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The Street
The Street
Daniel Kline

Royal Caribbean Explores a Major Move Passengers Would Love

Perfect Day at CocoCay has changed the game when it comes to cruise line private islands. Whereas a private island used to be little more than a beach day with drinks and a barbecue, Royal Caribbean (RCL) has amped up the experience with a massive pool, multiple beaches, an extra-fee waterpark, a variety of mostly-included restaurants, an added-fee beach club, and multiple beach experiences.

It wasn't that long ago that you had to take a tender to CocoCay, but now the island has a dock that can accommodate two Oasis-class ships. Royal Caribbean has essentially made the island an extension of its ships and rather than being a ho-hum day, Perfect Day has become an attraction for the cruise line that rivals Carnival (CCL), MSC, Walt Disney (DIS), and Norwegian Cruise Line (NCLH) can't equal.

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It's a model that has worked so well that Royal Caribbean has been looking for ways to extend it. That will happen after a fashion when it launches the Royal Beach Club in Nassau in 2025, but that will be an added-fee excursion-style experience. The company also has a private island in Labadee, Haiti it uses on Caribbean sailings, but the success of Perfect Day at CocoCay means the cruise line could use more private island capacity in the Bahamas.

Royal Caribbean may have an answer to that problem.

CocoCay offers a pool and even a tethered hot air balloon.

Image source: Daniel Kline/TheStreet

Royal Caribbean Explores Another Bahamas Island 

The challenge with CocoCay is that Royal Caribbean has ships sailing from four Florida ports, New York, and Texas that could call on the island. CocoCay can accommodate two ships each day, so the cruise line only has 28 slots at the island and it could use more given how many ships it usually has sailing in the Bahamas.

CocoCay has become even more important for Royal Caribbean since it has focused on building only large ships. Oasis-class ships and the company's next class, Icon Class, are too big to dock at certain ports. That makes private islands an important part of the company's business model.

Now, the cruise line may have a solution.

"Royal Caribbean is exploring the possibility of expanding its presence in the Bahamas by considering Rum Cay as a potential new location. Michael Bayley, the company’s president and chief executive, advised not to draw conclusions but acknowledged that the cruise line constantly seeks opportunities to expand," CruiseHive reported.

Rum Cay sits about 345 miles southeast from Nassau and it's well-known for its beaches, turquoise water, and its natural beauty. Royal Caribbean has shown with its Nassau Beach Club project that it's not taking a one-size-fits-all approach to private islands and is instead working with local authorities to create the right mix for each property.   

Royal Caribbean Is Always Looking to Expand

Bayley made it clear in an interview with the Tribune, a local Bahamas newspaper, that the cruise line was interested, but no deal had been made.

"We send teams around the world constantly looking for opportunities. I wouldn’t read too much into it. We were approached, looked and it’s a great space. It was a look and evaluation. We have to look at things. Everything comes with pros and cons," he added.

The newspaper reported that the cruise line was shown a 375-450 parcel in the island’s northwest corner right by the sea that was recently appraised.

"It is understood the site is part of a larger 1,000-acre tract that had previously been caught-up in the multiple land disputes that have afflicted the island, but it is thought all title issues and legal battles have now been resolved," the paper added.

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