This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Viking Cruises Goes Ocean Despite Industry Mishaps

NEW YORK ( TheStreet) - Viking Cruises is launching a fleet of smaller ocean liners that the company says is the future of ocean cruising.

Earlier this month, Los Angeles-based Viking, known for its upscale river cruising ships, announced plans for an ocean line. The company claims it is the first new cruise line to launch in nearly a decade and will "return the focus of cruising to the destination" as opposed to onboard activities.

Viking's decision to get into the ocean business follows a string of recent mishaps. A fire on board a Royal Caribbean (RCL - Get Report) ship this week in the Bahamas comes after the February debacle aboard a Carnival (CCL - Get Report) cruise line in the Gulf of Mexico in which power was lost leaving hundreds of passengers stranded for days.

Yet the company is not deterred. Viking Ocean Cruises will begin sailing its first vessel, Viking Star, in the spring of 2015. The 464-cabin ship will sail to Scandinavia and the Baltics as well as the Mediterranean, between Barcelona and Venice and Venice and Istanbul, the company says.

A second Ocean Ship is on order for delivery in 2016. Viking also has conditional orders and options for four more ocean vessels.

Also see: Carnival Shares Slip on Lower Guidance

Viking says it has an opportunity in the ocean cruising space because of who it is targeting -- sophisticated baby boomers -- a market Viking's founder and CEO says has been forgotten by the wider ocean cruise industry when cruise lines started becoming "everything for everybody."

It also believes the future of ocean cruising is in smaller ships (less than 1,000 passengers).

"It is our view that in the race to build bigger ships, many cruise lines have lost sight of the destinations to which they sail," Hagen said in a May 17 launch release. "With our new ocean cruises, we are applying the same principles behind our award-winning river cruises to our itinerary and ship design; privileged-access excursions; and onboard experiences to make destinations the true focus."

While Viking is a private company, the stocks of larger cruise ship companies Carnival and Royal Caribbean have suffered. Carnival's stock is down 9% this year; Royal Caribbean's stock is up just 4%, compared to the S&P 500, which is up roughly 16% for 2013. Norwegian Cruise Line (NCLH) is an exception. The Miami-based company filed an initial public offering in January. The stock is up roughly 27% since then.

According to the U.S. Census, the median net worth for householders 65 and older in 2011 was $170,516 compared to the national average of $68,828.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CCL $49.05 0.70%
RCL $77.40 1.82%
TRIP $64.59 1.56%
AAPL $93.74 -1.15%
FB $117.58 0.73%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs