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Viking IPO: Key Facts Behind the Luxury Cruise Operator’s Billion-Dollar Debut

Sean O'Neill , Skift

April 30th, 2024 at 6:37 PM EDT

Wednesday's IPO will value Viking, an operator of luxury river and ocean cruises, at roughly $10 billion. Leaders in the luxury travel sector will be eyeing the move closely.

Sean O'Neill

Viking , an operator of river and ocean cruises, and a group of shareholders were set to raise more than $1.54 billion in an initial public offering on Wednesday.

When the stock begins trading Wednesday on the New York Stock Exchange under the ticker symbol VIK , the Bermuda-based luxury travel company anticipates that the price per share will be $24.

The company and its shareholders will offer 53 million shares . The IPO placed a roughly $10.3 billion valuation on the company on a fully distributed basis as of the opening bell.

10 Facts About Viking’s IPO and Strategy

• The IPO will enrich chairman, CEO, and co-founder Torstein “Tor” Hagen, 81, who will control a slim majority of Viking shares. The public debut will make Hagen worth roughly $5 billion , according to Bloomberg estimates.
• Hagen began Viking in 1997 with four river ships. Today, the company sails 80 river vessels, averaging 190 passengers each. It also has nine ocean-sailing ships, which typically hold about 900 passengers, making them relatively smaller than traditional ocean vessels. The company has three other vessels, such as those used to cruise the Nile in Egypt.
• Viking wasn’t profitable last year. It reported a $1.86 billion loss in its 2023 fiscal year. But it said that was related to one-time losses. The company reported about $1.09 billion in adjusted EBITDA in its SEC filings.
• The company targets well-off travelers, typically those above age 55. Its average revenue per passenger last year was $7,251.
• The company stands apart from traditional ocean cruise lines. There aren’t water slides or casinos on board. Small children are often banned.
• The company claims it served one out of four luxury cruise-goers on ocean cruises last year out of a market of about 1.1 million. Competitor brands include Oceania, Silversea, Seabourn, and Regent.
• The company claims to have served one out of two river cruise travelers last year, out of a market of 700,000 passengers. Rivals include Grand Circle.
• About 90% of Viking’s guests are from North America. Most of its cruise ship itineraries are in Europe and Antarctica, but it has routes worldwide.
• Viking said it may use some of the capital from the IPO to help expand its offerings to land-based tours and excursions. It will also use some of the capital to pay down its debt, which was $5.4 billion in December.
• Viking has 24 new ships on order, with options for 12 more. It plans to enter China and other markets.

For more on the company, see Viking’s filings with the U.S. Securities and Exchange Commission . Analyst Jess Peterson has crunched other key numbers.

UPDATE: This story was updated with the final pricing for the stock.

Cruise and Tours Sector Stock Index Performance Year-to-Date

What am I looking at?  The performance of cruise and tours sector stocks within the ST200 . The index includes companies publicly traded across global markets including both cruise lines and tour operators.

The Skift Travel 200 (ST200)  combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more cruise and tours sector financial performance .

Read the full methodology behind the Skift Travel 200.

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Tags: cruise lines , cruises , ipo , IPOs , luxury , river cruise , river cruises , river cruising , viking

Photo credit: Sofa chairs in a public atrium on board a Viking river cruise ship. Source: Viking.

I Traveled on Viking Cruises, the “World’s Best Cruise Line”: My Unfiltered Experience

I would have laughed in your face if you had told me that I’d be writing a Viking Cruises review a few years ago. Self-declared as “not a cruise person,” the idea of getting on any cruise—much less a luxury cruise line like Viking —was so far off my radar that it might as well have been in a different galaxy, save for maybe sailing to Antarctica when I had the funds.

Yet, the opportunity to sail on the world’s best ocean cruise line, as named by Condé Nast Traveler, Cruise Critic, Travel + Leisure, Town & Country, and USA Today, amongst many others, presented itself, thanks to an extremely generous gift from my boyfriend’s parents.

So there we were, a couple of 24-year-olds booking a cruise that would have an average passenger age of 72. And guess what? Despite our considerable age difference, we met so many wonderful fellow passengers, even if there were a few naysayers (let’s say one hater for every two friendly passengers).

We spent months perusing Viking Ocean Cruises and Viking River Cruises itineraries, none of which are under eight days long; we finally picked the Amazon & Caribbean Adventure aboard the gorgeous Viking Sea, a 12-day itinerary stopping at a few Caribbean islands, before sailing nearly the entirety of the Amazon River.

The itinerary seemed like a once-in-a-lifetime trip that frankly, made much more sense to do on a boat than by foot.

After planning and prepping for months (including two pricey, mandatory Yellow Fever vaccines and one-way tickets from Manaus, Brazil), we were informed a week before embarking that our Amazon cruise wouldn’t sail the Amazon at all. Instead, it would sail the Caribbean Islands for 12 days on an itinerary similar to Viking’s West Indies Explorer.

We were given no option to cancel. So, on Thanksgiving week, we packed our bags to leave for San Juan, Puerto Rico, where the ship would depart, and scrambled to cancel expensive flights from Manaus to rebook one-way flights from San Juan during the holiday season.

Would this be a phenomenal, spontaneous adventure or a corporate cruise blunder?

Viking Cruises Rating: Is it a Good Cruise Line?

Overall, I rate Viking Cruises a 7.5 out of 10. My rating isn’t just limited to my onboard experience with Viking, which is easily an 8.5 or 9 out of 10 but includes communication with Viking’s corporate customer service before embarking and the itineraries Viking offers, which really brought down my rating.

Factoring into my rating were stateroom quality and cleanliness, included amenities, available dining, offered shore excursions, entertainment, the on-board staff, corporate customer service, Viking Cruises itineraries, value, and my overall experience while sailing with Viking Cruises.

• Staterooms: 9/10
• Amenities: 10/10
• Restaurants and bars: 7/10
• Shore excursions: 7/10
• Entertainment: 6/10
• Onboard staff: 10/10
• Customer service: 2/10
• Available itineraries: 7/10
• Value: 9/10
• Overall experience: 8/10

Viking Cruises Review: Pros

As a cruise curmudgeon, I was fully prepared to have a very short list of pros for Viking Cruises . Yet, when I stepped on board, my frosty opinion of cruising thawed with the warm Caribbean winds.

I indulged—relaxing in the idyllic Explorer’s Lounge for every sail-away, taking every opportunity to dress up in my chicest resortwear, and marveling at panoramic views from the ship’s wraparound decks and infinity pool.

Here’s what I loved about Viking Cruises:

• Amazing staff—the absolute best part of the cruise
• No kids under 18 allowed
• No pricing surprises
• Included WiFi
• No interior staterooms
• Every cabin has a balcony
• Daily afternoon tea
• Reasonable pricing for premium spirits, cocktails, and wine
• Small ship sizes
• Nearly 1:1 passenger-to-staff ratio
• Beautiful ship design—not tacky or cheesy
• Use of the spa is included
• Self-serve laundry is free
• No limit to outside alcohol brought on board and no corkage fee

Viking Cruises Review: Cons

If this Viking Cruises review is going to be honest, I have to point out the clear and obvious flaws with the cruise line that brought down my rating of it.

Even though I had an amazing time—and I really did—several glaring issues took away from the experience (the fact that we ended up in the Caribbean for two weeks instead of the Amazon being one of them).

After our major itinerary change, we were shocked when our itinerary changed again at the port in San Juan, removing our only sea day and port of call.

We thought that would be where the itinerary chaos stopped until a couple of our ports ended up being shipping ports instead of cruise ports, where our boat was surrounded by cargo and passengers had to be shuttled to and from town.

Aside from those one-offs, these Viking Cruises cons are worth considering before you book:

• Small ship sizes mean a lot of rocking, easy to get motion sickness
• Very few vegetarian dining options, basically no vegan dining options
• Poor communication about itinerary changes
• Inadequate compensation for major itinerary changes with no option to cancel or change
• Housekeeping doesn’t live up to the rest of the staff
• Onboard entertainment leaves something to be desired
• Disengaged, pretentious cruise director
• Paid shore excursion options often lacked excitement
• WiFi could be laggy, cutting out a few times during the trip

What’s Included on Viking Cruises?

What’s earned Viking Cruises its praises is founder and CEO Torstein Hagen’s philosophy that truly all-inclusive, luxury cruising means no nickel-and-diming.

No paying exorbitant WiFi fees, no additional fees for the spa, and no paying for specialty restaurants, the list goes on. With that in mind, we knew this trip would be like any other.

Included on every Viking cruise are:

• Complimentary shore excursion at every port
• Free WiFi onboard
• House wine, beer, and soft drinks at lunch and dinner
• Coffee, tea, and bottled water at all times
• Corkage fees for outside alcohol brought on board
• Access to the spa (treatments are paid)
• Destination lectures and theater performances
• Port taxes and fees
• Self-service laundry, including detergent
• All onboard restaurants, including specialty restaurants
• Freyja toiletries in-room

Viking Cruises Staterooms

One of the most attractive aspects of sailing with Viking Cruises is that there are no interior staterooms on any ship. Every cabin has large windows and a balcony, along with a well-sized bathroom, adding to the luxury experience.

Stateroom design is thoughtful, from the brilliant dressing table—complete with mirror lighting—to the universal outlets and ample storage for toiletries in the bathroom.

The only aspect of our stateroom that didn’t hit the mark was housekeeping. We were originally impressed with our room attendant, who was at our cabin within minutes of us reaching our stateroom to offer extra hangers (massive bonus points). Still, generally, our room wasn’t kept to the standard I’d expect from Viking or a similar luxury hotel.

It was cleaned and the bed was remade in the morning and at turndown, but extras I’ve come to expect at top-tier hotels didn’t exist, like tidying products on the counters, and moving strewn clothing and footwear.

I think our experience may have been an outlier—friends we made onboard received far better housekeeping.

Viking Cruises Staterooms to Avoid

Knowing which cabins to avoid on many cruise lines is crucial for ensuring comfortable accommodations. Not on Viking.

I can’t say there are any Viking Ocean Cruises cabins to avoid, just some slightly better than others, such as those on higher floors or the starboard side versus the port side, depending on where you’re docking. The lack of a casino and major entertainment venues onboard keeps Viking ships quiet.

Are the Upgraded Viking Cruises Cabins Worth It?

We originally booked the cheapest cabin type, the veranda stateroom. When we checked in, we received an upgrade to a room of the same size on a higher floor when our itinerary changed, and 300 passengers dropped out of the sailing.

Are the nicer Viking Cruises cabins worth it?

In my opinion, no. While it was nice to be on a higher floor, so much thought has gone into a top-notch room experience for Viking passengers that the upgrade didn’t make a noticeable improvement to our experience.

Viking Cruises Dress Code

Viking Cruises has specific dress codes for its ships, but they don’t demand ballgowns and black-tie.

Hagen, firmly against the idea that vacation should require stuffy, formal clothing, ensured that Viking Cruises do not have formal nights or theme nights that demand a separate wardrobe.

Given Viking Cruises’ older, wealthy clientele, I was panicked about what to wear on a Viking Ocean cruise before embarking. Would my crop tops and bikinis be okay? As it happens, my fears were totally unwarranted—several staff members even complimented my Caribbean cruise outfits , secretly quelling my nerves.

Viking Cruises Dress Code During the Day

In the morning, casual clothing is allowed everywhere onboard Viking Cruises. Shorts, t-shirts, sundresses—it’s all permitted, including at the main sit-down restaurant.

Athletic clothing and swimwear are not allowed anywhere on the ship except on the pool deck and at the gym. I thought this would be difficult to follow, however because the pool deck includes the World Cafe (the Viking Ocean Cruises buffet restaurant) along with Aquavit (the pool bar), this was very easy to follow.

Viking Cruises Dress Code at Night

At night, the dress code shifts slightly and becomes slightly more elevated. Men must wear slacks and a collared shirt. Polos are okay, but T-shirts are not. Women are allowed to wear dresses, skirts, or slacks but cannot wear shorts.

True to its ethos of a comfortable cruise experience, Viking has considered guests who don’t wish to dress up after the sun sets. Casual clothing is permitted at the World Cafe at all times.

Viking Cruises Staff and Service

Viking Cruises is luxury but hardly snooty or pretentious. Its quiet, subtle approach to luxury feels more like settling into a close friend’s home than something flashy.

Staff seals the approach with an ultra-personal approach to service and an amazingly warm, welcoming demeanor. Even staff we only interacted with once or twice would remember our names, preferences, or stateroom number—it was extremely impressive.

We absolutely loved it.

So many people contributed to making our trip special. They were the very best part of the cruise and absolutely the reason I loved it so much.

So thank you to John, who works ship security and built a friendship with us after teasing me about a lost passenger card on day one; Grace, the restaurant hostess whose memory never failed to surprise us; Rodge, an exceptional bar waiter; Erin, the assistant cruise director who went out of her way to make us feel welcome as the clear outliers (young people) on board; and John, the guitarist engaging in meaningful conversations with us.

Thank you to Amelia, the vivacious sommelier who went out of her way to make the best cocktail I had on the ship; Seema, our favorite waitress who never failed to delight us with jokes and recommendations; Mirza, the best bartender on the ship with ample beer knowledge to share with my boyfriend; and of course the beloved Suta, who was the very, very best part of our day, every day.

I cannot sing praises about the Viking Cruises staff enough. They are reason alone to pick this cruise line over all the others. If there’s one thing to take away from this Viking Cruise review, it’s that. There were so many nights that we would have rather been down in the crew bar than in the passenger area because they were that much fun to be around.

The only staff member we didn’t love was the cruise director—he rarely engaged with guests and was often only spotted socializing with ship executives. It rubbed us the wrong way, especially because the ship’s assistant cruise director and hotel management team executives were so phenomenal.

The fabulous staff’s attention to detail and camaraderie made it extra difficult to say goodbye to the Viking Sea after 12 days onboard.

Viking Cruises Itineraries

Viking Cruises sails several regions through Viking River and Ocean Cruises . Currently, the cruise line has 42 Viking River itineraries, and 94 Viking Ocean itineraries, sailing to over 200 destinations.

From low-key European river sailings to adventurous Antarctic expeditions, itineraries offer something for every type of traveler.

That said, actually choosing an itinerary proved more difficult than expected. Itineraries, for the most part, are very well-planned, but some (especially in Europe) missed the mark a little, skipping out on major destinations in some countries or staying too long in others. It didn’t help that Viking itineraries are long. I really wish they’d add some trips that are four to seven days instead of eight.

However, we generally loved the options available and were very excited about the prospect of sailing the Amazon. 

Talking to other passengers aboard our ship who were avid Viking cruisers, rivers are really where Viking shines brightest. It’s strongly recommended to stay away from itineraries that involve a lot of on-land movement with buses as they aren’t quite the same.

Moving forward, I’d consider booking a river cruise or an Antarctic cruise with Viking, but will probably stay away from anything considered more adventurous due to how our itinerary change was handled, like the Egypt sailing.

When you finally decide on your itinerary, book it well in advance. As Viking only operates small luxury cruise ships, sailings sell out quickly.

Viking Cruises Shore Excursions

I quickly learned that shore excursions can really add up—especially in the Caribbean. We weren’t planning on booking many excursions for our Amazon itinerary as there’s tons to explore independently there, more sea days in the itinerary, and lots of reasonably priced activities from third party tour operators.

The Caribbean was a different story. We learned the hard way that booking shore excursions through your cruise line or through an independent operator can really change your experience, even if they are extra expensive in the Caribbean.

Not given enough time to book through independent operators due to the itinerary change, we bit the bullet and booked several excursions through Viking.

How to Book Viking Cruises Excursions

Book your excursions quickly. Excursions can be booked ahead of embarkment via the My Viking portal, and are available to different cabin classes at different times. Those in the most premium cabin classes get the earliest access.

If you change your mind about excursions and want to book onboard, it’s not a problem. Guest services are available at all hours for last-minute excursion bookings. Tickets will be delivered to your cabin by housekeeping the night before if you book on the ship.

Viking Cruises Complimentary Shore Excursions

Viking acknowledges how important excursions are when cruising by offering every passenger a complimentary shore excursion at each port of call, regardless of cabin type.

Before you get too excited, know this isn’t an invitation to book whatever activity the cruise line offers. Viking determines the free excursion at each port, which is typically a walking or driving tour of the port of call. It’s not the most thrilling way to spend your day, but it can save you some money, especially if you’re at a port you’re not as excited about.

Premium Viking Ocean Cruises Shore Excursions

Other excursions offered are a little more exciting and very pricey. We found many of the excursions offered by Viking at a fraction of the price from Shore Excursions Group , which often sub-contracts the same local providers as major cruise companies.

Overall, offered excursions from Viking weren’t the most adventurous, compared to cruise lines that cater to a younger clientele. They were slower in pace and typically didn’t offer too much physical activity.

We booked several excursions through Viking—catamaran sailing and a walking tour in Saint Lucia, catamaran sailing and snorkeling in Grenada, and a tour of Foursquare rum distillery and a craft brewery in Barbados. We also tried booking an excursion in Dominica after our original plans to go waterfall rappelling fell through; however, it was canceled last minute due to bad weather.

Our excursion in Saint Lucia was phenomenal, save for rain and choppy waters, which were out of Viking’s control. Our excursion in Grenada wasn’t exactly as described, and in Barbados, we were rushed through Foursquare and spent far too long at a mediocre craft brewery.

We weren’t impressed with how Viking handled the snafu in Dominica. After our original choice was sold out, the cruise line refused to add a second tour despite having a waiting list of over 20 people for it, and we weren’t told that the excursion we booked was canceled until we came down to the disembarkment deck to leave.

I wish I could give a better review of Viking Ocean Cruises shore excursions, but I honestly think passengers should book independently to save money and assure quality.

Viking Ocean Cruises Restaurants and Bars

We took full advantage of Viking’s generous approach to dining by trying every single restaurant on the Viking Sea. There are 12 different Viking Ocean Cruises restaurants and bars on board, including the cooking school: The Restaurant, World Cafe, Explorer’s Lounge, Mamsen’s, Manfredi’s, The Chef’s Table, Torshavn, the Library, Aquavit Terrace, the Pool Bar, the Wintergarden, and the Kitchen.

The Restaurant is the main dining establishment on Viking Ocean cruises. This is a sit-down restaurant with outstanding service. The restaurant takes two approaches to its menu, splitting it into a selection of classic plates that never change and a daily rotating destination menu created based on your port of call that day. The vegetarian menu rotates daily and is displayed on the destination menu.

The World Cafe, Viking’s casual buffet restaurant, was our go-to for breakfast and lunch and has surprisingly decent pizza. We tried breakfast at The Restaurant, but found it to be the same quality as the World Cafe. The Restaurant is not open for lunch and always had better quality at dinner.

Explorer’s Lounge was by far my favorite spot on the ship. Located at the helm, the bar’s panoramic views were breathtaking, and the seating was oh-so-comfortable, like your well-lived living room. In the morning, the Explorer’s Lounge operates Mamsen’s, which serves Nordic breakfast favorites inspired by Hagen’s mother’s recipes (definitely get the waffle with all the fixings).

The Wintergarden was also among the best Viking Ocean restaurants for me. It only opens for afternoon tea from 1 pm to 4 pm and is a tranquil spot, especially when the strings duo is playing.

Overall, the food on the ship was far better than expected, but vegetarian options left something to be desired. Plates often felt recycled and relied heavily on creamy risotto or pasta. Manfredi’s, the Italian restaurant, had the best food for vegetarians on the ship—it certainly was not The Restaurant.

Aside from adding vegetarian options, Viking could really improve the timing and quantity of food offered throughout the day. Set dining times often left periods without great food options, and the in-room dining menu was very brief. Late-night nibbles weren’t found except for small charcuterie plates at the Explorer’s Lounge.

Is the Viking Silver Spirits Beverage Package Worth It?

For many, the Viking Silver Spirits premium beverage package may not be worth it. Cocktails and premium beer and wine by the glass are very well-priced, with most cocktails around $10.

The Silver Spirits package is $25 per person per day. Both members of your cabin have to add the package—you cannot purchase it individually.

Originally, we weren’t going to add the Silver Spirits package to our trip, but we decided to after we were offered onboard ship credit as compensation for our itinerary change.

I’m glad we did. Though I think we definitely would’ve drank less without it, it was nice to be able to try all of the different wines and cocktails Viking Ocean Cruises offers without needing to think about price. There are so many different wines available on the ship.

Most of the fellow passengers we encountered on the cruise did have the package even if the value didn’t make total sense for them, simply for the ease of not needing to think on vacation.

Viking Ocean Cruises Amenities

Stepping into the LivNordic Spa on Viking Ocean cruises, you’ll understand why the cruise line is a top choice for travelers.

All Viking Ocean cruises include spa access. The LivNordic Spa, as the name suggests, is based on Nordic wellness principles and includes a full thermal suite consisting of a snow grotto, several saunas, a steam room, cold plunge, hot plunge, and hydrotherapy pool in addition to private treatment rooms. Outside the spa is a small salon for hair, nail, and facial treatments.

The spa is a lovely place to unwind after a long day of sightseeing, but it isn’t huge, so it gets busy quickly. You’re best experiencing it during the day at a port you’re not too interested in. The same guidance goes for the pools, which crowd up on sea days and in the late afternoon.

Speaking of the pools, Viking Ocean ships are the only cruise ships to have infinity pools at sea. They’re plunge pools and surprisingly deep when the boat is docked (levels lower when the ship is sailing). We went for a dip in the infinity pool on the Viking Sea both in port and while sailing and loved taking in the view while swimming. Pool bar wait staff coming around with dipped ice cream cones was the cherry on top.

Other notable amenities included are the WiFi, the sports deck, and the fitness center. The gym is small but gets the job done and has everything you could need for a full-body workout. I loved that Viking put water bottles in each machine, so I didn’t even need to remember to bring one down.

Viking Cruises’ WiFi worked well—when it worked. A few times during the trip, it cut out or became extremely slow, but that’s to be expected when you rely on satellite internet in the middle of the ocean.

What frequent cruisers might notice is that shopping is less robust than on major lines (fine by me!) and that there are no casinos on any Viking cruise ships.

Viking Cruises Entertainment

If you asked even the most loyal Viking passengers what the cruise line’s biggest downfall is, they’d likely say the entertainment.

Then again, you didn’t really choose Viking for entertainment, did you? That’s why cruise lines like Royal Caribbean Cruises , Disney Cruise Line , and Norwegian Cruise Line exist, right?

My trip with Viking Ocean Cruises had the Viking Vocalists, a quartet of musical theater majors performing medleys; John, a solo guitarist; Irina and Nani, a string duo; Lidia, a solo pianist; and the Viking Band aboard as musical performers.

The theater hosted the Viking Vocalists, several destination lectures, a few movie showings, and performances from the assistant cruise director and the cruise director. During the cruise, Viking brought guest performers aboard a couple of times, like a solo guitarist.

The rest of the musical performers could be seen performing in the ship’s bars and common spaces. Classical performers typically were in the Atrium and Wintergarden. The Viking Band played Torshavn, the ship’s club, while the solo guitarist played the Explorer’s Lounge and Torshavn.

We saw the Viking Vocalists a few times, and thought they were kind of just okay. Some members were really talented, others were less so. The choice of music generally wasn’t thrilling or was poorly executed.

By skipping a performance in the theater, we didn’t feel like we were missing out on anything, and we enjoyed visiting with other passengers and staff in the evenings more. Then again, we’re the type of people who found the puzzles in the Atrium and trivia night in the Explorer’s Lounge more exciting prospects.

My favorite performers on the ship were the classical strings duo, who played beautiful pieces, and John, the solo guitarist whose choice of song always matched the location (I still can’t get over him playing “Ring of Fire” in the Explorer’s Lounge as we sailed past a large wildfire in Antigua).

There seemed to be a hierarchy among performers and staff on the ship, and I didn’t like it. Staff in management and the Viking Vocalists (considered the most premium performers) were mostly white Europeans. In contrast, lounge performers and those in service jobs tended to be almost entirely from South and Southeast Asian countries.

Though I’m sure there’s a reason for this, I have to wonder—is there not a pathway for employees from these countries, who make up the bulk majority of Viking Ocean’s workforce, to advance to these more favorable jobs?

Viking Ocean Cruises vs. Viking River Cruises

Is sailing with Viking Ocean Cruises better than Viking River Cruises ?

Viking Ocean Cruises is best for travelers who want to sail destinations like the Caribbean, Mediterranean, Iceland, and China with the Viking service and amenities they’ve come to know and love on a small ocean cruise ship. These cruises are not for those who get seasickness easily.

Viking River Cruises is the better option for all cruisers, generally. Those boats are even smaller than the Viking Ocean, but they don’t tend to rock as much and usually run smoother. It’s easy to stick to an itinerary despite bad weather when passengers can just hop off board and be bussed down the river.

Viking River Cruises is best known for its European itineraries, though it also offers cruises on rivers like the Mississippi and Nile.

What to Know Before Booking a Viking Ocean Cruise

Kids under 18 are not allowed onboard.

People under 18 are not allowed on Viking Cruises. That’s right—during your cruise, there will be absolutely no kids running around or screaming babies making a fuss.

It’s inconvenient for those who want to bring young grandchildren or their kids, but for us, it was one of the best aspects of sailing with Viking. I genuinely can’t imagine sailing on a massive cruise ship filled with families anymore—Viking’s child-free, small luxury cruise ships have ruined me.

If you’re looking for an adult-only cruise line with a younger demographic, try Virgin Voyages .

Viking Cruises Does Not Have Casinos on Its Ships

Put the poker chips away—there is no gambling on Viking Cruises. Puzzles and chess in the Atrium and a round of trivia at the Explorer’s Lounge are the only games to be played aboard.

I really enjoyed not having a casino aboard. It kept the atmosphere of the ship more refined, and I felt like our fellow passengers were cruising because they really loved to travel by sea, not because they wanted to hide out at the casino for the duration of the voyage.

Bring Motion Sickness Pills

Expect a lot of rocking when sailing on small ocean cruise ships like the Viking Ocean fleet. Some nights were better than others—we might feel a constant, slow sway—while others were extremely choppy. My legs would shake rapidly when seated from the motion, and hangers in our closet would hit against the doors.

The boat’s speed definitely affected its movement (as speed increased, so would the sway). We visited the Caribbean when there were strong winds, also contributing to the strong rocking.

Bring Dramamine or motion sickness patches, and lots of them. Even the most confident cruisers have experienced motion sickness on Viking—some staff members said they also do occasionally!

You Will Need Passport Validity of at Least 6 Months

Get your paperwork in order before you embark. Your passport must be valid for at least six months from the final date of your sailing.

Depending on your itinerary, Viking may also require proof of visas or certain vaccines.

For our Amazon River cruise, getting a Yellow Fever vaccine was mandatory and had to be administered more than 10 days before we departed Puerto Rico. All passengers had to have a yellow book to prove they were vaccinated.

Pack All the Essentials in Advance

The stores on Viking Cruises are expensive. We were sticker-shocked when we saw that a small bottle of sunscreen at the general store onboard was $30 after running out. Ports of call had cheaper prices, but depending on the port, may not have quality goods.

Stock up by buying things like sunscreen , aloe vera gel , bug spray , band-aids , sunglasses , and the like at home before you go. We ran past a Walmart and a CVS in San Juan before embarking in addition to picking up a few things from Amazon , which helped us a lot.

Viking Cruises Review: The Bottom Line

As much as I hate to admit that my boyfriend was right, he was. Despite everything that went wrong with our cruise, I loved sailing with Viking, even if I didn’t exactly love the destinations we visited.

It really comes down to the staff and service. They made Viking so exceptional. I would absolutely sail with Viking Cruises again—just probably not to the Amazon. We met a couple onboard who had their first Amazon cruise with Viking canceled, only to have it canceled again!

So maybe, just maybe, I’m a little bit of a cruise person now. A small luxury cruise ship, a very expensive cruise person (still probably not a contemporary—or budget—cruise person).

Though planning my own trips will always be my favorite way to travel, Viking Cruises gave me two weeks of relaxation and rejuvenation that I usually don’t slow down enough for.

Thank you so much again to my boyfriend’s wonderful grandparents, for giving us an incredibly memorable, generous experience.

Viking Cruises Review: FAQ

The average age on a Viking cruise is typically in the 70s. On my cruise, the average age was 72 out of over 600 passengers.

Viking cruises are geared towards an older, affluent crowd, who make up the majority of passengers. However, travelers of all ages still sail with Viking. On my ship, two other passengers in their young 20s were sailing with their grandparents.

Passengers under 40 might find that Viking cruises operate at a slower pace than others. Entertainment and excursions are more low-key and low-impact than cruise lines geared toward younger people. I sailed with Viking Cruises at 24 and still made friends with many fellow passengers, even if they were several decades older. We loved making friends with the staff and exploring on our own as passengers with Viking who were under 40 years old.

Viking Ocean cruises typically have 900 passengers. Viking River cruise ships are smaller, usually only sailing with 190 passengers at most.

Eva Phan is the founder of Eva Darling, a travel and style website aiming to empower women to see the world solo while sharing on-trend, luxury feminine style inspiration. Featured in publications including Forbes, Thrillist, and Yahoo News, Eva has combined her education from Parsons School of Design with her incurable case of the travel bug to create a global destination that encourages others to romanticize their everyday.

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Viking Shares Climb 9% Following $1.5 Billion Public Debut

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Shares of luxury cruise operator Viking Holdings—the parent company of Viking cruise line—rose as much as 12% in intraday trading Wednesday following the company’s initial public offering, which raised $1.54 billion following the company’s decision to upsize the number of shares offered in its public debut.

The company's stock debuted at $24 per share. (Photo Illustration by Budrul Chukrut/SOPA ... [+] Images/LightRocket via Getty Images)

Viking Holdings shares began trading at $24 under the ticker “VIK” and jumped as high as $26.78 before dropping to $26.10 by close—up 9% on the day.

Viking’s opening price gave it an $11.3 billion market value, with the cruise operator closing the day with a $1.4 billion market cap.

Viking’s $1.54 billion IPO rivals Amer Sports Inc. as the largest IPO in the U.S. this year, according to Bloomberg , noting Viking’s offering will beat Amer’s $1.57 billion IPO if its underwriters exercise their ability to allow the sale of additional shares.

The IPO also makes Viking the third-largest cruise operator behind Royal Caribbean and Carnival, which both traded down a fraction of a percent Wednesday.

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$7,251. That’s Viking’s revenue per passenger, which is significantly higher than other publicly traded cruise lines, according to CNBC .

Key Background

The IPO comes a day after Viking upsized its IPO, offering more than 64 million shares at a public offering price of $24. The decision to do so was made after existing shareholders decided to sell 9 million shares, which were not initially set to be part of the IPO, amid strong demand from mutual fund investors, CNBC reported, citing an unnamed source familiar with the matter. Viking reported $4.7 billion in revenue and $1.8 billion in net losses in 2023. However, the cruise line operator may be able to capitalize on an improving outlook for the global cruise market, which was valued at $7.25 billion in 2021 and is expected to grow around 11% by 2028. Viking, a cruise operator geared toward adults with high income, operates 92 vessels and has more than 10,000 employees.

Further Reading

Cruise Industry Continues Strong Growth Post-Covid (Forbes)

Viking shares rise more than 10% after cruise line operator’s market debut (CNBC)

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Meet the Norwegian-owned cruise challenger to Carnival and Royal Caribbean that just raised $1.54 billion

Viking had humble beginnings. 

The now-listed cruise line was once just a venture by “two guys with two mobile phones and four river ships,” as the company’s CEO, Torstein Hagen, puts it in Viking’s prospectus .

But a lot has changed in 27 years. Now, the Norwegian-owned, Bermuda-based business has a staff of 10,000 catering to guests with a taste for the finer things in life. 

The cruise operator, which made its name in European river tours, launched its initial public offering at the New York Stock Exchange on Wednesday. It raised $1.54 billion , according to Reuters, making it the biggest listing in the U.S. this year. 

Viking rebounded strongly after the COVID-19 pandemic decimated cruise travel and its public listing comes as luxury consumers are spending more on travel and less on shopping. Some of Viking’s competitors, such as Carnival and Royal Caribbean, have seen record demand for cruises—opening a world of opportunity for the smaller company.    

Viking’s beginning

Viking was founded in 1997 by Hagen, who controls most of the company with his daughter, Karine Hagen.

From the start it aimed to give travelers an immersive experience in local cultures as they toured in one of its four river vessels. In the past three decades or so, Viking has expanded its fleet to 92 ships offering three types of experiences via rivers, oceans, and expeditions.

The company has also benefited from some savvy marketing plays: It sponsored PBS Masterpiece series, such as Downton Abbey , and offered themed trips linked to those shows. 

Between 2015 and 2023, Viking’s revenue grew at a compound annual rate of 14.4%, outpacing the rest of the cruise industry in the river and luxury ocean segments during this period, the company said in a public filing .

Viking has carved its strategic niche among older, well-off customers, a group it believes is “underserved.” These are not boozy party boats, and there are no kids allowed. 

“Our target demographic has greater financial stability, which can make them more resilient to economic conditions and more willing to invest in high-quality travel experiences,” Viking said. 

And that’s the space it hopes it can dominate, with the help of its IPO funds.

The Viking founder and road ahead

Hagen didn’t enter the world of cruises till the 1970s. 

A physics major in school, Hagen earned an MBA at Harvard University before entering management consulting. He dabbled with entrepreneurship a few times before finally succeeding, Bloomberg reported .

When business for Viking’s river cruises, its first service, began to pick up, Hagen expanded to offer journeys worldwide—from expeditions in Antarctica to river cruises in Vietnam. 

Viking is on an expedition of its own now that its shares are traded. Last year, the cruise line hosted close to 650,000 guests and generated $4.7 billion in revenue, up by almost 50% from 2022. Its underlying profits were $1.1 billion for the same period, according to Viking’s prospectus.

The cruise company is still much smaller than rivals like Carnival, Royal Caribbean, and Norwegian. But it’s a global leader in some segments, such as luxury ocean cruises. 

Following a strong open, Viking’s market valuation has reached more than $10 billion, putting Hagen’s wealth at $5 billion. As the appetite for luxury travel builds , Viking is ready to ride the wave. 

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Viking shares rise 8% after cruise line operator's market debut

By seema mody,cnbc • published may 1, 2024 • updated on may 1, 2024 at 2:03 pm.

• Viking started trading on the New York Stock Exchange on Wednesday at $26.15 under the ticker "VIK."
• The company's IPO coincides with a strong rebound in cruise bookings.

Viking is not your typical cruise operator.

Aboard its smaller, upscale vessels, you won't find any kids. In fact, the cruise line doesn't hide the fact that it is going after the high-income baby boomer.

Casinos? Not on these cruise ships.

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In Viking Holdings' prospectus, the company said its cruises are for the "thinking person," underscoring its efforts to appeal to the baby boomer traveler who seeks adventure and new experiences.

"They have the money, they have the time and, in my belief, the moment you try to do everything for everybody, you know what happens? You do nothing well. So we are very, very clear focused," Torstein Hagen, CEO and chairman of Viking, told CNBC.

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The luxury cruise line was targeting a $10.4 billion valuation in its initial public offering on the New York Stock Exchange on Wednesday, making it the third-largest cruise operator after Royal Caribbean and Carnival . Norwegian Cruise Line is the fourth largest. Viking started trading Wednesday at $26.15 a share under the ticker " VIK " after pricing at $24 a share.

It closed its first trading day with a gain of more than 8%, ending at $26.10 per share.

Viking upsized its IPO after existing shareholders decided to sell an additional 9 million shares amid strong demand from mutual fund investors, according to a source familiar with the situation.

In 1997, Viking had four ships. It has quickly grown its fleet to 92 vessels, 80 of which are river-based ships that travel down the world's biggest rivers, including the Seine in France and the Nile in Egypt.

"We're different because when you talk about the big cruise lines, they're large in the Caribbean," Hagen said. "We have a tiny sliver in the Caribbean. The rest is Europe."

The timing of Viking's IPO coincides with a strong rebound in cruise bookings. On April 25, Royal Caribbean raised its guidance for 2024 amid a bright outlook for the sector.

"Cruising has really come into the forefront as a competitive choice in travel," Jason Liberty, CEO of Royal Caribbean, said to CNBC in a recent interview. "The overall travel industry is $1.9 trillion. The cruise industry is $56 billion of that. I think cruising is at a much different level than it was pre-pandemic."

While the company's prospectus showed Viking brought in $4.71 billion in sales in 2023, it did report a net loss for the year. What is getting investors excited is the company's revenue per passenger of $7,251, which is much higher than that of any other publicly traded cruise line. Viking's premium price point allows it to make more money on each customer.

Investors will also be looking for details on Viking's expansion plans. Earlier this month, Norwegian Cruise Line said it ordered eight new ships scheduled for delivery over the next 12 years.

Carnival, Royal Caribbean and MSC Cruises all have robust portfolios, which has raised concerns of overcapacity weighing on demand. But for now, the industry is focused on how well demand has rebounded from the pandemic and that, even with higher prices , cruising is still cheaper on average than hotel vacations.

UBS leisure analyst Robin Farley said land-based hotel rates are 25% higher than in 2019. During that same time frame, cruise line rates are up 10%.

"The gap between cruising and hotels is wide. That makes cruise compelling right now," Farley said.

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Cruise operator Viking prices IPO within range to raise $1.54 billion

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Reporting by Echo Wang in San Francisco and Mrinmay Dey in Bengaluru; Editing by Anirban Sen, Lisa Shumaker and Sherry Jacob-Phillips

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Cruise Operator Viking’s IPO Looks Like a Winner

V iking Cruises has turned European river travel into a lucrative business by catering to the Masterpiece Theater crowd—affluent older American tourists interested in culture, art, and history.

The cruise line’s parent, Viking Holdings, plans to go public in the coming week. The deal could generate a positive reception from investors due to the company’s profitability, high-end niche, and growth prospects.

Viking plans to sell 44 million shares in a price range of $21 to $25, which would raise $1 billion and value the company at around $10 billion based on 431 million shares outstanding, according to its prospectus. The deal is expected to be priced on April 30 and begin trading on May 1. The stock will trade on the NYSE under the ticker VIK. Underwriters include BofA Securities, J.P. Morgan, UBS, and Wells Fargo.

The company operates 92 vessels including 58 of its signature flat, long ships accommodating 190 passengers each that ply European rivers such as the Seine, Rhine, and Danube. The company’s slogan is “Exploring the World in Comfort.”

The Viking experience is the antithesis of boozy fun marketed by big cruise lines on their massive ships. There are no children under 18 allowed on Viking vessels and there are no casinos on board.

Founded in 1997, Viking has become synonymous with European river travel due in part to shrewd marketing. It sponsored PBS’s Masterpiece Theater, including the hit series Downton Abbey. The company diversified into the luxury ocean market in 2015 and now leads in that sector.

The company had $4.7 billion in revenue in 2023, up nearly 50% from 2022, and it earned a pro forma 56 cents a share excluding special factors. At the midpoint of the pricing range, the company would be valued at a steep 41 times its 2023 pro forma earnings.

But the stock looks reasonable based on free cash flow. It’s valued at about 10 times the $1 billion of free cash flow that it generated last year. Using another metric, the company is valued at about 13 times its 2023 earnings before interest, taxes, depreciation, and amortization, or Ebitda. Viking has less than $4 billion of net debt.

Viking released some first-quarter financials in its prospectus that showed improvement over the same period in 2023. Revenue of $715 million at the midpoint of a range was up 14% versus the year-earlier period, and its operating loss narrowed to $80 million at the midpoint of the range, against a $116 million loss in the first quarter of 2023. The first quarter is seasonally weak, with the company profitable in the second and third quarters of the year.

The luxury market is hot, with investors gravitating toward stocks such as Ferrari and Hermès. The company bills itself as the only “pure play luxury public cruise line.”

The initial public offering will represent a score for CEO, chairman and founder Torstein Hagen and for investors TPG and the Canada Pension Plan Investment Board.

Before the IPO, Hagen owned about 54% of the company, with TPG and CPP at roughly 21% each. In the IPO, the company will sell 11 million shares and TPG and CPP a total of 33 million.

Viking carried about 650,000 passengers in 2023, who paid an average of more than $7,000 per trip against about $2,000 for cruise line industry leader Carnival, which is a mostly mass-market company. Viking caters to travelers, mostly Americans, who are 55 years old or over and who are interested in culture, art, music, history, and science. it caters to what it calls “thinking people.”

Viking says it has 51% of the riverboat market for North American tourists. In 2015, it started an ocean cruising division and now has an industry-leading share of 26%.

In a presentation available on the RetailRoadshow website, Hagen said that Viking has disproved the industry view that it’s “tough making money on smaller ships.” Viking’s riverboats are larger than those of many of its competitors, which allows for more passengers and profitability.

The company sees considerable growth potential in coming years, with 18 new riverboats and six oceangoing ships due for delivery through 2028. Part of its strategy is to operate identical river long-ships and oceangoing ships to simplify marketing and maintenance.

Challenges for Viking include growing competition in the European river market, with some rivals offering what they tout as a more exclusive experience than Viking. Travel specialist Tauck, for instance, notes on its website that its riverboats carry no more than 130 guests.

There are only so many European rivers to experience. Viking’s growth could come from its ocean travel focused on Europe (mostly the Mediterranean and Baltic seas) as well as the Antarctic. River travel is growing on waterways such as the Mississippi in the U.S. and the Mekong in Southeast Asia.

“We maintain a clear focus on our most relevant customer group: English-speaking travelers aged 55 years old and over, who have the time, money, and desire to explore the world,” Hagen wrote in the prospectus. That strategy has worked, and Viking could be rewarded for it when it goes public soon.

Write to Andrew Bary at [email protected]

Viking Cruises founder Torstein Hagen: How tailoring experiences for Chinese tourists drives growth

A little over two decades ago, Torstein Hagen founded Viking Cruises as a four-vessel river cruise operation carrying passengers from Moscow to St. Petersburg. Hagen’s company has since grown to become the world’s largest river cruise line, sailing as far afield as the Nile and the Yangtze, and operating more than 70 vessels, including six ocean ships.

In the early 2000s, the Norwegian spotted a gap in the US market for premium European cruises. He deduced that American customers poorly served by bus tour operators would appreciate a more comfortable way to visit the old continent; a single place of lodging rather than half a dozen hotels; and an experience that reminded them of home, at least until they stepped ashore.

Viking now accounts for half the American passenger cruise market in Europe. Its vessels eschew casinos, race tracks, and high-energy activities in favor of minimalist décor, live classical music, and destinations featuring cultural excursions, guest lectures, and cooking lessons.

Seeking to tap the world’s largest outbound tourism market, Viking opened its first China office in 2016, promoting a single cruise, before expanding services that led to triple-digit annual passenger growth. Customers appreciated the model of understated elegance to the extent that they returned an industry-leading net promoter score of 78, and at the start of 2020, Viking was on track to serve 30,000 Chinese passengers across six European river cruise liners designed and staffed specifically for Mandarin speakers. As the year closed, it announced joint-venture plans for the world’s first ocean cruise line dedicated to the China market.

However, the outbreak of COVID-19 has cast a pall over the industry. Bookings are down amid reports of cruise ships being turned away from ports. The Asia market, which hosts capacity for more than 4 million cruise passengers annually across almost 40 brands, is suffering particularly acutely. Viking has temporarily canceled sailings in all markets it operates in.

Against this difficult backdrop, Hagen sat down in his capacity as Viking’s chief executive officer to discuss company strategy with Steve Saxon, a McKinsey partner in Shanghai, and Jackey Yu, an associate partner in Hong Kong. He suggests Viking will press on with marketing in China throughout the virus outbreak, while explaining how Viking tailors its European cruise program for Chinese customers, and why price and product integrity stand out in the China market.

McKinsey: How has your outbound Chinese tourist business evolved since you launched European river cruises?

Torstein Hagen: We launched in 2016 with one cruise and 16 passengers, and last year served 20,000 Chinese passengers in Europe. The best case amid the virus outbreak is we’ll host 15,000 passengers in 2020, and rebound next year to nearly 40,000. Our goal is 150,000 by 2025. Chinese passengers average about 10 nights per trip—three or four nights longer than regular cruisegoers. Average sale per customer is about 3,000 RMB per night. We’ve also increased our yield materially, and were on pace to have a retention rate across three or four years of over 30 percent, compared with an industry average in China of under 5 percent.

McKinsey: What was the rationale behind launching your China-focused proposition in Europe?

Torstein Hagen: China is the world’s largest travel market, so we ought to be there. We came in believing there was a product opportunity; that pricing would come over time as Chinese were willing to spend more on experiences. People, whether Chinese or American, are not so different. This wasn’t about reinventing Viking for China, it was about taking what we already did and making it Chinese: the language, the food, and the experience.

This year, we aim to operate six ships for the Chinese market on the Rhine and the Danube, each hosting 175 to 190 guests. They function as Mandarin-only hotels, with all the signage and excursions in Chinese, and the food cooked by Chinese chefs. We made a unique commitment that customer-facing crew from the hotel side had to speak Chinese, and recruited them from the best hotels in China.

McKinsey: Why did you commit to making the vessels Mandarin-only?

Torstein Hagen:  Two decades ago, we bought Germany-based KD River Cruises. They marketed across Europe and the world, so there were a host of nationalities on board. Our experience showed multiple languages are an unattractive proposition for the consumer; it’s a better product with only one group. It’s also operationally troublesome having menus and excursions in multiple languages. We doubled-down on the English-speaking market, largely Americans, and have applied the same philosophy to China. There was also a gap in the market because Chinese consumers searching for better products are not properly served by their domestic travel companies, and the international travel landscape largely fails to cater to their tastes.

McKinsey: Do you feel the proposition scales up to 1,000-passenger ocean ships?

Torstein Hagen: We decided to scale-up gradually on river ships and then add ocean liners when we have the scale. Chinese people don’t necessarily recognize river cruise destinations like Rüdesheim, or Heidelberg, so that proved a challenge. When we launch ocean trips in a couple of years, we’ll run our “In Search of the Northern Lights” cruise in northern Norway, which Chinese people will recognize and enjoy.

McKinsey: Strategically, how do you view the rise of Chinese outbound tourism?

Torstein Hagen:  The strategy is similar to when we launched our US business: we compete against bus tour operators. A river cruise is a better product; more relaxing, and easier to manage. In catering to Chinese customers, we can leverage our existing prime docking stations in key European cities, and other fundamental advantages we hold from operating in the region since 1997. Most bus tours and the majority of our competitors have about one Chinese speaker for every 40 guests. Viking has one Chinese speaker for every 3.5 guests, and we carry our own guides, matching around one guide per 16 to 20 people, augmented by a local guide office. We offer an unrivalled level of service and attention.

McKinsey: Do Chinese tourists have any specific traits that make them standout as customers?

Torstein Hagen: The biggest difference is WeChat, which is an incredibly powerful tool but difficult to work with for marketers, and the complexity and uniqueness of China’s social media environment. From a customer perspective, the US and China markets are almost identical, with one big difference: the appetite for foreign travel is much greater in China, and there’s a larger gap between a lot of products and expectations.

McKinsey: How do you engage with Chinese customers across ecosystems that use very different social media and marketing tools?

Torstein Hagen: There is a greater trust differential compared with the US: people have to believe you’re a real brand, especially if you’re asking for 50–60,000 RMB per cabin. Our marketing strategy is clear: fill social media with content, make sure people know who we are, and allow as many people as possible to give honest feedback. Real success, as in the US, will depend on brand advocacy from travelers. If you have a net promoter score in the high 70s, it means people are spreading the word. In combination with the very social environment in China, that’s a powerful tool.

Torstein Hagen biography

Born in 1943

Holds a degree in physics from the Norwegian Institute of Technology, where he completed his Master’s Thesis related to artificial intelligence and machine learning.

Earned a Master of Business Administration from Harvard University.

Studied computers at Wesleyan University on a Fulbright Scholarship.

Leads the world’s most successful river cruise line as Chairman, and manages operations across an ocean fleet of six ships.

Secured a joint venture partnership with China Merchants Shekou & Group ahead of launching a dedicated Chinese ocean cruise line.

Launched European river cruises for Chinese customers in 2016, expanding the business to 20,000 customers a year in 2019.

Purchased KD River Lines in 2000 to expand Viking’s European river cruise portfolio, ahead of entering the American market.

Founded Viking Cruises in 1997 with the purchase of four river vessels in Russia.

Helmed Royal Viking Line as CEO from 1980 to 1984, before losing control to Norwegian Caribbean Lines.

Served as a member of the board of directors for Holland America Line and Kloster Cruise Ltd.

Led Bergen Steamship Co. as CEO from 1976.

Advised cruise companies on their strategy as a partner in McKinsey & Company’s European offices.

McKinsey:  Travel brands find direct marketing a challenge in China, but you’ve had strong success. What’s the secret?

Torstein Hagen: We have a good partner who allows us to develop a one-on-one customer relationship, and use our brand as the messaging tool versus forcing their brand forward. Our success is also driven by declining trust in travel agents in China. As much as we police it, agencies still rebate commissions and try to manage their products independently. If you look at our competitors on Online Travel Agency platforms, they normally sell 12 nights, 10 days. How can you have a 12-night, 10-day travel experience? You sleep on the plane. When we tell you 10 days, it’s 10 days in Europe and nine nights. Price transparency, product transparency, and integrity is how you build long-term brand value. Our travel partners support that philosophy.

McKinsey: Did you enter China seeking to emulate the direct model that has proved successful in the US and UK, or was it a separate decision process?

Torstein Hagen: We are not direct sellers, we are direct marketers. Nobody should get between us and the guest when it comes to what we sell, in terms of the package and the price. We need to have a direct conversation with consumers; and own our product, delivery, pricing, and yield. We are not concerned whether customers buy with travel agents, which have always been an important component of our businesses, but we do care that they buy a Viking product. There was considerable pushback from agents, with multiple canceled bookings when we refused requests for extra commission or special requirements. We do not allow agents or other intermediaries to repackage under their brand.

McKinsey: What is your advice to foreign companies on choosing and working with a local Chinese partner?

Torstein Hagen: Understand what your needs are, be very clear about what you expect, and make sure it’s a mutual win. Don’t worry about short-term cost versus long-term benefit. If you’re worried about the short term, you’re going to find it very difficult in China.

McKinsey: How does Viking drive the China agenda, while balancing control from headquarters with flexibility from the local team?

Torstein Hagen: China is our top strategic initiative for the next decade. We run strategy accordingly with close oversight from the center in terms of choosing partners and capital allocation. At the same time, we clearly instill our brand values in the China team, and have people there who understand our brand. We allow them to localize operations and control how messaging and creative works in China, as long as it’s brand appropriate. If something goes out that is not brand appropriate, then we have a clear and open dialogue about how to learn from that mistake.

McKinsey: How do you balance the freedom to design messaging in China with the sales organization and brand team being in the US?

Torstein Hagen: The US will always be, certainly until China becomes bigger, the foundational decision maker of what our brand represents. Then we allow flexibility for China to interpret that. For example, in the US, we’ve taken a position that our customer is aged 18 and over. In China, everybody wants to travel in July and August with their grandchildren. We adapted and said it was eight and over in China, and designed art programs to culturally enrich and entertain the kids.

McKinsey: What do you see as the biggest challenge to continuing the growth momentum of Chinese outbound tourism?

Torstein Hagen: The biggest global challenge is that Chinese travelers are generally treated poorly, and that lack of respect may eventually lead them to vote with their wallets. There is also a risk that the more presence we have as a brand, the more motivated travel agencies, tour operators, and others are going to be to have their own ships and capacity, and we end up in a price-based fight for market share. But consumers are smart, so they’ll distinguish between the real thing and a copycat. In the US, we started off with 25 percent market share 10 years ago but by spending money on messaging through tough times we now have 50 percent. I can’t see why we shouldn’t have 50 percent share of Chinese travelers in Europe.

McKinsey: Assuming the coronavirus virus outbreak subsides, what are your plans for the future in China?

Torstein Hagen: We have announced our partnership with China Merchants Group, which should form a basis to create a large domestic Chinese cruise line. That’s our focus.

McKinsey: How do you think the virus outbreak crisis will evolve, and what will be the impact on the cruise market?

Torstein Hagen: It’s hard to tell. Fortunately, we have taken precautions. Our ships are small, so the likelihood of getting infected with us is much smaller. But that’s probably not a big consolation; it’s going to be difficult for the whole market.

McKinsey: Do you think the issues with other cruise ships, which have hosted significant coronavirus outbreaks, have damaged the image of cruising as a whole, and if so, will it bounce back?

Torstein Hagen:  Yes, and yes. They, and the cruise industry, received a lot of advertising they did not need, and the crisis management challenge was very difficult, but history says it will be cyclical. The affected cruise lines were in a very difficult position managing sick people in a closed environment, and it was the authorities’ decision to impose and implement quarantine. It will have a real impact on the China cruise industry for the next year.

McKinsey: How did you look after Chinese customers with existing bookings through the COVID-19 crisis?

Torstein Hagen: We hadn’t started the season yet, so we didn’t have Chinese who were already abroad. The first thing we did is send a message reassuring our customers that we would look after them. We canceled the first-half schedule, and returned all payments. We also offered a program for customers to leave money on account and receive a loyalty bonus. No matter what happens with COVID-19, we need at least six to eight weeks of quiet before we bring Chinese back to Europe. Rushing them back will lead to misery for travel brands. Fortunately, we are in a very strong financial position, so we can focus solely on our customers.

Steve Saxon is a partner in McKinsey’s Shenzhen office. Jackey Yu is an associate partner in the Hong Kong office.

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Press Release

Viking announces launch of initial public offering.

Los Angeles, CA (April 22, 2024) – Viking Holdings Ltd (“Viking”) today announced the launch of its initial public offering of 44,000,000 ordinary shares pursuant to a registration statement on Form F-1 filed with the U.S. Securities and Exchange Commission (the “SEC”). Viking is offering 11,000,000 ordinary shares and the selling shareholders are offering 33,000,000 ordinary shares. In connection with the offering, the selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 6,600,000 ordinary shares to cover over-allotments. The initial public offering price is currently expected to be between $21.00 and $25.00 per ordinary share. Viking has applied to list its ordinary shares on the New York Stock Exchange under the ticker symbol “VIK.” The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

BofA Securities and J.P. Morgan (listed in alphabetical order) are acting as lead underwriters and representatives for the proposed offering. UBS Investment Bank and Wells Fargo Securities are also acting as lead book-running managers. HSBC and Morgan Stanley are acting as bookrunners for the proposed offering, and Rothschild & Co, Stifel, Drexel Hamilton, LLC, Loop Capital Markets LLC and R. Seelaus & Co., LLC are acting as co-managers for the proposed offering.

The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from: BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, telephone: 1-800-294-1322, or email: [email protected]; and J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204, or email: [email protected].

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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