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Royal Caribbean's Repeat Guests Spend More: Can Loyalty Drive Growth?
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Key Takeaways
Royal Caribbean's repeat guests spend 20% to 25% more, highlighting loyalty's role in growth.
Royal ONE beat expectations, while two loyalty programs added 500,000 enrollments.
Over 90% of guests use RCL's app, and 2026 EPS estimates imply 13.8% year-over-year growth.
Royal Caribbean Cruises Ltd. (RCL - Free Report) seeks to turn guest loyalty into a sustainable growth driver by connecting its brands, ships, destinations and digital platforms to encourage more frequent vacations. Management said repeat guests spend 20% to 25% more, underscoring the financial benefits of retaining customers and deepening their relationship with the company.
RCL’s loyalty initiatives are gaining traction. Since its April launch, the Royal ONE co-branded credit card has exceeded expectations for sign-ups and spending. Cardholders are also twice as likely to cruise multiple times as non-cardholders. Meanwhile, Points Choice and Status Match have generated more than 500,000 new loyalty enrollments, encouraging customers to explore different brands without losing their earned recognition.
Digital engagement further strengthens this strategy. More than 90% of guests use RCL’s app, while monthly active users have increased fivefold since 2019. More than half of onboard revenues are purchased before embarkation, creating opportunities to personalize recommendations and simplify vacation planning. These capabilities can also help direct customers toward relevant dining, entertainment and destination experiences.
Stronger loyalty could support repeat bookings, higher onboard spending and pricing power as RCL expands its fleet and destination offerings. However, sustaining these benefits will require consistent guest satisfaction and effective execution amid geopolitical uncertainty and competitive promotions. With repeat-guest mix increasing year over year, loyalty is emerging as an important component of RCL’s long-term growth strategy.
How CCL and NCLH Use Loyalty to Encourage Repeat Cruises
Carnival Corporation (CCL - Free Report) is strengthening customer retention through its Carnival Rewards program, launched in September 2026. The program lets members earn redeemable points and status-qualifying stars based on eligible spending. Higher status unlocks additional benefits, while rewards encourage customers to book future cruises and spend on eligible purchases. This spending-based approach could help Carnival connect customer loyalty more closely with revenue generation.
Norwegian Cruise Line Holdings (NCLH - Free Report) uses its Latitudes Rewards program to encourage repeat bookings through points, member-exclusive offers, discounts and onboard privileges. Customers earn points for cruise nights, with additional opportunities through qualifying suite bookings and promotional offers. The company also extends loyalty recognition across Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, allowing guests to explore different brands while retaining onboard benefits. This cross-brand strategy could encourage repeat purchases and strengthen customer relationships.
Both competitors demonstrate how loyalty programs can support customer retention and spending. RCL's opportunity lies in combining similar incentives with differentiated vacation experiences to encourage more frequent bookings and higher guest lifetime value.
RCL’s Price Performance, Valuation & Estimates
Shares of Royal Caribbean have lost 7.8% in the past year compared with the industry’s 3.4% decline.
RCL Stock’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, RCL trades at a forward price-to-earnings ratio of 14.4, below the industry’s average of 16.06.
RCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RCL’s 2026 earnings implies a year-over-year increase of 13.8%. The EPS estimates for 2026 have increased in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Royal Caribbean's Repeat Guests Spend More: Can Loyalty Drive Growth?
Key Takeaways
Royal Caribbean Cruises Ltd. (RCL - Free Report) seeks to turn guest loyalty into a sustainable growth driver by connecting its brands, ships, destinations and digital platforms to encourage more frequent vacations. Management said repeat guests spend 20% to 25% more, underscoring the financial benefits of retaining customers and deepening their relationship with the company.
RCL’s loyalty initiatives are gaining traction. Since its April launch, the Royal ONE co-branded credit card has exceeded expectations for sign-ups and spending. Cardholders are also twice as likely to cruise multiple times as non-cardholders. Meanwhile, Points Choice and Status Match have generated more than 500,000 new loyalty enrollments, encouraging customers to explore different brands without losing their earned recognition.
Digital engagement further strengthens this strategy. More than 90% of guests use RCL’s app, while monthly active users have increased fivefold since 2019. More than half of onboard revenues are purchased before embarkation, creating opportunities to personalize recommendations and simplify vacation planning. These capabilities can also help direct customers toward relevant dining, entertainment and destination experiences.
Stronger loyalty could support repeat bookings, higher onboard spending and pricing power as RCL expands its fleet and destination offerings. However, sustaining these benefits will require consistent guest satisfaction and effective execution amid geopolitical uncertainty and competitive promotions. With repeat-guest mix increasing year over year, loyalty is emerging as an important component of RCL’s long-term growth strategy.
How CCL and NCLH Use Loyalty to Encourage Repeat Cruises
Carnival Corporation (CCL - Free Report) is strengthening customer retention through its Carnival Rewards program, launched in September 2026. The program lets members earn redeemable points and status-qualifying stars based on eligible spending. Higher status unlocks additional benefits, while rewards encourage customers to book future cruises and spend on eligible purchases. This spending-based approach could help Carnival connect customer loyalty more closely with revenue generation.
Norwegian Cruise Line Holdings (NCLH - Free Report) uses its Latitudes Rewards program to encourage repeat bookings through points, member-exclusive offers, discounts and onboard privileges. Customers earn points for cruise nights, with additional opportunities through qualifying suite bookings and promotional offers. The company also extends loyalty recognition across Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, allowing guests to explore different brands while retaining onboard benefits. This cross-brand strategy could encourage repeat purchases and strengthen customer relationships.
Both competitors demonstrate how loyalty programs can support customer retention and spending. RCL's opportunity lies in combining similar incentives with differentiated vacation experiences to encourage more frequent bookings and higher guest lifetime value.
RCL’s Price Performance, Valuation & Estimates
Shares of Royal Caribbean have lost 7.8% in the past year compared with the industry’s 3.4% decline.
RCL Stock’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, RCL trades at a forward price-to-earnings ratio of 14.4, below the industry’s average of 16.06.
RCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RCL’s 2026 earnings implies a year-over-year increase of 13.8%. The EPS estimates for 2026 have increased in the past 30 days.
EPS Trend of RCL Stock
Image Source: Zacks Investment Research
RCL’s Zacks Rank
RCL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.