Royal Caribbean's private islands to 'grow share of land-based holiday market'

Royal Caribbean’s new private destinations present “a unique opportunity” to grow the line’s share of the land-based holiday market rather than take away customers from competitor cruise lines, according to its president.

 

Speaking at a media event in New York where more details of four upcoming private destinations were unveiled, including Perfect Day Mexico, Jason Liberty said: “Ultimately, we’re trying to close the gap to land-based vacations, and one of the ways we’re doing that is making sure we are addressing all different segments of the generations.

 

“Half of our guests today are millennials or younger, and the focus there is not on taking share from our cruise competitors, but how we close that gap with land-based vacations because we’re ultimately in the experience business.”

 

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Perfect Day Mexico is set to open in autumn 2027, featuring north and south America’s tallest waterslide Jaguar’s Peak, with two Royal Beach Clubs and another private destination in French Polynesia also joining the line-up.

 

Royal Caribbean International president and chief executive Michael Bayley said the line “leans in” to all generations, adding: “Millennials are our customers now and as soon as Gen Zs start having kids, they become our customers too.

 

“New-to-cruise skews younger and, typically, they are unsure, so they want to go with a trusted brand. They’re willing to explore with us with our brand new $2 billion hardware, Perfect Day destinations and short cruises.”

 

He predicted Perfect Day Mexico will be “huge” for all markets, highlighting short cruises on Utopia of the Seas from Port Canaveral will be “perfect” for UK agents to dynamically package trips featuring the new Epic Universe theme park.

 

Bayley added next year the line will roll out a trade training programme in all markets providing digital tools like pre-written emails, social media assets and short videos to assist with booking the new private destinations.

 

Royal Caribbean International senior vice-president Angie Stephen added the line’s “biggest challenge” was awareness of cruise as an option in the wider holiday market.

 

“Two out of three guests are new to Royal Caribbean. We want to make sure travel partners know we’re offering a great experience by combining the best of innovative ships and innovative experiences on land that you cannot find anywhere else in the cruise industry,” she said.

 

Stephen added the average age of a Royal Caribbean “premium customer” was now in the millennial demographic, adding a cruise of five days or less is “a great taster” for the new-to-cruise market.

 

She said agents play “a pivotal role” in helping reach a wider audience as cruise is “still not a dominant vacation choice”, making up “a small piece” of the overall market.