Royal Caribbean is carefully planning changes to its loyalty program, the Crown and Anchor Society. The cruise line aims to modernize benefits and integrate loyalty across its brands without alienating its dedicated passengers. This approach follows past industry events that led to negative reactions from loyal customers.
Key Takeaways
- Royal Caribbean seeks to evolve its Crown and Anchor Society loyalty program.
- The company plans to avoid past industry mistakes that upset loyal customers.
- Efforts are underway to create a unified loyalty platform across Royal Caribbean Group brands.
- Travelers are increasingly using loyalty points for cruise bookings.
Cruise Loyalty Becomes More Important
Cruise travel is increasingly driven by loyalty programs. These programs encourage travelers to book repeatedly with the same cruise line. They also make cruises more appealing compared to land-based vacations, especially as they connect with other travel loyalty systems.
Earlier this year, American Airlines expanded its AAdvantage loyalty program. This change allows members to use their miles for cruise vacations on most cruise lines. Members also earn airline miles and points when booking cruises through the AAdvantage Cruises platform.
Key Loyalty Statistics
- A recent survey by arrivia, a loyalty technology provider, showed that 51% of recent or upcoming cruisers booked their trip through a loyalty program.
- One-quarter of these travelers used points to cover part of their cruise cost.
Jeff Zotara, Chief Marketing Officer at arrivia, highlighted the growing importance of cruises in loyalty programs.
"Cruise is no longer just an add-on in the loyalty mix," Zotara said. "It delivers high-value, repeatable experiences that travelers are actively seeking."
The survey results emphasize that travelers want loyalty options that offer flexibility and personalization. Cruise lines, including Royal Caribbean and Carnival, need to consider these preferences as they develop their programs.
Learning from Past Industry Actions
Royal Caribbean is proceeding with caution in its loyalty program updates. This careful approach comes after observing strong negative reactions from Carnival Cruise Line's loyal passengers when Carnival introduced significant changes to its program.
Royal Caribbean International CEO Michael Bayley recently discussed the future of the Crown and Anchor Society. Speaking at a President’s Cruise event on Utopia of the Seas, Bayley stressed that Royal Caribbean aims to avoid similar mistakes.
Carnival's Loyalty Program Changes
Carnival Cruise Line's attempt to overhaul its loyalty program faced strong criticism from its most dedicated passengers. The proposed changes were seen by many as a reduction in benefits, leading to widespread dissatisfaction and public backlash. This event serves as a cautionary tale for other cruise lines considering loyalty program modifications.
When Bayley mentioned Carnival's loyalty program changes, the audience reacted with boos, according to the unofficial Royal Caribbean fan blog, Royal Caribbean Blog. Bayley responded directly to this reaction.
"And that is exactly what we’re trying to avoid," Bayley stated. His comment quickly turned the audience's uproar into applause.
This interaction shows the sensitivity around loyalty programs. Cruise lines must manage these programs carefully to maintain customer trust and satisfaction. Changes need to be communicated clearly and designed to enhance, not diminish, perceived value.
Increasing Loyalty Flexibility Across Brands
Royal Caribbean Group is working towards combining the individual loyalty programs of its cruise lines. This includes Royal Caribbean, Celebrity Cruises, and Silversea. The goal is to create one unified loyalty platform. Currently, these programs offer status matching, but some brand-specific loyalty benefits do not apply to Status Match members.
Bayley addressed questions about making loyalty points interchangeable between Royal Caribbean and Celebrity's loyalty programs.
"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," he explained.
Developing a Unified Platform
Royal Caribbean Group has not yet finalized the best way to implement a simplified loyalty program across its brands. However, the company is actively working on a solution for the future. The long-term vision involves a single database for all loyalty members within the Royal Caribbean Group.
Bayley confirmed this objective.
"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.This move aims to streamline benefits and enhance the overall experience for frequent cruisers across the company's diverse offerings.
- Current State: Status matching available between brands, but some benefits are not fully transferable.
- Future Goal: A single, unified loyalty platform and database for all Royal Caribbean Group brands.
- Benefits: Increased accessibility, simplicity, and ease of sailing between different cruise lines within the group.
Royal Caribbean executives understand the importance of making loyalty program decisions with great care. Bayley reiterated the company's cautious approach.
"I think we’re incredibly sensitive to not tipping over the apple cart," he added.This statement underscores the company's commitment to protecting its relationship with its loyal customer base while pursuing modernization.
