Royal Caribbean Announces Increase in Automatic Service Gratuity Rates

Royal Caribbean International is set to raise its automatic service gratuity rates, marking a significant increase of over 10 percent starting from November 11. This adjustment reflects the cruise line’s updated pricing policy on gratuities, which are a standard part of the cruising experience.

Under the new rate structure, passengers staying in non-suite staterooms and Junior Suites will now be charged an automatic service gratuity of $18 per person, per day. For guests in Suites, this rate will increase to $20.50 per person, per day. The current gratuity rates at Royal Caribbean are $16 for standard cabins and $18.50 for suites.

This automatic service gratuity is applicable to all guests, regardless of age or stateroom category. It will be automatically applied to a range of services, including all beverage purchases, items from the mini bar, and spa & salon services. However, passengers who have opted to pre-pay their gratuity will not be subject to this daily charge during their cruise.

The updated gratuity rates at Royal Caribbean align with industry standards, with other major cruise lines like Norwegian charging a $20 per person, per day gratuity fee, and Carnival, Celebrity, and Princess typically charging between $16 and $18 per person, per day for most cabin categories.

According to The Points Guy, a family of four staying in a standard cabin on a Royal Caribbean cruise will incur over $500 in automatic gratuities on a seven-night cruise after the rate increase takes effect, positioning it among the highest in the industry.

The announcement of the rate increase comes as Royal Caribbean reports substantial financial growth, with a total revenue of $4.2 billion, an adjusted net income of $1.1 billion, and an Adjusted EBITDA of $1.7 billion for the third quarter. This marks a significant increase from the third quarter of 2022, where net income stood at $33 million and adjusted net income at $65.8 million.

This move by Royal Caribbean is indicative of the ongoing adjustments within the cruise industry, as operators balance operational costs and service quality to enhance the overall guest experience.