Want to save money on a Royal Caribbean cruise? Maybe it's time to call your broker

mercedes · March 10, 2009

Anyone who has owned Royal Caribbean stock over the past year is in a world of hurt. The value of 100 shares of the company has plunged nearly 83% to around $600.

But as with most things, there's a silver lining to the sharp decline -- at least if you're a Royal Caribbean cruise fan. As the stock has fallen, the booking discounts the company offers anyone owning at least 100 shares have grown in relative value.

Looking for a deal on your next cruise? The Cruise Log normally doesn't do stock advice, and we have no idea if Royal Caribbean shares are heading up or down in the coming months. But if you sail often enough on the company's ships, it just might make sense to buy a few of its shares at current prices for no other reason than to save money on future bookings.

The math is simple. Royal Caribbean long has offered shareholders discounts of up to $250 per cabin when they book on Royal Caribbean and its sister lines, Celebrity Cruises and Azamara Cruises. A year ago, when 100 shares of the stock was worth more than $3,000, the perk was just that -- a perk. But today, with the stock trading for less than the cost of a cruise ship umbrella drink, a new buyer of 100 Royal Caribbean shares would be able to make back the investment in discounts over the course of just a handful of cruises.

Under the terms of Royal Caribbean's shareholder program, passengers who own at least 100 shares get a $250 onboard credit on sailings of 14 or more nights; $200 on sailings of 10 to 13 nights; $100 on sailings of 6 to 9 nights; and $50 for sailings of five or fewer nights.

The discount can be applied to multiple cruises, so a Royal Caribbean fan who cruises three times this year could save up to $750 by owning 100 shares that, as of Monday's close on Wall Street, were valued at just $581. Even if Royal Caribbean shares go to zero -- an outcome that even the most pessimistic Wall Street analysts don't forsee -- such a cruiser still would come out ahead.

Passengers must own the shares at the time of sailing, and certain terms and conditions apply. One major caveat: The discounts aren't combinable with certain other discounts. Also, keep in mind there's no guarantee Royal Caribbean will continue the shareholder program.

The other major publicly traded cruise company, Carnival, offers a similar discount program for passengers who own at least 100 shares. But with Carnival stock trading around $18 a share -- or $1,800 for 100 shares -- the relative value of the offer is not as great.

JoeyandDavid · March 10, 2009

thanks for rubbing it in..LOL time to buy down

DebbieandJerry · March 10, 2009

Thanks for the information. I had no idea that that perk even existed

thtalks · March 26, 2009

We bought 100 shares RCI stock last year, after being bitten by the cruise bug! We've been able to get $150 during the last 2 cruises. We're in it for the long haul. I am surprised more cruisers don't take advantage of this perk. The more you cruise, the more being a stockholder pays off. Happy cruising!

coloradocruisers · March 27, 2009

Since the article indicates the savings apply to the on-board credit, I'm assuming that one could purchas 100 shares of stock and still get the savings on-board, even if a cruise was booked prior to owning the stock. Am I assuming too much?

JoeyandDavid · March 27, 2009

Since the article indicates the savings apply to the on-board credit, I'm assuming that one could purchas 100 shares of stock and still get the savings on-board, even if a cruise was booked prior to owning the stock. Am I assuming too much?

Kevin...I believe as long as you own the shares BEFORE you cruise you qualify I would think you need at least a 30 day notice to provide the line with documentation of ownership like a copy of your brokerage statement..

sailingrose · March 28, 2009

We scan the statement and send it in to RCI. They usually send us an e-mail confirming within a day or 2. This perk is not available with other discounts anymore so if you get another discount because of coupons, Crown and Anchor status, etc. you can't use this discount too.

Ex. Booked Europe cruise.......$250 balcony discount for my Crown and Anchor status, stock credit would be the same. We used the C&A to reduce the cost of the cruise as opposed to the stock credit for $200.

cruisetarp · March 28, 2009

We scan the statement and send it in to RCI. They usually send us an e-mail confirming within a day or 2. This perk is not available with other discounts anymore so if you get another discount because of coupons, Crown and Anchor status, etc. you can't use this discount too.
Ex. Booked Europe cruise.......$250 balcony discount for my Crown and Anchor status, stock credit would be the same. We used the C&A to reduce the cost of the cruise as opposed to the stock credit for $200.

Bit by bit they are taking away all the perks that keep their loyal cruisers from coming back. Have they forgotten that we have other choices?

JoeyandDavid · March 28, 2009

i hope they address this at the stockholders meeting...look what they have done..they have taken away dividends for the time being...they are stopping the combination of discounts I sure hope they start throwing me a crumb or two.. i am getting hungry ...