Should river lines be worried about Crystal?


By Michelle Baran

Throughout the last several years of seemingly unstoppable growth in the river cruise market, ocean cruise lines have resisted getting in on the river action, a segment of the cruise market that, while clearly very popular, represents entirely different economics of scale (in other words, much lower passenger volumes) than ocean cruising.

So when Crystal Cruises announced a massive expansion initiative, including plans for two new river cruise vessels, it effectively became the first ocean line to cross into the river world.

Until the Crystal announcement, the only significant crossover in Europe had been in the opposite direction: river cruise heavyweight Viking Cruises launched its first ocean-going vessel this year (there are several smaller scale examples, such as Haimark, which has both river cruise vessels and a coastal cruise vessel, as well as the now-defunct Peter Deilmann Cruises and Cruise West, both of which dabbled in river and coastal cruising). And Crystal has been involved on the rivers before, via a marketing partnership with AmaWaterways.

Crystal hasn’t revealed much detail about the river cruise piece of its ocean-yacht-river-jet expansion plan. Lloyd Werft, the German shipyard that will construct Crystal’s new ocean ships, is also building two luxury, Crystal-branded river cruise vessels that will operate in Europe. (Crystal CEO Edie Rodriguez told Travel Weekly’s Tom Stieghorst that Crystal will reveal additional information about its river cruise product at a later date for competitive reasons.)

Looking at all of this, should river cruise lines be somewhat nervous? Could Crystal entering the river cruise business put a dent into the all the hard work they’ve put into creating, growing and developing the market these past years?

Well, Crystal still has to fit those plans into the same 38-by-410-foot dimensions that all river cruise vessels are limited to, due to the locks and bridges along Europe’s inland waterways. In that regard, Crystal will be up against the same innovation challenges the river lines have been grappling with through these growth years: how to maximize space and onboard offerings when square footage is so limited.

Additionally, for now at least, it’s only talking about two vessels, a tiny fraction of the overall river cruise inventory in Europe.

But under its new ownership of Genting Hong Kong, which clearly has ambitious plans for the company, Crystal could have enough resources at its fingertips to at least make some waves in the river cruise market, both from a hardware as well as from a marketing point of view.

“I think Crystal is doing a very smart thing,” said Donald Baasch of American Canyon, Calif.-based LastCallCruises. “They might as well make money on their customers instead of letting someone else have them, especially if they believe that a lot of them will inevitably want to try a river cruise.”

So, all told, surely the highly competitive river cruise industry has its eye on Crystal’s plans, but I doubt they are shaking in their boots quite yet.

The lessons learned from Tom Harper’s closure

When a company suddenly shuts its doors, a lot of different factions are often left picking up the pieces, which has certainly been the case in the aftermath of river cruise reseller Tom Harper River Journeys abruptly closing its doors in early May.

There still isn’t any clear course of action for the now cruise-less travelers who had booked river cruises with Newton, Mass.-based Tom Harper River Journeys. Founded in 2013 by CEO Bret Gordon, a former Vantage Deluxe World Travel executive, Tom Harper has now gone mum.

Michelle Baran
Michelle Baran

Travel Weekly hasn’t seen a bankruptcy filing for the company, but the Better Business Bureau has an alert stating that Tom Harper is no longer in business, and the company has been placed onTravel Guard’s financial default alert list.

Until (and if) Tom Harper resurfaces, travelers and their agents have been taking matters into their own hands, scrambling to try to get their money back and to salvage their vacations. River cruise companies that had sold inventory to Tom Harper, including Haimark Travel, CroisiEurope and Zambezi Queen, are dealing with the fallout as well.

Unfortunately, sometimes it takes a calamitous event such as this to be reminded of the precautions travelers and agents should take when booking a river cruise. Really, there are three main ones: book with a credit card; buy travel insurance; and look for river cruise companies that have some kind of financial safety net, such as being a member of an association like the U.S. Tour Operators Association (USTOA).

Many of the major river cruise lines are active members of USTOA — including Viking Cruises, Uniworld Boutique River Cruise Collection, Avalon Waterways, Tauck and Grand Circle Cruise Line — and as such are required to post $1 million in the form of a bond or letter of credit that is held by a USTOA trust for the sole purpose of reimbursing consumers for payments or deposits lost in the event of bankruptcy, insolvency, cessation of business, or failure of an active member to refund consumer deposits or payments within 120 days following the company’s cancellation of a vacation.

According to CLIA, passengers sailing on ships serving U.S. ports (for river cruising this would apply to vessels that ply U.S. rivers) are protected by a performance bond of up to $15 million, administered by the Federal Maritime Commission, which covers passenger refunds for “non-performance of transportation.”

“Travelers purchasing a cruise also can protect themselves by paying with a major credit card, and/or obtaining low-cost travelers’ insurance that covers trip cancellation for any reason, including supplier default,” CLIA advises.

For many who booked Tom Harper, much of this is too little, too late. For passengers who are booked on upcoming river cruises through Tom Harper, the river cruise lines on which they are booked have advised that they find a travel agent to help them or that they get in touch with the river cruise line directly to salvage their booking.

The larger lesson learned is that no sector of the travel industry is safe from sudden financial turmoil, not least the booming river cruise segment.

Viking Star draws thousands to christening

Viking Star’s Christening.

Viking Cruises christened its first new ship in Bergen, Norway, in a ceremony that attracted thousands on the nation’s Constitution Day.

The May 17 christening marks the formal debut of the 930-passenger Viking Star, which has been sailing with passengers since early April.

“We believe the arrival of Viking Star signals a new era in destination-focused cruising, and I could not be more proud that she will call my favorite city in the world home,” said Viking Chairman Torstein Hagen, who got his start in the cruise business four decades ago in Bergen.

The city’s mayor, Trude Drevland, served as ceremonial godmother and offered a blessing of good fortune and safe sailing for the 47,800-gross-ton  ship.