Corporate: A company purchases all staterooms for a meeting or incentive program and provides those staterooms at no charge to its employees, customers or vendors. Examples of programs in this segment are: Meetings & Conventions Product Launches Incentive Programs Tradeshows Corporate Anniversaries Consumer Promotions Re-Sale (Affinity and/or Promotional): An organization charters the ship with the intention to re-sell all or a portion of staterooms to consumers sharing a common interest OR as a general re-sale to non-related consumers. The client typically creates unique onboard programming with the intention of charging a premium for the exclusive opportunity. The most common types of affinity or promotional (Re-Sale) programs are: Music & Entertainment Lifestyle Religious
3. How far in advance should an organization charter the ship?
Royal Caribbean International does not typically consider Full Ship Charter requests within six months of the requested sail date and/or for those sailings booked above a certain threshold. Most clients charter one year in advance and some as far out as two or more years. Requests beyond open deployment may not be possible to consider due to uncertainty around future deployment.
For Re-Sale charters, it is in the best interest of the client to allow ample time to promote the charter (9 months+). The cost of displacing booked guests will be a factor in the rate for sailings already open for sale and will generally be lower if the charter is contracted farther out
4. How much does it cost to charter the entire ship?
The charter rate will be based on full occupancy regardless of how many people sail. Pre-paid gratuities based on a minimum of double occupancy will also be required. The client will be responsible for taxes & fees based on the actual number of guests and incremental gratuities should more than the pre-paid double occupancy number sail. Additional fees may apply for triple and quad berths above double occupancy. Onboard revenue guarantees may be required based on a minimum of full double occupancy. Pricing varies based on ship, sail date, number of guests, itinerary and level of customization. Actual pricing must be provided by Charter Sales but the following general ranges may be used as a starting point to determine viability: Charter pricing will generally be lowest in non-peak season such as September, October, early December and/or January and will be highest from May through August. Products sailing in Bermuda, Alaska, Southern Caribbean or Europe may exceed the general ranges outlined above.
The charter rate will be based on full occupancy regardless of how many people sail. Pre-paid gratuities based on a minimum of double occupancy will also be required. The client will be responsible for taxes & fees based on the actual number of guests and incremental gratuities should more than the pre-paid double occupancy number sail. Additional fees may apply for triple and quad berths above double occupancy. Onboard revenue guarantees may be required based on a minimum of full double occupancy.
Pricing varies based on ship, sail date, number of guests, itinerary and level of customization. Actual pricing must be provided by Charter Sales but the following general ranges may be used as a starting point to determine viability:
Charter pricing will generally be lowest in non-peak season such as September, October, early December and/or January and will be highest from May through August. Products sailing in Bermuda, Alaska, Southern Caribbean or Europe may exceed the general ranges outlined above.
Charter pricing includes all meals, entertainment and services normally provided to guests on a standard cruise. Charter pricing includes:
Charter pricing does NOT included:
To maximize value, the number of participants should be close to the double occupancy capacity of the ship under consideration. Should the chartered sailing fall below full double occupancy level, the client will be responsible for per person Onboard Revenue Guarantee fees and/or for meeting a specific total dollar Onboard Revenue expectation.
The charter rate provided to the client will be based on standard Royal Caribbean International product. Any requested change to standard operation may impact the charter rate or result in incremental fees. Examples are: Requests to close any revenue center or revenue generating activity (ex: casino, bars, art auctions, bingo, etc.) Requests to significantly alter menu offerings Requests to re-print menus Custom itinerary requests that impact fuel, port fees, security, etc. and/or changes to contracted itinerary requested post-contract Floating Hotel requests that involve an extended period alongside in a port or ports Food and/or Beverage events or items not offered on a non-chartered sailing Customized entertainment requests Incremental power supply and/or connectors required for customized onboard performances Tender services requested above Royal Caribbean International standard Special Services such as: Fireworks, Flyovers, Banners, Decorations, Pool Liners, etc. Requests to provide special products onboard during the charter Requests to alter or enhance facilities on Royal Caribbean private islands.
8. What type of itinerary customization can be considered?
The simplest type of itinerary customization involves changing ports of call within an itinerary while keeping the departure / arrival city and dates as scheduled. Generally speaking, all itineraries from the U.S. must involve at least one foreign port of call. Incremental costs associated with the custom itinerary request will be included in the initial charter quote and/or provided as an optional line item. A more complex itinerary change involves creating a unique itinerary length by combining all or a portion of several cruises without changing the departure / arrival city. For example, a 7 night sailing of Majesty of the Seas may be created by combining 3 and 4 night sailings or a short itinerary may be created for Freedom or Liberty of the Seas by splitting a 7 night sailing into two sailings (a 3 night and a 4 night) if Royal Caribbean is willing to sell the resulting unique itinerary. While possible, significant costs may apply for this type of itinerary change and it is always best to find an existing itinerary whenever possible. Opportunities that involve repositioning ships from regularly scheduled departure / arrival cities, and particularly those that involve a request to turn the ship in a port of call that we don’t typically use, may or may not be possible. A considerable amount of time is needed to research and significant incremental costs will most likely apply. This type of itinerary customization is the most challenging to win. Cruises to Nowhere are not typically considered due to tax implications.
The simplest type of itinerary customization involves changing ports of call within an itinerary while keeping the departure / arrival city and dates as scheduled. Generally speaking, all itineraries from the U.S. must involve at least one foreign port of call. Incremental costs associated with the custom itinerary request will be included in the initial charter quote and/or provided as an optional line item.
A more complex itinerary change involves creating a unique itinerary length by combining all or a portion of several cruises without changing the departure / arrival city. For example, a 7 night sailing of Majesty of the Seas may be created by combining 3 and 4 night sailings or a short itinerary may be created for Freedom or Liberty of the Seas by splitting a 7 night sailing into two sailings (a 3 night and a 4 night) if Royal Caribbean is willing to sell the resulting unique itinerary. While possible, significant costs may apply for this type of itinerary change and it is always best to find an existing itinerary whenever possible.
Opportunities that involve repositioning ships from regularly scheduled departure / arrival cities, and particularly those that involve a request to turn the ship in a port of call that we don’t typically use, may or may not be possible. A considerable amount of time is needed to research and significant incremental costs will most likely apply. This type of itinerary customization is the most challenging to win.
Cruises to Nowhere are not typically considered due to tax implications.
Option 1: Staggered Payments with a Letter of Credit 10% of charter rate and pre-paid gratuities at contract signing 30% of charter rate and pre-paid gratuities 7 months prior to sailing 30% of charter rate and pre-paid gratuities 5 months prior to sailing 30% of charter rate and pre-paid gratuities 3 months prior to sailing An Irrevocable Stand-By Letter of Credit for the balance in place at contract signing
Option 1: Staggered Payments with a Letter of Credit
Option 2: Payment in Full at Contract Signing – Waived Letter of Credit 100% of charter rate and pre-paid gratuities at contract signing Interest credit earned to be provided as a shipboard credit on the chartered sailing Payment is non-refundable
Payment for per person taxes & fees, the expected Onboard Revenue Guarantee (if applicable), amenities requested by the client that are not provided on a complimentary basis and other miscellaneous fees relating to customization will be required no later than 30 days prior to sailing and/or prior to the release of documents. Requests for alternative custom payment arrangements may be considered and must be discussed with the Manager of Charter Sales. All payments must be made U.S. Dollars unless otherwise agreed. Business secured by a Letter of Credit and/or paid in full at signing is highly preferred.
Payment for per person taxes & fees, the expected Onboard Revenue Guarantee (if applicable), amenities requested by the client that are not provided on a complimentary basis and other miscellaneous fees relating to customization will be required no later than 30 days prior to sailing and/or prior to the release of documents.
Requests for alternative custom payment arrangements may be considered and must be discussed with the Manager of Charter Sales. All payments must be made U.S. Dollars unless otherwise agreed. Business secured by a Letter of Credit and/or paid in full at signing is highly preferred.
10. What is an Irrevocable Stand-By Letter of Credit and why is it required?
An Irrevocable Stand-By Letter of Credit for the charter rate and pre-paid gratuity amount is issued by the client’s bank and confirmed by a bank designated by Royal Caribbean International to confirm the client’s ability to perform under the terms of the contract. If the client’s bank is rated “A” or higher by both S&P and Moody’s, a confirmation is not required. As the beneficiary, Royal Caribbean International is able to draw upon the LOC to collect payment should the client default on the Agreement. The LOC is required from contract signing and will be held for up to 60 days post-sailing to insure all balances are paid and that there have not been damages to the ship. The LOC is reduced each time a payment is received but will be held at a pre-determined threshold until the agreed upon expiration date. The Letter Of Credit is required with a Full Ship Charter program because Royal Caribbean International loses all ability to market and sell the chartered sailing once an Agreement is signed. Should the client default on the Agreement, we would most likely not have the ability to fill the ship and would suffer significant financial loss.
An Irrevocable Stand-By Letter of Credit for the charter rate and pre-paid gratuity amount is issued by the client’s bank and confirmed by a bank designated by Royal Caribbean International to confirm the client’s ability to perform under the terms of the contract. If the client’s bank is rated “A” or higher by both S&P and Moody’s, a confirmation is not required.
As the beneficiary, Royal Caribbean International is able to draw upon the LOC to collect payment should the client default on the Agreement. The LOC is required from contract signing and will be held for up to 60 days post-sailing to insure all balances are paid and that there have not been damages to the ship. The LOC is reduced each time a payment is received but will be held at a pre-determined threshold until the agreed upon expiration date.
The Letter Of Credit is required with a Full Ship Charter program because Royal Caribbean International loses all ability to market and sell the chartered sailing once an Agreement is signed. Should the client default on the Agreement, we would most likely not have the ability to fill the ship and would suffer significant financial loss.
11. Once an Agreement is signed by the client, can the program be cancelled or can the client relinquish staterooms?
Unlike a large group contract, there is no provision in the Full Ship Charter Agreement that allows for cancellation of the program and/or for any number of staterooms. A client cannot reduce to a Half Ship Charter, Partial Charter or a group once signed as a Full Ship Charter.
12. Can Royal Caribbean International handle the fulfillment of the program for the client?
No. The client must have the ability to handle fulfillment or work though a travel partner to market the program, answer questions, accept payment (if applicable), assign staterooms, etc. At this time, full ship charter bookings cannot be managed through Cruise Match. The client or travel partner will be provided with a manifest template for berthing assignments.
13. Can travel partners sell into a client’s Re-Sale Full Ship Charter program?
Re-Sale charter clients have full responsibility and ownership of all sales, marketing and fulfillment efforts. Although some clients offer independent travel agent rates and/or a commission program, it is not required. The client is free to establish whatever pricing and commission structure that they find appropriate (and/or none at all) and travel partners can choose to work under their terms or not. Standard Royal Caribbean commission tiers do not apply and bookings made on a chartered sailing do not count toward agency goals and/or volume agreements.
Re-Sale charter clients have full responsibility and ownership of all sales, marketing and fulfillment efforts. Although some clients offer independent travel agent rates and/or a commission program, it is not required.
The client is free to establish whatever pricing and commission structure that they find appropriate (and/or none at all) and travel partners can choose to work under their terms or not. Standard Royal Caribbean commission tiers do not apply and bookings made on a chartered sailing do not count toward agency goals and/or volume agreements.
14. How should the client price the staterooms in a Re-Sale Full Ship Charter?
The client is responsible for determining the pricing model for a Re-Sale Full Ship Charter program. Due to anti-trust regulations, Royal Caribbean International cannot legally advise the client how to price staterooms on a chartered sailing. Current retail pricing may be used as a guide but is a snapshot of the pricing on a particular day. This pricing would never apply to the entire ship nor would it remain constant throughout the booking life cycle for the sailing.
15. Is a client required to have a history of chartering?
Not necessarily - although we would prefer a proven track record of: Chartering ships of a similar size with us or our competitors Sailing as a large group with growth in size from year to year Promoting and selling large land programs on a similar scale
Not necessarily - although we would prefer a proven track record of:
16. What is the process for requesting a charter quote from Royal Caribbean?
For specific questions and/or to request a Full Ship Charter proposal please call Royal Caribbean Internationals’ Charter Sales Department between 9 AM and 6 PM EST (Monday – Friday) at 1-800-345-7225 (Option 4; Option 1).