Royal Caribbean’s Sandals Deal: Selling More of the Vacation

On September 23, 2026, Royal Caribbean Group agreed to invest about $3 billion for a 50% stake in Sandals and Beaches Resorts. A cruise company is buying into vacations where nobody needs a ship. The reason starts with a second business the company already runs on board.

The transaction is expected to close in early 2027, subject to approvals and other conditions. It is a proposed partnership, not a completed takeover.

A second revenue stream

In 2025, Royal Caribbean Group brought in about $12.5 billion from passenger tickets and another $5.4 billion from what it calls onboard and other revenue, roughly 30% of its $17.9 billion total. These figures cover the whole group, including Celebrity and Silversea, and they are revenue, not profit.

Onboard and other revenue covers goods and services not included in the fare, such as drinks, internet and specialty dining, along with casino operations, pre- and post-cruise tours and other services, some of which happen off the ship.

The vacation starts on a screen

The timing is the interesting part. Royal Caribbean Group said nearly 50% of its 2025 onboard revenue was booked before the cruise started, and that 90% of those pre-cruise purchases were made through digital channels. A guest still at home, imagining the trip, is already being offered part of it. The company’s annual report describes its mobile app as the place guests book WiFi, beverages, shore excursions and specialty dining.

For a guest, pre-booking can make planning easier. For the business, digital channels link the first booking to the next purchase. Every added experience also has a cost: someone has to build it, operate it or buy into the business that provides it.

The business on board

That changes how to look at the ship. The pools, restaurants and bars help persuade people to book. Some are included, and some are upgrades. A real vacation is possible on the base fare, and the company’s job is to make the extra experiences feel worth choosing. A ship full of places to spend is only attractive if people actually want to be there.

The strategy goes ashore

Perfect Day at CocoCay, Royal Caribbean’s private destination in the Bahamas, shows the same balance on land. Oasis Lagoon, several beaches and casual dining are included. Thrill Waterpark, the adults-only Hideaway Beach and Coco Beach Club are paid day passes. The island is an included day with optional upgrades, not one giant extra-charge entrance.

Royal Beach Club Paradise Island, in Nassau, takes a different approach. Guests buy one of two day passes, each covering dining and drinks. Different destination, different pricing, same idea: offer more of what a traveler might want during the trip.

What Sandals would change

Sandals adds a vacation category with no ship at all. Royal Caribbean Group says the partnership grows its participation in what it describes as an approximately $2 trillion global vacation market, and CEO Jason Liberty framed the goal as turning the vacation of a lifetime into a lifetime of vacations. A couple who cruises this year might want a resort next year.

My reading is that the group wants to compete for more of a traveler’s future vacations, not just more of one trip. Whether that justifies the price depends on what happens next. A stake in another company is judged by what it adds over time, the same question behind Walmart’s Jet.com acquisition.

The cost behind the view

Ships need crews, fuel, food and maintenance, and land destinations need investment and upkeep. In its July 2026 update, the group expected about $4.7 billion of capital spending in 2026, predominantly for new ships and land-based destinations. That figure predates the Sandals announcement and does not include it.

More sales do not automatically mean more profit. In the second quarter of 2026, total revenue rose 6% from a year earlier to $4.8 billion, while net income fell from $1.2 billion to $1.1 billion. A bigger vacation business still has to manage what it costs to deliver the vacation.

The customer’s decision

For travelers, a connected experience can save planning effort, but the advertised fare and the final vacation budget are different numbers. The useful question is what you actually want included.

For a business, the lesson goes beyond cruising. Technology can make the next purchase easier, and owning or partnering in more of the experience creates more chances to sell. The experience still has to earn the next purchase. Royal Caribbean can build the ship, run the destination and invest in the resort, and it still has to make people want to come back.

Would you rather have more included in the fare, or choose your own upgrades?