Carnival Corp. CEO Josh Weinstein leveled with investors during the company's Q4 earnings call: Other cruise lines are better at promoting their private islands, and it's time to step up.
As cruise companies increasingly establish fresh and elaborate private destinations in the Caribbean, Carnival Corp. plans to launch a multiyear strategy to draw attention to its own beach assets. That includes developing marketing focused on a pair of private beach destinations, creating itineraries that visit both, and enhancing its other private Caribbean locations.
"Some are doing better than others, and better than us, turning their own destinations into something that not only guests but non-cruisers look at and decide 'that's going to help tilt my vacation decision to take a cruise,'" Weinstein said.
"We have not, historically, done a good enough job in raising the level of awareness on the amazing destinations that we have and are in the pipeline," he said.
Carnival Corp. does indeed have quite a bit in the pipeline. In July it is opening Celebration Key, which will be a flagship destination for its Carnival Cruise Line brand at Grand Bahama. The area will feature several zones, including a family area, a private club, an adults-only section and a faux sand castle with waterslides. Although the project is not yet finished, Weinstein said the company is planning more construction there later this decade.
Another project is the rebranding and expansion of Half Moon Cay, a private destination in the Bahamas used primarily by Holland America Line and Carnival Cruise Line. Carnival Corp. plans to rename it Relaxaway Half Moon Cay to convey a leisurely experience, and it will add a two-ship berth on the north side dedicated to Carnival Cruise Line.
Relaxaway is one of the most stunning destinations in the world, Weinstein said. "Yet if you're not a cruiser, you don't know anything about it. You're not looking for it. We're going to change that dynamic."
Weinstein said the strategy included marrying the two contrasting island experiences via itineraries that would visit both the upbeat Celebration Key and the chill Relaxaway Half Moon Cay on one sailing.
Offering sandy beaches and a variety of amenities, private destinations often garner a cruise line's highest guest approval ratings.
In the last year, 6.5 million guests visited one of Carnival's exclusive island or beach destinations, which include Princess Cays in the Bahamas, the Grand Turk Cruise Center in Turks and Caicos, Mahogany Bay in Honduras, Amber Cove in the Dominican Republic and Puerta Maya in Cozumel. Third parties provide food, beverages, retail and shore excursions at the private destinations. Some destinations allow non-Carnival Corp. ships to call when berthing space is available.
Under the new strategy, Carnival Corp. will improve the experience at those destinations over time, but Weinstein hinted the improvements would be limited.
Mike Estill, COO at the Western Association of Travel Agencies, said Carnival Corp. appears to be exploring how the private islands can benefit the company's overall brand identity.
"It sounds like they're making the right noise about realizing what it could be and not doing it just simply because they're trying to keep up with the Joneses," he said.
Weinstein didn't mention any competitors by name during the call, but other lines have been busy building out their private island portfolios.
Royal Caribbean International is building three private destinations in the Caribbean to open by 2027, including an expansion into Mexico of its Perfect Day franchise. Norwegian Cruise Line is sprucing up its Great Stirrup Cay destination in the Bahamas with a two-ship pier. MSC Cruises is wrapping up a slew of infrastructure improvements to Ocean Cay MSC Marine Reserve. And Disney Cruise Line last summer opened its second private destination, Lookout Cay at Lighthouse Point.
Cruisers tend to feel safer at cruise lines' private destinations than in some public ports of call, said Kelly Brewer, a Cruise Planners franchise owner based in Lowell, Arkansas. Guests have minimal awareness of Carnival's private destinations, but she likes that lines are paying more attention to their private ports of call, she said.
"I do love how they're getting more of these private destinations and enhancing the private islands, because our clients love going somewhere they feel safe," Brewer said. "They don't feel safe in Nassau. They don't feel safe in the Dominican Republic. They don't feel safe sometimes in Belize and Roatan," Brewer said.