Celebrity Cruises Expands to River Cruising Saying “This is How We River”
Royal Caribbean Group which operates 66 ocean-going cruise ships announced today, January 28, that it will be entering the fast-growing river cruise segment through its upper premium brand Celebrity Cruises. The company was attracted to the river segment which it sees as highly fragmented by its strong growth rates, high return on invested capital, and profitability.
CEO Jason Liberty told investors the expansion into river cruising was an exciting opportunity for guests and the company’s shareholders. Referencing the segment as a “complimentary high margin, high ROIC business,” he said it fits nicely within the portfolio. He noted that about half of their customers have experienced or intend to vacation on a river cruise presenting strong opportunities for cross-selling to customers not only of Celebrity Cruises but its other brands, Silversea Cruises, and Royal Caribbean International.
“We see river cruising as an exciting growth opportunity that aligns with our strategy of turning the vacation of a lifetime into a lifetime of vacations, expanding our ecosystem of vacation offerings, and broadening our reach into adjacent lines of businesses,” said Liberty during the corporation’s earnings conference call today.
While Celebrity becomes the first of the major brands to expand into river cruising, it is not a new strategy. Crystal Cruises under Genting Hong Kong’s ownership entered European river cruising. Viking started as a river cruise company and a decade ago expanded into ocean cruising and more recently expedition cruising. Analyst C. Patrick Scholes of Truist Securities noted today that Viking has “basically owned” the river cruise sector. Viking currently has 82 river cruise vessels mostly deployed in Europe and has plans to reach 93 river cruise ships by 2027.
Scholes said Truist’s initial take was that it would not be head-to-head competition between Viking and Celebrity. Viking, he notes is considered a luxury brand offering an inclusive product while Celebrity will likely have a different price point marketing to the broader, contemporary cruise segment. Liberty mentioned to investors the opportunities for add-on sales noting that river cruise passengers “spend a disproportionate amount of their time and money on travel.”
Few details were provided on Celebrity Cruises’ plans for its new river operation. They said it would be launching in Europe in 2027 but CEO Jason Liberty referred to river cruising as a global segment. Ask by analysts, he said there were opportunities in many parts of the world.
Celebrity reported an initial order of 10 “transformative” ships that it says would be innovative and elevate the river cruise experience. Speaking to the company’s customers in a video, Celebrity Cruises’ CEO Laura Hodges Bethge alluded to expansive views with large glass windows, innovative open deck spaces, and elevated design features. Royal Caribbean also referenced sustainable technologies, reimagined onboard and shore experiences “that raises the bar for river cruising.”
Reports indicate the initial order for the 10 river cruise ships went to the Netherlands’ TeamCo. The shipyard’s website shows 16 river cruise ships delivered over the past decade and most recently in 2024 to Amadeus. The size of river cruise ships varies based on the limitations of the rivers but the ships traditionally accommodate 150 to 200 passengers. Scholes estimates each ship will cost Celebrity $30 million for a total shipbuilding commitment announced today of $300 million.
On the investor conference call, Royal Caribbean Group said its plan is for delivery of “a couple of ships in 2027,” and then about four a year.
“Our ambitions go far beyond that,” Liberty told investors. He said they were “very intentful,” in calling it an “initial order,” saying that river cruising “is not a hobby for us.” Based on shipyard capacity to build four vessels a year, Liberty said it was not likely that they would be waiting till 2027 to order more river cruise vessels.
The expansion in river cruising comes just days after Celebrity announced it had ordered a sixth large cruise ship of its Edge class from Chantiers de l’Atlantique. This year it will be introducing the Celebrity Xcel. Royal Caribbean International last year also ordered an Oasis class cruise ship from France and an additional Icon class cruise ship in Finland as well as options for up to two more ships. The group noted its newbuild pipeline currently includes a total of eight ships on order.