River Cruise Exec Talks Europe Flooding, Recovery

Unprecedented flooding in Central Europe this spring has sent river cruise lines scrambling to cancel cruises, adjust itineraries and reassure worried customers. In the midst of a strong sales year, it’s been a trial.

While the flooding has diminished, rivers and cities are still affected, and will be for some time, as communities have been displaced and infrastructure damaged.

River cruise lines also will continue to feel the impact after the waters have receded, said Patrick Clark, managing director of Avalon Waterways.

“If we respond in a way that makes people see we care about their situation, river cruising may come out of this okay, PR-wise,” Clark said.

Patrick Clark

Clark updated Travel Market Report on the situation in Central Europe, including Avalon’s response. He also discussed the impact on profitability and image for the river cruise sector, as well as how travel agents should cope with the situation.

Can you give us an update of the situation in Central Europe?
Clark: On the Rhine, everything is back to normal. The Danube is progressively getting back to normal as the weather is getting better. Some of the weather has shifted east, so the Elbe River is now impacted. The lower Danube is still being impacted.

There’s going to be the issue of examining the locks for repair work. If they need two days to repair a lock, it’s going to mean delays. There is still two or three weeks before we can say everything is back to normal.

What was your top concern as the flooding was taking place?
Clark: The decisions we made, whether they caused interruptions or led to cancellations, were made first and foremost with the safety of our customers and crew in mind. This is an important point for travel agents with frustrated customers – we made the decisions in their best interest. We wanted to ensure no harm would come to anyone.

The reason we’ve been cancelling departures is we felt the itineraries would have turned into  coach tours, rather than a full river cruise. [Editor’s note: Avalon has cancelled 12 sailings so far. Other river cruise lines have also cancelled sailings or re-routed itineraries.]

Do you think the cancellations will affect consumer sentiment toward river cruising?
Clark: Certainly, there may be some people thinking maybe they shouldn’t book a river cruise. The reality is the risk is minimal, because this flooding is such an unprecedented event; it’s been 400 years since Europe has had this kind of flooding.

People are generally very understanding when events happen outside of the control of the group providing their vacation. The real test is how you respond when things don’t go as planned. If we respond in a way that makes people see we care about their situation, river cruising may come out of this okay, PR-wise.

How will the flooding affect profitability in 2013?
Clark: 2013 was clearly going to be a phenomenal year for everyone, but it is less phenomenal now. There are a lot of expenses we’ve had to deal with because of crews, ships, hotels, motor coaches and guides. We’re refunding a lot of money.

Demographics are still on the side of river cruising companies, because it is a baby boomer product. 2014 looks even better than 2013 was looking before the flooding. People who didn’t get their ideal date or departure this year are booking early.

How has Avalon dealt with customers who have been affected?
Clark: We returned all their money to those with a cancelled cruise. We felt it was important for customer satisfaction and to ensure that cruisers come back willingly and continue to experience this rapidly growing vacation style in Europe. We also provided them a $500 voucher to encourage them to rebook this year or in the future.

We tried to explain the impact of itinerary changes and give cruisers a choice – they can cancel or accept that the disruption is minimal.

How have you kept the travel agent community informed of the impact of the flooding?
Clark: We have posted all announcements on Facebook. We encourage agents to monitor social media.

If it was an air-inclusive booking that was cancelled, we will protect the agent’s commission at 10%. The response has been very positive, in most cases.

What should agents say to clients who are wary of rebooking a river cruise later in the year?
Clark: River cruising is still a wonderful way to see Europe. There is still availability in the fourth quarter. And while it is cooler in October, it is not much different than a fall day in the U.S. There are also fewer crowds. If your client doesn’t want to do that, then book them for 2014.

My suggestion is for agents to sit down with their customers, and work out a plan that’s best for them. Encourage clients to put down a deposit early to get the departure and cabin they want.