Below are the answers to some frequently asked questions.
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.
Affinity or Promotional (Re-Sale): 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 primary of affinity or promotional (Re-Sale) programs are:
Royal Caribbean International does not typically consider Full Ship Charter requests within 12 months of the requested sail date and/or for those sailings booked above a pre-determined threshold. Charter should be planned at least a year in advance. Most clients charter one year in advance and some as far out as two or more years.
For Re-Sale charters, it is in the best interest of the client to allow ample time to promote the charter (13 months+). The cost of displacing booked guests will be a factor for any “open” sailing and will generally be lower if the charter is contracted farther out.
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 may be responsible for per person Onboard Revenue fees. Regardless of occupancy, the client may be responsible for meeting or exceeding a certain Onboard Revenue expectation.
The charter rate provided to the client will be based on our standard product. Any requested change to standard operation may impact the charter rate or result in incremental fees. Examples are:
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 Navigator of the Seas may be created by combining 3 and 4-night sailings or a short itinerary may be created for Oasis Class 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 incurs a high premium.
Cruises to Nowhere are not typically considered due to tax implications.
An Irrevocable Stand-By Letter of Credit in place at contract signing
Payment for per person taxes & fees, expected OBR penalties (if applicable), requested amenities and other miscellaneous fees relating to customization will be required 30 days prior to sailing and/or prior to the release of documents.
Requests for alternate custom payment arrangements may be considered and must be discussed with the responsible Charter Sales Manager. All payments to be made in U.S. Dollars unless otherwise agreed. Charterer will be required to provide a credit profile.
An Irrevocable Stand-By Letter of Credit 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 BBB 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 is held for up to 60 days post-sailing to ensure 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.
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 choose to change to a Half Ship Charter or a group once signed as a charter.
No. The client must have the ability to handle or work through a travel partner to market the program, answer questions, accept payment (if applicable), assign staterooms, etc.
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.
No. The client is responsible for the marketing program of the chartered sailing. Specific collateral relating to full ship charter programs does not exist today but a combination of existing collateral can be provided to assist with promotion.
FOR NORTH AMERICA BASED AGENTS/CLIENTS:
Colleen Hagen | Sr. Account Executive, Charter Sales & Marketing | chagen@rccl.com
FOR INTERNATIONAL BASED AGENTS/CLIENTS:
Clem Galindo | Sr. Manager, Internatonal Corporate, Incentive & Charter Sales | cgalindo@rccl.com