Cruise line private destinations are growing. So are the fees

Ryan and Kala Lambert had one destination in mind on their last cruise. The couple sailed to the Bahamas on Royal Caribbean International's Wonder of the Seas specifically to visit  Royal Beach Club Paradise Island , which opened in December.

"Once we got on the tender boat and we pulled up, I was like, 'Oh, man, this is so exciting,' because every time we've [cruised] into Nassau, I've always thought that that little strip was an unused gem," Kala, 39, said.

The Lamberts, who make travel content on  their YouTube channel , arrived around 8 a.m. during their January sailing and left shortly before 4 p.m. The private club for the company's guests offers beaches, cabanas, swim-up bars and more – all accessible via complimentary water taxi. Amenities are spread across three distinct areas: Family Beach, Chill Beach and Party Cove (the latter is where the Lamberts spent most of their day).

'Private islands on steroids': Why cruise lines are betting big on their own destinations

The Ottawa, Ontario, couple paid for those privileges, though, saying they spent a total of $930 on a bundle with passes to Royal Beach Club (and alcoholic drinks there); a Deluxe Beverage Package onboard; and access to Hideaway Beach, an  adults-only area  at  Perfect Day at CocoCay, the line's private island, where the cruise also stopped.

"On a four-day cruise, that's a big chunk of change," said Ryan, 36.

Cruises are often pitched as an inclusive experience. But just as onboard add-ons can cause the overall cost of a cruise to balloon, passengers may encounter more fees at their land-based destinations, too.

What's included on a cruise line's private destinations? 

Jared Feldman, owner of travel agency Jafeldma Travel, said there are distinctions between private destinations and private excursions. At the former, he said, the destination is open to all guests and typically includes a complimentary buffet or other "basic food" options, as well as access to the pools and beach. Access to other amenities may cost extra, however. 

Norwegian Cruise Line's then-president David J. Herrera told USA TODAY in July that there  would be an upcharge  for the upcoming Great Tides Waterpark at its Bahamas island, Great Stirrup Cay, much like Royal Caribbean's Thrill Waterpark on Perfect Day. The latter's Hideaway Beach – opened in 2024 – costs extra as well, as does the 18+ Pearl Cove Beach Club at Carnival Cruise Line's  Celebration Key  on Grand Bahama, which began welcoming guests in July. 

When it comes to drinks, Feldman said, "This is where the industry is getting split." In some cases, such as at Royal Caribbean's Perfect Day, onboard beverage packages apply on land, while at other destinations like Celebration Key, they do not.

Norwegian also recently confirmed that its onboard drink packages will no longer extend to Great Stirrup Cay, effective March 1, as part of a broader transformation of the island.

"Complimentary beverages including water, iced tea, juices, and more will continue to be readily available on the island," the cruise line told USA TODAY in October when the change was first reported. "Our beverage package is priced between $23-$30 per person per day, based on voyage length, [and] the onboard beverage package provides guests unlimited drinks with premium beverage liquors such as Grey Goose, Casamigos and Woodford Reserve at our award-winning beverage venues across our ships, offering guests an incredible value that far exceeds offerings for land-based getaways."

Norwegian said at the time it planned to offer a separate drink package for the Bahamas destination. "It'll be interesting to see if other lines follow suit," Feldman said. 

On the other hand, Feldman likened Royal Beach Club Paradise Island more to a  shore excursion , designed to "compete with the likes of going to Atlantis for the day or going to Baha Mar for the day, and experiencing that resort-like experience."  

Passengers can choose between  two-day passes.  One includes alcohol and other drinks, while the other includes only nonalcoholic beverages (though alcoholic drinks are available to buy à la carte). Both also cover dining, Wi-Fi, beach chairs, umbrellas and more. Guests can spring for a cabana, daybed, or the Party Deck and get day passes thrown in, as well, or bundle their passes with other purchases. 

Royal Caribbean plans to open additional Royal Beach Clubs in destinations like Cozumel, Mexico, and  Santorini, Greece .

While the Lamberts liked the vibrant decor and friendly staff at Paradise Island, they came away with mixed feelings, given the cost, which the couple said was listed at about $199 per person for just the day pass with Unlimited Open Bar & Dining. For example, Kala found the food "a little underwhelming," with few options for guests with dietary restrictions (she is a vegetarian and has a gluten allergy).

"'Is it worth it?' is a hard question to answer, because it depends," she said. Travelers will have to make that call for themselves depending on their budget and priorities.

Royal Caribbean told USA TODAY that Royal Beach Club pricing is dynamic and subject to change, and encourages guests to check rates on the cruise line's website or app during booking. Menu changes were also recently made to add more variety.

"Royal Caribbean makes every effort to accommodate guest dietary restrictions whenever possible," the cruise line said in an email. "A variety of gluten free options are available across Royal Caribbean's fleet and destinations. Prior to vacation, guests are encouraged to notify Royal Caribbean of any dietary restrictions either by contacting their travel adviser or Certified Vacation Planner and request the remark be noted in their reservation details by updating their reservation online using the 'update personal information' section, or emailing  special_needs@rccl.com , so crew are aware of and can accommodate special dietary requests."

Why do cruise lines charge added fees at private destinations? 

Patrick Scholes, a lodging and leisure analyst with Truist Securities, said the kinds of suped-up private islands and destinations cruise lines visit are a relatively new development. Royal Caribbean's Perfect Day kicked off that trend when it relaunched in 2019 following a  $250 million renovation .

"And I think what they're finding is, give them the basics and if you want something above and beyond, [you] want to get away from the crowds, they found the customer will pay for that," he said. "And for the cruise lines that extra dollar is a really high profit margin, margins above 70%, 80%, because it's a very high fixed-cost business." 

Royal Caribbean International president and CEO Michael Bayley said during a Jan. 29 earnings call that "within four weeks, the Royal Beach Club has already become the number one top-rated experience in Nassau" for the company's guests.

A recent survey of more than 4,500 U.S. adults released by Arrivia also found that 55% said a stop at a private island factored into their decision to book a cruise. 

"Private islands also play a role in brand competition," the report said. "Nearly one in four respondents said they would consider switching cruise brands for access to a private island, showing the degree to which these experiences can sway loyalty in a crowded marketplace." 

Private destinations also keep customers in the cruise line ecosystem. "At the end of the day, they've found the upgraded private islands [are] a home-run with customers," Scholes said. "They'll pay more for the cruise because it's a great experience, they love it. And then you can keep some of that money in-house where the customer would have paid a private tour operator or something to shuttle you away, so [it's] twofold there."

Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.

This article originally appeared on USA TODAY: Are cruise private islands all-inclusive? The fees add up fast