I was also wondering if anyone could give me their recommendations on how to handle the excursions. Not sure if it's the norm to book one activity per location & if not what do cruisers normally do when docked if they have not booked an excursion at that location... Defiantly a newbie at this lol!!!
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Note that we have only done excursions as a) childless couple and b) with an infant who could stay in the nursery.
Since this is a Western Caribbean cruise I would highly suggest signing up for excursions ahead of time, ESPECIALLY for Cozumel, since there are so many neat archaeological things (if you can swing it at all, go to Tulum!!!). Disney excursions that you sign up for through their website or on board are more expensive BUT if something were to go wrong and you got delayed, the ship would not leave without your group. This is NOT the case if you organize an excursion outside of Disney, the ship will leave without you and I've seen it happen twice in my four cruises (got to watch a family run down the dock flailing their arms as the ship sailed away). I would say for first time cruisers especially, do your excursion through Disney. Next time you might feel more ready to experiment with outside organizers.
Generally anyplace that has a cruise terminal has a bunch of shops near the port area that are... the same shops you see in every port area (Del Sol, various jewelry shops, etc.) There is also usually a local market right outside the port area. These are usually safe to visit, but not terribly interesting.
You don't have to do an excursion every shore day, but I think that it's an awesome thing to do on your first cruise. I wouldn't try to fit two excursions in (don't even know if that's possible?).
Also be aware that the ship empties out on shore days, so that you and your family could have much less crowded access to the family pool and the aqua dunk if that's important to you.