Cruise Financing 101, Or How to Spread Out Payments

[Iluv4n6]

Learning a lot perusing these boards and am feeling like a better-informed newbie () regarding the strategies some use to plan and reserve cruises.  However, my booking experience is negligible--so far we have only booked within the final payment window (75 days for 4 nights or less, or 90 days for 5 nights or more).  Let's say my wife and I book a $2,000, 7-night cruise 2 years before sailing. What are the "standard" payment terms that would apply for the deposit amount and acceptable installments up to the final payment date? 

It sounds like RC and experienced TAs are flexible regarding the customer's preferred payment schedule, but I don't know what this means in practice.  For my example, could this be as simple as a deposit of $500 followed by 21 monthly payments of ~$75/month, or  $1500/21 (number of months until the final payment deadline, or ~$75/month).  I recall reading a thread from early 2017 in which @JLMoran mentioned a wrinkle in any payment plan:  port fees and taxes must be paid for as a whole in one of the installments. 

From the RC website:

"Deposit requirements vary based on length of cruise and the type of stateroom reserved. Generally (emphasis mine), deposit guidelines are $200 per stateroom for 1 to 5 night cruises, $500 per stateroom for 6 to 9 night cruises and $900 per stateroom for 10 night or longer cruises."    

If we reserve a non-suite stateroom, I would expect the above deposit amounts to apply.

Thanks again for your feedback!

 

 

[JLMoran]

13 minutes ago, Iluv4n6 said:

It sounds like RC and experienced TAs are flexible regarding the customer's preferred payment schedule, but I don't know what this means in practice.  For my example, could this be as simple as a deposit of $500 followed by 21 monthly payments of ~$75/month, or  $1500/21 (number of months until the final payment deadline, or ~$75/month).  I recall reading a thread from early 2017 in which @JLMoran mentioned a wrinkle in any payment plan:  port fees and taxes must be paid for as a whole in one of the installments.

Yes, whatever the port fees and taxes are, those must be paid as a single payment and you must also have about $50 left on your cruise booking fare if you intend to leave those fees for the final payment. So figure your monthly payment as something like (base fare - $50)/(months until final payment date - 1), and you should be good. Also keep in mind that if you are booking more than one stateroom, you'll have to decide if you want to pay off one room (final $50 plus taxes/fees) a month early, then pay off the other room on final payment date, or deal with a "double payment" on your final payment date so you have both rooms free to reprice or upgrade in the event of any last-minute sale / promo.

Just based on my experience so far, it's rare that you'll actually have a full two years to pay things off, just because most itineraries are released about 18 months in advance and you have a 90-day final payment date. Figure more on 12-15 months average and you should be good. And of course, depending on how many cruises you have booked in a year, there could be overlap.

 

[F1guynz]

Hi, welcome to the forum. Not sure about a TA but if you book direct with RCI once you have paid the deposit there is nothing further to pay until the final payment date. This date will be documented on your cruise booking. If you don’t wish to make the final amount in a lump sum you can make payments of any size up to the final payment date when any outstanding balance must be paid.

[Boston Babe]

I have 7 cruises booked through April 2020. (first one paid off as it's May 5th). Not sure if you are asking the requirement or just how do you pay them off so you are not strapped.

as @F1guynz says, nothing other than final payment 90 days out. I have to be strategic how to pay mine off.  I look at the closest one and start knocking it off whether it's $100 or $1000 when I know I will have that xtra cash. I just do it online and in the case of TA, I called her and said put $200 down on such and such. It's amazing even if you have an extra to slap down and the cruise is 14 months away how much you can pay off before final payment is due.

And Welcome too!!

   

[Iluv4n6]

Thanks @JLMoran, @F1guynz and @Boston Babe.  Good to know you can set up just about any payment schedule you want as long as you make the final payment deadline. And I like the math (to leave port fees to the end):

41 minutes ago, JLMoran said:

So figure your monthly payment as something like (base fare - $50)/(months until final payment date - 1), and you should be good.

We will probably just have a single stateroom for most of our cruises, but it's good to know to avoid inadvertently paying off a second stateroom a month before and first one so you can reprice both rooms up to the final payment date. 

[Lovetocruise2002]

We usually go the way that @F1guynz mentioned. We book really far out. We pay the initial deposit and then the lump sum at 90 days so I have no advice to offer on payment plans.  However, here's a tip...whatever you do, do not pay off the entire thing prior to 90 days out. Even if you have to leave a small balance, do it because once you pay off the cruise in full, you can no longer get your price adjusted if it goes down before final payment.

[WAAAYTOOO]

I am a payment gal.  I like to make equal monthly payments to minimize the sticker shock of paying a huge final payment.  If I book on my own, I simply pay Royal directly using my bank’s bill pay function.  If I am booked with my TA, I have her make the payments for me using the CC that she has on file for us.  I have never made a payment using Royal’s website payment function.

i often have 3, 4 or even rarely 5 payment schedules going at once.  It’s currently down to 3. The non-refundable downpayment option for suites is responsible for my decreased bookings and I don’t expect that to change.

i find the payment option works best for us but the bottom line is, the only payments you HAVE to make are the deposit and final payment.  All others are optional.

[melski94]

I am a payment girl too but I make payments to myself and not RC.  I don't like the idea of RC holding on to my money for any longer than necessary.  I have a separate savings account that I've labeled vacation fund where $X amount goes in every payday.  When it is time to make final payment, I put the balance on my credit card. When I get the bill for my credit card, I transfer the money from the vacation fund to the credit card.  No huge hit and no worries about getting money back from RC if I need to cancel the cruise prior to final payment.  The vacation fund also covers things like airplane tickets, shore excursions, etc.  Just another idea if you are thinking about payment plans and it is my easy way to save small amounts every month to cover a large expense.

[Dawn T.]

2 hours ago, melski94 said:

I am a payment girl too but I make payments to myself and not RC.  I don't like the idea of RC holding on to my money for any longer than necessary.  I have a separate savings account that I've labeled vacation fund where $X amount goes in every payday.  When it is time to make final payment, I put the balance on my credit card. When I get the bill for my credit card, I transfer the money from the vacation fund to the credit card.  No huge hit and no worries about getting money back from RC if I need to cancel the cruise prior to final payment.  The vacation fund also covers things like airplane tickets, shore excursions, etc.  Just another idea if you are thinking about payment plans and it is my easy way to save small amounts every month to cover a large expense.

This is exactly what we do.  I just put money into a separate vacation savings account.  I used to make payments to Royal like @WAAAYTOOO does, but it got too confusing.  I book early and have 6 booked now through the end of next year.  My brain couldn't handle making payments on multiple trips.  So much easier for me to just put the money into savings for later.  

[Skid]

I agree that having a separate "vacation" account and then paying with a credit card is the way to go. Plus, the credit card may provide perks like trip insurance, cash back and other benefits. These can be valuable savings.

[Iluv4n6]

Great to hear from so many on their preferences for making cruise payments.  I can see how managing payments could become a bit of a financial juggling act when you have several cruises booked--I know real tough problem .  And I like the option of paying installments to yourself in a separate vacation account.  I guess without reading the fine print I had figured that RC would require some additional $ after down payment and prior to final payment, but it is good to know that the number of payments and amounts is up to you so long as the balance is $0 on the final payment date.  But wait til the very end to pay off the amount due to take advantage of any repricing/re-booking. 

[twangster]

Which ever payment technique you go with just be careful not to pay it off in its entirety before the final payment due date.  While everyone associates the inability to obtain price reductions with final payment due date (90 days), it is actually once a cruise is paid in full that you can no longer get price adjustments should fares decrease.  

If you pay off the cruise at -120 days and the prices drop, no price adjustment for you.  Always leave a minor amount owing until they request final payment.

[Iluv4n6]

Thanks, @twangster.  Yes, I've learned through these boards that there is no advantage to paying off the total bill until the final payment date, so you have the largest possible time frame for repricing.  

[Matt]

13 hours ago, Iluv4n6 said:

Yes, I've learned through these boards that there is no advantage to paying off the total bill until the final payment date, so you have the largest possible time frame for repricing.  

Leaving yourself a gap of about $500 usually is sufficient for price drops, but you're right that if you pay it all off well in advance, it can make things more difficult to re-price later.  

[LetsTryThisPlace]

My 2019 cruise is the first cruise that I have ever booked in advance. I am always in the 90 days mark for my previous cruises. So we have never actually known the $$ amount. With my job I need to be somewhat flexible so we put a rough amount of what a trip would be into a savings account like others and that way when I know dates, I can escape we have it saved like if we planned a year out. 

[jce2]

I have a budget spreadsheet that forecasts the next 2 years of my income/bills.  When I book my cruise I simply add all the expenses of the cruise into whatever payday it will be needed by.  This way I know I can afford the cruise and I know the impact of the cruise/hotels/travel etc. on my overall budget.  Already have my April 2019 cruise fully budgeted out.  I usually round up severely on things that are guessimates (air fares, excursions, drink packages) so when I do pay them I get pleasant little bumps in my available spend! For example, I currently have $1000 budgeted for 2 drink packages.  I like getting things done as early as possible.  Already have my Galveston hotel booked and will book my Denver hotel as soon as southwest releases their air schedule for next April (October 2018 is my guess).  Only problem booking this far out is I run out of things to research and keep me busy until the cruise....