Will RCL's Loyalty Program Drive Higher Guest Spend & Repeat Travel?
Loyalty members, who made up nearly 40% of bookings in 2024 and spent 25% more per trip, continue to show strong engagement, supporting the company's focus on deepening retention in 2025 and beyond. The company also noted a continued increase in cross-brand bookings among loyalty members, signaling that these guests are more likely to stay within the Royal Caribbean Group ecosystem. Loyalty members also show a higher preference for direct bookings, contributing to a more efficient distribution mix. This behavior is further supported by growing mobile app usage, where bookings have doubled so far in 2025. Loyalty members are more inclined to book through the app, helping RCL lower distribution costs while capturing more pre-cruise purchases and onboard spending.
Royal Caribbean is further strengthening its guest ecosystem through destination-driven enhancements. The upcoming Royal Beach Club in Nassau is designed to complement the highly successful Perfect Day at CocoCay, with curated experiences intended to increase guest satisfaction and maximize ancillary spend. As the company continues to build loyalty across touchpoints — from exclusive locations to digital booking flows — its ability to drive higher guest value and repeat travel appears well-supported by both demand trends and observed customer behavior.
Carnival Corporation & plc (CCL) and Norwegian Cruise Line Holdings Ltd. (NCLH) are also evolving their loyalty strategies to strengthen guest retention, encourage higher onboard and repeat spending.
Carnival is shifting its loyalty model to reward guests based on total spend rather than just cruise nights. The company recently announced a new program, 'Carnival Rewards,' which will integrate onboard purchases and co-branded card activity into its tier system. The goal is to enhance engagement across more touchpoints and create a more personalized loyalty experience. While Carnival expects a modest accounting impact in 2026, the program is designed to be earnings-accretive over the long term by strengthening guest retention and maximizing revenue per customer.
Norwegian Cruise is prioritizing operational refinement and experiential upgrades over a fundamental redesign of its loyalty structure. While it continues to enhance fleet and destination offerings, Norwegian Cruise is yet to introduce a spend-based loyalty framework. Norwegian Cruise's loyalty proposition remains rooted in cruise frequency, not total guest spend.
Shares of Royal Caribbean have gained 86.3% in the past three months compared with the industry's growth of 43%.
Image Source: Zacks Investment Research
From a valuation standpoint, Royal Caribbean trades at a forward price-to-sales ratio of 4.82X, significantly up from the industry's average of 2.5X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RCL's 2025 and 2026 earnings implies a year-over-year uptick of 30.7% and 14.5%, respectively. The EPS estimates for 2025 have increased in the past 60 days.
Image Source: Zacks Investment Research
RCL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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10 U.S. 'Coolcation' Destinations to Beat the Heat This Summer
The "coolcation"—a trip centered around cooler climates and breezy destinations—is experiencing a fresh wave of popularity as more travelers look to beat the heat this summer. Rather than flocking to sweltering cities or sunbaked (and ultra-crowded) beaches, vacationers are heading for higher elevations, coastal escapes, and forested retreats where daytime temps stay comfortably mild, while mornings and evenings may even call for a light sweater. While most folks tend to equate coolcations with far-flung locales like Iceland or the Swiss Alps, they're not the only option. In fact, you can experience an epic coolcation right here in the United States—no passport required. From lakefront hideaways to mountain towns, these refreshing getaways offer all the adventure and charm of a classic summer vacation, minus the scorching heat. The historic barn in Teton National Park. Chris Marinaccio/Travel + Leisure "Jackson Hole is the perfect blend of rugged and refined," says Travel + Leisure A-list advisor Laura Asilis. Expect brisk mornings and evenings with pleasantly warm, often sunny afternoons that set the stage for activities like rafting, hiking, or wildlife spotting. Trips to nearby national parks like Grand Teton and Yellowstone are a must, as is a visit to the lively Town Square, lined with local haunts like Persephone Bakery and Jackson Drug. The nightlife scene is surprisingly buzzy, with local favorites such as the Silver Dollar Bar and Saloon and the iconic Million Dollar Cowboy Bar offering live music and a lively crowd. At the end of a long day (or night), retreat to Amangani, where, per Asilis, "the views are as spectacular as the service." Two fishing boats docked on land in the middle of the Alaskan mountains. Taylor McIntyre/Travel + Leisure Whether you're traveling by cruise or on land, Alaska remains one of the country's top coolcation getaways. "Places such as Sheldon Chalet, Stillpoint Lodge, and several other remote places to stay are cool in the evenings, and the daytime temperatures are comfortable for activities such as fly fishing, hiking, rafting, and wildlife viewing," says T+L A-list advisor Kevin Jackson. For a truly memorable experience, the travel pro recommends chartering a yacht through the Inside Passage, a scenic coastal route known for glacier views and frequent wildlife sightings, including bears and whales. For a more affordable option, consider a cruise along the same route, offered by most major lines. The small downtown area of Adams in Berkshire County, Massachusetts. DenisTangneyJr/Getty Images Just a few hours from Boston, Asilis describes the Berkshires as "a classic Northeast retreat with cool evenings and cultural charm." 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Those sunny days are well spent spotting sea otters and exploring hidden coves at Point Lobos State Natural Reserve, hiking among the redwoods at Pfeiffer Big Sur State Park, snapping photos at iconic spots like Bixby Bridge, or relaxing on the fairy tale-worthy purple sands of Pfeiffer Beach, which are especially vibrant after a rainfall. While hotel options abound. Asilis counts Post Ranch Inn as one of her "favorite properties anywhere in the world, ideal for disconnecting and recalibrating in pure beauty."
Forbes
3 hours ago
- Forbes
Overtourism: Why Does Spain Face More Tourism Backlash Than France?
Provence—Why is it that France is the most visited country in the world, but has minimal backlash against overtourism? getty Tourism is booming in Europe. The George Washington University revealed that in 2024, 747 million travelers visited Europe, more than the population of Europe itself, and this inevitably puts a "strain on local infrastructure, environment, and communities." France and Spain receive the most. Yet, despite welcoming a similar number of visitors, Spain has seen far more local opposition to tourism than France. From protests in Barcelona to banners in Ibiza, Spanish locals are voicing their frustrations. Meanwhile, France, known for its frequent demonstrations against many things, has remained relatively quiet. Why? France topped the list again in 2024 as the most-visited country in the world, with a record 100 million travelers passing through its borders, resulting in a 12% year-on-year increase in tourist earnings. 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French visitors spent around $74 billion in 2024 (€71 billion), whereas tourists to Spain spent $148 billion (€126 billion). More extended stays might make locals more hostile? France and Spain have both been strict about clamping down on Airbnb and other short-term rentals, but geography also plays a part. They are around the same size in terms of land; France is only 9% larger. In terms of population, France had approximately 69 million residents and Spain had just over 46 million in 2021. However, there are large swathes of Spain that lie uninhabited because they are simply less hospitable to residents than other parts of Spain, and this puts an undeniable pressure on resources in cities and along the coast. While France has many of its residents in the Ile-de-France region (around Paris), it also has more cities distributed across the center of the country, such as Lyon, Toulouse, and Strasbourg. Due to its geography and history, might it also have a more diverse tourist base? 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Travel + Leisure
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