Even during the darkest days of the pandemic, Royal Caribbean Group (RCL) kept moving forward with new innovations. Yes, the cruise line slowed down spending on new projects and delayed plans to "amp" some of its ships, but it continued developing some key new initiatives.
The splashiest innovation, of course, is Icon of the Seas, the first of a new class of ships that are designed to essentially rival theme parks. That ship, which won't sail its maiden voyage until January 2024, has already been a massive success.
"We opened up to sail Icon of the Seas a few months ago, and that ship literally has been the best-selling product in the history of our business and has been absolutely outstanding in terms of the demand and the pricing that we're generating for the product," said Royal Caribbean President Michael Bayley during the cruise line's fourth-quarter earnings call. "And in fact, it's really driving a great '24. I mean we don't -- we never talk about '24 at the beginning of '23, obviously, but '24 is looking very healthy. And a big driver of that is Icon."
And while Icon of the Seas will be a difference maker when it arrives, Royal Caribbean already has a major differentiator compared to its key rivals, Carnival Cruise Lines (CCL) and Norwegian Cruise Lines (NCLH) -- Perfect Day at CocoCay. Now, the cruise line has shared plans for a major improvement to that island.
Image source: Daniel Kline/TheStreet
Why Is CocoCay Different?
Private islands have long been offered by major cruise lines. The classic version of this, however, is basically just a pristine beach with bars and a barbecue. In most cases -- and this used to be true for Royal Caribbean's CocoCay -- you had to take a tender (a small ship) from your cruise ship to get to the island.
Royal Caribbean changed the standard when it turned CocoCay into Perfect Day at CocoCay. First, it added a dock that can handle two Oasis-class ships, eliminating the hassle of having to use tenders.
Perhaps most importantly, the cruise line decided to turn its island into much more than a beach. It added the largest pool in the Caribbean, complete with a swim-up bar as well as an added-fee water park. The cruise line also added a high-end, extra-cost Beach Club experience and dotted the island with (mostly) free food options that go beyond the traditional barbecue.
CocoCay still offers the classic serene beach experience if you want that, but it also includes a lot more. Soon, it's also going to offer a completely different experience.
Royal Caribbean Shares Details on Hideaway Beach
Currently, CocoCay has a capacity of 10,000 guests. That means that while two Oasis-class ships can dock there, two full Oasis-class ships would test the island's capacity. And, even if capacity limits aren't an issue (because some people stay on the ship) a near-capacity CocoCay can make the experience of being there less enjoyable.
To alleviate that problem, Royal Caribbean has been developing a new area on the island that will be adults-only. The cruise line has not shared many details on what will be called Hideaway Beach, but Bayley did offer some details during the earnings call.
"We are opening Hideaway Beach in the fourth quarter of this year in preparation for Icon of the Seas. It will be arriving also towards the end of the fourth quarter. And of course, Hideaway Beach will allow us to bring an additional 3,000 people to Perfect Day. So our capacity will be approximately 13,000 people a day," he shared.
Royal Caribbean has not shared whether Hideaway Beach will be an added-fee area or included like the adults-only solarium on its ships.
