Royal Caribbean Sees Higher Onboard Spending From Younger Cruisers
Royal Caribbean Group’s Status Match links loyalty tiers across Royal Caribbean, Celebrity and Silversea, though cruise points and nights do not transfer.
Royal Caribbean Group guests are spending more onboard than the company anticipated, helping drive its performance, according to Jason Liberty, chairman and CEO. Millennials and younger travelers now represent half of the group’s guests, and their vacation habits are contributing to the stronger spending.
Those younger customers tend to take shorter, more frequent vacations, including weekend getaways, Liberty said. “They basically spend as much on a short trip as they would on a six- or seven-night type itinerary,” he added.
Liberty also linked the results to the group’s loyalty strategy. Since the introduction of Loyalty Status Match, customers sailing with more than one of its brands have generated higher average per diems than guests who remain with a single brand. Loyalty members now account for 40 percent of guests.
The company’s ability to identify high-value customers and tailor their experiences is producing higher margins and greater lifetime value per guest, Liberty said. Customers’ valuation of the vacation experience was “not only resulting in them paying more, but also them coming back for more,” he said.
Status Match connects Royal Caribbean International’s Crown & Anchor Society, Celebrity Cruises’ Captain’s Club and Silversea’s Venetian Society. Members receive recognition at corresponding tiers across the three brands, with applicable onboard benefits including priority services, discounts and events. The specific benefits vary by brand, ship, itinerary and matched level.
For example, a Royal Caribbean Diamond Plus member can receive Celebrity Elite Plus status and recognition at Silversea’s 250 VS Days level. Participation requires guests to be at least 18 and enrolled in the applicable loyalty programs.
The matching applies to loyalty tiers, not the underlying cruise points or nights. Some benefits reserved for members who earned their status directly remain excluded, and the program does not accept status from unrelated cruise lines or travel brands.
