The news that American Queen Voyages (AQV) had ceased operations on Feb. 20, canceling all future cruises, did not come as a shock to the trade.
The writing was on the wall, industry professionals said, noting that AQV had had ongoing service and payment issues even before Travel Weekly reported in January that the U.S. river cruise line had been dropped by a number of major trade partners.
"I'm not shocked. Things have been brewing for a while. Late payments, or no payments, built up over the last few months," said Anthony Hamawy, president of Cruise.com.
Hamawy said his company had stopped marketing AQV at the beginning of the year. Several attempts had been made to reach AQV, Hamawy said, but the river cruise line failed to respond.
As a result, "we sent a memo to all of our agents, warning them" what was going on, Hamawy said.
Still hoping to find a solution that could satisfy both parties, Cruise.com stopped short of issuing a "no book" advisory.
"We tell clients what we're seeing and that if they still choose to book, they need to be very cautious," Hamawy said. "Use a credit card, buy insurance."
Hamawy noted that some insurance companies won't pay claims in certain circumstances if issues have already surfaced. For instance, Travel Guard stopped covering financial default for Vantage Deluxe World Travel in the days after reports came out that that company was looking for a buyer.
Still, Hamawy said he's "very cautious about putting a 'no book' on companies. We try to work with them when we can. We want to be partners, but at the same time protect our consumers."
That's the approach Signature Travel Network, Pleasant Holidays and AAA Travel said they tried with AQV when the companies had issues with the line, prior to the cutting of ties.
Signature CEO Alex Sharpe said the consortium had stopped selling AQV in March 2023 but brought the line back once commissions had been paid. Paula Twidale, senior vice president of AAA Travel, said the company -- which sold AQV through Pleasant Holidays -- stopped selling the line in November but would have considered resuming sales if the outstanding issues had been resolved. (Pleasant Holidays CEO Jack Richards noted earlier this month that no progress had been made.)
After the shutdown, focus now turns to refunds as well as to how AQV's parent company, Hornblower Group, might be impacted and how AQV's collapse might reflect on domestic river cruising.
To get a refund, travelers must complete a three-part process, including filing a claim form, retrieving a denial notice to present to insurance companies and requesting a refund from Argo Surety, a Toronto-based commercial insurer.
Hornblower Group turns the page
Less than a day after news broke about AQV, Hornblower Group announced that investment firm Strategic Value Partners would acquire a majority stake in Hornblower.
Hornblower's current parent company, Crestview Partners, will hold a minority stake. Crestview will also become the sole owner of Journey Beyond, which operates rail and day cruises in Australia and is a stand-alone operating unit of Hornblower.
Hornblower Group said that it is working to sell AQV but that if a buyer can't be found, the river cruise company would be wound down.
AQV was underperforming and failed to recover from the pandemic, according to Hornblower Group president Adam Peakes.
Hornblower Group said that trips booked through its remaining assets, tour/transportation company City Experiences and Journey Beyond, will not be impacted and that trips through those companies are running as normal.
The current U.S. river cruise market
Still standing among U.S. river cruise lines are American Cruise Lines (ACL), Viking and Lindblad Expeditions.
ACL is by far the leader, with around 20 ships in its fleet and more on order. The Guilford, Conn.-based company has tripled its U.S. fleet in the past five years, introducing five new riverboats on the Mississippi and launching a new class of hybrid river/coastal vessels called Coastal Cats.
Viking has operated one river ship in the U.S., the Viking Mississippi, since 2022. Lindblad Expeditions has operated river cruises in the Pacific Northwest on the Columbia and Snake rivers for more than 30 years.