Page 5 - 2024 CIN USA River Report

2024 USA
Riverboat Report

company has been growing via acquisi-
tion and newbuild.
UnCruise is another adventure prod-
uct with its business focused on Alaska,
but with a parallel small river program.
Alaskan Dream Cruises has no river pro-
gram, but a fleet of U.S.-flagged vessels
operating in Alaska and the know-how to
operate in U.S. domestic waters.

Thinking About Growth
The number one challenge facing
growth in the U.S. domestic small-ship
market: getting a ship built competently
at a competitive price.
With the industry capacity constrained
from growth, there should be plenty of
room to raise ticket prices as the market
grows gradually.
Assuming the addition of two ACL
ships and one Viking newbuild annually,
the market could see growth of approxi-
mately 600 berths annually.
Consumer demand remains robust
during the summer months; however,
there are fewer deployment prospects
during the winter season. In contrast, ves-
sels constructed for use on the Mississippi
and other nearby rivers face challenges
when it comes to relocating to different
operating regions, unlike ocean-going
ships that enjoy greater mobility.
Aging passengers will need to be re-
placed with new guests; and while the
ACL’s ships as well as various other com- but the biggest overall. Viking entered big-ship companies can offer new desti-
mercial vessels. the market in 2022 with a modern nations, there are less options to attract
American Queen Voyages, with back- 386-guest ship designed for Mississippi repeat passengers in the U.S.
ing from Hornblower, had been on the River cruising. With a fleet of upwards U.S. labor will always be a challenge
growth trek, but has seemingly taken a of 70 riverboats in Europe, two expe- from a recruitment and cost perspective.
step back for a big picture view. dition ships and 10-ocean going ships, There are also dock space problems
After starting with one riverboat, the Viking is poised for growth in the U.S. and competition is already underway to
company quickly added more, converting and is said to be planning to continue find places to berth ships on the more
casino-gaming vessels to paddlewheel riv- adding ships to U.S. rivers, which would crowded waterways.
erboats. The company also bought Victory mimic its expansion strategy in other Operators and towns along the Mis-
Cruise Lines with its two coastal ships, and markets. sissippi River have already struck agree-
entered the Alaskan expedition market with And then there are more, including ments wherein cruise line companies
a seasonal charter of a new cruise ship. A re- Lindblad Expeditions, UnCruise and invest in dock infrastructure in return
brand brought everything under American Alaskan Dream Cruises. for preferential treatment for their ships.
Queen Voyages. New management made Lindblad has a long-term partnership What about competition? With a hand-
changes in 2023, including winding down with National Geographic and four U.S.- ful of choices in the U.S., pricing pressure
its coastal business with both ships now on flagged vessels, with a small presence in may be minimal, but customers interested
the market and looking for a new owner. domestic waters, mainly concentrating in booking U.S. river cruises may find sim-
Then there is Viking, which is the on its expedition product in Alaska. Its ilar prices for luxury small ships cruising
smallest of the main players in the U.S., river presence is minimal but the public in the Mediterranean or even Antarctica. 

Cruise Industry News: 2024 USA Riverboat Report 9