Tag Archives: viking cruise

A good sign when another river line heads to the open seas?

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Last month, Scenic announced that it will enter the ocean cruise market with the launch of the 228-passenger luxury mega yacht Scenic Eclipse in 2018, effectively making Scenic the second river cruise line after Viking to head to the open seas.

The fact that Viking and Scenic have invested in some serious ocean-going hardware can be viewed through many different lenses.

Michelle Baran
Michelle Baran

On the one hand, it may indicate some nice profits coming out of their river cruise endeavors, allowing for expansion. We can’t know for sure – these are private companies and investments (and capital) can come from many different sources – but there’s a case to be made that they wouldn’t be able to shell out for blue water product if their river cruise business one wasn’t holding up nicely. It may also be that these companies are looking for ways to bring a loyal customer base to destinations that they can’t via inland waterways.

But there’s also a case to be made that they might be heading into the ocean market to diversify their portfolios and reduce the risk of being fully invested in rivers, which has become a very bloated market over the last few years.

If you look at investment in the opposite direction, from ocean to river, the fact that Crystal Cruises is bankrolling a new fleet of river cruise ships could be seen as an indicator that the river cruise industry does show signs of continued promise into the near, and perhaps longer-term. But it also means a further inflation of the river bubble.

In the river cruise industry, there are some signs of headwinds in 2016; some increased discounting taking place, some post-Paris attacks challenges, and I’ve already written about a relative slowdown in shipbuilding momentum.

And it remains to be seen whether these recent river-to-ocean crossover moves are signs of further headwinds or rather indicate that the river cruising industry still has plenty of wind in its sails.

A challenging start to a promising year

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By Michelle Baran
As European river cruise vessels file into winter dry-dock this week, closing up the 2015 season, there is bound to be some nervousness for an industry waiting to see how the 2016 season will play out once it gets underway in the spring.

The dormant winter season offers an opportunity to spruce up older vessels and make final arrangements for the launch of new ones, investments that will hopefully pay off throughout the season. And this coming year has a lot to offer; Both Crystal Cruises and Adventures by Disney (through a partnership with AmaWaterways) will introduce new river cruise products in Europe, and all the major river cruise lines are adding new vessels to their fleets.

Michelle Baran
Michelle Baran

There’s a lot to look forward to, and yet 2015 ended with a bit of a question mark in the aftermath of the Nov. 13 Paris attacks in terms of how much the attacks will impact travel in Europe (and consequently river cruising) this year. Surely the hope is that a quiet couple months  – fingers crossed – prior to the start of the 2016 season will help keep pre-existing bookings on the books and reinvigorate the flow of new ones to get 2016 back on track to being as robust as it promised before the attacks.

Meanwhile, there are a lot of exciting developments elsewhere in the world to distract from the situation in Europe. Uniworld is starting its first cruises on India’s Ganges River this month, a new product the company has said has exceeded its expectations in terms of how successful the bookings have been.

And back in the US, it will be interesting to see if we hear anything more from Viking about its plans to launch modern-style Mississippi River vessels in 2017 and from the Delta Queen Steamboat Company about whether the fabled 89-year-old Delta Queen will receive the Congressional exemption it needs to sail again.

Indeed, despite some uncertainty as we start off the year, 2016 still promises to be an exciting and interesting one in river cruising, both in terms of the announcements we already know about and in terms of the surprises we’re always counting on the industry to provide us.

River cruising for millennials

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It’s no secret that the dominant river cruising demographic is retirees. Older travelers have embraced river cruising with a fervor that has fueled the segment’s unstoppable growth for the last several years.

But there doesn’t seem to be any obvious reason why river cruising couldn’t appeal to younger travelers, as well.

In an ongoing attempt to widen the market beyond boomers, several river cruise lines — notably AmaWaterways with its recent partnership with Adventures by Disney — have been courting families. But what about travelers in their 20s, 30s and 40s? What about the Gen Xers and? Thus far, there really hasn’t been a river cruising product that caters to that segment of the market.

Some argue that river cruising is too expensive and too inactive for these younger folk. But perhaps G Adventures’ new foray into the river cruising market is an indication that there could be some room for more youthful travelers on river cruise ships.

G Adventures, which caters to a younger, more active and often more budget-oriented traveler, isn’t getting into traditional European river cruising just yet: the company has offered river itineraries on the Peruvian Amazon, and sailings will start on the Mekong, Ganges, Amazon and in France’s Burgundy region next year.

But the simple fact that G is dipping its toes in the river cruising market could indicate the dawn of a new era for river cruising, one where the booming travel trend isn’t reserved just for seniors anymore. It will be interesting to see what G Adventures’ version of river cruising looks like compared with competitors’ river product, and how and whether river cruising resonates with the G Adventures traveler.

As a 30-something who happens to have been on countless river cruises, I’ve always thought there was a bit of a missed opportunity in this market. Yes, the product would require some tweaks. It would help if the price point were lower and if more free time were built in (two things that are actually not mutually exclusive). More activities off the ship and fewer onboard meals included in the price (potentially freeing up passengers’ money for dining in town) could help, too.

But otherwise, there really isn’t any reason why the 25-to-45-set couldn’t, well, get onboard, so to speak. And maybe G Adventures is the perfect company to extend the gangway to them.