Some agents told TTG Celebrity River Cruises would bring new “high-quality” customers into the sector; others said there was a risk of overcapacity, which could lead to a price war.

So what did agents and suppliers have to say when two more brands, National Geographic-Lindblad Expeditions and The Travel Corporation touring specialist Trafalgar, confirmed they would be following Celebrity’s lead and entering this increasingly popular market.

It means that over the course of just three months, the sector has gained three new brands – all of whom are set to vie for a share of the burgeoning river market and compete for the attention of agents’ cruise clients.

Differentiation

With more and more brands operating river sailings, the pressure on operators to spell out their market position, and how they differ from other lines, is greater than ever.

Blue Water Holidays managing director Juliet Archer is fully aware of the perils of having too many operators in the market – even if they have the pulling power of Celebrity and Lindblad.

“I’m quite surprised brands are piling into the river market,” she tells TTG. “Agents already struggle to differentiate the lines – if Lindblad’s product is miss-sold to the wrong customer, they will never come back.”

She adds: “Cruise lines need to ensure they’re providing enough support to agents if they want to sell via the trade.”

Sarah Wikevand, ROL Cruises’ chief commercial officer, admits the evolution of the river cruise market could prove problematic. “I think it may be challenging [for agents] to differentiate between the different river lines and may, therefore, be confusing to the guest, but I’m sure this can be overcome,” she explains.

Chris Townson, Uniworld managing director UK and Europe, believes the responsibility lies with cruise lines to explain how they differ from one another. “It’s more important than ever we showcase and communicate the Uniworld difference to our agent partners,” he stresses.

But Townson adds there is “a huge opportunity for travel agents” as more people seek immersive holidays that take them to the heart of the destinations they visit.

It’s an opportunity that has clearly been identified by one of the UK’s leading cruise OTAs – Iglu Cruise – which, following a more than five-year hiatus, last month decided to start selling river cruise again.

Overcrowded rivers

Surely, though, as established land or ocean cruise brands start diversifying – potentially bringing huge numbers of new-to-river customers with them – the iconic waterways of the world will become congested?

Archer already thinks rivers are becoming overcrowded. She claims to have seen “five or six” ships docked alongside each other on Europe’s rivers, and that’s before Trafalgar and Lindblad start operations next year and Celebrity in 2027. “People can only see into cabins of the ship docked alongside,” she says.

“Also, it doesn’t help passengers with limited mobility. Some can cope, but what happens if you have to climb across three ships?”

Travel Village Group chief executive Phil Nuttall called for caution, saying: “I want to know what these lines are considering when it comes to visiting smaller destinations – like Rudesheim am Rhein – and how many ships there are going to be in on certain days? I don’t know how it’s going to play out.” 

However, he adds: “We’ve not reached saturation point yet.” Katy Berzins, head of Tui River Cruises, insists there’s “space for everybody”. Tui River Cruises is one of river’s newer lines – it started operating four years ago. “It’s all reflective of the growth that we’re seeing – this is great news for river cruises,” she says.

“We’re really confident in our own positioning. Our end-to-end service with its airlift and hotel portfolio means we have a huge USP and flexibility of choice.”

Brad Bennetts, APT and Travelmarvel head of sales and business development, says there are only a “tiny number” of operators on the “massive” Rhine and Danube rivers today.

And while he concedes growth may cause “a little congestion” at cultural attractions over the coming years, he adds: “A handful more ships is a good thing. It creates awareness of the sector, doesn’t impact the rivers, nor does it saturate the market.”

Discounting dangers

Predictably, if too much capacity does hit the water and there’s not enough demand in the market, some river lines will inevitably lose their nerve and begin to discount. Archer believes she’s seen four cruise lines launch “time-specific sales campaigns or flash sales over Christmas and New Year, which are still going now”.

“We have website rotations. Every month, we normally change the brands we feature, but we just keep extending them,” she adds.

GoCruise & Travel agent James Hill agrees. “There should not be any discounting if they get the supply right to meet the demand,” he explains. “A lot of companies have unsold berths and they promote heavily discounted cruises.”

However, James Cole, chief executive of Chorley-based Panache Cruises, insists cruise – whether it’s ocean or river – has always managed to fill ships when it’s needed to. “The British cruise market at the turn of the century was 500,000 passengers – now it’s more than two million, and it looks like that growth is continuing,” Cole insists.

Bennetts agrees, adding: “There are 14 million baby boomers in this country, so there’s more than enough capacity to go around.”

What’s changed?

None of the agents or suppliers TTG spoke to could say for sure why they believe more brands have decided now is the time to enter the sector.

But the market could yet swell further if Royal Caribbean Group does decide “to provide opportunities for ultra-luxury guests” on the river.

Hours after Royal announced Celebrity River Cruises, chief executive Jason Liberty said Royal would start with Celebrity – and then “look if there are opportunities to expand with our other brands”. 

Many believe Silversea could follow Celebrity’s lead. Archer perhaps speaks for many when she describes this recent – and rapid – expansion of the river market “a strange phenomenon”. Agents and existing river lines alike will be hoping these three new river brands know something that they don’t.