How Carnival Cruise Line is Redefining Customer Experience with Carnival Rewards (#720)

Sid: Today’s cruise program almost makes the cruisers wait for five, 10, 15, 20 years in order to get status benefits of their drinks and pieces.

Sid: We wanted a program that can, as America’s Cruise Line, we feel like, you know, the impetus is not on us to reward all the guests who are cruising with us, starting with that very first cruise.

Sid: The Paradise Collection consists of three major exclusive destinations that we are enhancing, improving, and making it also Carnival branded in order to make sure our guests have the best experience, not only when they’re on the ship, but when they also leave the ship and go to these places.

Sid: We have one of the largest places in the sea with about 29 ships.

Sid: And it’s really exciting because there are some ships that need some updates.

Sid: And so we are going through a full refurbishment and enhancements to a lot of our ships right now that are more, you know, having hit that like number of years, they need to be refurbished and enhanced.

Sid: But what I’m more excited to talk about are our new ships that are enhancing our fleet overall.

Paula: Hello and welcome to Let’s Talk Loyalty and Loyalty TV, a show for loyalty marketing professionals.

Paula: I’m Paula Thomas, the founder and CEO of Let’s Talk Loyalty and Loyalty TV, where we feature insightful conversations with loyalty professionals from the world’s leading brands.

Paula: Today’s episode is hosted by Bridget Blaise-Shamai, former president of the AA Advantage program, the award-winning Travel Rewards program of American Airlines.

Paula: Bridget is a global C-suite executive and is currently advising VC-backed startups in loyalty, travel and payments.

Paula: Enjoy.

Bridget: Welcome everyone to this edition of Let’s Talk Loyalty and Loyalty TV.

Bridget: I’m excited to have my friend and colleague Sid Krishna, Vice President of Carnival Cruise Line as my guest today.

Bridget: Carnival Cruise Line is the largest international cruise company in the world.

Bridget: Since its founding in 1972, it has established itself as an industry leader and innovator, all in the spirit of striving to provide the most valued and relevant experiences for its cruising customers.

Bridget: My conversation today with Sid will focus on three key areas where Carnival is enhancing their customer’s experience to earn their trust in loyalty.

Bridget: First, their fleet updates.

Bridget: Second, their exclusive destination enhancements.

Bridget: And third, yes, we’ll be talking about the Reimagine Loyalty program that’s going to be in market in 2026.

Bridget: In combination, Carnival is bringing all to bear to attract and welcome back customers.

Bridget: And Wall Street is taking notes.

Bridget: Given Sid’s energy and passion, I am confident you will enjoy this session.

Bridget: So let’s get going.

Bridget: Hello, everyone.

Bridget: Today’s podcast provides us with the opportunity to learn and be inspired on how Carnival Cruise Line is creating an innovative and elevated approach to acquiring, engaging and retaining customers in a highly competitive cruising industry.

Bridget: With that, I am absolutely delighted to welcome Sid Krishna, Vice President of Carnival Cruise Line to Let’s Talk Loyalty.

Bridget: Welcome, Sid.

Sid: Hi, Bridget.

Sid: It’s always nice to talk to you since our days from American Airlines.

Sid: I’m extremely excited today to sit down and talk about a Cruise Industry First program.

Bridget: I’m just delighted to.

Bridget: It’s like full circle for us, right?

Bridget: Back on the days of American Airlines and here we all evolved.

Bridget: It’s something great and awesome and that has a circling back together.

Bridget: So it’s just really a treat to have you here today, Sid.

Bridget: Okay.

Bridget: So as we get started, we like to give our listeners just a bit of background about our guests.

Bridget: And one of the ways we do that is to talk about, one of their favorite non-fiction books that has influenced them or affected them in terms of their leadership style or how they think about loyalty, marketing and really being a part of where they are today and their professional success.

Bridget: So what do you have to share with us?

Sid: Yeah, absolutely.

Sid: And I’m glad you said non-fictional because I’m not as avid a reader as maybe some of your guests, but I’m always focused on kind of real life examples and learning the journey that brands and teams are constantly taking.

Sid: But a book I do like is based on the following that I do with my team Liverpool.

Sid: It’s called Bring the Noise, a Jürgen Klopp story.

Sid: And it’s a story about how Jürgen Klopp, one of the most charismatic managers ever to kind of come on to Liverpool, not only change the mentality of the club, but the mentality of the whole city and the following and made them move forward and dramatically change what people consider them.

Sid: That always is something that I love to see, love to read and gives me goosebumps thinking about my team.

Sid: So that’s a book that I always call upon.

Bridget: It’s a great example, right?

Bridget: Where the individual didn’t just settle for the immediate community he was carrying, but rather took it to a whole other level for the benefit of a greater population.

Bridget: So terrific example.

Bridget: Thank you, Sid.

Bridget: Also, tell us a little bit about yourself.

Bridget: You shared that you and I worked at American Airlines, but your story is even more interesting than that.

Bridget: What do you have to share?

Sid: Absolutely.

Sid: I started as an engineer and worked for Tata Consultancy, became an IT consultant and came to US.

Sid: When I did my MBA, my first gig was with American Airlines and working on the Advantage program with you and the credit card specifically, working on that Citibank credit card really gave me the experience of learning about how much more loyalty has to offer to our guests.

Sid: From there, I got the opportunity to go to Spirit Airlines, where I got the opportunity to build, again, an industry-first program for a low-cost carrier and changing the way people think about that, changing the way that people engage with Spirit Airlines as well.

Sid: Then five years later, I got a call from Christine and the Carnival team of where they wanted to also innovate and change and improve that loyalty program.

Sid: Here I am at Carnival as Vice President of Loyalty, leading the team on innovating our current and changing our program to the new world.

Sid: It’s been fascinating to build a team from scratch and bring it to where our team overall focuses on not only just managing the current program, but building this new program, building the facets of the new program, interfaces, guest interfaces, everything else involved with it.

Sid: So really excited to work on this project.

Bridget: Great examples in your past, right?

Bridget: And you’re kind of leaning into your engineering background and then building what you did at Spirit, which was a complete reimagination, right?

Bridget: I think reimagination to the way better.

Bridget: And then, of course, what you’ve done at Carnival, which we’ll get to in a minute.

Bridget: So I think these are just awesome examples and that you have not been sitting still, Sid, and I really applaud you on all of that.

Bridget: Okay, so today we’re going to zero in on three key areas that Carnival is providing its customers with unique experiences, again, all in the spirit of having them be attracted to the Carnival brand and engaging with the Carnival brand and being the cruising customers of Carnival.

Bridget: And those are your fleet updates, your exclusive destination enhancements, and the reimagined loyalty program.

Bridget: So let’s start with fleet updates.

Bridget: You know, really, coming from an airline background, right, both of us, that physical product, right, really matters.

Bridget: And the same is true here in the cruise line.

Bridget: So can you help us understand what is going on in the fleet updates section at Carnival that you were making sure it plays a role in customers preferring the Carnival Cruise Fan versus all the many, many competitors that you have?

Sid: Absolutely, no, fleet enhancements.

Sid: And just talking about fleet compared to airline world, there’s so much more when it comes to a ship in terms of the things that you can build, the things that you can have, you basically have floating cities.

Sid: And so the fleets are as important an element of our product and our brand as anything that we have.

Sid: And we are really excited that these fleets are being enhanced.

Sid: So we have one of the largest fleets in the sea with about 29 ships.

Sid: And it’s really exciting because there are some ships that need some updates.

Sid: And so we are going through a full refurbishment and enhancements to a lot of our ships right now that are more, you know, having hit that like number of years, they need to be refurbished and enhanced.

Sid: But what I’m more excited to talk about are our new ships that are enhancing our fleet overall.

Sid: So our two new Excel ships that are our modern ships that carry about 6,000 guests, which is insane to think about.

Sid: And about, you know, 2,000-odd crew.

Sid: Those ships, the two new ones that we have announced, I’m really, really excited for.

Sid: So Festival and Tropical are the two new Excel class ships.

Sid: Festival, again, talking of innovation, like, you know, we’re looking at opportunities and ways that we can engage with families and kids.

Sid: And we have learned from our guests that they love music.

Sid: So Festival is going to kind of be on the back of that and using music as the team throughout the ship.

Sid: Because each of these ships are destinations of their own because they want to make sure that when you go from a ship to ship, you have a different experience.

Sid: You have a unique experience that you can carry over.

Sid: Some of our top guests love to check every ship out and collect, you know, things about the ship and pieces.

Sid: So Festival and Tropical are going to add to that legacy of Excel class.

Sid: But really, really exciting is our ace class ship.

Sid: So we have three ace class ships on order that are going to come towards the end of the this decade.

Sid: But those ships are so large and so game changing that they could carry up to 8,000 guests.

Sid: And that really, really brings a new world to us.

Sid: And if you look at our ships, it’s similar to the Carnival, like methodology of, you know, fun and family oriented, but also making sure that there’s something for everyone, right?

Sid: All of these ships are being enhanced in such a way that if you want those high end suites and spa like experience, we have those.

Sid: If you want the base experience, but want to have a lot of fun, a lot of entertainment, we have that as well.

Sid: Plus, we also have these amazing dining and specialty dining opportunities throughout the ship.

Sid: And let’s not forget, we have some of the largest casinos on the ship as well.

Sid: So it’s really kind of giving everybody what they like when they cruise in different ways that makes Carnival special and kind of puts us ahead in front of our competition when it comes to all these lead updates.

Bridget: So you know, as an industry leader, right, that is a very big responsibility, frankly.

Bridget: And you just mentioned you’re going to have a ship that can care for 8,000 people.

Bridget: And you are going to create something that gets on the demand curve of 8,000 people.

Bridget: And that is that’s amazing.

Bridget: I mean, so how is it that you ensure the innovation that you’re pursuing is going to resonate with your customers and in some instances, as many of 8,000 on your floating island?

Sid: No, absolutely.

Sid: And I think it’s all about the ability of our company to, one, create amazing itineraries that guests are attracted to and want to do with us.

Sid: But also, it’s people who love Carnival, love Carnival for what we are, right?

Sid: They love for the fact that when they come board our ships, we have the best crew in the industry, who make their vacation the most enjoyable thing they have ever experienced.

Sid: Bringing fun to them, always making sure that fun is at the core, at the center of everything we do at Carnival, makes all these guests want to come back and engage with us and do all those things.

Sid: So again, generating that loyalty from the base, from the product and from those pieces is the core that Carnival is proud of.

Sid: And I think keep innovating and understanding our guests better to be able to serve them with even more opportunities to keep coming back to us.

Bridget: So that’s a great example and really kind of leads into my next question.

Bridget: It’s one of my favorites.

Bridget: How are you embedding loyalty in your hard product?

Bridget: And when you started without my soliciting on this question about your staff and having the industry’s best staff, there’s probably nothing more compelling in terms of the loyalty with a customer than what comes through the employee itself and the interactions they have with your customers.

Bridget: How do you feel about embedding the loyalty through your customers and your employees?

Bridget: And you also mentioned having themes on each ship, one being music, as part of that embedding loyalty throughout the hard product, if you will, experience.

Sid: Absolutely.

Sid: So as we were reimagining the loyalty program, one of the main things we wanted to address was the fact that the current program takes into consideration the days they have sailed and that’s about it, right?

Sid: There’s nothing else that sort of gets connected or rewarded back.

Sid: So similar to the way that we are trying to make unique experiences on ships, unique experiences on itinerary, we want everything that people do on these ships to be rewarded.

Sid: There are some people who like to sail 50 times a year.

Sid: There are some people who like to sail once a year, but they like to take the shore excursion.

Sid: They like to go on to the spa.

Sid: They like to play in the casino.

Sid: Everything that they do throughout our ship, in the different ways that we have structured our different ships and different itineraries, should be rewarded.

Sid: And that was kind of like the core of embedding loyalty in each of these and making sure each of those elements, which by the way, coming from an airline world where you have one transaction and that’s all you have to worry about, to thousands of transactions between the course of booking to actually finishing the sailing is a very different world.

Sid: So talking from the technical side of what I have been used to, it is a very, very difficult world to set up the vision and then be able to execute on that vision.

Sid: So we have an amazing IT team that’s able to work and deliver that.

Sid: But embedding that into every single action, every single time they’re swiping their sail and sign card, every time they’re going on to the hub out, every time they’re purchasing a pre-cruise, that’s the way that we’re making sure we’re connecting the loyalty and rewarding the guests at each of those steps within the journey.

Sid: So that kind of connects them back to the brand, back to the program in a very positive way.

Bridget: Those are excellent points.

Bridget: And really, again, I applaud you because you’re really a retailer too, right?

Bridget: And you are not wanting the customer to feel that that’s a whole team of retailers that aren’t necessarily owned by Carnival, but are partners of Carnival and the customer doesn’t really care.

Bridget: They just want a seamless, predictable, on-brand, and that’s Carnival’s, experience each and every time.

Bridget: So really, I appreciate the complexity of what you go through to make that happen for your customers.

Bridget: Okay, we’ll talk about exclusive destinations.

Bridget: And that’s really become a thing in the cruise industry.

Bridget: Talk to us about the enhancements that you’re doing there and the competitive edge.

Bridget: It’s getting you, and again, earning the trust and loyalty of your customers and brand preference back to Carnival.

Sid: Absolutely, no.

Sid: Exclusive destinations.

Sid: And we call our exclusive destinations the Paradise Collection.

Sid: So the Paradise Collection consists of three major exclusive destinations that we are enhancing, improving, and making it also Carnival branded in order to make sure our guests have the best experience, not only when they’re on the ship, but when they also leave the ship and go to these places.

Sid: As you said, the industry is moving towards that direction where a lot of our competitors also have these exclusive destinations and places and improving and making these larger are a key element to attract guests and attract and keep them and make them happy.

Sid: So our three destinations, which we are focusing on, first, Celebration Key, the largest water lagoons in the Caribbean, and one of the most beautiful places I have visited because it is such an amazing place to think about the fact that it can accommodate two XL class ships and be able to feed and have things.

Sid: It’s an amazing experience to see that everything that you do there is also branded and have that experience that you’re looking for when you think about Carnival.

Sid: Being able to experience that even though you are in Bahamas, you have that same connection and are able to enjoy these amazing beaches and lagoons and waterslides, and have a great time on the island as well.

Sid: The next two that we are working on are RelaxAway at Half Moon Cay, which is an enhancement to the Half Moon Cay exclusive destination that we have where we are adding an extra part of the beach.

Sid: Then third is also improvements to our exclusive destination at Isla Tropical, which is again the third piece of our Paradise Collection, where we are really enhancing what we are able to give to our guests in those islands.

Sid: Now, for example, in Celebration Key, you can use your Salem sign in the Celebration Key to be able to purchase the food, purchase drinks, things of that sort, which again might seem as trivial but is very difficult when you’re working on an exclusive destination.

Sid: So again, loyalty rewards can be now given in those exclusive destinations, and that makes me excited as we are working through these improvements because at the end of the day, the experience that they get on the ship should also be replicated what they get on these exclusive destinations.

Sid: That way, we are able to really, really enhance and connect with them on the loyalty front on all places.

Bridget: These are all great, great points.

Bridget: And what’s coming clear to me, even though we’ve barely begun talking, is just how at the center the customer is and all your design and decision making and how you’re really knitting it all together.

Bridget: So they feel everywhere they are in the journey with Carnival is that it is Carnival.

Bridget: It’s a part of the brand promise and that feels very authentic and real, which then circles back to them being authentic and real in their loyalty and trust to the Carnival brand.

Bridget: So terrific examples.

Bridget: Thanks, thanks Sid.

Bridget: So then, you know, there is kind of this amazing announcement made back in June that you all were taking another leadership position in the industry and reimagining your loyalty program.

Bridget: So let’s just talk about that a bit here.

Bridget: It’s very ambitious, what you announced, and it’s a reimagination, in my words, and it’s newly branded, Carnival Rewards.

Bridget: And, you know, I’ve spent some time really reviewing this and thinking about it.

Bridget: And one thing that just strikes me is that it is very clear that it provides a lot more ways to be rewarded to cruise and other things around the cruising with Carnival for the customer.

Bridget: And I love that.

Bridget: I love every bit of that.

Bridget: So let’s first talk about what was the impetus to lead the industry with the strategic initiative.

Sid: Absolutely.

Sid: This is kind of like the core of what we started with.

Sid: And Carnival has been a pioneer when it comes to the cruise industry, right?

Sid: We have had some of the firsts in terms of how we have the experience when we created the loyalty program and worked on it.

Sid: So when it comes to this, the problem that we were looking at was the VIFP program that we have today.

Sid: So the VIFP program was created in early 2000s and never sort of adjusted or enhanced in terms of how we reward our guests, whether it be on the ship or outside and that ship that was great for the time when the program was created, which was in the 2000s, we had a low number of ships, a low number of itineraries and not a lot of people were cruising as many times as we do today in today’s world.

Sid: So that program worked great at that time.

Sid: Fast forward to 2025 and we have a lot more ships, like we said, a fleet of 29 ships and we have a lot more cruisers and itineraries that we go all around the world.

Sid: The program was created in such a way that the people who earn platinum and diamond status get to keep that status for lifetime.

Sid: But that number keeps constantly growing and it became to a level in the last few years where those numbers have been unsustainable.

Sid: So one, it’s a need in terms of making sure that we are creating a program that’s sustainable because if half of your ship is elite, then nobody is an elite because you’re not able to get the benefit that you deserve.

Sid: You’re not able to get the priority that you deserve.

Sid: So taking the first step among our competition, we decided it’s time for a change and not just a change by just adding another level or just pushing the problem for later, but instead changing the foundation of that program, changing the foundation of how cruise industry programs have been set up.

Sid: And which is basically giving, taking this program and moving it forward into the modern era of loyalty programs where you have more ways to reward them, not just on the cruise for everything that they do, but also outside of the cruise.

Bridget: Yeah.

Bridget: Thank you.

Bridget: That’s an excellent explanation.

Bridget: It makes everything even more clear to me.

Bridget: And one thing we’ve seen in other industries, notably the airline industry, is that everyone seems to be getting a better understanding of how the core business has evolved.

Bridget: And the loyalty programs need to evolve with that to best support and enhance all elements, including the customer experience, to earn the trust and loyalty of the customer.

Bridget: So, you know, it’s not the right model in the airline industry today to fly a mile, earn a mile, right?

Bridget: Things have changed so much that it just became, just not the right model for everybody, right?

Bridget: The customers and the program and the airlines.

Bridget: And it appears something comparable in the cruising industries, too.

Bridget: So I applaud it.

Bridget: It’s, you know, always a bit harder to be first.

Bridget: But I do applaud you.

Bridget: But, you know, as you talked about the impetus, I appreciate that.

Bridget: Your North Star, what was it that, you know, Sid, the architect, the engineer of this is like, this is what we must be held true to as we think about and design this new program.

Sid: Absolutely.

Sid: And the North Star, at the end of the day, when it comes to Carnival, and when it comes to everything we do, is to design a program that rewards guests based on everything they do, regardless of the way they cruise, the way they vacation.

Sid: The Today’s Cruise Program almost makes the cruisers wait for five, 10, 15, 20 years in order to get status benefits of their dreams and pieces.

Sid: We wanted a program that can, as America’s Cruise Line, we feel like, you know, we, the impetus is not on us to reward all the guests who are cruising with us, starting with that very first cruise.

Sid: And today, we are not able to do that.

Sid: So in the new program, that was the first key element we wanted to fix, which is by giving points and giving the currency that they are able to come back and utilize in the very next cruise, to be able to either get a discount on their cruise fare or to be able to purchase more pre-cruise purchases or purchase things on board, whether it be drinks or excursion, whatever it is, we wanted to give something back immediately that they are able to use.

Sid: That’s one.

Sid: The second piece is, again, we talked about not being able to connect with guests outside of the cruising.

Sid: So that was the second piece that we wanted to make sure we really, really tap into.

Sid: And that part is ensuring that through our credit card partners and other partners that we are still working on, we want the opportunity to be able to have, yes, to be able to connect back to Carnival, connect back to their vacation or their cruise, and be able to come back by earning points and status outside of just cruising.

Sid: That’s a big element that we focused on in order to make sure this newly redesigned program engages us on all those levels.

Bridget: I appreciate that last comment about, in this case, a cruise, which can be very once a year, once every two years, once every five years.

Bridget: Do not have something habitually engaged in with your customer.

Bridget: I think what you’ve done here really begins solving that problem for you, and it works for the customer, keeping you top of mind and getting them excited and inspired for that next cruise, and what they may need to do in terms of their own behavior and marching towards that.

Bridget: And of course, for you all to have the opportunity with a greater set of partners.

Bridget: So can you give us a high level overview of the type of partnerships that we are going to expect with the launch next year?

Sid: Absolutely.

Sid: So I mean, first, just to kind of like think about what you just said, the key element that I always like to say with this new program, it’s been a big change for our guests.

Sid: So without needing the credit card or anything, you start earning points with just cruising.

Sid: That’s one piece that I think I wanted to make clear just because of the fact that sometimes there’s confusion that the only way to engage with Carnival Rewards is with the credit card or partners.

Sid: But the idea is that Carnival cruising itself gives you points and stars.

Sid: On top of that, to accelerate it, our first biggest, obviously, expansion to the partner side is our credit card and our whole brand.

Sid: So our partnership with Barclays and MasterCard, we are enhancing the credit card that already exists with us, by bringing it more and connecting it into the loyalty program.

Sid: So every dollar that’s spent on that card starting June 2026, will earn them one status qualifying star.

Sid: That basically means that is their fast forward status to be able to accelerate their presence.

Sid: But they also receive a lot more points than they do today.

Sid: Now, that is going to be shared more with our guests in December, in terms of how much more points they will earn from those credit cards.

Sid: But the points and the stars’ earning capability on the card is what’s going to really enhance from 2026, our engagement outside.

Sid: So when they are not just cruising, but when they’re purchasing their groceries, they’re going to restaurants, they’re purchasing coffee, all of those things gets them closer to their cruise vacation when using their credit card.

Sid: Other partners outside of card, we’re still working through, so we haven’t finalized, but we are looking at more everyday partners and things that will help our guests be engaged outside of just cruising.

Sid: Like we said before, credit card is one avenue, but we’re looking at a lot more partners when it comes to either be travel, whether be it everyday things like grocery and restaurants, and things where we can really connect back to our guests and have that constant touch point so that it’s not just once a year, we are engaging and working and able to see them.

Bridget: I can’t wait for December to hear how it all is going to unfold.

Bridget: I know you know this, the relevance of these partnerships is really important because it needs to matter to the customer more than it matters to Carnival.

Bridget: It’d be really exciting if there’s a path that through partnerships, the customer can actually make their way back onto a cruise through redemption.

Bridget: It all sounds so promising and cool and fresh.

Bridget: I just look forward to it being in market and going from there.

Bridget: Now, with that though, you have chosen to keep some elements of the current program in place.

Bridget: Which ones and what was your thinking?

Sid: Yeah.

Sid: Some of the things that we kept from the current program, so obviously we kept the status names the same.

Sid: So, the status names that we had in the VISP program were red, gold, platinum and diamond.

Sid: And in the Carnival Rewards program also we will have red, gold, platinum and diamond.

Sid: Also, we tried to keep the status benefits as similar as possible.

Sid: We had to remove some because of the operational difficulties of being able to provide something for 800 plus people, but we did make sure that we wanted to keep something steady when we are passing over our transitioning from that whole program because we know change is difficult and that transition plan is very important as we go from one program to another.

Sid: So, keeping that status names and the status benefits as similar as possible was one key element we tried to keep.

Sid: The second thing is we looked at milestones.

Sid: So today, there’s something called the VFV milestones where the 25th, 50th, 75th and 100th cruise people are rewarded.

Sid: Now, as I said, it’s on the cruise level.

Sid: So it takes a long time for someone to get to that 100th cruise.

Sid: Instead, we are moving milestones into days based.

Sid: So because of the whole program was days based, we wanted to find a way to reward our guests still for sailing the number of days and showing the loyalty and keep coming back.

Sid: So starting at 50 days, every 100 day after that, on that milestone sailing, they will get some tangible milestone rewards, which is recognition on board, have a special sail and sign.

Sid: They’ll get credits.

Sid: They’ll get gifts.

Sid: They will get ways that that milestone sailing is really celebrated.

Sid: We want to make sure that we are celebrating those guests as they’re hitting.

Sid: And we have people who have hit 2,000 days sailing.

Sid: So every 100 days, we want to make sure that they feel special, they feel rewarded, even if they are not getting in the new program, the points and stars that they would like.

Sid: We want to make sure that folks are still rewarded in that way.

Sid: So those are the two things that we wanted to keep that element of what we collected from the IFP and make sure those are not forgotten.

Bridget: Yeah, and certainly some things that are created years ago still work, are still relevant and still valued, and so it makes a lot of sense.

Bridget: And we talked a lot about rewards, but we also need to remind ourselves, folks do like to feel recognized and celebrated.

Bridget: And so thanks for bringing that back into the conversation.

Bridget: So now let’s just talk a little bit about, there isn’t customer loyalty unless there’s customer trust, right?

Bridget: Trust is at the core, and then loyalty and preference, and I’m not going anywhere else thereafter follows.

Bridget: I’d like to just hear from you, just the top attributes of this redesigned program, Carnival Rewards, that really are designed to get at creating that customer loyalty.

Sid: Absolutely.

Sid: Now, I think one of the core pieces we talked a little bit about was the simplicity of the design, where everything you do is rewarded, right?

Sid: We wanted the program to be open and fair to everyone who’s engaging with Carnival, whether it be people who believe engaging with Carnival is by cruising a lot of times versus person who is cruising once but wants to go to the spa, does a shore excursion, plays in the casino, or engages with our credit card.

Sid: So simplicity of saying everything you do with Carnival through any of these avenues should be rewarded, was probably one of the biggest way that we want to make sure we can keep earning trust.

Sid: The second is we want to create that interface, right?

Sid: So showcasing and clarity in showing them what they’re earning, where they’re earning, when they’re earning.

Sid: That’s another way that we want to build that trust.

Sid: So I’ll completely improve my account.

Sid: We’ll show them where the points are coming from, what activities are leading to the points, and also giving an interface that makes it very simple for them to use the points.

Sid: So they can use points from starting from even on the cruise fare side, they can use any combination of points and cash.

Sid: So we don’t want to even restrict them to only use set number of points.

Sid: We want to give the flexibility to the guests to say, hey, if you want to come back on a cruise and you want to only use a portion of the points, come back and be able to use it for that.

Sid: Or you don’t want to use it for cruise fare, but you want to use it for the shore excursion or drink package you’re purchasing, you should be able to use it there.

Sid: So creating that visibility back and forth, whether it be, you know, earning or redeeming and giving that clarity back to our guests and giving a lot more touch points than before.

Sid: Like today on the AFP, you get those days sailed and that’s about it.

Sid: I think to earn trust in this new program, we need to be constantly in touch with our guests of showing where they’re earning points, how they’re earning, and giving them those avenues of using those points as well.

Bridget: Yeah.

Bridget: And those are all great points, right?

Bridget: You know, it’s easier and clearer program design.

Bridget: It’s broader, more habitual platform to engage with your customers and your partners.

Bridget: And, you know, expected more consistent delivery of the benefit.

Bridget: You know, it just provides a better platform for the emotional engagement with your customers.

Bridget: So I think it’s great.

Bridget: I think it’s really well done, as I’ve said more than once to you.

Bridget: OK, so with the new program, it doesn’t launch until 2026, right?

Bridget: What has been customer reaction to Carnival Rewards?

Sid: Yeah, so when we announced the program, we expected this, right, which is a lot of our platinum and diamond guests who have been members of our program for a long time and have taken a lot of years to get there.

Sid: There is definitely some resentment to that change because of the fact change is always difficult.

Sid: We all know this and we have seen this in our industry, Bridget, on the airline side and also hotels, when they did their change, every change does have some folks who will get affected and have that problem with it.

Sid: So obviously, our platinum and diamond guests were unhappy with the change of losing what they had burned and rightly understandable.

Sid: So we have guests who wrote in to us, who spoke to us and who expressed that change a lot and very loudly.

Sid: So one of the key things that our president, Christine and the team had said is, we announced this early so that we can listen to our guests.

Sid: That’s what we did.

Sid: We used this time to listen to our guests, understand what are the parts of the chain that are not something that they’re comfortable with.

Sid: Because when we announced this program, we did say, first of all, we announced it a year before the launch, plus we put in a two-year transition plan.

Sid: Basically, we were saying for three years, everything that you have done will be protected because we do feel we owe that to our guests and we need to make sure that they feel comfortable so that they can try the new program.

Sid: They can see how the points and stars work and see how that’s going to benefit them more than what they were getting before.

Sid: When you’re a goal member today, you receive one drink and that’s your benefit.

Sid: Instead, in tomorrow’s world, every cruise you take, you’re earning enough points to purchase more than two or three drinks and you can probably use it for a tour excursion or a discount on cruise.

Sid: That’s what we want our guests to understand and engage in you.

Sid: That three-year transition plan that we have put in for goals and platinum, I think will help do that.

Sid: Now, for diamonds, we had initially announced and said a six-year, so six plus one seven-year transition plan.

Sid: But I think we heard it very loud and clear from the diamonds that that’s something 200 days in the seat is a lot to attain.

Sid: We do believe that needs to be given what it deserves.

Sid: We decided again, against what would be common economic practice, we said we want to be able to reward these diamonds and give diamonds the lifetime.

Sid: Anyone who earns BIFP diamond status before May 31, 2026 will get to keep that diamond status for our, again, something that the industry usually don’t go and do.

Sid: But I think I’m proud that we were able to do that and protect that for our diamond guests and really happy.

Sid: For platinum guests, we didn’t want to also leave that.

Sid: Now, obviously, since that’s a much larger group we’re talking about, very unsustainable to carry that over and continue that forever.

Sid: But we wanted to give a head start.

Sid: So we will be giving 10,000 stars boost every two years.

Sid: Every two, like the status qualifying bingo that we have, every two years, they will get 10,000 stars, which will give them automatic goal status.

Sid: So they will never go below goal status since they earn their platinum and gives a head start towards platinum.

Sid: And also if they wish to go to diamond now.

Sid: And that is the way that we wanted to ensure that we heard our guests, we made some changes.

Sid: Because again, we are evolving, we’re learning and we always want to be having the guests at the center of it all.

Sid: We really think though, and I really believe this, which is once the program launches and people are able to see the points and see the stars and see the partners that they can engage with, see the credit card improvements, all of that will make them feel a lot more connected to the program and be able to access it.

Bridget: Right.

Bridget: And to see and live and experience the program is even better and stronger than what they’ve known for the last several years.

Bridget: And I’m assuming the customers feel very respected and honored that you heard them and you’ve actioned that.

Bridget: So not an easy thing to do.

Bridget: And here you are, have done that.

Bridget: And I’m assuming they’re very pleased with the response and the changes you’ve made.

Sid: Yeah, yes, I mean, the platinum guests still feel that, you know, they’re not getting the same sort of like treatment that diamonds are.

Sid: But again, like we said, some of it is sustainable, some of it is not.

Sid: And even the diamond guests, we had to kind of work through and find the solution which we were happy to.

Sid: But with the platinum guests, already we have enough platinum and diamond guests that 20% or so of our ships sometimes are platinum and diamond.

Sid: And we quadrupled the number of diamonds in the last few years.

Sid: We have more than doubled the number of platinums, which is a large group already.

Sid: So it is something that I wish we could do more, but it’s not something that’s going to be sustainable in the long run of the program.

Bridget: Well, you know, and you’ll just continue to understand and evolve the program as it makes sense for, you know, all the stakeholders.

Bridget: And, you know, honestly, you know, as I really reflect on how Carnival is performing financially and in Wall Street, you know, you’re doing really, really well.

Bridget: So you’re clearly doing a lot of things right by your customer.

Bridget: So again, keep up the good work.

Bridget: So I am not asking have anything revealed as you go forward, but I’m assuming you’re kind of moving into kind of the more go-to-market aspect, you know, on the way forward.

Bridget: How you spend your time now, Sid?

Sid: Yes, the time that I have now is always spent in how are we getting this to market, right?

Sid: So we not only on the back end working with IP teams and groups to make sure we have this program ready for our guests and make sure that is all being shown the way that we want them to.

Sid: But on the communication side, we want to make sure we know that the cruise industry guest is not necessarily completely, fully aware the same way that the airline or hotel guests might have been with points and stars and the way of earning status and keeping status.

Sid: So we’ll be using a lot of our time from now to the launch to start our education early.

Sid: So we will be seeing a lot of communication of education and acknowledgement of hearing our guests and explaining how points work, explaining how the earning works, explaining that every dollar spent is three points and three stars and making sure the confusion between stars and points don’t happen, making sure that they understand how the milestone rewards are on top of everything that they receive already.

Sid: And also making it very clear that guests don’t have to change what they do today.

Sid: It’s more that for everything that they do today already, they’re going to get points and stars and milestone rewards on top of it.

Sid: So we want to make sure that, and like you said, even our platinum and gold and all the guests are going to get more rewards in this new program and showcasing that to our guests and having them learn and understand it is going to be one of our biggest pieces.

Sid: And then, parallelly, like you said, we do think the avenue outside of cruising is going to be huge.

Sid: So not only improving our credit card and doing more with Barclays and MasterCard, but also finding other partners like we talked about for them to engage and be able to get that reward to come back and cruise and come back and connect with Carnival.

Sid: This is going to be the key for success that keeps me busy for the next probably few years.

Bridget: Yeah, right.

Bridget: No, because you’ve got the daunting task of building upon two great brands like Barclays and MasterCard to provide even more to your customers.

Bridget: Really, this whole thing about the go-to-market is another opportunity for Carnival to really demonstrate respect to customers and really have them consume it and understand it on their terms.

Bridget: Then once it is in market, they will have the opportunity to experience it on their terms.

Bridget: If you are doing everything right, it all ought to be very seamless and positive for your customers.

Bridget: Again, look so forward to that.

Bridget: We’re about almost wrapped up here.

Bridget: Is there anything we haven’t covered today you’d like the listeners to hear?

Sid: Yeah, no, absolutely.

Sid: I think one of the things that people tend to forget is like, instead of changing the loyalty program by just adding a level or changing some names and pieces, we decided to do this foundational change.

Sid: And we know that change is difficult.

Sid: We know that our guests have to learn and understand this new program, engage with it.

Sid: So until the program launches, I don’t see other guests being able to fully understand and be able to understand the value that the program is giving until then.

Sid: That’s one.

Sid: And the second piece is I want our guests also to know that the two key things that we want them to take away is flexibility and choice, right?

Sid: Programs are moving away from being cookie cutter and just having status based on the sale and things of that sort.

Sid: By giving points, we’re giving the power and the flexibility back to our guests in order to choose what they want, right?

Sid: So a platinum or gold guest who still would want to have priority embarkation or they want to have shore excursion, they can use their points to purchase the things they like, they want, rather than just be given what is given.

Sid: So that flexibility and choice is a key element that we have embedded into our program that we hope our guests find really worth it.

Bridget: Yeah, that’s a great point to end on is bestowing control at the individual cruiser level is a great sign, again, of respect, and so SNAP’s really great job on that.

Bridget: So as we wrap up here, Sid, I suspect a lot of folks may want to be in touch with you.

Bridget: Okay, to point them to your LinkedIn profile?

Sid: Yeah, absolutely.

Sid: Please do and would love to connect more.

Sid: Again, we know that this is just the beginning.

Sid: It’s the foundational element, so there’s a lot more to come and a lot more things that we can do to enhance our guest experience at Carnival Rewards.

Bridget: Well, you may have just unknowingly signed you up for another session on Let’s Talk Loyalty and Let’s Talk Loyalty TV, pardon me, in the future.

Bridget: So with that, thank you.

Bridget: I know you’re so super busy and you gave us your time today.

Bridget: I wish you a great weekend.

Bridget: And for our listeners, thanks for joining us today.

Bridget: And stay tuned for the next episode of Let’s Talk Loyalty and Loyalty TV.

Paula: Thank you so much for listening to this episode of Let’s Talk Loyalty.

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