The information that American Queen Voyages (AQV) had ceased operations on Feb. 20, canceling all future cruises, didn’t come as a shock to the commerce.
The writing was on the wall, trade professionals mentioned, noting that AQV had had ongoing service and cost points even earlier than Journey Weekly reported in January that the U.S. river cruise line had been dropped by a lot of main commerce companions.
“I am not shocked. Issues have been brewing for some time. Late funds, or no funds, constructed up over the previous couple of months,” mentioned Anthony Hamawy, president of Cruise.com.
Hamawy mentioned his firm had stopped advertising and marketing AQV originally of the yr. A number of makes an attempt had been made to achieve AQV, Hamawy mentioned, however the river cruise line failed to reply.
Consequently, “we despatched a memo to all of our brokers, warning them” what was happening, Hamawy mentioned.
Nonetheless hoping to discover a resolution that might fulfill each events, Cruise.com stopped wanting issuing a “no guide” advisory.
“We inform purchasers what we’re seeing and that in the event that they nonetheless select to guide, they should be very cautious,” Hamawy mentioned. “Use a bank card, purchase insurance coverage.”
Hamawy famous that some insurance coverage firms will not pay claims in sure circumstances if points have already surfaced. As an illustration, Journey Guard stopped protecting monetary default for Vantage Deluxe World Journey within the days after experiences got here out that that firm was searching for a purchaser.
Nonetheless, Hamawy mentioned he is “very cautious about placing a ‘no guide’ on firms. We attempt to work with them after we can. We wish to be companions, however on the similar time shield our customers.”
That is the strategy Signature Journey Community, Nice Holidays and AAA Journey mentioned they tried with AQV when the businesses had points with the road, previous to the slicing of ties.
Signature CEO Alex Sharpe mentioned the consortium had stopped promoting AQV in March 2023 however introduced the road again as soon as commissions had been paid. Paula Twidale, senior vp of AAA Journey, mentioned the corporate — which offered AQV by means of Nice Holidays — stopped promoting the road in November however would have thought-about resuming gross sales if the excellent points had been resolved. (Nice Holidays CEO Jack Richards famous earlier this month that no progress had been made.)
After the shutdown, focus now turns to refunds in addition to to how AQV’s mum or dad firm, Hornblower Group, is perhaps impacted and the way AQV’s collapse may mirror on home river cruising.
To get a refund, vacationers should full a three-part course of, together with submitting a declare type, retrieving a denial discover to current to insurance coverage firms and requesting a refund from Argo Surety, a Toronto-based business insurer.
Hornblower Group turns the web page
Lower than a day after information broke about AQV, Hornblower Group introduced that funding agency Strategic Worth Companions would purchase a majority stake in Hornblower.
Hornblower’s present mum or dad firm, Crestview Companions, will maintain a minority stake. Crestview will even turn into the only proprietor of Journey Past, which operates rail and day cruises in Australia and is a stand-alone working unit of Hornblower.
Hornblower Group mentioned that it’s working to promote AQV however that if a purchaser cannot be discovered, the river cruise firm could be wound down.
AQV was underperforming and did not get better from the pandemic, in accordance with Hornblower Group president Adam Peakes.
Hornblower Group mentioned that journeys booked by means of its remaining belongings, tour/transportation firm Metropolis Experiences and Journey Past, is not going to be impacted and that journeys by means of these firms are operating as regular.
The present U.S. river cruise market
Nonetheless standing amongst U.S. river cruise strains are American Cruise Strains (ACL), Viking and Lindblad Expeditions.
ACL is by far the chief, with round 20 ships in its fleet and extra on order. The Guilford, Conn.-based firm has tripled its U.S. fleet prior to now 5 years, introducing 5 new riverboats on the Mississippi and launching a new class of hybrid river/coastal vessels known as Coastal Cats.
Viking has operated one river ship within the U.S., the Viking Mississippi, since 2022. Lindblad Expeditions has operated river cruises within the Pacific Northwest on the Columbia and Snake rivers for greater than 30 years.
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