Royal Caribbean Announces New Price Protection Policy - Is It a Good Thing?

Royal Caribbean today rolled out their new "Price Guarantee" program, allowing for price protection on almost every fare up to 72 hours prior to sailing, excluding "new bookings only" fares such as Happy Hours. On its face, it's a good thing, but is it really?

Experienced travel agents and savvy cruisers have long known that RCCL (and sister companies Celebrity and Azamara) offered fare protection all the way to sailing date. Should the fare go down, with those same "new booking" exceptions, even after final payment, Royal Caribbean would either lower the fare prior to final payment, or issue a refund back to the passenger's credit card if the reduction occurred after final payment.

In the very small print of the new offer, there's a change to this program. If the fare reduction occurs after final payment, your refund will come in the form of an onboard credit.

I'll admit, for most fare reductions, that will be welcome by cruisers, as it will essentially cover the expenses they'd have paid onboard anyway, such as gratuities, alcohol, soda, excursions, casino expenses, etc. However, I have experienced last-minute reductions for clients which were of such a significant dollar expense as to make the onboard credit amount difficult to spend during the cruise. Especially if the passengers don't drink alcohol or take cruise line excursions. While the amounts are refundable if not used onboard, it still puts the responsibility on the client to obtain that refund.

The terms and conditions also give a clue that this may be an effort on RCCL's part to later discontinue the program, as the wording states that the "Price Protection Program may be discontinued or modified at any time without prior notice". I hope that's not the case, and it's just a case of the lawyers getting in their $.02, but it does concern me.

I also expect there will be confusion with regard to whether or not group bookings can be adjusted after final payment, as the terms and conditions and FAQs seem to contradict one another, but I do believe that as long as the group booking is made in full, the fare protection will be honored. The terms & conditions just seek to ensure that group bookings not paid in full (and which have different conditions than individual bookings) aren't refunded improperly.

Azamara and Celebrity announced their versions of this program a few weeks ago. Terms are virtually identical.

Obviously, onboard credits cost Royal Caribbean less than refunds do, as what they sell onboard results in a profit to them. It's also easier to administer than credit card refunds. I don't begrudge RCCL this at all, and in many situations it's perfectly appropriate and welcome by cruisers.

So while I definitely still applaud RCCL and its sister companies for having a policy of allowing for fare reductions, even after final payment, and think it gives them a huge competitive advantage over some of their competitors who consider final payment the final time they have to worry about their fare, I actually think this is a step back in the actual policy. It's going to get a LOT of attention, on cruise boards, the media, and in buzz, but for the wrong reasons. It's mostly a marketing ploy, not a new program worthy of note. And I certainly hope it's not the beginning of the end of fare price protection by RCCL, Celebrity and Azamara.

I want the fare protection policies to continue, as they definitely help both me in securing bookings, and also benefits my clients in knowing they can be confident in booking these brands any time they want. Don't disappoint us RCCL!