What Happened:
Carnival Cruise Line will replace its 23-year-old loyalty program with a new model called Carnival Rewards in June 2026. The revamp introduces a dual-currency system — points for rewards and stars for status — earned on virtually every onboard purchase, from shore excursions to specialty dining to casino play.
For the first time in the cruise industry, a co-branded credit card will help guests earn status. Carnival’s new partnership with Barclays and Mastercard connects credit card spend directly to earning both points and stars, extending loyalty engagement beyond sailings.
Diamond members will be grandfathered into lifetime status, but Platinum members will not. Carnival said its current program had become “too top-heavy,” making priority benefits operationally challenging when half the ship has elite status. The new structure uses a two-year earn window and two-year status duration.
These insights were discussed during a conversation on Loyalty360’s Brand Stories podcast.
Our Take:
Carnival decided to shift its loyalty program from a pure tenure-based (days sailed) model to an engagement- and spend-based model. It’s a direct response to the core challenge of the cruise industry: a lower frequency of transaction compared to airlines and hotels.
VP of Loyalty Siddh Krishna, who previously led loyalty transformations at Spirit Airlines and worked on American Airlines' credit card program, identified that cruise loyalty programs "have still not unlocked the potential of loyalty for our guests" by failing to reward behavior outside of taking cruises.
Carnival has become what Krishna calls "very top-heavy," with so many Platinum and Diamond members that priority boarding and other exclusive benefits have lost meaning. When half the ship has status, operational strain increases while perceived value decreases - a familiar problem for lifecycle marketers managing tiered programs. The two-year status window represents a compromise: long enough to accommodate cruising's lower frequency (most customers cruise 1-2 times annually at most) while short enough to maintain tier exclusivity.
Looking ahead, Carnival's transformation could catalyze industry-wide change. Krishna hopes "other cruise lines and folks also follow" in evolving beyond voyage-counting models. For lifecycle marketers, the program offers a case study in balancing member expectations, operational constraints, and long-term strategic positioning when overhauling established loyalty structures in industries where customer purchase cycles span months rather than weeks.
Listen to the full conversation here.