Due to the fact that the largest cruise ships are effectively floating versions of major Las Vegas resort casinos, they have evolved into tourist attractions. This is essential because once ships reach a certain size, they can no longer dock in many ports.
People still want to stop, even though these mega-ships have more to do than can be completed in a week of sailing. This is difficult since only ports like Nassau and Cozumel, where many regular cruisers frequently stay on board, can accommodate numerous large ships at once.
Royal Caribbean’s CocoCay Private Island
A portion of Royal Caribbean International’s (NYSE:RCL) port issue has been resolved by making its CocoCay private island a popular destination. RCL owns the largest cruise ship in the world, Wonder of the Seas, as well as numerous other enormous ships in its Oasis class. Prior to being renovated by Royal Caribbean, cruise line private islands were essentially beaches with bars and a BBQ.
The construction of “Perfect Day at CocoCay” by Royal Caribbean, a redesign of the private island experience, changed that. A large pool, numerous beach options, a waterpark with additional fees, and a pricey high-end beach club were added by CocoCay. The updated island also offers a range of food options and attractions, such zip lines, a tethered hot air balloon, and more, all of which are chargeable extras.
As reported by The Motley Fool, analysts surveyed by S&P Global Market Intelligence, there’s a remote possibility that Royal Caribbean will make money as early as the upcoming quarter, before losing money once more in Q4. Investors in Norwegian (NYSE:NCLH) and Carnival, on the other hand, would not be able to witness their companies return to profitability until at least Q2 2023.
No matter how positive you are about cruise stocks, it’s difficult to conceive that a day’s worth of bookings will change that gloomy outlook.
Featured Image: Megapixl © BCritchley