The program is pretty straightforward as a way for passengers to upgrade and for Royal to maximize revenue. The program is run by an outside organization. If @twangster finds this he can provide some more in depth on that front.
You should always book a stateroom that is acceptable to you and not count on an upgrade. It is an easy process to submit your bid online and see what happens. Chances of an upgrade can vary but will increase if the cruise is not sailing at or near capacity. If there are limited rooms available then even a max bid may not be helpful. We have recently had a successful bid just slightly over the minimum. So it is really more about what is available and how many bids there are as opposed to purely how much you bid.
If you are successful in moving up to suites you will have full access to all the perks. The only exception is the double points. If you are on a Oasis or Quantum class and get up to Star you will even have the genie and all the perks, otherwise expect lounge access and concierge services.
Hopefully that gives you a quick overview and answers the suite question, have fun and good luck with the bid.
