Valley Companies Sailing Ahead

As ocean cruise lines look to put a disastrous few months behind them, river cruising is fast becoming America’s new pastime. That’s accelerating growth at the three largest river cruising companies, which despite their far-off destinations are located in the Valley. Industry leader Viking River Cruises of Woodland Hills is expanding its fleet by more than 60 percent through 2013, adding 12 new ships between this year and next. It has invested $400 million in new ships over three years. The other two Valley river cruising companies also are expanding. They are launching luxurious new ships, adding exciting new itineraries like wine cruises along the Seine and exotic destinations such as Africa’s Chobe River, where vacationers can glimpse elephants drinking the river water in the sunset. “River cruising is very hot right now,” said Joe McClure, president of Montrose Travel, one of the nation’s largest travel management companies, based in Montrose. The company has been booking more river cruises than ever in the past year. “We are putting a ton of marketing behind this. It’s a big new category for us.” Behind the growth of this relatively young, niche industry is consumer appetite for something new and different than the typical Mediterranean or Alaskan cruise that many of the industry’s typically affluent customers already have experienced. River cruises also tend to include food, wine and beer, plus shore excursions. Also fueling new business may be the idea of safety on a river in the wake of the January Costa Concordia ocean liner tragedy. “Without a doubt, we have seen some passengers come over to us,” said Kristin Karst, co-founder and executive vice president of AmaWaterways, the 10-year old river cruising company based in Chatsworth. “If the ship sinks, we have a party on the roof deck,” she quipped. AmaWaterways is adding two new ships in 2013, after launching two this year for a total fleet of 10. Encino-based Uniworld, a division of The Travel Corp. and the industry’s second-largest operator, is adding four new ships through 2014 for a total of 10 ships. Industry leader Viking will have 31 ships after its huge expansion in 2013. The three companies are Valley-based thanks to AmaWaterways founder and Valley resident Rudi Schreiner. He started out at Uniworld, then moved over to expand the river cruising business of Viking as its president in 1999 and left two years later to start AmaWaterways with Karst and a third partner. Despite the competition between them, all three companies have dropped anchor in the Valley, growing and expanding as neighbors. River cruising still pales in comparison to ocean, or blue water cruising, which had 16 million passengers worldwide in 2011, according to Cruise Lines International Association. River cruising has grown 10 percent every year, even through the worst years of this last recession, according to the industry group. CLIA said some 25 new ships will be added industry-wide through 2015, for a total of 232 vessels globally. AmaWaterways said it’s done even better, growing 20 percent to 40 percent a year and now boasts $200 million in revenue. Uniworld has been growing 20 percent every year, with the exception of 2009, which was weaker, according to Wesley Bosnick, vice president of revenue management and strategic development. He did not say what revenues or bookings were. As the industry expands, it’s also trying to change how consumers view river cruising. From rustic boats that plied the Rhone and the Danube, today’s ships are like floating luxury hotels. Uniworld’s “boutique” ships feature original art, silk tapestries, and even a chandelier from New York’s Tavern on the Green — all donations from the company’s owner, hotel magnate Stanley S. Tollman. “It’s one of the most classy, sophisticated ways to travel,” said Maria Grimarvi, vice president of marketing at Uniworld. Karst, who is married to industry veteran Schreiner, looks to luxurious hotel brands like the Ritz Carlton and the Mandarin Oriental for inspiration on color, design and furniture selections. The ships’ décor and style match the destinations. For example, ships that cruise Vietnam’s Mekong River sport a French colonial look with teak and sandalwood. The new Zambezi Queen, which sails the Chobe River in Zimbabwe and Botswana, feature zebra-striped rugs and upholstery. In recent years, Karst has added free Internet service in each room in a bid to attract a younger audience. Working against her might be price points. River cruising is a much more expensive, high-ticket vacation than the mass market ocean cruising. While a one-week ocean cruise can be obtained for $800 or less, a similar river cruise starts at $2,500, said Andi McClure-Mysza, president of MTravel.com. “It’s definitely an upscale product,” she said.