Carnival Cruise Line caused a commotion this summer when it said it would completely change the structure of its loyalty program.
But while it was the first large cruise line to make a sweeping change, travel executives and advisors don't expect it to be the last.
One of the most controversial changes Carnival initially made was eliminating indefinite status retention, instead requiring guests to requalify for their status every two years, much like many airline loyalty programs do. After months of guest pushback, Carnival last week announced adjustments, one of which guarantees lifetime status for guests who reach the top tier by June, when the new program launches.
Major loyalty program revamps like Carnival's may become more common as cruise lines look to bring in new guests, said Mark Wilson, senior vice president of cruise and tour for Arrivia, which develops travel loyalty programming.
Many cruise loyalty programs are due for a refresh to excite and retain newer customers, he said, but changing those programs will require a balancing act to ensure longtime guests still feel appreciated.
It's that balancing act that Carnival is still figuring out. And Wilson doubts the line's new loyalty program has reached its final form.
"[Carnival is] very smart, and all the cruise lines are," he said. "They're going to find the best way to do both: to take care of their best customers as well as try to introduce new people into the fold and give them something they can build on."
Loyalty rewards for cruisers typically fall into the categories of status symbols -- a room key card in a different color, a pin -- and perks that might include exclusive onboard events, priority embarkation, complimentary WiFi and laundry or cabin upgrades.
Once people get to the highest tier, they expect more exclusive perks. The more people who can access those perks, the less exclusive or valuable they feel, said Caroline Hay, vice president of cruise at host agency Trevello World Holdings.
"It's no longer special going into lounges, for example, on an airline where there's a massive line because everyone with a credit card can get in," she said.
That was the primary reason Carnival Cruise Line president Christine Duffy provided for making the original program changes. By the end of this year, the cruise line expects its total lifetime guest load to reach 105 million or 110 million people, she told guests during a discussion aboard the Carnival Vista in July.
"The lifetime status benefits just can't be delivered in the right way," she said, when that many people are entitled to them.
While Hay said having too many people in top tiers justifies requiring participants to requalify for status, she also said loyalty programs can be tailored to get newer cruise guests engaged earlier.
Carnival's new program, for example, provides the opportunity to advance through the tiers more quickly than in the current program because status is based on spend rather than nights sailed. Currently, it takes a few sailings for guests to earn perks that might sway their decision to cruise, making the loyalty program "invisible" to those newer cruisers, Hay said.
"But if we can get people -- first-, second-time cruisers -- sticking with cruise because they get these extra perks and recognition, the industry is all the much better off for that," she said.
First-timers and legacy guests
The importance of balancing those more entry-level benefits with the appreciation of legacy guests was top of mind for Cruise Planners franchise owner Amber Sprague Costa this summer.
Her Carnival customers tend to be budget-conscious, and some asked her to price out other cruises once Carnival announced the initial program change.
"Those people were immediately concerned that the status was then going to directly reflect how much money they were spending each year, and they were going to have to spend a certain amount to maintain their status," she said.
Many of her customers sail from Galveston, Texas, so Sprague Costa booked herself a cruise on the MSC Seascape, which will start homeporting there in November, eager to bolster her tool kit to advise Carnival loyalists about alternate options.
Her associate, Stacey Shields, is a Platinum member of Carnival's current loyalty program, the Very Important Fun Person Club, or VIFP. Shields said the program changes make her feel less loyal to Carnival and make shopping around an easier decision. Most of her clients, however, are new to cruise and won't be affected by the changes because they don't have much loyalty status, she said.
Hay said the fact that Carnival has ended up with so many high-status customers is a testament to its success.
"When they have so many loyal customers, it ultimately becomes a problem, and that's a great problem, right?" she said.
It's never easy to be the first to make a major change, and Arrivia's Wilson said he applauds Carnival for becoming "the innovator" among cruise lines in loyalty programming.
"I suspect that a lot of [cruise companies] are looking at it very closely and watching to see how that goes," he said.