Royal Caribbean is making it clear that they value their repeat cruisers.
On July 29, Royal Caribbean Group released its second quarter results, revealing the company is seeing strong demand for its products from previous cruisers, with 40% of guests being repeat passengers.
According to Jason Liberty, President and CEO of Royal Caribbean Group, the company is tuned into its guests' wants and has a lot of plans to make sure they want to continue cruising with Royal Caribbean Group, whether aboard a Royal Caribbean, Celebrity, or Silversea ship.
Not only does this mean investing in new hardware, like new ships and exclusive island destinations, but also giving repeat cruisers special offers and loyalty perks.
Loyalty impacts guest behavior
"Repeat cruisers continue to rate cruising as the best value for their vacation spend, with brands that consistently lead in guest satisfaction and vacation options that range from weekend getaways to bucket list adventures on ocean and on land," said Liberty during the Q2 earnings call on July 29.
It helps that Royal Caribbean's consumer base continues to feel financially confident, with three out of four guests indicating they feel financially secure. This aligns with the fact that loyalty members are spending 25% more per trip than new cruisers.
"Holistically, as we get to see millions of spending activities per day, we see a very healthy customer. When we dig into that customer, they have strong, great jobs; they have strong balance sheets; and they're confident in spending and making sure that they're they're receiving the vacation experience that they're looking for," Liberty explained.
Not only that, but Royal Caribbean has seen strong intent among millennial-aged cruisers and younger, who continue to represent half the company's customer base. Additionally, 7 in 10 of Royal Caribbean's customers from younger generations are more likely to book their cruise closer to departure, reflecting more spontaneity and flexibility.
"More than half of the millennials tell us they are more likely to consider cruising today compared to two years ago, driven mainly by the attractive value proposition of [a] cruise," Liberty said.
Although new ships and destinations play a role in attracting customers, building trust and connections with guests means they will be more likely to choose a vacation with Royal Caribbean Group than other competitors, whether they're land-based or another cruise line.
Liberty added, "We're trying to increase repetition, which ultimately leads to an increase in lifetime value of the customer, lowers our acquisition costs, and positions us to close the gap further to land-based vacations."
By wanting to grow their repeat customer business, consumers will hopefully get better recognition and incentives in the future.
Loyalty is a two-way street
Recently, Carnival Cruise Line has been under fire for its overhaul of the line's Very Important Fun Person (VIFP) Club. Starting in 2026, cruisers are no longer rewarded based on how many nights they've spent on Carnival ships. Instead, Carnival loyalty status is determined by total spend.
However, points earned through Carnival's co-branded credit card will also feed directly into the Carnival Rewards ecosystem. This means that guests can work their way up the loyalty tiers not only by cruising on Carnival's fleet but also through everyday spending with the credit card.
However, the biggest shocker was that status is no longer lifetime. You must requalify every two years, similar to airline and hotel loyalty programs.
Read more: Rival Carnival Cruise Line made drastic changes to its loyalty program
In the weeks following the announcement, many Carnival cruisers have expressed that they feel like the new system devalues their loyalty to the cruise line.
In contrast, Royal Caribbean is doubling down on its commitment to its guests, stating that loyalty is a "two-way street."
"Loyalty is very important. I think people want to be recognized. They want to not just be recognized for their spend today, but be recognized for all that they have done in the past," said Liberty.
As such, creating the status match program between Royal Caribbean, Celebrity, and Silversea helps ensure that consumers are rewarded for their history with the company, regardless of which brand they choose to sail.
For example, a guest who holds Diamond status with Royal Caribbean will enjoy comparable perks when sailing with Celebrity or Silversea, and vice versa.
This cross-brand recognition strengthens the connection between the cruise lines and makes it so there are options for all types of cruisers within the brand's portfolio, whether you're seeking a family-focused vacation on the world's largest ships, an ultra-luxury getaway, or an upscale European cruise.
