The news comes as Carnival reported a stronger-than-expected third quarter (three months to the end of August), with net yield rising 2.4% year-on-year and net income reaching approximately $2 billion.

Carnival Chief Executive Josh Weinstein acknowledged the challenge facing the Caribbean during the company's earnings call on Tuesday (29 September), pointing to a steep increase in regional capacity over the past few years.

"Option number one is no growth in the Caribbean," Weinstein said. "Option number two is, if you look at 2027, something like 37% growth over a three-year period. I'm going to go with the first one. It would make my life – and a lot of people's lives – easier, but it's not taking away from the fact the Caribbean is an amazing part of our portfolio."

He stressed Carnival remains "absolutely committed" to the Caribbean, evidenced by its growing portfolio of private destinations, including Celebration Key in the Bahamas.

Europe to equal Caribbean deployment

For the first time, Europe will account for the same share of Carnival's deployment as the Caribbean in 2027, with each region representing 34% of the company's capacity mix.

Northern Europe is a particular focus, with Carnival citing growing interest in cooler-weather holidays – fjords, hiking and the Northern Lights. The company also sees opportunities to extend the European season into the shoulder periods.

"This has been a growing piece of the business and the strategy," Weinstein said, explaining destinations including the Baltic states, Sweden, the Norwegian fjords and Iceland were cropping up on both North American and European travellers' wishlists.

Private destinations become a bigger part of Caribbean strategy

Celebration Key, Carnival's private destination in The Bahamas, welcomed almost 2.5 million guests during its first year.

With its second pier now open, Carnival expects the destination to welcome approximately 3.5 million guests in 2027, with 31 ships scheduled to call compared with 26 this year.

Its reach will also extend to other Carnival Corp lines, including Princess Cruises, which is due to begin calling at Celebration Key next month.

What it's really like inside Celebration Key, the Caribbean's newest party destination

The company said RelaxAway, Half Moon Cay and Isla Tropical Roatan have each welcomed approximately 250,000 guests since their recent expansions, with 35% of Carnival Cruise Line's Caribbean capacity in 2027 set to feature itineraries visiting both Celebration Key and RelaxAway.

"We are going to be able to flex both destinations now they have their full marine infrastructure built out," Weinstein said. "Which means we can maximise the marine side of those assets."

Carnival also indicated there could eventually be a second phase of development at Celebration Key, although Weinstein said it was "too early" to provide details.

Occupancy and pricing at 'record levels'

Carnival also reported strong forward bookings, with approximately half of its capacity booked for 2027 and both occupancy and pricing at "record levels".

Bookings accelerated in July and August after weaker demand earlier in the year,owing to the situation in the Middle East, while 2028 is "off to a strong start" with occupancy and prices above the same point last year.

Carnival said the disruption to bookings seen during the spring had extended into the first quarter of 2027, particularly affecting long-haul and more "exotic" itineraries. However, bookings for the first quarter have improved "meaningfully" over the past three months.

"We really saw almost a double down on Europe for next year, particularly in the third quarter, which is the biggest part of the European deployment," Weinstein said, before adding some consumers who postponed travel earlier this year appeared to be booking for 2027 instead.