Royal Caribbean International has recently announced a revision to its deposit policy for suite bookings, effective from June 1, 2023. The new policy entails a shift from the current flat-rate deposit system to a percentage-based deposit, specifically 10% of the cruise fare per guest. This fleetwide alteration will impact the deposit amounts for highly sought-after suite accommodations, influencing both new and existing bookings. This essay will delve into the implications of these changes on suite reservations and shed light on the reasons behind Royal Caribbean’s decision.
New Deposit Policy:
Starting June 1, 2023, Royal Caribbean will implement a modified deposit requirement for suite bookings made on or after this date. The deposit will now be calculated as 10% of the cruise fare per guest, applying across all ships, sailing regions, and upcoming cruises. This replaces the current practice of a flat-rate deposit fee ranging from $200 to $900, depending on the length of the cruise. However, if the 10% calculation results in a lower amount than the standard fee, the latter will still apply.
Impact on Bookings:
As most suite cabins command higher fares than non-suite staterooms, the shift to a percentage-based deposit can significantly increase the financial commitment required for interested travelers. Given that these deposits are non-refundable, prospective guests must carefully consider the implications of this change before securing their bookings. The heightened deposit amount may deter some customers or necessitate careful budgeting for those aiming to reserve suite accommodations.
Extension to Junior Suites and Guarantee Suites:
The revised policy also encompasses Junior Suites, which will now require non-refundable deposits for new bookings made on or after June 1, 2023. The same applies to Guarantee Suites, ensuring a consistent approach across various suite categories.
Stateroom Categories Not Affected:
It’s important to note that the deposit requirements for balcony, oceanview, and interior staterooms will remain unchanged. These stateroom categories will continue to have flat-rate and refundable deposits under the existing conditions, allowing flexibility for cancellations made 90 days or more prior to sailings lasting five nights or longer, or 75 days or more before sailings ranging from 1 to 4 nights.
Effect on Existing Bookings:
The revised deposit policy will not apply retroactively to bookings made prior to June 1, regardless of the sailing date. However, if an existing booking is canceled and subsequently rebooked on or after June 1, the new deposit rate will come into effect.
Upgrading to Suites:
Guests who initially book non-suite staterooms, such as balcony or oceanview cabins, and later decide to upgrade to a suite, will experience a change in deposit requirements. After June 1, as suites will no longer fall under the flat-rate deposit policy, guests will be expected to pay the difference in deposit amounts at the time of upgrade. This means that if a guest initially paid a $250 deposit for a $2,000 stateroom and later upgrades to a suite with a $4,000 fare, they would need to pay the additional amount, which is 10% of $4,000, or $400, minus the original $250 deposit, resulting in an additional $150 payment to complete the suite deposit.
Reasons for the Changes:
While no official explanation has been provided by Royal Caribbean, it is possible to speculate on the rationale behind these policy updates. I believe the main reason for this change is to discourage people from reserving suites and then cancelling. Royal Caribbean, like most cruise lines, have a limited number of suites and these rooms command some of the highest prices. When someone reserves a suite, pays the same deposit as an interior room, then cancels, it hurts the companies bottom line. I would not be surprised if Carnival, Norwegian, MSC and Disney follow Royal Caribbean in implementing this policy.
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