Cruise control: Why more ships are visiting in-house private islands

Cruise companies are pulling a reverse Paul Revere—$1 if by sea, $2 if by land. In an effort to drum up revenue, these businesses with ships the size of countries are increasingly focusing their efforts on land-based ventures located on private islands that they’ve purchased.

Cruise industry giants currently own ~20 such destinations in the Caribbean, and nearly every company is working to expand their holdings:

• Royal Caribbean expects to launch four more properties by early 2027, at which point ~90% of its Caribbean cruises will sail to at least one in-house port.
• Carnival has scheduled nearly all of its ships to stop at its new $600 million Celebration Key resort once it opens in July.
• MSC Cruises and Norwegian Cruise Line are both expanding their private Caribbean islands to accommodate thousands of additional daily guests.

These islands carry several advantages. Along with giving cruise ships additional places to dock and refuel close to their home ports, the private resorts offer travelers a plethora of additional excursions, restaurants, and entertainment opportunities—all with the same lucrative up-charges as the ships.

Zoom out: Growth in cruise travel has begun to slow in recent months compared to a recent post-pandemic boom, leading many companies to look for new ways to boost their bottom lines. These include investments in ultra-luxury sailings, more intimate river cruises, and new interactive excursions.