Are Viking Cruises Going Out of Business?
This is a question that has been on the minds of many travelers and cruise enthusiasts recently. Reports of the cruise line’s financial woes have been circulating and people are understandably concerned.
The short answer is that Viking Cruises is not going out of business. The company recently announced that they are planning to resume operations on February 18, 2023, and is taking steps to ensure that it can safely welcome passengers back on board.
We regret to inform you that all trips during this time have been canceled due to the fact that the ship will be undergoing repairs. We understand that this might be disappointing news, but we are doing our best to ensure that future trips are as safe and reliable as possible.
Despite the financial difficulties they have faced, let’s take a look at how they fare in the cruise industry so far.
Recent Financial Struggles of Viking Cruises
Since its founding in 1997, Viking has grown from a single river cruise ship operating in Russia to one of the largest and most successful luxury ocean and river cruise companies in the world. It now operates more than 82 ships across five continents and offers passengers highly personalized service with destination-focused itineraries that explore European rivers as well as exotic destinations such as Southeast Asia, South America, Africa, and The Caribbean.
The ship encountered some difficulties because of the covid-19 pandemic, as many countries closed their borders.
Hagen had a major decrease in his personal wealth this past year, falling from $6.28 billion to an estimated $2.1 billion, according to Norwegian financial magazine Kapital’s annual list. This is the greatest one-year dip that has ever been documented in the past 30 years due to Covid-19.
Furthermore, after canceling all operations until mid-December 2020, Viking recently announced via press release that they have secured $850 million in refinancing over three years (2020 -2023) through Goldman Sachs & Co LLC.
Overall, these drastic measures taken by Viking are an attempt at preserving cash flow allowing them to reach solvency post-Covid crisis when international travel likely resumes though still remain viable business given the uncertainty surrounding slow vaccine rollout coupled with constantly changing governmental regulations governing traveling abroad.
Impact of the COVID-19 Pandemic
The impact of the COVID-19 pandemic has been felt in a variety of ways around the world, and by many companies in the travel industry, including Viking River Cruises.
The many restrictions and lockdowns due to the pandemic have caused the company to have to modify and suspend all of its river cruises globally and postpone its ocean cruises until 2021. This has been a significant financial blow to the company, as these cruises are a major source of their revenue and had been growing in popularity prior to the pandemic.
The effects of the pandemic have also been felt by Viking River Cruises’ customers, many of whom had already paid for their cruises and were left with either a refund and fight a case against them for holding money for a long time.
Effect on the Cruise Industry
The global pandemic has had a devastating effect on the cruise industry, with travel restrictions and health concerns preventing people from taking to the seas.
Cruise lines around the world have had to cancel trips and suspend operations due to the pandemic, leaving many disappointed and frustrated.
In addition to the cancellations, the industry has also seen a drastic decrease in bookings over the past year. This decrease in demand has been further compounded by the stricter health protocols and safety measures put in place on board, which may have put off potential customers.
Although the industry has been hit hard, some cruise lines have made efforts to resume operations and provide a safe and enjoyable experience for passengers. New measures have been put in place to ensure safety, and give passengers new experiences with its comeback.
Outlook for the Future of Viking Cruises
The outlook for the future of Viking Cruises is incredibly bright!
Viking Cruises is a company dedicated to providing its customers with first-class cruising experiences and has earned a reputation for excellence in the industry.
As we look to the future, Viking Cruises is committed to continuing its innovative approach to cruising, introducing new and exciting destinations, and providing guests with unforgettable experiences.
If you noticed that they have taken some time to renovate the ship to give customers a new way experience.
Viking Cruises is always striving to stay ahead of the curve, offering guests an unbeatable range of amenities and services. With a focus on creating the ultimate cruising experience, Viking Cruises is constantly adding new and exciting destinations, with trips ranging from around the Mediterranean to the far reaches of the Pacific.
Summary
Viking Cruises has taken a hit in 2020 due to the pandemic, but they are still going strong. They have had to make some changes to their business model in order to stay afloat, including suspending operations in several regions and selling off some of their ships. But the company is still confident in its future, and they remain dedicated to providing its customers with the best possible experience. With its focus on safety, Viking is well-positioned to weather the storm and remain one of the premiere cruise lines in the world.
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