On our South Pacific cruise aboard Royal Caribbean’s Voyager of the Seas we were sitting with another passenger who was not impressed that when he made a payment on his SeaPass account he only got USD$0.63 for each AUD$1.00 when the exchange rate that day was USD$0.74. I’ve also read a number of complaints from others on blogs and forums, with people questioning why this is and if Royal is taking a cut beyond the 3% exchange fee they publicise.
I don’t know the answer to that, but I do know that there are factors that can influence it. For example, it is possible for Royal Caribbean to buy say AUD$100,000,000 at the start of the Australian season for a ship at an exchange rate of USD$0.63. They can then operate the entire season off the Australian dollars they purchased to start with, they then know exactly what their Australian budget is for the season and while there can be unexpected costs it allows them to know pretty close to exactly what their expenditure is going to be. This means they can plan for the season more cost effectively. It also means that for the duration of the cruise season the exchange rate when exchanging on board the ship is the rate that they purchased Australian currency at to start with. This means the exchange rate on board the ship remains the same and simplifies currency exchange for crew and passengers by allowing them to know exactly what it is for the entire season.
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