By Fran Golden
MIAMI -- Royal Caribbean International and Celebrity Cruises
introduced CruiseLoan, a program administered by Citibank.
Annual interest rates for the CruiseLoan program are 14.5%, with
a special rate of 12.5% available for qualifying members of Royal
Caribbean's Crown and Anchor Society and Celebrity's Captain's Club
repeat passenger programs. CruiseLoans are available for repayment
over 24, 36 or 48 months (see below).
Princess Cruises last March introduced the Love Boat Loan
program, the first in the industry. Its rates can vary from 14.99%
to 26.99%, depending on the client's credit history. Rick James,
senior vice president of Princess Cruises, said the Love Boat Loan
program has been successful, but added that exact numbers are
proprietary. Carnival Cruise Line said it also is considering a
loan program. "We've been looking at it for quite some time,
including when Princess announced [its program]," a spokesman
said.
Royal Caribbean and Celebrity officials said CruiseLoan was
designed to make buying a cruise vacation as convenient as
possible. "I don't know that it makes it more affordable. It gives
people more choices, and I think that's what it's all about," a
spokeswoman for the brands said.
Under the CruiseLoan program, passengers can make their
reservations through an agent, determine how much money they need
and then call Citibank, she said. The application process is
designed to take only a few minutes and to be completed over the
phone. If approved, the applicant will be told during the same
phone call.
Unlike the Princess program, which offers the Love Boat Loan as
an option when agents or clients call Princess reservationists,
there is no telephone link between Royal Caribbean and Celebrity's
reservationists and the bank.
The spokeswoman said that CruiseLoan can be used to finance
virtually all costs, including the cruise fare, stateroom upgrades,
on-board spending and shore excursions.
To apply, clients can call (800) 321-CITI and select Option
1.
How does CruiseLoan
financing add up?
Consider the payment plans for clients who borrow $2,500 for,
say, a seven-night Caribbean cruise:
* For 24 months, about $120.62 per month for a total cost of
$2,895.
* For 36 months, about $86.05 per month for a total cost of
$3,098.
* For 48 months, about $68.94 per month for a total cost of
$3,309.
CruiseLoans can be paid off at any time, with no prepayment
penalties.