Cruise lines are constantly in a chess match to outdo each other, and Royal Caribbean is betting it has a super move up its sleeve.
Just like how an auto manufacturer might implement a feature not available on other brands vehicles, Royal Caribbean is poised to outdo other cruise lines with an offering they think will get a lot of attention.
Ironically, their next big investment is in the very thing they have traditionally competed against: fun on land.
Two different beach clubs are going to be built, with one opening in 2025 and 2026. These aren't traditional cruise line private islands that are open to all passengers onboard and included with the cruise fare. This will be something above and beyond that.
Royal Caribbean will open its first Royal Beach Club in Nassau, Bahamas in summer 2025, followed by its second beach club to open in Cozumel, Mexico in 2026.
Differences between the mega cruise ship lines can be subtle, but these beach clubs are about standing out from the pack and drawing in new customers with something no one else can offer.
Solving customer needs
Before you step foot in any of these clubs, the rationale for offering a beach club is about targeting two key markets for Royal Caribbean.
The first beach club opens in one of the most highly visited and poorly rated cruise ports in the world, Nassau.
Nassau consistently ranks in the bottom 10% of customer satisfaction among Royal Caribbean customers, even though it's located close to the United States and many cruise ships visit it.
Royal Caribbean International President and CEO Michael Bayley said the issue Nassau faces is it lacks special things to do that are also original.
Because it's so frequently visited, passengers find the choices of what to do in port limiting and uninspiring.
Royal Caribbean wanted to solve this problem because not going to Nassau really isn't an option. The line brought more than 1.6 million visitors to the Nassau cruise port in 2023.
In April 2023, Mr. Bayley talked about this need to improve shore excursion choices for their customers, "We want to improve the experience of our guests. We can’t keep selling experiences to people who say we love going to Perfect Day, it’s fantastic, we want to go back, but the Nassau thing, can you guys stop going there? We can’t do that, so yeah, we want to be a part of the solution."
Royal Beach Club Paradise Island
Construction is underway to build and open Royal Caribbean's answer to its customer's issues with Nassau.
Royal Beach Club Paradise Island will open in summer 2025 on a 17-acre site that is right across from where all the cruise ships dock. Not only is it prime real estate, it's a a shining beacon to every other cruise line what they're missing out on.
Royal Caribbean wants to offer an unparalleled beach experience in a prime spot, exclusively to its customers.
Royal Beach Clubs are limited access and have an extra cost to them. This means only a few thousands Royal Caribbean guests will be able to visit it each day, and it will not be included in the base cruise fare.
About 2,000 people will be able to purchase a pass each day. No word yet on how much admission will cost.
Once inside, guests can enjoy three pools with swim-up bars, live music, two beaches, four restaurants serving local food.
The club is also going to incorporate Bahamian culture in an industry first cooperative effort to give back to the people of The Bahamas with a revenue sharing agreement that gives up to 49% equity.
It's expected the beach club will generate hundreds of jobs between the construction and long-term operation. Plus, there will be a new tourism levy that will fund reinvesting in the local community.
Once open, the beach club will offer something fresh and different, not only in Nassau, but among the entire industry too.
Royal Beach Club Cozumel
The second part of Royal Caribbean's plan is to open another beach club in 2026 on the other side of the Caribbean in Cozumel, Mexico.
Cozumel is another traditionally popular cruise port, but unlike Nassau, doesn't have the low rating problem. However, the club addresses a different need.
Royal Caribbean is investing in many places, including Galveston, Texas. While Florida may be the capital of cruising, Galveston is quickly becoming a rival hot spot, with newer and bigger ships sailing from Texas. In fact, Royal Caribbean built a massive new cruise terminal that can handle the largest cruise ships in the world.
The issue with cruises from Galveston has been a lack of port variety. In order to meet the typical week-long vacation window most Americans abide by, cruise ships sailing from Galveston are relegated to the same Western Caribbean cruise ports, including Cozumel.
A Royal Beach Club in Cozumel gives Royal Caribbean passengers something different, and a familiar face in a crowded room of things to do.
Just like Nassau, the beach club in Cozumel will combine great views, with great access to water.
Royal Caribbean's Senior Vice President and Chief Product Innovation Officer Jay Schneider described the club as having, "great beach, great pool, great food, great service."
The Cozumel club will offer swim-up bars, pools cabanas to rent, snorkeling, kayaking, restaurants, and street markets.
Full details haven't been released yet, but there have been hints both beach clubs are going to truly stand out as more than "just another beach" to visit.
Combining new destinations and new ships
The new beach clubs dove tail right into the launch of three new cruise ships that Royal Caribbean thinks will offer the very best vacation choice in the market.
Icon of the Seas launched earlier this year to become the world's largest cruise ship, and has earned incredible accolades for setting a new standard for cruise ships.
Utopia of the Seas also launched this year, and while not as innovative as Icon, she is arguably the top choice for a short weekend cruise.
Next year, Star of the Seas will join the fleet and sail from Port Canaveral, Florida. The sister to Icon of the Seas, Star will will be a follow-up that seeks to capitalize on Icon's success while introducing a few improvements.
Royal Caribbean seems to think combing the very best cruise ships with the very best destinations is how they'll win over thousands of people who have never taken a cruise before. To borrow a term from the military, it looks like a lot of "shock and awe" to stand out from any other choice.
