s No. 1 and top-rated experience” for Royal Caribbean International’s guests, Michael Bailey, president and CEO of Royal Caribbean International, said on a Jan. 29 earnings call.
A recent survey of more than 4,500 U.S. adults published by Alivia also found that 55% said a private island stop was a factor in their decision to book a cruise.
“Private islands are also contributing to brand competition,” the report states. “Nearly one in four respondents said they would consider switching cruise brands for access to a private island, demonstrating how these experiences can sway loyalty in a crowded market.”
Private destinations also keep customers within the cruise line’s ecosystem. “At the end of the day, they found that the upgraded private island was a success for their customers,” Scholes said. “They pay more for a cruise because it’s a great experience and they love it. And it’s doubly so because the customer can keep some of the money in-house that they would have paid a private tour operator or something to pick them up and drop them off.”
Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. Please contact us at ndiller@usatoday.com.
