Cruise-and-stay packages, advisor perks and more: Royal Caribbean, Sandals share what’s next

MIAMI — Cruise-and-stay packages are coming, travel advisor perks are staying and there’s much more in the works as Royal Caribbean Group and Sandals Resorts International look ahead to their new partnership.

Those were some of the key takeaways from the October edition of Royal Caribbean’s Coffee Talk with Jason Liberty, Chairman and CEO of Royal Caribbean Group, and Adam Stewart, Executive Chairman, Sandals Resorts International.

Hosted by Vicki Freed, Royal Caribbean’s Senior VP, Sales and Trade Support & Service, the session gave travel advisors an opportunity to hear directly from both executives about what the partnership means for their businesses, and what comes next, after last month’s blockbuster announcement.

The message from both leaders was clear: the goal is to create what Liberty calls not just the vacation of a lifetime, but “a lifetime of vacations.”

 

CRUISE-AND-STAY PACKAGES IN THE WORKS

One of the biggest questions from advisors centred on the potential for combined cruise-and-stay vacations.

Liberty said packages and pre- and post-cruise stays are part of the plan, particularly in the Caribbean.

“We’re the largest cruise operator in the Caribbean, and Adam is the largest all-inclusive operator,” said Liberty. “There are a lot of similarities between our products, so there will be opportunities for pre- and post-cruise stays, packages and other offerings.”

He joked that the partnership won’t see cruise passengers descending on Sandals and Beaches resorts by the thousands during port calls. “This partnership is about creating a lifetime of vacations. It’s about developing a great ecosystem of vacation experiences for us to deliver and for our travel partners to sell,” he said.

ADVISOR PERKS & COMMISSIONS

Stewart meanwhile offered reassurance to  advisors concerned about the future of Sandals’ trade programs. The update was in line with messaging from the SRI team at a Toronto event last month. 

“There are no plans to discontinue any of those programs. There haven’t been any discussions about doing that,” he said. That includes Points to Paradise and other trade incentives.

Stewart said the partnership could result in additional programs and benefits. “The travel advisor community should feel reassured that we’re keeping all our existing programs in place, and we’re looking forward to introducing new and exciting programs in the future,” he said.

Liberty pointed to opportunities for better-integrated booking technology, training and sales resources.

Asked whether Royal Caribbean’s NextCruise desks onboard its ships could eventually book Sandals vacations, he said that could be one avenue, although no specific plans have been finalized.

He said the objective isn’t to shift business between booking channels, but to make the process easier while generating greater value for travel partners.

The companies are also exploring how loyalty status, points and guest benefits could work across their portfolios.

“We want to connect these ecosystems relatively quickly,” said Liberty, adding that the teams need time to determine how the arrangement will work.

SANDALS 3.0 AND $1 BILLION+ FOR BEACHES

Stewart described the partnership as the beginning of what he calls the ‘Sandals 3.0’ era, with ambitious growth plans.

More than US$1 billion in investment is planned for the Beaches brand, including projects in Saint Vincent and the Grenadines, Exuma in the Bahamas, Barbados and Runaway Bay, Jamaica.

Major expansions are also planned at Sandals Dunn’s River and Sandals Grande St. Lucian, along with additional villages, overwater bungalows and specialized suites.

There’s potentially more to come. Stewart said hundreds of acres of undeveloped Caribbean beachfront land, some held by his family for more than 20 years, are being brought into the joint venture.

“We will not build a resort on a B-grade or C-grade piece of land,” he said. “Much of that land is going to be developed through this joint venture.”

He also hinted at possible expansion beyond the Caribbean in the longer term, a big talking point for the trade.

“Success means going further, faster,” said Stewart. “Maybe one day we’ll expand even beyond the Caribbean archipelago.”

DISTINCT BRANDS, SHARED OPPORTUNITIES

Both executives emphasized that the companies’ individual brands will retain their identities.

“Sandals is Sandals. Beaches is Beaches. Royal Caribbean remains Royal Caribbean,” said Stewart.

Liberty echoed that message, pointing to Royal Caribbean Group’s approach to maintaining differentiation between Royal Caribbean, Celebrity Cruises and Silversea.

“We didn’t invest in this partnership simply to acquire buildings,” he said. “We invested in what we believe are the best all-inclusive resorts in the Caribbean, and in the two brands that deliver those experiences.”

Stewart said the companies’ shared emphasis on customer experience, employees and travel advisors is central to their future plans.

As Stewart put it, the partnership is about “how do we continue to do more? How do we give more value? How do we give more offerings?”

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