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The Herald Scotland
04-07-2025
- Business
- The Herald Scotland
Private island wars: Cruise lines are betting big on land destinations
"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," he told USA TODAY. The destination offers an exclusive experience packed with activities as part of many Royal Caribbean sailings, and has been a hit with guests. The high seas have long been cruise lines' primary domain, but many are investing more heavily in land-based destinations to complement their offerings at sea. A major new competitor to CocoCay, Carnival Cruise Line's Celebration Key - with five distinct areas or "portals" across 65 acres - will launch later this month on Grand Bahama. Here's why cruise lines are betting big on private island destinations. Why are cruise lines leaning into private islands? Cruise lines have had exclusive destinations for decades, but Royal Caribbean was the first to, "shall we say, put these private islands on steroids," said Patrick Scholes, a lodging and leisure analyst with Truist Securities. The company's private island, previously just CocoCay, was relaunched in 2019 following a $250 million renovation. The destination has water slides, pools, a zip line, cabanas, dining venues and bars, and more. Scholes likened it to a "mini Caribbean" theme park. "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," he said. Royal Caribbean International's chief marketing officer, Kara Wallace, told USA TODAY in October that of more than 250 ports its ships visit, CocoCay is "the number one highest-rated destination." "I think their competitors, that certainly being Carnival ... really took a cue from Royal Caribbean and said, 'Wow, Royal Caribbean really hit a home run and we're going to try to emulate that,'" Scholes said. Carnival did not immediately share a comment. With more destinations around the world pushing back against overtourism and the potential for geopolitical impacts on itineraries, private islands can offer a more undefined, convenient alternative, according to Marilyn Macallair, a cruise travel analyst for Phocuswright. "Now private destinations are becoming destinations in themselves," she said. Cruise line private island destinations include: Castaway Cay in The Bahamas (Disney Cruise Line) Disney Lookout Cay at Lighthouse Point in the Bahamas (Disney Cruise Line) Great Stirrup Cay in The Bahamas (Norwegian Cruise Line) RelaxAway, Half Moon Cay in The Bahamas (Carnival Cruise Line and Holland America Line) Harvest Caye in Belize (Norwegian Cruise Line) Ocean Cay MSC Marine Reserve in The Bahamas (MSC Cruises) Perfect Day at CocoCay in The Bahamas (Royal Caribbean and Celebrity Cruises) Princess Cays in The Bahamas (Princess Cruises and Carnival Cruise Line) What are the benefits of cruise line private islands? Owning or leasing a destination allows cruise lines to control almost every aspect of the experience, Macallair noted, from which ships stop there and when, to the look of the facilities and the food and drink pricing. While many activities and amenities are complimentary - and onboard drink packages often still apply - plenty of others come at an upcharge, from excursions to cabana rentals and beach club passes. Admission to CocoCay's Thrill Waterpark, for example, costs extra, though prices vary by season (booked passengers can check rates for their specific sailing via My Royal Cruise). The availability of land in The Bahamas and its government's willingness to work with cruise lines make it a particularly attractive choice, Scholes said. Plus, it's easy to get to: Bimini, where Virgin Voyages' The Beach Club at Bimini is located, is just 50 miles from Florida. Macallair also noted that the Caribbean remains in high demand. In 2024, 43% of cruise guests visited the region, according to Cruise Lines International Association's most recent State of the Cruise Industry Report. Nearly 15 million passengers sailed on Caribbean, Bahamas and Bermuda cruises, up from 12.8 million in 2023. The future of cruises: Are mega-ships here to stay? For passengers, Macallair said the exclusivity is part of the appeal. Scholes echoed that, noting it makes that kind of experience relatively accessible, compared to other kinds of 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. That highly-managed setting can also be a drawback, though. While cruise lines often integrate local cultural elements - such as Junkanoo at Disney Lookout Cay at Lighthouse Point - some visitors may find they lack the depth of immersion on offer at other ports of call. "I probably wouldn't go on a cruise for the sake of going back to CocoCay," said Huff. "Sure, if it stops there, it's an enjoyable stop. It's not something that would keep me from going on a cruise, but I would definitely prefer something more culturally immersive, something that I can go out and actually explore a country and, like, travel a little bit." Are cruise lines adding more private islands? Celebration Key is hardly the only land-based project underway. Carnival Cruise Line and Holland America Line recently announced that they would partner on enhancements to the private Bahamas destination Half Moon Cay. The changes, the first of which will be completed by summer 2026, include a new pier where ships can dock on its north side, added lunch venues and bars and a new name, RelaxAway, Half Moon Cay. and recently announced that they would partner on enhancements to the private Bahamas destination Half Moon Cay. The changes, the first of which will be completed by summer 2026, include a new pier where ships can dock on its north side, added lunch venues and bars and a new name, RelaxAway, Half Moon Cay. Norwegian Cruise Line Holdings Ltd., parent company of Norwegian , Oceania Cruises and Regent Seven Seas Cruises , will also add a new welcome center, an island-wide tram system, an "extensive" new pool area and more to its Bahamas island, Great Stirrup Cay, the company said in an April news release. The upgrades are set to debut in the fourth quarter of 2025. , and , will also add a new welcome center, an island-wide tram system, an "extensive" new pool area and more to its Bahamas island, Great Stirrup Cay, the company said in an April news release. The upgrades are set to debut in the fourth quarter of 2025. Royal Caribbean has a slew of other land-based products launching over the next few years, too, including Royal Beach Club Paradise Island in December 2025; 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, with more details to come. has a slew of other land-based products launching over the next few years, too, including Royal Beach Club Paradise Island in December 2025; 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, with more details to come. MSC Group is developing an island near its existing Bahamas destination, Ocean Cay MSC Marine Reserve, as well, Travel Weekly reported. Scholes said there may come a time when the market is oversaturated with suped-up private islands. Given how long they take to develop, however, he said that's unlikely to happen for at least five years. "There's always the fear down the road that you sort of kill the golden goose by just (having) too many," he said. "We're not at that point yet." Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@
USA Today
03-07-2025
- Business
- USA Today
'Private islands on steroids': Why cruise lines are betting big on their own destinations
During a recent vacation, Jared Huff enjoyed a private island in The Bahamas as his personal playground. The 20-year-old went jet skiing, visited a waterpark and relaxed on the beach at Royal Caribbean's Perfect Day at CocoCay for hours before returning to the Wonder of the Seas ship. Huff, who is from Knoxville, Tennessee, was visiting during a June cruise with his girlfriend and her family. '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,' he told USA TODAY. The destination offers an exclusive experience packed with activities as part of many Royal Caribbean sailings, and has been a hit with guests. The high seas have long been cruise lines' primary domain, but many are investing more heavily in land-based destinations to complement their offerings at sea. A major new competitor to CocoCay, Carnival Cruise Line's Celebration Key – with five distinct areas or 'portals' across 65 acres – will launch later this month on Grand Bahama. Here's why cruise lines are betting big on private island destinations. Why are cruise lines leaning into private islands? Cruise lines have had exclusive destinations for decades, but Royal Caribbean was the first to, "shall we say, put these private islands on steroids," said Patrick Scholes, a lodging and leisure analyst with Truist Securities. The company's private island, previously just CocoCay, was relaunched in 2019 following a $250 million renovation. The destination has water slides, pools, a zip line, cabanas, dining venues and bars, and more. Scholes likened it to a "mini Caribbean" theme park. '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,' he said. Royal Caribbean International's chief marketing officer, Kara Wallace, told USA TODAY in October that of more than 250 ports its ships visit, CocoCay is 'the number one highest-rated destination.' "I think their competitors, that certainly being Carnival … really took a cue from Royal Caribbean and said, 'Wow, Royal Caribbean really hit a home run and we're going to try to emulate that,'" Scholes said. Carnival did not immediately share a comment. With more destinations around the world pushing back against overtourism and the potential for geopolitical impacts on itineraries, private islands can offer a more undefined, convenient alternative, according to Marilyn Macallair, a cruise travel analyst for Phocuswright. "Now private destinations are becoming destinations in themselves," she said. Cruise line private island destinations include: What are the benefits of cruise line private islands? Owning or leasing a destination allows cruise lines to control almost every aspect of the experience, Macallair noted, from which ships stop there and when, to the look of the facilities and the food and drink pricing. While many activities and amenities are complimentary – and onboard drink packages often still apply – plenty of others come at an upcharge, from excursions to cabana rentals and beach club passes. Admission to CocoCay's Thrill Waterpark, for example, costs extra, though prices vary by season (booked passengers can check rates for their specific sailing via My Royal Cruise). The availability of land in The Bahamas and its government's willingness to work with cruise lines make it a particularly attractive choice, Scholes said. Plus, it's easy to get to: Bimini, where Virgin Voyages' The Beach Club at Bimini is located, is just 50 miles from Florida. Macallair also noted that the Caribbean remains in high demand. In 2024, 43% of cruise guests visited the region, according to Cruise Lines International Association's most recent State of the Cruise Industry Report. Nearly 15 million passengers sailed on Caribbean, Bahamas and Bermuda cruises, up from 12.8 million in 2023. The future of cruises: Are mega-ships here to stay? For passengers, Macallair said the exclusivity is part of the appeal. Scholes echoed that, noting it makes that kind of experience relatively accessible, compared to other kinds of 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. That highly-managed setting can also be a drawback, though. While cruise lines often integrate local cultural elements – such as Junkanoo at Disney Lookout Cay at Lighthouse Point – some visitors may find they lack the depth of immersion on offer at other ports of call. 'I probably wouldn't go on a cruise for the sake of going back to CocoCay,' said Huff. 'Sure, if it stops there, it's an enjoyable stop. It's not something that would keep me from going on a cruise, but I would definitely prefer something more culturally immersive, something that I can go out and actually explore a country and, like, travel a little bit.' Are cruise lines adding more private islands? Celebration Key is hardly the only land-based project underway. Scholes said there may come a time when the market is oversaturated with suped-up private islands. Given how long they take to develop, however, he said that's unlikely to happen for at least five years. 'There's always the fear down the road that you sort of kill the golden goose by just (having) too many,' he said. 'We're not at that point yet.'
Travel Weekly
24-06-2025
- Business
- Travel Weekly
Carnival Corp. raises full-year guidance after a lucrative Q2
Carnival Corp. on Tuesday reported record revenue for an eighth consecutive quarter with margins the company hasn't seen in nearly 20 years, said CEO Josh Weinstein. Second-quarter revenue of $6.3 billion was nearly 9% higher than the $5.8 billion reported a year earlier. Net income was $565 million, up from $92 million last year. The company saw volatility in bookings in April, though pricing strengthened in May and has improved even more thus far in June, Weinstein said. He also said close-in bookings and onboard spending were "incredibly strong" in Q2. The company's 2026 prices are currently at historic highs, and next year's booked position is similar to last year's record pace. Customer deposits were at an all-time high of $8.5 billion in the second quarter, Carnival Corp. said. Net yields, adjusted cruise costs, adjusted net income and adjusted EBITDA all outperformed March guidance. The company has raised its guidance for the full year. In the third quarter, it expects a year-over-year increase in net yields and higher adjusted cruise costs due to the cost of opening private Bahamian destination Celebration Key this July, plus higher advertising costs. Carnival Cruise Line's new rewards program, which launches in June 2026, will not add any meaningful costs, said CFO David Bernstein, and is expected to have a positive impact on yields about two years after the launch. War between the U.S. and Israel versus Iran has not impacted Carnival, but it "is all unfolding too quickly in real time to try to project how it could impact our future business," Weinstein said.
Yahoo
24-06-2025
- Business
- Yahoo
Carnival Corp lifts annual outlook after strong Q2 print
-- Carnival (NYSE:CCL) Corp. saw its shares jump around 5% ahead of Tuesday market open after the cruise operator reported second-quarter earnings and revenue that exceeded analyst estimates. The company posted Q2 earnings per share (EPS) $0.35, topping the analyst expectations by $0.24. Revenue reached $6.33 billion, up nearly $550 million compared to the prior year, and ahead of the $6.21 billion consensus estimate. "Our amazing team delivered yet another phenomenal quarter, more than tripling adjusted net income driven by record net yields (in constant currency) and strong close-in demand," Carnival Corporation CEO Josh Weinstein said in the release. "We also remain on track for a strong 4 percent net yield growth in the second half, consistent with what we forecasted back in December which was before the complex macroeconomic and geopolitical backdrop we have all experienced in the last few months. Combined, this has enabled us to raise full year guidance again." "On top of this, thanks to our consistent track record of significant outperformance, we have already exceeded our 2026 SEA Change financial targets a full 18 months early, increasing adjusted EBITDA per ALBD by 52 percent and more than doubling adjusted ROIC to over 12.5 percent in less than two years," he added. "We also met our third 2026 SEA Change commitment to cut carbon intensity by 20 percent from 2019 levels. That's a win for the planet and our bottom line." Looking to the third quarter of 2025, the company expects constant-currency net yields to rise about 3.5% year over year, building on a nearly 9% increase in the same period of 2024. Adjusted cruise costs excluding fuel per available lower berth day (ALBD) are projected to increase approximately 7%, reflecting "operating expenses for the opening of Celebration Key, higher investment in advertising expenses and the impacts of lower 2025 capacity and favorable one-time items in 2024." For the full year, Carnival expects net yields in constant currency to rise roughly 5.0% from 2024's already strong levels, which were up 11%. That figure is also 30 basis points above the company's previous guidance from March. Adjusted cruise costs excluding fuel per ALBD are expected to climb around 3.6%, an improvement versus prior forecasts. Full-year adjusted net income is now projected to grow by more than 40% compared to 2024, exceeding March guidance by $200 million. Adjusted EBITDA is projected to reach approximately $6.9 billion, up more than 10% year over year and above the prior outlook. Related articles Carnival Corp lifts annual outlook after strong Q2 print FactSet misses earnings estimates in fiscal Q3, shares slip Kroger's Q1 earnings top estimates, revenue falls short Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
Why Carnival Stock Surged 27% in May
Carnival continues to report records across metrics. It refinanced $5.5 billion at much better rates in the first quarter, but total debt is still very high. Carnival stock is attractively priced. 10 stocks we like better than Carnival Corp. › Carnival (NYSE: CCL)(NYSE: CUK) stock jumped 27% in May, according to data provided by S&P Global Market Intelligence. The stock is on the rebound after crashing earlier this year on fears of crackdowns on cruise industry taxes, and it got a boost from an analyst upgrade. Carnival stock has been volatile since crashing when the pandemic started. The company has made incredible progress in rebuilding its business, with record demand every quarter that it keeps smashing through, but the market is still concerned about its massive outstanding debt. The 2025 fiscal first quarter (ended Feb. 28) was another huge success. Revenue increased 7% year over year to $5.8 billion, and operating income nearly doubled to $543 million. The advanced booking position was in line with last year's record highs, and bookings for 2026 surpassed previous records. Total deposits were $7.3 billion, a first-quarter record, driven by both ticket sales and pre-cruise onboard sales, and ticket sales were at historical highs. Net yields, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted net income all exceeded management's guidance. Management is focused on driving demand and on cost efficiency. It launched a robust digital ad campaign that's yielding strong results, and it's getting the word out about what it calls its "game-changing asset," Celebration Key. This is an exclusive island resort devoted only to Carnival cruise guests. It's also ordering new ships to keep up with growing demand and generate further sales growth over the next few years. The business is going well, but debt is still weighing on the balance sheet. Management made some major moves to reduce it in the first quarter, refinancing $5.5 billion of debt with lower-interest notes. It expects $145 million in annualized interest expense savings, and it reduced the total debt by another $500 million. However, Carnival's total debt stands at $27 billion as of the end of the first quarter, well above its historical levels. Carnival stock headed lower in February after Commerce Secretary Howard Lutnick said the Trump administration would get tougher on cruise companies that don't pay taxes. But as the price tumbled, it started to look very attractive to bargain hunters. Even now, Carnival stock trades at just 11 times forward one-year earnings. It also got a boost when an HSBC analyst raised it from a reduce rating to a hold rating. Carnival stock may not be for the most risk-averse investor, but it could be an excellent buy right now for investors who can handle a bit of risk. Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 HSBC Holdings is an advertising partner of Motley Fool Money. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. and HSBC Holdings. The Motley Fool has a disclosure policy. Why Carnival Stock Surged 27% in May was originally published by The Motley Fool Sign in to access your portfolio
