CARNIVAL Corporation’s Holland America Line (HAL) brand is one of the company’s star performers, according to an equity report from Truist. The cruise line represents approximately 10% of Carnival Corp’s capacity, and has performed “very well” over the past 12 months, according to the Truist report. Carnival Corp management has...
CARNIVAL Corporation’s Holland America Line (HAL) brand is one of the company’s star performers, according to an equity report from Truist.
The cruise line represents approximately 10% of Carnival Corp’s capacity, and has performed “very well” over the past 12 months, according to the Truist report.
Carnival Corp management has leaned into a tailored marketing strategy for HAL that has resonated with the target customer demographic.
The company had previously explored more novel marketing programs targeting historically non-core demographics, which did not perform as hoped.
The research report also revealed Carnival Cruise Line’s new Carnival Rewards program, which will launch in Sep (CW 02 Dec), will be cash flow positive from day one; however, it will have a negative impact on PNL for the first year-and-a-half.
Carnival Rewards is modelled to be similar to airline loyalty, placing a greater emphasis on dollar spend to receive rewards.
The economics of Carnival’s new co-branded credit card (only available in the United States) are also more favourable under the new rewards program.
Carnival in Dec pushed back the start date of the rewards program to Sep, three months after the original launch date, to give members of the old program more time to reach a higher level before they transition.
Those who achieve Diamond by 31 Aug 2026 will be able to keep that status for life.
Others who transition over will keep their status through to the end of 2028. MS
