WEBVTT 00:00:00.000 --> 00:00:02.680 Welcome to Cruise News, your daily update on 00:00:02.680 --> 00:00:05.200 everything happening at sea. Visit cruisenews 00:00:05.200 --> 00:00:08.140 .io to see today's stories and sign up for email 00:00:08.140 --> 00:00:13.220 alerts. Great to be here. We have a really packed 00:00:13.220 --> 00:00:15.859 slate today. It almost feels like we're looking 00:00:15.859 --> 00:00:18.140 at three chapters from a business textbook. How 00:00:18.140 --> 00:00:20.879 so? Well, we've got expansion, inflation, and 00:00:20.879 --> 00:00:23.760 then retention. It all fits. I love that framing. 00:00:23.879 --> 00:00:26.480 Yeah, it's rare that the stories line up so thematically. 00:00:26.519 --> 00:00:27.980 We're not just talking about, you know, a ship 00:00:27.980 --> 00:00:29.980 moving from one port to another. No, not at all. 00:00:30.059 --> 00:00:32.359 We are looking at a massive strategic play in 00:00:32.359 --> 00:00:34.240 the southern hemisphere by Carnival Corporation 00:00:34.240 --> 00:00:36.560 and Nassau LAC. A huge play. But then we also 00:00:36.560 --> 00:00:38.439 have to get down to what it means for the traveler's 00:00:38.439 --> 00:00:40.560 wallet. Right. We're definitely going to look 00:00:40.560 --> 00:00:43.700 at that. Specifically, a very quiet, but I'd 00:00:43.700 --> 00:00:46.799 say very aggressive price hike on Carnival Cruise 00:00:46.799 --> 00:00:50.079 Line's Wi -Fi. And then... To wrap it up, we'll 00:00:50.079 --> 00:00:52.520 dive into what I think might just be a game changer 00:00:52.520 --> 00:00:55.539 for loyalty programs with Royal Caribbean Group's 00:00:55.539 --> 00:00:59.060 new ecosystem approach. That loyalty story is 00:00:59.060 --> 00:01:01.380 fascinating. It's really challenging that whole 00:01:01.380 --> 00:01:04.219 idea of brand loyalty, isn't it? It is. It's 00:01:04.219 --> 00:01:07.540 moving from loving one specific cruise line to 00:01:07.540 --> 00:01:11.640 loving an entire corporate portfolio. But let's 00:01:11.640 --> 00:01:13.420 not get ahead of ourselves. No, let's start with 00:01:13.420 --> 00:01:15.480 the big map. Let's head down under. To Australia 00:01:15.480 --> 00:01:18.099 and New Zealand. Exactly. Carnival Cruise Line 00:01:18.099 --> 00:01:21.579 dropped their deployment for the 2027 -2028 season. 00:01:22.019 --> 00:01:24.879 And it is, well, it's a heavy one. This is a 00:01:24.879 --> 00:01:27.359 big deal. It is massive. And you really have 00:01:27.359 --> 00:01:29.379 to understand the context of what happened last 00:01:29.379 --> 00:01:32.120 year to get why this matters so much. You're 00:01:32.120 --> 00:01:34.620 talking about the P &O merger. Exactly. Back 00:01:34.620 --> 00:01:37.900 in March 2025, Carnival Cruise Line basically 00:01:37.900 --> 00:01:42.019 absorbed P &O Cruises Australia. And P &O was 00:01:42.019 --> 00:01:44.599 the local brand, right? Yeah. The heritage brand. 00:01:44.700 --> 00:01:46.500 They were the dominant force there for years. 00:01:46.760 --> 00:01:49.340 They were. So when Carnival took over, they didn't 00:01:49.340 --> 00:01:51.879 just get the ships, you know, the hardware. They 00:01:51.879 --> 00:01:53.819 inherited the responsibility for the whole market. 00:01:53.939 --> 00:01:55.780 They had to prove they weren't just an American 00:01:55.780 --> 00:01:57.980 line visiting for the summer. Right. They had 00:01:57.980 --> 00:02:00.640 to become the new home team. And this schedule, 00:02:00.840 --> 00:02:03.439 this is them flexing that muscle. So what's the 00:02:03.439 --> 00:02:05.620 headline from Carnival on this? Well, Peter Little, 00:02:05.760 --> 00:02:07.640 the country manager for Carnival Corporation, 00:02:08.039 --> 00:02:10.419 he said this answers the call for more local 00:02:10.419 --> 00:02:13.439 convenience. And he specifically called the brand 00:02:13.439 --> 00:02:16.919 the only year -round global player in the region. 00:02:17.180 --> 00:02:20.159 That's very specific wording. It is. It's a statement. 00:02:20.180 --> 00:02:22.719 It says, we're not going anywhere. Let's talk 00:02:22.719 --> 00:02:25.259 numbers because the scale here is kind of staggering. 00:02:25.500 --> 00:02:28.580 Go for it. It's a full 12 -month schedule, over 00:02:28.580 --> 00:02:33.379 200 cruises. four ships, and 39 different destinations. 00:02:33.919 --> 00:02:36.259 They're projecting more than half a million guests. 00:02:36.620 --> 00:02:39.159 Half a million. And the strategy isn't just about 00:02:39.159 --> 00:02:41.819 volume, it's about reach. They're keeping cities, 00:02:41.860 --> 00:02:45.139 but the port logistics and, frankly, the profitability 00:02:45.139 --> 00:02:48.199 can be tricky there. You have to sail a lot further 00:02:48.199 --> 00:02:51.639 to get to the sunny Queensland or Pacific Island 00:02:51.639 --> 00:02:56.479 destinations. Bringing it back now signals that 00:02:56.479 --> 00:02:58.900 Carnival believes the market is finally strong 00:02:58.900 --> 00:03:01.659 enough to support it. I really liked seeing the 00:03:01.659 --> 00:03:03.780 reaction from the locals in the reports. There 00:03:03.780 --> 00:03:06.599 was this one quote from a grandmother in Adelaide, 00:03:06.639 --> 00:03:09.879 Shirley Van Hout. She was described as ecstatic. 00:03:10.159 --> 00:03:11.900 And that's what it's all about, right? It is, 00:03:11.919 --> 00:03:13.819 because now she doesn't have to fly to Sydney, 00:03:13.900 --> 00:03:16.539 get a hotel, and then get on a ship. The holiday 00:03:16.539 --> 00:03:19.180 just became so much more accessible. It answers 00:03:19.180 --> 00:03:21.639 that call for convenience. So let's talk about 00:03:21.639 --> 00:03:23.500 the ships themselves, because moving four of 00:03:23.500 --> 00:03:26.099 them around a continent is a real puzzle. The 00:03:26.099 --> 00:03:27.680 one that fascinates me is the Carnival Adventure. 00:03:28.270 --> 00:03:30.370 That's the rover, isn't it? It seems to be popping 00:03:30.370 --> 00:03:33.090 up everywhere. It is. It starts in Auckland from 00:03:33.090 --> 00:03:37.409 May to July 2027. Then, if you fast forward to 00:03:37.409 --> 00:03:40.090 early 2028, it suddenly shows up in Melbourne. 00:03:40.289 --> 00:03:42.250 And those Melbourne trips look great. They have 00:03:42.250 --> 00:03:44.610 four -night sailings to Kangaroo Island. A fantastic 00:03:44.610 --> 00:03:47.330 spot. It's like a zoo without any fences. Totally. 00:03:47.469 --> 00:03:50.430 So, adventure does Melbourne, then what? Then 00:03:50.430 --> 00:03:52.949 it moves to Adelaide. for its inaugural season 00:03:52.949 --> 00:03:56.689 in late February 2028 before finally slotting 00:03:56.689 --> 00:03:59.550 into the Sydney rotation in March. It's a very 00:03:59.550 --> 00:04:01.370 agile deployment. So they're moving the supply 00:04:01.370 --> 00:04:04.229 to where the demand is. Exactly. Rather than 00:04:04.229 --> 00:04:06.349 making people fly to Sydney all the time. Meanwhile, 00:04:06.509 --> 00:04:09.430 the heavy hitter, Carnival Splendor, is just 00:04:09.430 --> 00:04:11.870 parked in Sydney year -round. Yep. It's their 00:04:11.870 --> 00:04:14.949 largest ship in the region, over 113 ,000 gross 00:04:14.949 --> 00:04:18.350 tons. It's the workhorse. But what's interesting 00:04:18.350 --> 00:04:20.310 there are the themed sailings they're doing. 00:04:20.699 --> 00:04:23.120 Oh, I saw that. The Melbourne Cup cruise. For 00:04:23.120 --> 00:04:25.259 international listeners, that's a horse race 00:04:25.259 --> 00:04:27.540 that basically stops the entire nation of Australia. 00:04:27.720 --> 00:04:29.819 It's their Super Bowl. And Carnival's building 00:04:29.819 --> 00:04:32.360 a whole cruise around that energy. Then there's 00:04:32.360 --> 00:04:34.759 a 14 -night Mutiny on the Bounty in Fiji trip. 00:04:34.899 --> 00:04:38.220 Mutiny on the Bounty. That's a bold theme for 00:04:38.220 --> 00:04:40.379 a cruise line. I'm hoping it's just historical 00:04:40.379 --> 00:04:43.180 education. And not a suggestion for the passengers. 00:04:43.660 --> 00:04:46.459 It's hope. But it shows they're targeting different 00:04:46.459 --> 00:04:49.810 kinds of cruisers. And we can't forget Brisbane. 00:04:50.129 --> 00:04:52.430 Carnival Encounter is there year -round, and 00:04:52.430 --> 00:04:53.889 then you have Carnival of Muminosa. Right, the 00:04:53.889 --> 00:04:56.089 seasonal one. That's the ship that does Australia 00:04:56.089 --> 00:04:58.250 in their summer and then heads to Alaska for 00:04:58.250 --> 00:05:00.670 our summer. And those repositioning cruises are 00:05:00.670 --> 00:05:04.490 just monsters. 22, 23 nights across the Pacific. 00:05:04.709 --> 00:05:07.050 Who takes those? It's a specific kind of traveler. 00:05:07.089 --> 00:05:10.750 You have to really love sea days. You know, the 00:05:10.750 --> 00:05:13.730 per day cost is usually incredibly low. It's 00:05:13.730 --> 00:05:15.389 a cheap way to see the world if you have the 00:05:15.389 --> 00:05:17.829 time. So the big takeaway for Australia is just 00:05:17.829 --> 00:05:21.290 consolidation. Total consolidation. Carnival 00:05:21.290 --> 00:05:24.509 has filled the P &O gap and basically said, we 00:05:24.509 --> 00:05:27.170 are the Australian cruise line now. If you want 00:05:27.170 --> 00:05:29.709 to cruise from there in 2027, odds are you're 00:05:29.709 --> 00:05:32.029 getting on a Carnival ship. OK, so while cruisers 00:05:32.029 --> 00:05:34.430 down under are getting new itineraries, the rest 00:05:34.430 --> 00:05:36.850 of us are dealing with, well... Something less 00:05:36.850 --> 00:05:39.250 fun. Let's talk money. Let's talk about the cost 00:05:39.250 --> 00:05:41.490 of staying connected. We have to talk about Wi 00:05:41.490 --> 00:05:45.050 -Fi. Oh, the quiet inflation. It was so quiet. 00:05:45.069 --> 00:05:48.509 No press release. No big email. The prices just 00:05:48.509 --> 00:05:51.230 changed. And we're not talking about small changes. 00:05:51.389 --> 00:05:54.189 These are double digit percentage increases across 00:05:54.189 --> 00:05:55.990 the board. OK, let's break down the numbers. 00:05:56.129 --> 00:05:58.569 The social plan. That's the basic one, right? 00:05:58.689 --> 00:06:00.990 Yep. Just social media and airline sites. That 00:06:00.990 --> 00:06:07.740 jumped from $15 .30. to $18 .70 per person per 00:06:07.740 --> 00:06:11.240 day. That's a 22 % increase practically overnight. 00:06:11.540 --> 00:06:15.759 Then the value plan is up to over $22. And the 00:06:15.759 --> 00:06:17.759 premium plan, the one you need for streaming, 00:06:17.939 --> 00:06:21.759 is now almost $24 a day. And these are the pre 00:06:21.759 --> 00:06:23.459 -purchase prices, the ones that are supposed 00:06:23.459 --> 00:06:26.139 to be the discount. Exactly. So let's do the 00:06:26.139 --> 00:06:29.040 math for, say, a family of four, two parents, 00:06:29.180 --> 00:06:31.939 two teens. Everyone wants the premium plan. Of 00:06:31.939 --> 00:06:34.399 course they do. The kids need to stream. So the 00:06:34.399 --> 00:06:36.819 multi -device bundle for that went from $75 to 00:06:36.819 --> 00:06:41.079 $84 a day. Okay, so on a seven -day cruise, that's 00:06:41.079 --> 00:06:44.720 almost $600 just for Wi -Fi. That's a car payment. 00:06:44.839 --> 00:06:46.759 For some people, that's a mortgage payment. It's 00:06:46.759 --> 00:06:49.139 a serious line item on the budget. And here's 00:06:49.139 --> 00:06:52.540 where it gets even more concerning. The dynamic 00:06:52.540 --> 00:06:55.100 pricing. The dynamic pricing. This is like surge 00:06:55.100 --> 00:06:57.800 pricing for Uber, right? Pretty much. The prices 00:06:57.800 --> 00:07:00.779 we just talked about are the baseline. But if 00:07:00.779 --> 00:07:04.680 you look at a cruise in 2026, say, during spring 00:07:04.680 --> 00:07:06.879 break. The algorithm just pushes them higher. 00:07:07.060 --> 00:07:09.879 We saw an example, March 2026 on the Carnival 00:07:09.879 --> 00:07:13.399 Freedom. The social plan wasn't $18 .70. It was 00:07:13.399 --> 00:07:17.939 $20 .40. And the premium? Over $25 per person 00:07:17.939 --> 00:07:20.319 per day. So that family of four we mentioned, 00:07:20.480 --> 00:07:23.300 their Wi -Fi bill could easily be over $700, 00:07:23.319 --> 00:07:26.629 maybe even $800. So why? Is there a reason for 00:07:26.629 --> 00:07:29.009 this beyond just charging more? Well, it's a 00:07:29.009 --> 00:07:31.649 mix. If you look at the trend line, back in October 00:07:31.649 --> 00:07:36.449 2020, the social plan was $6 .80. Right, $6 .80, 00:07:36.529 --> 00:07:38.550 and now it's pushing $20. That's about a 175 00:07:38.550 --> 00:07:41.790 % increase. But to be fair, the product is completely 00:07:41.790 --> 00:07:44.610 different. Okay, how so? Back then, Cruise Wi 00:07:44.610 --> 00:07:47.959 -Fi was... Painful. It was old satellite tech 00:07:47.959 --> 00:07:50.420 you'd wait forever for an email. Now Carnival 00:07:50.420 --> 00:07:52.759 has Starlink across the entire fleet. Ah, the 00:07:52.759 --> 00:07:54.819 Starlink rollout. So the speed is actually good 00:07:54.819 --> 00:07:57.879 now. It's comparable to home internet. And that's 00:07:57.879 --> 00:08:00.910 the key. It's shifted from being a perk. to being 00:08:00.910 --> 00:08:02.810 a utility. That's a good way to put it. A perk 00:08:02.810 --> 00:08:05.189 is nice to have. A utility is essential. And 00:08:05.189 --> 00:08:06.850 they know people will pay for it. The demand 00:08:06.850 --> 00:08:09.709 is inelastic. People are terrified of being offline 00:08:09.709 --> 00:08:12.350 for a week. So the advice for our listeners is 00:08:12.350 --> 00:08:14.990 pretty clear here. Oh, absolutely. Do not wait 00:08:14.990 --> 00:08:17.110 until you're on this ship to buy Wi -Fi. Even 00:08:17.110 --> 00:08:20.069 with these new higher prices, you're still saving 00:08:20.069 --> 00:08:23.470 up to 20 % by buying it beforehand. Check your 00:08:23.470 --> 00:08:25.490 cruise planner early. If you see a price you 00:08:25.490 --> 00:08:27.910 can live with, lock it in. It is not going to 00:08:27.910 --> 00:08:30.040 get any cheaper. OK, let's shift gears to our 00:08:30.040 --> 00:08:32.200 last story. And this one really connects to spending, 00:08:32.240 --> 00:08:34.919 but more about how you're rewarded for it. It's 00:08:34.919 --> 00:08:38.259 about loyalty. And it's a big move from the Royal 00:08:38.259 --> 00:08:40.539 Caribbean Group. They're launching something 00:08:40.539 --> 00:08:44.399 in early 2026 called Points Choice. And this 00:08:44.399 --> 00:08:47.139 is really a shift from what I'd call brand loyalty 00:08:47.139 --> 00:08:50.720 to portfolio loyalty. I like that. Explain what 00:08:50.720 --> 00:08:53.659 that means. What is Points Choice? So Royal Caribbean 00:08:53.659 --> 00:08:56.139 Group. is the parent company for Royal Caribbean 00:08:56.139 --> 00:08:59.240 International, Celebrity Cruises, and Silversi, 00:08:59.340 --> 00:09:02.159 three very different brands. And three very different 00:09:02.159 --> 00:09:05.320 and separate loyalty programs, Crown & Anchor, 00:09:05.360 --> 00:09:08.470 Captain's Club. And Venetian society. Right. 00:09:08.529 --> 00:09:10.710 They operated in silos. If you sailed royal, 00:09:10.970 --> 00:09:13.730 you earned royal points. If you went on a celebrity 00:09:13.730 --> 00:09:15.990 cruise, you were basically starting from scratch. 00:09:16.289 --> 00:09:18.269 They did introduce status matching a couple years 00:09:18.269 --> 00:09:20.710 ago, though. They did. So your tier level, like 00:09:20.710 --> 00:09:23.330 diamond, would carry over. But points choice 00:09:23.330 --> 00:09:26.070 is a huge leap forward. It lets you earn points 00:09:26.070 --> 00:09:28.549 on one brand and then choose to apply them to 00:09:28.549 --> 00:09:31.490 another brand's program. Whoa. Okay, that is 00:09:31.490 --> 00:09:33.090 a big deal. So let me get this straight. Let's 00:09:33.090 --> 00:09:35.649 say I'm a loyal Royal Caribbean cruiser trying 00:09:35.649 --> 00:09:38.450 to hit diamond status. Okay. But my wife wants 00:09:38.450 --> 00:09:40.549 to do a celebrity cruise for our anniversary. 00:09:40.809 --> 00:09:43.090 You know, a bit more upscale. In the old system, 00:09:43.129 --> 00:09:45.289 you do that cruise, you get a few useless Captain's 00:09:45.289 --> 00:09:48.350 Club points, and your progress on Royal would 00:09:48.350 --> 00:09:50.830 just stall. Which would make me not want to try 00:09:50.830 --> 00:09:53.830 celebrity. Exactly. With points choice, you take 00:09:53.830 --> 00:09:55.590 that celebrity cruise, but you just tell the 00:09:55.590 --> 00:09:58.149 system, hey, send these points to my Crown and 00:09:58.149 --> 00:10:00.419 Anchor account. So I get the anniversary trip 00:10:00.419 --> 00:10:02.519 I want, and I still make progress in the loyalty 00:10:02.519 --> 00:10:04.500 program I actually care about. That's it. It 00:10:04.500 --> 00:10:07.720 completely removes the feeling that you're cheating 00:10:07.720 --> 00:10:10.200 on your favorite cruise line. And that has to 00:10:10.200 --> 00:10:12.480 be the whole strategy. Jason Liberty, the CEO, 00:10:12.679 --> 00:10:14.980 said he wants to keep guests in their orbit. 00:10:15.320 --> 00:10:17.299 They know your taste change. Sometimes you want 00:10:17.299 --> 00:10:19.059 water slides with the kids. Sometimes you want 00:10:19.059 --> 00:10:21.919 quiet luxury. Instead of losing you to a competitor, 00:10:22.139 --> 00:10:24.279 they keep you in the family. It makes the whole 00:10:24.279 --> 00:10:28.080 ecosystem so much stickier. It does. But what 00:10:28.080 --> 00:10:30.639 makes this really juicy is when you put it side 00:10:30.639 --> 00:10:32.759 by side with what Carnival Cruise Lines is doing 00:10:32.759 --> 00:10:35.379 right now. Oh, yes. The contrast could not be 00:10:35.379 --> 00:10:37.639 more stark. It's like two opposite philosophies 00:10:37.639 --> 00:10:40.259 on loyalty. It is. Carnival is ditching their 00:10:40.259 --> 00:10:43.340 VIFP program for something called Carnival Rewards 00:10:43.340 --> 00:10:48.399 in 2026. And the reception has been, let's call 00:10:48.399 --> 00:10:51.299 it spicy. Spicy is a polite word for it. They're 00:10:51.299 --> 00:10:53.740 moving to a revenue -based model, right? Points 00:10:53.740 --> 00:10:56.200 for money spent, not days sailed. Which is great 00:10:56.200 --> 00:10:58.820 for people in suites, but not so great for the 00:10:58.820 --> 00:11:01.600 loyal cruiser who books cheap inside cabins five 00:11:01.600 --> 00:11:05.059 times a year. And the really big one, a two -year 00:11:05.059 --> 00:11:08.360 expiration on your status. If you don't sail, 00:11:08.539 --> 00:11:10.899 you lose it. Plus, they got rid of some of those 00:11:10.899 --> 00:11:13.710 little perks people loved. like the VIFP pins 00:11:13.710 --> 00:11:16.190 for gold members. Yeah. It feels like they're 00:11:16.190 --> 00:11:18.350 tightening the rules. So you have Royal Caribbean 00:11:18.350 --> 00:11:21.429 Group over here saying, we'll give you more flexibility. 00:11:21.490 --> 00:11:23.649 We want to make it easier to stay with us. And 00:11:23.649 --> 00:11:25.409 then you have Carnival over there saying you 00:11:25.409 --> 00:11:27.309 have to spend more, you have to sail constantly, 00:11:27.429 --> 00:11:30.090 or you're out. It's a real divergence. Royal 00:11:30.090 --> 00:11:32.970 is betting on that ecosystem value. They're removing 00:11:32.970 --> 00:11:35.649 the risk for the customer. Right. If I try a 00:11:35.649 --> 00:11:38.389 Silversea cruise and I hate it, well, at least 00:11:38.389 --> 00:11:39.990 the points went to my Royal Caribbean account. 00:11:40.149 --> 00:11:42.190 It's a safety net. We should probably add that 00:11:42.190 --> 00:11:44.230 Royal hasn't released all the fine print yet. 00:11:44.590 --> 00:11:46.690 That's true. We don't know the transfer ratios 00:11:46.690 --> 00:11:49.990 or if there are limits, but the overall intent 00:11:49.990 --> 00:11:54.210 is very, very clear. So to wrap it all up, we 00:11:54.210 --> 00:11:57.029 have Carnival basically claiming an entire continent. 00:11:57.529 --> 00:11:59.789 We have the cost of something essential like 00:11:59.789 --> 00:12:01.990 Wi -Fi skyrocketing as it becomes a utility. 00:12:02.129 --> 00:12:04.889 And we have this battle for loyalty with one 00:12:04.889 --> 00:12:07.049 company opening the doors and the other one seemingly 00:12:07.049 --> 00:12:10.519 tightening the locks. It's a time of real evolution 00:12:10.519 --> 00:12:12.820 for the industry's business models. It definitely 00:12:12.820 --> 00:12:15.179 keeps things interesting. Here's a final thought 00:12:15.179 --> 00:12:17.639 for you to chew on today. With Royal letting 00:12:17.639 --> 00:12:19.759 you cross -pollinate points and Carnival moving 00:12:19.759 --> 00:12:22.720 to a spend -based model, are we seeing the end 00:12:22.720 --> 00:12:24.879 of brand loyalty as we know it and the beginning 00:12:24.879 --> 00:12:27.600 of portfolio loyalty? And if that's the case, 00:12:27.639 --> 00:12:29.440 what does that mean for the smaller independent 00:12:29.440 --> 00:12:32.299 lines that don't have a portfolio to offer? That 00:12:32.299 --> 00:12:35.000 is the billion -dollar question. And it might 00:12:35.000 --> 00:12:37.970 be what forces the next round of mergers. Thanks 00:12:37.970 --> 00:12:40.450 for listening to Cruise News. Visit CruiseNews 00:12:40.450 --> 00:12:42.909 .io to catch up on the latest updates and sign 00:12:42.909 --> 00:12:44.230 up for free email alerts.