Johanna Jainchill
Over the next few years, the expedition cruise segment is set to explode.
Crystal just launched its first newbuild expedition ship, the Endeavor, while Seabourn's is set to debut in 2022. Viking created an expedition arm with two ships on order.
The World Navigator Photo Credit: Peter Knego
Peter Knego reported on the maiden cruise of the World Navigator, the first ship from Atlas Ocean Voyages.
Newcomer Atlas Ocean Voyages has five expedition vessels slated for delivery. Lindblad Expedition just launched its newest ship, the Endurance; Quark Expeditions will launch a new ship this year; Scenic's second expedition ship is under construction; and Ponant last year took delivery of two of a six-ship expedition class and this month took delivery of the Le Commandant-Charcot, a hybrid electric polar exploration vessel.
The question is, is there enough demand to satisfy so much new capacity?
In an interview this past week, Hurtigruten Expeditions CEO Asta Lassesen responded to that question with a resounding yes. The brand took delivery of a new ship in both 2019 and 2020 and has no ships on order. But if Lassesen gets her way, that will change. She believes demand will outstrip capacity, and she aims for "significant growth."
"We are aiming for growth both in existing capacity, having more people onboard, visiting more areas and charging a higher price," she said. "We are definitely looking for new capacity in order to be able to expand the areas we sail to."
Lassesen is not worried about overcapacity, because the expedition segment represents only 4% of the total cruise segment.
"With all the capacity we have today, the numbers are quite small," she said.
The only risk, she said, is if companies don't expand their cruising areas and focus only on the poles. Hurtigruten is making a major push into what it calls warm-water expedition cruising with the addition of both the Galapagos this year and Africa is 2022.
"We are aiming for Hurtigruen Expeditions to be a worldwide operator offerings expedition cruises all over the world," she said. "Up until now we have been focused around polar areas. That is mainly because we haven't had the capacity to expand to new areas. Now we have more capacity, and we have the opportunity to look for new areas."
She hopes that as other operators will do the same as the segment grows.
"If all the new operators only focus on the Arctic and Antarctica, then there is a risk of all these areas being overcrowded and potentially pressure on the price point," she said. "You'll dilute your own position."
Lassesen believes that Hurtigruten's competitive advantage is its brand: "We have a legacy from 1896. That's extremely difficult to compare. And our focus on sustainability stands out and the way we've been continuously focusing on how to push boundaries in a safe way.
"If all the new operators only focus on the Arctic and Antarctica, then there is a risk of all these areas being overcrowded and potentially pressure on the price point," she said. "You'll dilute your own position."
Lassesen believes that Hurtigruten's competitive advantage is its brand: "We have a legacy from 1896," she said. "That's extremely difficult to compare. And our focus on sustainability stands out, and the way we've been continuously focusing on how to push boundaries in a safe way."
Quite a bit of the line's growth comes from the North American market, which she said has grown by 50% for 2022 bookings compared with what it had booked, pre-pandemic, for 2020. Currently, North America accounts for 30% of Hurtigruten bookings, and the company aims for that to be 35% by the end of this year.
Lassesen said she expected that the Galapagos, in particular, will "be a huge success" in the U.S. market.
This report was updated with new information throughout.
CORRECTION: The Caribbean eNewsletter summary about this report incorrectly identified Asta Lassesen as Hurtigruten's CEO. She is the CEO of Hurtigruten Expeditions.