One of the best parts of RoyalUp! You don't have to be in a suite class room in order to upgrade into a higher suite class room with all the value, the views and the bragging rights ;). Just remember it's ALWAYS based on availability. You will be presented with whatever categories offered to bid on in your invite like you mentioned, and those may or may not include higher suite offers.
There is no algorithm, you can't compare it to online inventory. RoyalUp is an interest program at the very least. But an interest program that carries alot of value for lesser the price should you be the highest bidder!
The upgrade fairies live!!!