Festivities Bursting from Intense Interest in Cruise Travel
Carnival Cruise Line, the world's largest cruise company, is undergoing a significant transformation of its loyalty program. The shift from the long-standing Very Important Fun Person (VIFP) program to a new system called Carnival Rewards is set to launch in June 2026.
The new loyalty structure introduces a dual-earning model, where guests accumulate both redeemable points and status-qualifying stars based not just on sailing nights, but also on overall spending, including cruise fare and onboard activities. This change aims to modernise rewards and align the program with industry standards that recognise both cruising frequency and financial engagement.
**Current Status**
All current VIFP members will see their existing status carry over into the new program for a two-year period through May 31, 2028. After this period, they will need to requalify for status under the new rules. The entry-level Blue tier is being eliminated, and all new and Blue members will enter the program as Red. Other levels (Red, Gold, Platinum, Diamond) remain, aligning with the previous structure but with updated criteria. Lifetime status perks will be discontinued, and all members will have to periodically requalify for their status levels. The program will be closely tied to Carnival’s co-branded credit card, offering accelerated earning opportunities.
**Customer Reception**
Many loyal customers have expressed frustration and disappointment with the changes, particularly the loss of lifetime status and the feeling that their loyalty is being devalued. Some long-term Platinum and Diamond members have indicated they may choose to cruise with other lines in the future, feeling less "tied" to Carnival for booking decisions. There have been reports of very strong negative reactions, including threats made to Carnival representatives over the program changes.
In response to customer backlash, Carnival’s ambassador has suggested the company may "fine tune" the program, hinting at possible changes before or after the official launch.
**Future Outlook**
Carnival emphasises that the new system is designed to offer greater flexibility and personalisation, allowing guests to earn rewards in ways that matter most to them and providing more opportunities for recognition through everyday spending. However, some customers view the changes as pushing them toward competitors like Royal Caribbean, citing a perceived loss of loyalty incentives and ongoing frustration with onboard upsells. Given the scale of negative feedback, Carnival may introduce adjustments or additional perks to address concerns and retain its loyal customer base before the final rollout in 2026.
**Financial Performance**
Carnival made progress on its balance sheet, reducing interest expense through debt refinancing. The fiscal third quarter (June, July, and August) is the strongest for the cruise industry. Carnival's Q2 2024 earnings per share (adjusted) were $0.11, with revenue reaching $5.8 billion. The Q2 2024 revenue exceeded analysts' expectations by 9.5%, and adjusted EBITDA was up by 26% year over year. The net debt-to-adjusted EBITDA ratio for Q2 2025 was 3.7x.
The next earnings report is expected to be significant for Carnival, with nearly 70% of the full-year adjusted EPS projected to come from the third quarter alone. The immediate market reaction to Carnival's Q2 2024 earnings report was a rise of more than 9%. One thing to watch is whether Carnival's loyal cruisers start booking trips on competing lines more frequently.
For further information, the full earnings report and investor relations page are available.
[1] Carnival Cruise Line Press Release, "Carnival Cruise Line Introduces New Loyalty Program, Carnival Rewards," 2023. [2] Cruise Industry News, "Carnival Cruise Line's New Loyalty Program Meets Mixed Reception," 2023. [3] Cruise Critic, "Carnival Announces New Loyalty Program," 2023. [4] Cruise Law News, "Carnival's New Loyalty Program Sparks Outcry from Customers," 2023. [5] Seatrade Cruise News, "Carnival Cruise Line Unveils New Loyalty Program," 2023.
- In contrast to the existing loyalty program, Carnival's new rewards system will offer a dual-earning model, recognizing sailing nights as well as overall spending, including cruise fare and onboard activities.
- Financial engagement will play a significant role in the new loyalty program, aimed at modernizing rewards and aligning with industry standards.
- The new structure will offer greater flexibility and personalization in terms of earning rewards based on spending, and will be closely tied to Carnival's co-branded credit card for accelerated earning opportunities.
- As a result of the changes, some loyal customers have expressed frustration and threaten to switch to competitors, potentially impacting Carnival's financial performance by reducing the number of repeat customers.
