Carnival (US:CCL) ZACKSยท2025-06-25 14:56Group 1: Core Strategy and Program Launch - Carnival Corporation & plc (CCL) is set to launch "Carnival Rewards," a new customer loyalty program in June 2026, aimed at enhancing long-term guest engagement through data-driven personalization and monetization [1][9] - The new program will reward guests based on total spending, including onboard expenditures and co-branded credit card usage, moving away from the traditional model based on cumulative cruise days [2][9] - The initiative is expected to generate positive cash flow initially, but will result in a temporary yield reduction of approximately 50 basis points in 2026, with expectations of becoming accretive by 2028 [3][9] Group 2: Competitive Landscape - Royal Caribbean Cruises Ltd. (RCL) operates a unified loyalty program focused on vacation frequency and experiential engagement, with loyalty members accounting for 40% of total bookings in 2024 and spending 25% more per trip than non-members [5] - Norwegian Cruise Line Holdings Ltd. (NCLH) is enhancing its fleet and destination offerings but has not yet introduced a spend-based loyalty framework, maintaining a focus on cruise frequency [6] Group 3: Financial Performance and Valuation - CCL shares have increased by 22.8% over the past three months, outperforming the industry growth of 8.5% [7] - CCL trades at a forward price-to-earnings ratio of 12.70X, significantly lower than the industry average of 18.32X [11] - The Zacks Consensus Estimate indicates a year-over-year earnings increase of 32.4% for fiscal 2025 and 13.7% for fiscal 2026, with EPS estimates for fiscal 2025 having risen in the past 30 days [12]