Celebrity Cruises Expands to River Cruising Saying \u201cThis is How We River\u201d
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\nRoyal Caribbean Group which operates 66 ocean-going cruise ships announced today, January 28, that it will be entering the fast-growing river cruise segment through its upper premium brand Celebrity Cruises. The company was attracted to the river segment which it sees as highly fragmented by its strong growth rates, high return on invested capital, and profitability.\u00a0<\/p>\n
CEO Jason Liberty told investors the expansion into river cruising was an exciting opportunity for guests and the company\u2019s shareholders. Referencing the segment as a \u201ccomplimentary high margin, high ROIC business,\u201d he said it fits nicely within the portfolio. He noted that about half of their customers have experienced or intend to vacation on a river cruise presenting strong opportunities for cross-selling to customers not only of Celebrity Cruises but its other brands, Silversea Cruises, and Royal Caribbean International.<\/p>\n
\u201cWe see river cruising as an exciting growth opportunity that aligns with our strategy of turning the vacation of a lifetime into a lifetime of vacations, expanding our ecosystem of vacation offerings, and broadening our reach into adjacent lines of businesses,\u201d said Liberty during the corporation\u2019s earnings conference call today.<\/p>\n
While Celebrity becomes the first of the major brands to expand into river cruising, it is not a new strategy. Crystal Cruises under Genting Hong Kong\u2019s ownership entered European river cruising. Viking started as a river cruise company and a decade ago expanded into ocean cruising and more recently expedition cruising. Analyst C. Patrick Scholes of Truist Securities noted today that Viking has \u201cbasically owned\u201d the river cruise sector. Viking currently has 82 river cruise vessels mostly deployed in Europe and has plans to reach 93 river cruise ships by 2027.<\/p>\n
Scholes said Truist\u2019s initial take was that it would not be head-to-head competition between Viking and Celebrity. Viking, he notes is considered a luxury brand offering an inclusive product while Celebrity will likely have a different price point marketing to the broader, contemporary cruise segment. Liberty mentioned to investors the opportunities for add-on sales noting that river cruise passengers \u201cspend a disproportionate amount of their time and money on travel.\u201d<\/p>\n
Few details were provided on Celebrity Cruises\u2019 plans for its new river operation. They said it would be launching in Europe in 2027 but CEO Jason Liberty referred to river cruising as a global segment. Ask by analysts, he said there were opportunities in many parts of the world.\u00a0<\/p>\n
Celebrity reported an initial order of 10 \u201ctransformative\u201d ships that it says would be innovative and elevate the river cruise experience. Speaking to the company\u2019s customers in a video, Celebrity Cruises\u2019 CEO Laura Hodges Bethge alluded to expansive views with large glass windows, innovative open deck spaces, and elevated design features. Royal Caribbean also referenced sustainable technologies, reimagined onboard and shore experiences \u201cthat raises the bar for river cruising.\u201d<\/p>\n
Reports indicate the initial order for the 10 river cruise ships went to the Netherlands\u2019 TeamCo. The shipyard\u2019s website shows 16 river cruise ships delivered over the past decade and most recently in 2024 to Amadeus. The size of river cruise ships varies based on the limitations of the rivers but the ships traditionally accommodate 150 to 200 passengers. Scholes estimates each ship will cost Celebrity $30 million for a total shipbuilding commitment announced today of $300 million.<\/p>\n
On the investor conference call, Royal Caribbean Group said its plan is for delivery of \u201ca couple of ships in 2027,\u201d and then about four a year.\u00a0<\/p>\n
\u201cOur ambitions go far beyond that,\u201d Liberty told investors. He said they were \u201cvery intentful,\u201d in calling it an \u201cinitial order,\u201d saying that river cruising \u201cis not a hobby for us.\u201d Based on shipyard capacity to build four vessels a year, Liberty said it was not likely that they would be waiting till 2027 to order more river cruise vessels.<\/p>\n
The expansion in river cruising comes just days after Celebrity announced it had ordered a sixth large cruise ship of its Edge class from Chantiers de l\u2019Atlantique. This year it will be introducing the Celebrity Xcel<\/em>. Royal Caribbean International last year also ordered an Oasis class cruise ship from France and an additional Icon class cruise ship in Finland as well as options for up to two more ships. The group noted its newbuild pipeline currently includes a total of eight ships on order.<\/p>\n<\/div>\n \t
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