You mean neither of you intended to cancel.
But if, god forbid, you caught Covid, broke your leg, lost a close family member or your house burned down the day before your cruise, Royal would have someone ready to take your suite for $$$ without having to look for them.
That’s the real point of RoyalUp. Sure, there are bargains to be had but for Royal it ensures the suites and pricier balconies sail full for as much money as possible, even if there’s a last minute cancellation or no show. There may be two fewer people on board, but it’ll be an inside cabin that’s empty - not a suite.