Virgin Voyages unveils industry-first three-tiered pricing model

TORONTO — Virgin Voyages is shaking up cruise pricing with a new three-tiered fare model, taking a page from the airline playbook.

Speaking to media earlier this week, Virgin Voyages’ CEO, Nirmal Saverimuttu, joined by John Lovell, newly appointed Board Member and Senior Advisor, announced the industry-leading VoyageFair Choices, debuting on Oct. 7, 2025. Created in response to feedback from both guests and travel advisors, who the cruise line refers to as “Sailors” and “First Mates,” respectively, the new fare model provides price transparency, offers more flexible options for all budgets, and makes it easier to compare products across the industry.

“Much like the way airlines are able to offer more choice and flexibility, we are going to be the first to offer a true three-tiered pricing model for cruising to all our sailors who book the Sea Terrace cabin and below,” said Saverimuttu. “People are used to booking travel by being able to choose what kind of experience they want before they come to the experience. It’s worked extremely well for airlines and the hotel industry. Ultimately, it gives the opportunity for growth and we’re very excited about that.”

Virgin Voyages’ CEO Nirmal Saverimuttu (left) and Senior Advisor John Lovell

Noting how other cruise lines may have played with different pricing models that simply bundled offers in the past, Saverimuttu added: “No one has truly unlocked an airline- and hotel-like three-tiered model for cruising, which I think will help people understand how cruise pricing works and attract more people to the market.”

THREE FARE LEVELS

The new system applies to Sea Terrace and below cabins, giving Sailors three options:

  • Base fare: This non-refundable fare introduces a new Basic Wi-Fi tier for one device per Sailor designed for social media, messaging and light browsing. Dining reservations open 15 days before sailing, with no changes to names, cabins or dates permitted once booked.
  • Essential fare: This option is the closest to what Sailors have always booked with Virgin Voyages. It includes Classic Wi-Fi for one device per Sailor, with social media, messaging, browsing and audio calling, as well as a 45-day dining reservation window and added flexibility to adjust voyage dates using a Future Voyage Credit. Name changes are allowed for Sailors Two through Four.
  • Premium fare: For the first, time, Sea Terrace categories and below will enjoy a 60-day dining reservation window (previously reserved only for suites). Premium also includes Premium Wi-Fi for two devices per Sailor, with streaming and video capabilities, an included Bar Tab (drinks credit) and access to a priority support line for pre-voyage booking.

For RockStar and Mega RockStar Quarters, the main enhancement is a 120-day dining reservation window, while all other inclusions remain unchanged.

Despite these changes, Virgin’s core product remains untouched, said Saverimuttu. Every fare continues to include over $1,000 in value through speciality dining, fitness classes, Wi-Fi, non-alcoholic beverages and entertainment. Saverimuttu closed with a reminder that the new structure is about growth without compromise: “VoyageFair Choices is about opening our doors even wider, giving more travellers the chance to experience the joy, connection and freedom of sailing with us. It’s a new way of putting people first and shaping the future of travel.”

NO CHANGE TO COMMISSIONS

Virgin Voyages is reinforcing its commitment to the trade by confirming that commissions remain unchanged under the new model. Saverimuttu was clear: “The commission structure does not change. There is no change to commissions. We very much believe in no NCFs here at Virgin Voyages. Our First Mates deserve a full fare and a full commission.”

The line continues to pay 16% commission on voyage fares and 10% on pre-voyage purchases such as bar tabs or shore excursions. Importantly, Virgin Voyages will also pay commission on prepaid gratuities when they are booked in advance. If Sailors wait to cover gratuities onboard, no commission applies, consistent with how onboard purchases are treated.

GRATUITIES NOW SHOWN

A key change that comes with VoyageFair Choices is how service gratuities will be displayed, as of Oct. 7. Instead of being bundled into the fare, they will now appear as a separate line item at booking. Guests can prepay a discounted rate of US$20 per person, per night, or pay $22 onboard. Virgin Voyages stresses this does not increase the total cost of a voyage and ensures Sailors see exactly where their money goes.

This, said Lovell, creates both a selling tool and revenue opportunity for travel advisors, who he worked closely with in his previous role as President of Travel Leaders Network. “Since we’re one of the only cruise lines that commission on gratuities, I believe that First Mates will be able to have that discussion with Sailors and tell them that by pre-paying gratuities, they’re going to save 10%. On a typical seven-day cruise, you’re looking at US$100 in additional commission, and with the Premium Package, it’s about $100 per day.”

 

GROWTH & REPEAT BUSINESS

According to Saverimuttu, Virgin Voyages is seeing strong momentum, with 2025 sales revenue up 45% year over year and 2026 bookings tracking 70% ahead of the previous year. Demand for cruising is high across the industry, with Virgin benefiting from an increased demand for adult-only holidays. The line’s newest ship, Brilliant Lady, launched with a sold-out sailing, and bookings remain strong into next year.

Despite record sales, Saverimuttu maintains that what’s most important to him is guest satisfaction, the levels of which are also rising.

“The first things I look at every day are our satisfaction and value-for-money scores because I fundamentally believe that if you get those two things right, everything flows downhill from there,” he said. “If we’re not providing a great value-for-money experience and satisfying our guests, then we’re not on the right path.”

Saverimuttu acknowledged that repeat business is now at 30%, a major accomplishment considering that Virgin Voyages has only been operating post-Covid for two and a half years and that historically, the number of times people cruise is once every three years. He credited crew members, who he referred to as the company’s “secret sauce,” for being a big reason for guests choosing to sail Virgin again and again.

 

STRENGTHENING TIES WITH ADVISORS

Virgin Voyages’ strong ties with the trade remain central to its growth strategy, said Saverimuttu, who added that having Lovell on the Board is seen as a big advantage.

“To be able to say that I have a partner in the boardroom who can really advocate for the trade at a Board level is tremendously exciting for me because this business has been built in partnership with our trade partners,” he said. “I want Virgin Voyages to be the most trade-friendly brand out there, and we’re doing this through simple things like paying commissions on pre-paid gratuities.”

Despite being an adults-only cruise line, Saverimuttu highlighted the incredible earning potential when selling Virgin Voyages.

“I think it’s become abundantly obvious that the Virgin Voyages customer is anyone travelling without kids – full stop. If you’re travelling without kids, then you’re a customer,” he said. “There are more and more people who are actively seeking adults-only, kid-free holidays now than ever before, and we are the perfect brand to provide what they’re looking for.”

For more information, go to www.FirstMates.com and www.VirginVoyages.com.






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