This summer's low water levels on the Danube and Rhine have been a financial burden for river cruise lines, which have canceled itineraries, issued future cruise credits, hired motorcoaches to transport passengers and put guests up in luxury hotels. 

It's an expensive outlay but an important one to keep customers satisfied and demonstrate hospitality during a difficult situation, said river cruise executives. 

The industry has faced low water levels in Europe for approximately six weeks, and though some rain had fallen in mid-August, it hasn't been enough to overcome dry patches of the Rhine and Danube.

Avalon Waterways president Pamela Hoffee said this summer has been the driest and most disruptive on Europe's rivers since 2018.

Though unexpected lodging, transport and operational costs are expensive, Hoffee said "doing the right thing isn't always the least expensive thing, but it's the right thing to do for our customers." 

Riverside Luxury Cruises CEO Jennifer Halboth described Riverside's approach – booking luxury hotels, offering meal vouchers, moving guests to other rivers – as "endearing ourselves to advisors and guests."

Halboth views the added costs as an investment in Riverside's customers, an opportunity to demonstrate brand value that couldn't be replicated through traditional marketing.

Viking has issued future cruise vouchers for some disrupted itineraries – the company said more than 50% of cruise days in the third quarter have been affected as of mid-August – and the line expects to take a financial hit when the vouchers are redeemed in 2027 and 2028, said president and CEO Leah Talactac during Viking's Q2 earnings call on 19 August. 

Though the true cost of the disrupted itineraries won't be known until Viking reports its Q3 earnings, Talactac said she views it as a relatively short-term pain point to foster goodwill among guests. 

"We believe this investment reinforces the trust that our guests place in Viking and supports the long-term loyalty that has been fundamental to Viking success," she said. 

Future bookings still strong

Though some travel advisors have voiced concern that this summer's low water levels and itinerary disruptions could ding the industry's reputation, that doesn't appear to be the case based on Viking's booking data.

Viking has sold 42% of its river inventory for next year as of 9 August, amounting to nearly US$1.8 billion in advanced sales, Talactac said on the earnings call. 

Viking CFO Linh Banh said, "We don't believe low water is impacting our bookings, and we're pleased with how the curve is tracking." 

Avalon and Tauck both report record bookings for 2027, while AmaWaterways characterised its next season as strong. Tauck president Jeremy Palmer said the low water levels aren't "enough to slow down what has been Tauck's fastest-growing segment."

Advisors need to be prepared 

Hoffee said she believes customers will be more aware of water levels going forward considering how much attention this year's summer season has received. Guests are likely to broach the subject with travel advisors when discussing options. 

Following the headache of 2018's low-water season, Avalon repositioned its ships and rerouted itineraries to make ship swaps possible, a strategy that it has deployed this year. Viking and AmaWaterways have also relied on ship swaps to keep passengers moving.

Knowing which brands have the fleet size capable of supporting this strategy could become an even more important selling point for advisors when they suggest brands and itineraries to clients, Hoffee said.

Signature Travel Network's cruise partnerships vice president Cricket Ducat said the conversations are already surfacing between clients and advisors, with advisors preparing clients for the ways their trip could change.

The water-level conversation also can reveal a client's risk tolerance, she said, giving retailers the opportunity to advise clients about the best time of year to travel to avoid disruptions.

Already, travel advisors and some river cruise lines have reported August as a slower month due to the heat, with an increasing number of clients choosing to cruise during the fall shoulder season.

Source: Travel Weekly