Carnival Stock (CCL) Takes a Hit as Loyalty Program Shakeup Sparks Investor Jitters

Carnival's 'rewards' program just became less rewarding—and shareholders are jumping ship. Here's why the cruise giant's loyalty pivot backfired.

Devaluation at sea: CCL shares dropped sharply after announcing changes that dilute benefits for frequent cruisers. Another case of corporate 'enhancements' meaning fewer perks.

Wall Street's lifeboat drill: Analysts note this marks Carnival's third major loyalty program tweak since 2022—each one eroding value faster than a melting iceberg. But hey, at least the buffet's still all-you-can-eat.

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The new program will allow customers to earn benefits over two years, and retain those benefits for another two. For comparison, the current loyalty program offered benefits for life. Another change is how points are earned: the new system offers points for money spent, while the current one gives points based on nights booked.

These changes are designed to limit the number of guests who have access to the highest level of rewards. The decision to switch to this system was made after the current loyalty program become inflated with members who have benefits for life. While the new system alleviates this issue, it isn’t going over well with loyalty members.

Carnival Stock Ratings and Movement Today

Recent coverage of Carnival stock includes a reiterated Buy rating and $28 price target from four-star Citi analyst James Hardiman. This suggests a possible 19.91% upside for CCL stock.

CCL shares were down 1.72% on Monday following the new loyalty program reveal. Investors will note the stock is also down 6.4% year-to-date but has rallied 45.03% over the past 12 months.

Is CCL Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Carnival is Moderate Buy, based on 13 Buy and five Hold ratings over the past three months. With that comes an average CCL stock price target of $28.73, representing a potential 23.04% upside for the shares.