Viking to add just two new river ships in 2017
AMSTERDAM -- The rapid expansion of Viking River Cruises is finally coming to an end -- at least for now.
Speaking at a christening event last week in Amsterdam, Viking chairman and CEO Torstein Hagen said the company would add just two new ships on European waterways in 2017 -- far fewer than in recent years.
Viking needs to absorb the massive capacity increases of recent years that have catapulted it to a dominant position in the business, Hagen suggested.
"We probably (have) a couple ships too many this year, quite frankly," Hagen told cruise writers at a press conference before the unveiling of six new river ships for 2016.
Four of the six new vessels will sail on the Rhine, Main and Danube river system. The other two are heading to the Seine in France. Later this month, Viking will add a seventh new ship for 2016 on Portugal's Duoro River.
Including the newcomers, Viking will have 56 vessels operating on European rivers this year, more than the next three largest North American-focused river lines combined. The company has pulled away from its rivals in size with the unveiling of more than 40 new ships since 2013. Last year alone saw it add 14 vessels.
North American demand for river cruises in Europe has been exploding over the past few years, driven in no small part by a massive marketing campaign by Viking, which now carries nearly 50% of the North Americans cruising on Europe's rivers. But several recent events in Europe including the November terrorist attacks in Paris and violence involving the waves of migrants arriving from the Middle East have turned some Americans skittish on traveling to the continent.
Hagen said demand for river cruising in Europe took a particularly huge hit in the wake of the November attacks and only now is recovering. Bookings at Viking plunged 58% in the weeks following the incident as Americans backed off from planning trips not just to France but to the entire continent, he said.
Viking reacted to the downturn by loosening booking terms and lowering fares for solo travelers, which has brought customers back to the table, Hagen said. The company saw a record booking day early last week with $25 million in sales, he noted.
Demand for Viking river cruises also has been affected by regular customers foregoing a river cruise this year to try out the company's new ocean ships, Hagen said.
Still, long term, the growth of river cruising in Europe is far from done, Hagen suggested.
"I think we'll get back to a faster growth," he said. The slowdown in demand "is related to these events. It will accelerate back."
For a deck-by-deck look at a Viking river ship, scroll through the carousel at the top of this story. The carousels below offers a peek inside Viking's new ocean ship, the Viking Star.