Avalon Waterways has canceled two upcoming sailings of its 162-passenger Avalon Tranquility after the vessel was struck by a cargo ship on Friday. The ship is being repaired.

“After thorough inspection of the ship’s damage, engineers and technical experts have determined the repairs needed are significant enough to force Avalon to cancel the Tranquility’s next two departures,” Avalon said in a statement.

Avalon has canceled the Sept. 11 Magnificent Europe and Sept. 23 Blue Danube Discovery departures. It is giving affected passengers three options.

They may rebook a Europe cruise for 2011 by moving the full value of the canceled cruise to a new cruise, plus a $500 discount per person. This option also includes a $500 voucher for future travel with Avalon good through 2013.

They may cancel the 2011 booking and rebook in 2012. Travelers will receive a $500 discount on the new booking.

Or, customers may cancel and get a full refund on the cruise, plus receive a $500 voucher for future travel with Avalon.

Passengers had to disembark the Tranquility late on Friday night after it was struck by a cargo ship that was loose from its mooring on the Danube River, just north of Passau, Germany.

The collision caused significant damage to the engine portion of the ship, according to Avalon, but no passengers were injured and all were removed safely from the ship that night with the help of Uniworld River Cruises’ River Empress.

Travelers were given the option to either return home or continue on an alternative land program at no additional charge. The vast majority chose to continue on, according to Avalon.

All travelers are being compensated with a refund for the majority of their cruise and a voucher for future travel good through 2013.

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