The Rise of Loyalty-Driven Cruise Travel
Cruise travel is becoming one of the most loyalty-focused areas in leisure travel, making it more important than ever for cruise lines to carefully manage their loyalty programs as they evolve. These programs not only encourage travelers to book cruises with the same company repeatedly but also increasingly integrate with other travel loyalty programs, drawing more vacationers toward cruises over land-based trips.
Earlier this year, American Airlines expanded its AAdvantage loyalty program to allow members to use their miles for cruise vacations on most cruise lines. Additionally, members can earn airline miles and points through the AAdvantage Cruises platform when booking cruises.
Travelers are eager to take advantage of these opportunities to earn and redeem points on cruise bookings, as shown by a recent survey from loyalty technology provider arrivia. The survey revealed that 51% of recent or upcoming cruisers booked their trip through a loyalty program, and a quarter used points to cover part of the cost.
“Cruise is no longer just an add-on in the loyalty mix,” said Jeff Zotara, Chief Marketing Officer at arrivia. “It delivers high-value, repeatable experiences that travelers are actively seeking.”
The survey’s findings highlight that travelers want loyalty options that offer flexibility and personalization — something that cruise lines like Royal Caribbean and Carnival must consider as they update their loyalty programs.
Royal Caribbean Avoids a Carnival-Style Loyalty Mistake
After witnessing how Carnival Cruise Line upset its loyal passengers by drastically changing its loyalty program, Royal Caribbean is taking a cautious approach as it considers modernizing its Crown and Anchor Society loyalty program.
When asked about the future of the program during a recent President’s Cruise event on Utopia of the Seas, Royal Caribbean International CEO Michael Bayley emphasized that the company doesn’t want to make the same mistakes as Carnival.
Boos erupted from the audience when Bayley mentioned Carnival’s loyalty program changes, according to the unofficial Royal Caribbean fan blog Royal Caribbean Blog.
“And that is exactly what we’re trying to avoid,” Bayley said in response to the boos, which quickly turned into applause.
Expanding Loyalty Flexibility Across Brands
Recognizing that travelers want more flexibility in their loyalty programs, Royal Caribbean Group is working on combining the individual loyalty programs of each of its brands — Royal Caribbean, Celebrity Cruises, and Silversea — into a single loyalty platform. Currently, the programs offer status matching, but some brand-specific loyalty benefits don’t apply to Status Match members.
“You’ll see over the coming months and year or two that things will continue to improve in terms of accessibility, simplicity, making it easier to sail between the brands, get offers, this type of thing,” Bayley explained in response to a question about the possibility of making loyalty points interchangeable between Royal Caribbean and Celebrity’s loyalty programs.
While Royal Caribbean Group hasn’t yet determined the best way to roll out a unified loyalty program across its brands, the company is working on a solution for the future.
“Ultimately, we have not defined this yet, but ultimately we are going to get to a one platform database of our loyalty members for Royal Caribbean Group,” Bayley said.
The Importance of Careful Decision-Making
Royal Caribbean executives are acutely aware that decisions about loyalty program changes must be weighed carefully.
“I think we’re incredibly sensitive to not tipping over the apple cart,” Bayley added.
The Arena Group will earn a commission if you book a cruise. Make a free appointment with Come Cruise With Me’s Travel Agent Partner, Postcard Travel, or email Amy Post at [email protected] or call or text her at 386-383-2472.
