The ‘Downton Abbey’ bump

Downton Abbey Original Trailer.

By Michelle Baran
InsightIn 2011, when Viking Cruises penned a deal to become a national corporate sponsor for PBS, which included having promos run during “Downton Abbey,” the company arguably struck gold. And likely so, too, did the entire river cruise industry.“Downton Abbey” has since gone on to enjoy enormous popular and critical success, and perhaps not surprisingly Viking has continued to sponsor the show.Earlier this year, Viking kicked up its PBS campaign a notch, unveiling a new concept for the ads that would run during “Downton Abbey’s” fourth season — a series of seven, 30-second spots that would each tell a different part of the Viking story, whether it was a focus on the destinations Viking visits, performances onboard the ships or an ad dedicated to Viking’s culinary program.MichelleBaran

In addition to the PBS program, Viking quietly made some additional cable TV ad buys in the last year (you may have noticed, like some of us at Travel Weekly did, Viking ads run during pro football games), resulting in a total of more than $400 million that Viking has invested to market its product, according to the company.

Viking’s ads aren’t just reaching consumers, either. The company notes that agents are seeing the commercials while watching “Downton” too.

“We have heard from agents who said that they never thought they would sell river cruises until they saw the new Viking Longships in our PBS Masterpiece sponsorship during ‘Downton Abbey,’” Richard Marnell, Viking’s senior vice president of marketing, recently said.

No one in the river cruise industry will argue against the fact that Viking is doing more to increase awareness about the category than any other river cruise line.

In fact, Viking’s competitors welcome the ad spend and any spillover effect it might have in boosting their own bookings as consumers learn about river cruising in between episodes of “Downton.”

“Viking is very good about their ads on TV. But all that does is really increase awareness of the marketplace,” said American Queen Steamboat Co. Chairman and CEO John Waggoner. Waggoner was discussing the possibility of Viking entering the U.S. river cruising space, and said he would welcome the added competition, in part because of Viking’s aggressive marketing strategy.

“The analogy I use is it’s kind of like buying a car,” Waggoner added. “You might see an ad for an for a Hyundai and say, ‘Hey honey, let’s buy a new car.’ Well, once you decide to buy a new car, then I think you go out and you start to compare the cars.”

Other river cruise lines have both directly and indirectly tipped their hats to Viking for investing in advertising the river cruise experience in a way none of them really has the financial backing to do.

So, what’s the ROI on Viking’s efforts? The company’s bullish shipbuilding strategy in Europe coupled with the ongoing PBS sponsorship suggests that the ads are doing their job. How much have they bolstered the industry overall? Well, no one in the river cruise space is asking Viking to stop, that’s for sure.

Viking orders two more ocean ships

By Tom Stieghorst

The Fincantieri shipyard in Italy said it has received an order from Viking Cruises for two more ocean-going ships similar to the Viking Star, which is scheduled to debut in 2015.

The 928-passenger ships, scheduled for delivery in mid-2016 and 2017, brings the number of Viking ocean ships on order to four.

“The interest in and popularity of our current ocean itineraries has been incredible, and they are selling at an unprecedented rate,” said Viking Chairman Torstein Hagen. “This new order allows us to offer consumers in our other markets the opportunity to explore the world in ways they have never experienced before through our destination-focused itineraries.”

Neither party disclosed the price for the ships.

In a statement, Fincantieri said the order deepens its relationship with Viking, which also is a leading river cruise operator. It said the two companies are discussing additional high profile joint projects in other cruise segments.

Viking Star, the first vessel in Viking’s ocean fleet, was ordered in May and will sail in the Baltic and Mediterranean seas in the summer of 2015. It is being marketed mainly to Americans over 55 as a destination-oriented line that will spend an average of 12 hours in port each day.

UBS Sees Conservative Growth in Cruise Capacity

UBS Sees Conservative Growth in Cruise Capacity

Findings are based on scheduled delivery of new ships during the upcoming yearsBy: Marilyn Green

Cruise
Viking Ocean has newbuilds scheduled for 2015 and 2016, with the potential for additional orders. // © 2013 Viking Cruises

Viking Ocean has newbuilds scheduled for 2015 and 2016, with the potential for additional orders. // © 2013 Viking Cruises

UBS Investment Research periodically publishes an evaluation of cruise capacity and where it is headed. In its current study, UBS said Carnival Corporation may be in discussions with shipbuilders for another Seabourn order, which could be announced before the end of 2013. The new ship is likely planned for 2017, as the analysts think Carnival is finished ordering for 2016, with three orders currently in place. In addition, Royal Caribbean International has an option that expires in December for a fourth Oasis-class order scheduled for mid-2018 delivery — another possible order that could be announced later this year.

UBS expects 3-4 percent compound annual capacity growth in North America for the period of 2012-2016, which is below the 10-year average between 2003 and 2012, which came in at just under 6 percent. Analysts are predicting about three percent average growth in 2013 and 2014, as all ordering for those years is now completed, and further withdrawals of existing ships are likely to be announced later.

Analyst Robin Farley pointed out that Carnival Corporation has reiterated its intention of scheduling delivery of two to three ships per year and has only two ships on order for delivery in each 2014 and 2015. Royal Caribbean had been maintaining capital spending discipline, with one ship on order for delivery in 2014 and one in 2015, and no ships scheduled to be delivered for 2013.

Meanwhile, Norwegian Cruise Line exercised its option for a second Breakaway Plus ship for spring 2017 delivery — the line has the first Breakaway Plus order scheduled for October 2015. The two 4,200-berth vessels will be the largest in Norwegian’s fleet.

Another summer announcement came from Prestige Cruise Holdings, which announced in early July that the company has put in an order for a new 738-passenger all-suite, all-balcony ship for Regent Seven Seas. This will be the largest vessel in the fleet, driving close to 40 percent growth in capacity. Named Seven Seas Explorer, it is scheduled for delivery in summer 2016.

UBS notes that Viking Ocean Cruises has been in discussions for additional orders we may see later this year, related to the December 2012 Memorandum of Agreement with Fincantieri for the construction of two more ocean cruise vessels with an option for another two. Neither the shipyard nor Viking has announced an exact delivery date for the additional newbuild orders at this time, but UBS predicts the timing to be the end of 2016 and the end of 2017. Viking Ocean already has newbuilds scheduled to debut in May 2015 and early 2016.