Please ensure Javascript is enabled for purposes of website accessibility

Royal Caribbean Makes a Big Move to Reward Some of Its Best Customers

By Daniel B. Kline - Apr 9, 2020 at 11:16AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's going to need this group if it hopes to entice new passengers to its ships.

If Royal Caribbean (RCL 1.09%) hopes to return to normal operations, it's going to need its most loyal customers to come back. The cruise line essentially has two loyalty programs: one based on how many days you have sailed and the other based on your gambling activities over a 12-month period.

The sailing program, Crown & Anchor, never expires; once you hit a tier, you get those benefits forever. The gambling rewards program, Club Royale, offers patrons who accrue 2,500 points within a 12-month period, free drinks in the casino and a free annual cruise.

You get those benefits from the point you earn them and for one full year after. But with most sailings halted indefinitely, many loyal customers were concerned that they would lose their tier status or miss out on their rewards.

A Royal Caribbean ship on the water.

Royal Caribbean has rewarded some of its most loyal customers. Image source: Royal Caribbean.

What has Royal Caribbean done?

In an effort to appease these customers, the cruise line has extended tier status for current Club Royale members.

"All Club Royale members will receive an extension of their 2020 tier status through March 31, 2022," the company wrote in an email to members. "Additionally, members who were in jeopardy of losing their tier status on the recent April 1, 2020 renewal date will receive an extension on their status through March 31, 2022. This means you will enjoy all your benefits and perks for the next 24 months."

That's a generous offer that acknowledges that some people may have lost the ability to qualify for 2021 or even 2022 based on cancellations or being unwilling to cruise. 

This is smart business

Regular customers who also gamble are likely very valuable to Royal Caribbean. The company offers heavy discounts and even free sailings based on gameplay and it would not do that if these customers did not make the cruise line money. Keeping these regulars happy will likely help get the company back on track.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Royal Caribbean Cruises Ltd. Stock Quote
Royal Caribbean Cruises Ltd.
RCL
$35.29 (1.09%) $0.38

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.