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From mid-July to mid-August, more than 50% of Viking's river cruise days have been impacted by low water issues in Europe with about 10% to 12% of customers on those canceling.
"We have proactively begun to issue vouchers for these guests to acknowledge we understand what's going on, that this is not what they had purchased ... and hopefully these vouchers will encourage them to come back to Viking and the experiences we're known for," President/CEO Leah Talactac said Wednesday.
The vouchers give a discount for cruises later in 2026 and into 2027 and 2028.
Low water issues began in mid-July so aren't reflected in Viking's second quarter financial results today.
There will be some Q3 financial impact, including vessel operating expenses, Talactac said, but an update was not provided.
The European rivers were a focus of Wednesday's earnings call.
The Danube and Rhine are at "historically low water levels" with conditions deteriorating week by week, Talactac said, adding the company is adjusting itineraries and has started to "more proactively" communicate with customers what to expect on disrupted itineraries and is giving more frequent operational updates.
Viking was "a little bit slow initially, but I think we have handled it very well," Executive Chairman Torstein Hagen said, adding that communicating what's expected "solves most of the problem." His daughter Karine Hagen, who traveled on a recent river-ocean cruise combination, heard positive comments about how Viking dealt with the situation.
Management stressed Viking's 30 years of experience on Europe's rivers, through low and high water periods, deployment flexibility, having identical ships and being able to swap ships as "competitive advantages."
Water conditions also impacted the 2022 and 2018 seasons, so an analyst asked about any thought to reducing capacity on the Danube and Rhine going forward, if these conditions repeat more often?
"This is a reality of operating on the rivers," Talactac said. "Our team has it down to a science of having a combination of operational flexiblity, contingency planning and itinerary adjustments to minimize disruptions for our guests."
CFO Linh Banh pointed to 2027 booking curves with more than 40% of river inventory booked, at "good rates," to argue there doesn't appear to be reputational damage from the current situation.
