We have sailed three Merrytime cruises now, though none over Christmas itself.
On our cruises they had gingerbread house making to sign up for. We did and had a lot of fun. They use a kit for the house itself and have plenty of decorations. You get to keep the house but are not allowed to take it off the ship -- so you get to keep it in your stateroom for the duration. It adds a pleasant smell ! And is a yummy snack if the vultures in your room decide it is worthy.
Definitely signup for the gingerbread house making. You need to go to guest services upon boarding to get tickets because they are limited and go fast. We've done the gingerbread house making on our last two cruises and really enjoyed it.
Our last day on the Dream was Christmas in 2013. On Christmas there were religious services and family celebrations that included Santa Claus in the lobby along with holiday treats and drinks. In addition, there was a "Disney Christmas Day Parade" and children's caroling. The dinner menu featured a traditional Christmas dinner in all restaurants. It was a great family experience!
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