Q1 2025 Viking Holdings Ltd Earnings Call
Good morning, My name is Paul and I will be your conference operator today at this time I would like to welcome everyone to Viking's first quarter 2025.
Paul: My name is Paul and I will be your conference operator today.
Paul: At this time, I would like to welcome everyone to Viking's first quarter 2025 earnings conference call. As a reminder, this call is being recorded. All lines have been placed on mute to prevent any background noise.
Earnings Conference call.
As a reminder, this call is being recorded all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
Paul: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If you wish to remove yourself from the queue, press star 2. Thank you.
If you would like to ask a question at that time. Please press star one on your telephone keypad. If you were wish to remove yourself from the queue Press star two.
Carola Mengolini: I would now like to turn the program to your host for today's conference, Vice President of Investor Relations, Carola Mengolini. Good morning, everyone, and welcome to Viking's first quarter 2025 earnings conference call. I am joined by Tor Hagen, Chairman and Chief Executive Officer, and Leah Talactac, President and Chief Financial Officer.
Speaker Change: I would now like to turn the program to your host for today's conference Vice President of Investor Relations Curl up mangling.
Speaker Change: Good morning, everyone and welcome to Viking's first quarter 'twenty 25 earnings Conference call I am joined by Tour Hagen, Chairman and Chief Executive Officer, and yet <unk>, President and Chief Financial Officer.
Carola Mengolini: Also available during the Q&A session is Linh Banh, Executive Vice President of Finance.
Speaker Change: Also available during the Q&A session is leaned on executive Vice President of Finance.
Carola Mengolini: Before we get started, please note our cautionary statement regarding forward-looking information. During the call, management may discuss information that is forward-looking and involves known and unknown risks, uncertainties, and other factors, which may cause the actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release, as well as in our filings with the SEC. The forward-looking statements are as of today, and we assume no obligation to update or supplement these statements.
Speaker Change: Before we get started please note our cautionary statement regarding forward looking information.
Speaker Change: During the call management May discuss information that is forward looking and involves known and unknown risks uncertainties and other factors, which may cause the actual results to be different than those expressed or implied.
Please evaluate the forward looking information in the context of these factors, which are detailed in today's press release as well as in our filings with the SEC.
Speaker Change: The forward looking statements are as of today and we're so no obligation to update or supplement these statements.
Carola Mengolini: We may also refer to certain non-IFRS financial. which are reconciled and described in our press release posted on our investor relations website at ir.viking.com.
We may also refer to certain non ifr S financial metrics, which are reconciled under scribed in our press release posted on our Investor Relations website at IR Deutsche Viking Dot com.
Carola Mengolini: Tor and Leah will provide a strategic overview of the company, a recap of our first quarter results and an update of the current booking environment. We will then open the call for your questions.
Speaker Change: Turing Leah will provide a strategic overview of the company a recap of our first quarter results and an update of the current booking environment.
Speaker Change: We will then open the call for your questions.
Carola Mengolini: To supplement today's call, we have prepared an earnings presentation that is available on our Investor Relations website.
Speaker Change: To supplement todays call. We have prepared an earnings presentation that is available on our Investor Relations website.
Torstein Hagen: With that, I'm pleased to turn the call over to Tor. Thank you, Carola. And good morning, everyone. We are very pleased to share that our momentum has carried into the first quarter of 2025, building on the strong performance we delivered last year. as shown on slide three. This morning we published great results for the first quarter, which included a 7.1% increase in net yields and made a capacity increase of 14.9% over last year. Overall, we had a busy first quarter driven by additional capacity and strong demand that led to almost $900 million of revenue. Notably, revenue for the first quarter is almost three times higher than what we generated in 2019, which is something worth highlighting.
Speaker Change: With that I'm pleased to turn the call over to a tour.
Speaker Change: Thank you go rollout and good morning, everyone.
Speaker Change: We are very pleased to share that our momentum is carried into the first quarter of 2025.
Speaker Change: This strong performance, we delivered last year.
Speaker Change: As shown on slide three.
Speaker Change: This morning, we published great results for the first quarter, which included a seven 1% increase in net yields.
Speaker Change: A capacity increase of 14, 9% over last year.
Speaker Change: Overall, we had a busy first quarter driven by additional capacity.
Speaker Change: Demand.
Speaker Change: The $900 million of revenue.
Speaker Change: Notably <unk>.
Revenue for the first quarter is almost three times higher than what we generated in 2019, which is something worth highlighting.
Torstein Hagen: We believe that this reflects a strong demand for our product and the disciplined execution of our growth strategy.
Speaker Change: We believe that this reflects the strong demand for our products and the disciplined execution of our growth strategy.
Torstein Hagen: Today we also updated you on our booking service. We continue to experience strong demand for our core products with 92% of our 2025 capacity already sold. As most of you know, our load factor never reaches 100%. While we only allow two guests per cabin, sometimes our guests travel alone. On a cabin occupancy basis, we are generally one to two percentage points higher. This means that we are practically sold out for 2025. To this end, our focus is on 2026, which is off to a great start with 37% of our core capacity PCDs already sold as of May 11.
Today, we also updated you on our booking curves.
Speaker Change: We continued to experience strong demand for our core products with 92% of about 20 to 25 capacity already sold.
Speaker Change: As most of you know our load factor never reaches 100%.
Speaker Change: The only allowed two guests for cabin, sometimes guests travel alone.
The cabin occupancy basis.
Speaker Change: One to two percentage points higher.
Speaker Change: This means that we have practically sold out for 2025.
Speaker Change: To this.
Speaker Change: Our focus is on 2026, which is off to a great start with 37% of our core capacitive piece of it is over it is sold as of May 11.
Torstein Hagen: I will talk more about this when we review the book.
Speaker Change: More about this when we review the boroughs.
Torstein Hagen: Having said this, and given the current macroeconomic landscape, I'd also like to provide an update on how bookings are trending. When we last met in mid-March, we noted that January was the best booking month in the history of the company. We can also say that this was the best wave season in our history, with more guests booked and at higher pricing. Since WAVE, we are pleased to say this memento has continued. Specifically given 2025 is practically sold and we look to future seasons, bookings in April and May are up year over year. In fact, May is often an outstanding start, with the last few weeks showing good booking strength.
Speaker Change: Having said this and given the current macroeconomic landscape I'd also like to provide an update on our bookings are trending.
Speaker Change: When we last met in mid March we noted that January was the best booking month in the history of the company.
Speaker Change: We can also say that this was the best wave season in our history.
Speaker Change: We have more guest books.
Speaker Change: As higher pricing.
Speaker Change: Since wave we're pleased to say this momentum has continued.
Speaker Change: Typically given 2025 as proxy was sold.
Speaker Change: And we look to future seasons.
Speaker Change: In April and May are up year over year.
Speaker Change: And in fact May is off to an outstanding start with the last few weeks showing good booking strength.
Torstein Hagen: This gives us comfort that our guests continue to prioritize travel and experience.
Speaker Change: This gives us comfort that our guests continue to prioritize travel and experiences.
Torstein Hagen: Building on this positive trajectory, I would like to touch on broader macroeconomic environment. as some uncertainties still persist. As most of you know, most of our operations are based in and conducted from Europe. This insulates us from many of the trade tensions affecting other regions. To this end, the direct impact on Viking's operations should be minimal. Additionally, the same applies to our shipbuilding activities, as our ocean ships and the majority of our river ships are constructed in European shipyards.
Speaker Change: Building on this positive trajectory I would like to touch on broader macroeconomic environment.
Speaker Change: Some uncertainties still persist as most of you know most of our operations are based in and conducted from Europe.
Speaker Change: Insulates us from many of the trade tensions affecting other regions to this.
Speaker Change: The direct impact on vitamins operation should be minimal.
Speaker Change: Additionally, let's say enterprise our shipbuilding activities.
Our ocean ships and the majority of our relatives are constructed in European shipyards.
Torstein Hagen: Moreover, on slide four, we are highlighting several of our unique strengths. These are attributes that we believe are especially relevant and compelling in today's environment. First, our advanced booking curves and long booking window provide exceptional visibility. While many companies are still focused on selling the current 2025 season, we are largely sold out. Also, our cancellation rates are in line with prior years. As we mentioned in the past, our bookings are very sticky, so with the current season effectively done, and with more than 37% of the 2026 capacity already booked, we are in a great position.
Speaker Change: Moreover, on slide four we are highlighting several of our unique strengths.
Speaker Change: These are attributes that we believe are especially relevant and compelling in today's environment.
Speaker Change: First our advanced booking gross long booking windows provides exceptional visibility.
Speaker Change: While many companies are still focused on selling the car in 2025 season largely sold out.
Speaker Change: Also our cancellation rates are in line with prior years.
Speaker Change: As we've mentioned in the past.
Speaker Change: <unk>, a very sticky so where the currency is effectively done and been more than 37% over 2026 capacity already booked.
Speaker Change: We're in a great position, we have plenty of time to complete the 2026 season.
Torstein Hagen: We have plenty of time to complete the 2026.
Torstein Hagen: which leads me to our Effect Direct Marketing Engine. Our model enables us to generate demand proactively, communicating directly with the consumer. We stimulate demand by investing in targeted marketing while preserving the integrity of our pricing. This includes expanding the reach to high potential and loyal guests and refining our best campaigns. It also involves enhancing our digital platform. So they're upgrading our booking engines to deliver a faster and more personalized experience. Moreover, we also empower our sales teams to focus on emphasizing the quality and value of our product, rather than competing on price. As we have mentioned in the past, our product is highly rated while also providing a compelling value proposition.
Speaker Change: Which leads me to our effective direct marketing engine.
Speaker Change: And that leaves us to generate demand proactively.
Speaker Change: Integrating directly with the consumer.
Speaker Change: We stimulate demand by investing in targeted marketing, while preserving the integrity of our pricing.
Speaker Change: This includes expanding their reach to a hybrid Angelo and loyal guests and refining our best campaigns.
It also involves enhancing our digital platforms.
Speaker Change: Upgrading our booking engines to deliver a faster and more personalized experience.
Speaker Change: Moreover, we also empower our sales teams to focus on emphasizing the quality and value of our products.
Speaker Change: Rather than competing on price.
Speaker Change: As I mentioned in the past upfront it is highly rated.
Speaker Change: While also providing a compelling value proposition.
Torstein Hagen: This, in turn, leads to our target customers.
Speaker Change: This enduring leads our target customers we have.
Torstein Hagen: We believe that our success is rooted in a clear and disciplined strategy. It centers on targeting a defined customer demographic and an exceptionally loyal guest These customers, compared to the average consumer, have greater financial stability and more time to travel. They also have a strong desire to explore the world and prioritize experiences, even when the broader markets solve them. While past performance does not guarantee future behavior, this group has historically shown resilience during economic downturns, maintaining their propensity to travel.
Believe that our success is rooted in a clear and disciplined strategy.
Speaker Change: It centers on targeting defined customer demographic.
Speaker Change: And an exceptionally loyal guests by us.
These customers compared to the average consumer a greater financial stability and more trying to travel.
Speaker Change: Also the strong decided to explore the world.
Speaker Change: Prioritize experiences you remember on the broader markets it's awesome.
Speaker Change: While past performance does not guarantee of future behavior. This group has historically has shown resilience during economic downturns, maintaining their propensity to travel.
Torstein Hagen: I would also highlight a strong balance. With a net debt to EBITDA ratio of two times and minimal near term maturities, we are in solid financial position. This gives us both stability and flexibility, allowing us to navigate volatility with confidence while continuing to invest in our long term growth strategy. And lastly, what I can share is that over the past 20 years, Whenever we have faced economic dislocation, our response has consistently been contrarian and opportunistic, led by a seasoned, well-tested management team. So while we remain mindful of broader economic signals, we continue to have strong confidence in the resilience of our business model and our guests.
Speaker Change: I will also highlight our strong balance sheet with.
Speaker Change: With a net debt to EBITDA ratio of two times and minimal near term maturities, we are in solid financial position.
Speaker Change: This gives us both stability and flexibility, allowing us to navigate volatility with confidence while continuing to invest in our long term growth strategies.
Speaker Change: And lastly, well there.
Speaker Change: Sure is that over the past 20 years.
Speaker Change: Whenever we have faced economic dislocation. Our response has consistently been contrarian and opportunistic led.
Speaker Change: <unk> well tested management team.
Speaker Change: So while we remain mindful of broader economic signals, we continue to drive strong confidence in the resilience of our business model and I guess, we are well positioned as we focus on generating increased profitable demand for 2026 and beyond.
Torstein Hagen: We are well positioned as we focus on generating increased profitable demand for 2026 and beyond.
Torstein Hagen: Before I turn to Leah, I want to close these remarks with a few highlights from this past quarter. These are on slide number five.
Speaker Change: Before I turn out really I want to close these remarks, but a few highlights from this past quarter.
Speaker Change: These are on slide number five.
Torstein Hagen: This past April, we announced details about the Viking Libra. the world's first hydrogen-powered cruise ship. This ship will be fitted with a hybrid propulsion system based partially on liquefied hydrogen and fuels that will make her capable of operating with zero emission.
Speaker Change: This past April we announced details about the Viking Libra.
Speaker Change: The world's first hydrogen powered future.
Speaker Change: This ship will be fitted with a hybrid propulsion system based partially on liquid hydrogen.
Speaker Change: Fuel cells that will make her capable of operating with zero emissions.
Torstein Hagen: We have always believed in doing what is right for the environment. And we're very proud of this announcement. The Viking Libra is currently under construction and set for delivery next year. We also ordered two additional ocean ships for delivery in 2031. Based on the committed order book, we now expect to take delivery of 11 additional ocean ships by 2031. As you can see, we are confident of the great opportunity that our ocean segment provides.
Speaker Change: We have always believed in doing what is right for the environment and we're very proud of this announcement.
Speaker Change: The Viking Libra is currently under construction and set for delivery next year.
Speaker Change: We also ordered two additional ocean ships will deliver in 2830 long.
Speaker Change: Based on the committed order book and are expected to take delivery of 11 additional ocean ships by 2031.
Speaker Change: As you can see we are confident of the great opportunities that ocean segments represented.
Torstein Hagen: And lastly, this past quarter, we took delivery of the Viking Inertia. River Vessel that sails in the Sun River.
Speaker Change: And lastly.
Speaker Change: This past quarter with has been eroded by connectors.
Speaker Change: The vessel the sales lifts and distributor.
Torstein Hagen: France is a destination of great interest to our guests. And this ship does wonderful itinerary through Paris and the heart of Normandy.
Speaker Change: France as a destination with great interest so I guess.
This shift is a wonderful that Sandra drew pairs and the hardware norm today.
Leah Talactac: With that, I will turn it over to Leah to discuss our panel. Thank you, Tor, and good morning, everyone. We are pleased to have reported a great first quarter. On a consolidated basis, total revenue for the quarter increased 24.9% year-over-year to almost $900 million. The year-over-year increase was mainly driven by increased capacity, higher occupancy, and higher revenue per PCDs. Adjusted gross margin increased 23.8% year over year to $613 million, resulting in a net yield of $544. 7.1% higher in the first quarter of 2024. Vessel expenses, excluding fuel per capacity PCDs, decreased 2.3% this quarter compared to the same time last year.
Speaker Change: With that I will turn to discuss our financials.
Speaker Change: Thank you tore and good morning, everyone. We are pleased to have reported a great first quarter on a consolidated basis total revenue for the quarter increased 24, 9% year over year to almost $900 million the year over year increase was mainly driven by increased capacity.
Speaker Change: Higher occupancy and higher revenue per Pcbs.
Speaker Change: Adjusted gross margin increased 23, 8% year over year to $613 million, resulting in a net yield of $544 seven 1% higher in the first quarter of 2024.
Speaker Change: Vessel expenses, excluding fuel per capacity Pcbs decreased two 3% this quarter compared to the same time last year.
Leah Talactac: I will note that capacity increased almost 15% this quarter, which helped bring down some fixed costs when calculated on a dollar per capacity PCD basis. Adjusted EBITDA for the first quarter totaled $73 million, improving more than $77 million when compared to the same quarter last year. This significant year-over-year increase was mainly driven by higher revenues in both the Ocean and River Seas. It is also remarkable that the adjusted EBITDA was positive this quarter, since the first quarter has typically been negative due to the seasonality of our business.
Speaker Change: I will note that capacity increased almost 15% this quarter, which helped bring down some fixed costs when calculated on a dollar per capacity P. C D basis.
Adjusted EBITDA for the first quarter totaled $73 million, improving more than $77 million when compared to the same quarter last year.
Speaker Change: This significant year over year increase was mainly driven by higher revenues in both the ocean and rubber segment it.
Speaker Change: It is also remarkable.
Speaker Change: <unk> EBITDA was positive this quarter since the first quarter has typically been negative due to the seasonality of our business.
Leah Talactac: Net loss and adjusted net loss attributable to Viking Holdings Ltd. was $105 million and adjusted EPS was a loss of $24 million. which is an improvement of nine cents from the first quarter of 2024.
Speaker Change: Net loss and adjusted net loss attributable to Viking Holdings limited.
Speaker Change: $105 million and adjusted EPS was a loss of 24.
Speaker Change: Which is an improvement of nine cents from the first quarter of 2024.
Leah Talactac: I will now briefly discuss our two reportable segments, River and Ocean, and these are on slide 8. For the river segment, our capacity PCDs increased 22.3% year-over-year, mainly driven by the addition of two new ships for Egypt delivered in 2024 and additional European sailing. Occupancy for the period was 93.9%, about 180 basis points higher than last year. Adjusted gross margin grew 21.5% year-over-year and net yield was $593, down 2.7% year-over-year.
Speaker Change: I will now briefly discuss our two reportable segments revert in Ocean and these are on slide eight.
Speaker Change: For the reverse segment, our capacity P. Cds increased 22, 3% year over year.
Speaker Change: Really driven by the addition of two new ships for Egypt delivered in 2024 and additional European ceilings.
Speaker Change: Occupancy for the period was 93, 9% about 180 basis points higher than last year.
Speaker Change: Adjusted gross margin grew 21, 5% year over year, and net yield was $593 down to 7% year over year.
Leah Talactac: As we have mentioned in the past, the primary sailing season for our river product runs from April to October. Therefore, our first quarter metrics are not necessarily representative of the full year. For Ocean, capacity PCDs increased 10.4% year-over-year, mainly due to the addition of the Viking Vela in December, 2020. Occupancy for the period was 94.4% in line with last year. Adjusted gross margin increased 25.3% year over year to $395 million, and net yield was $499, up 13.6% compared to the previous year. The increase in net yield was primarily due to the mix in deployment where we increased European itineraries, and specifically because in 2025, we only had one world cruise versus two in 2024.
Speaker Change: As we have mentioned in the past the primary selling season for our river product runs from April to October therefore.
Speaker Change: Therefore, our first quarter metrics are not necessarily representative of the full year.
Speaker Change: For Ocean capacity Pcbs increased 10, 4% year over year, mainly due to the addition of the Viking Vela in December 2024.
Speaker Change: Occupancy for the period was 94, 4% in line with last year.
Speaker Change: Adjusted gross margin increased 25, 3% year over year to $395 million and net yield was $499 up 13, 6% compared to the previous year.
Speaker Change: The increase in net yield was primarily due to the mix and deployment, where we increased European itineraries and specifically because in 2025, we only had one road crews versus two in 2024.
Leah Talactac: As mentioned in the past, the world cruise itinerary typically has lower than average net yield.
Speaker Change: As mentioned in the past the world cruise itineraries typically has lower than average net yields.
Leah Talactac: Excluding these cruises, our net yield for the first quarter of 2025 increased by high single digits compared to 2024.
Speaker Change: Excluding these cruises our net yield for the first quarter of 2025 increased by high single digits compared to 2024.
Leah Talactac: Now moving to the balance sheet and on slide 9, you can see that as of March 31, 2025, we had total cash and cash equivalents of $2.8 billion, and we also have an undrawn revolver facility of $375 million. Our net debt was $2.9 billion. And to this end, our net leverage improved from 2.4 times as of December 31, 2024, to a ratio of two times as of March 31, 2025. As of March 31, 2025, deferred revenue was $4.8 billion. Also on slide nine, you can see our bond maturity outlook, which includes one bond maturity due in May 2025.
Speaker Change: Now moving to the balance sheet and on slide nine you can see that as of March 31, 2025, we had total cash and cash equivalents of $2 8 billion and we also have an undrawn revolver facility of $375 million.
Speaker Change: Our net debt was $2 9 billion and to this end our net leverage improved from 2.4 times as of December 31, 2024 to a ratio of two times as of March 31 2025.
Speaker Change: As of March 31, 2025 deferred revenue was $4 8 billion.
Speaker Change: Also on slide nine you can see our bond maturity outlook, which includes one bond maturity due in May 2025. Please.
Leah Talactac: Please note that the company paid this at its maturity, therefore all maturities are in 2027 and beyond.
Speaker Change: Please note that the company paid this at its maturity. Therefore, all maturities are in 2027 and beyond.
Leah Talactac: With this, I'd like to confirm our debt amortization for 2025 and 2026. As of March 31, 2025, the scheduled principal payments for the remainder of 2025 were $439 million and $217 million for full year 2026. After March 31, 2025, during the month of May, we pay $250 million of the scheduled principal payment.
Speaker Change: With this.
Like to confirm our debt amortization for 2025 and 2026.
Speaker Change: As of March 31, 2025, the scheduled principal payments for the remainder of 2025 were $439 million.
$217 million for full year 2026.
Speaker Change: After March 31, 2025 during the month of May we paid $250 million of the scheduled principal payments.
Leah Talactac: From a committed capital expenditure perspective, and for full year 2025, the total expected committed ship capex is about $850 million, or $440 million net of finance. And for the full year 2026, the total expected committed ship capex is about $1.1 billion, or $140 million net of finance. The main drivers of the total committed ship capex for 2026 are two ocean ships, Viking Mira and Viking Libra, which are scheduled for delivery in 2022.
Speaker Change: From a committed capital expenditure perspective and for full year 2025. The total expected committed ship Capex is about $850 million.
$440 million net of financing.
Speaker Change: And for the full year 2026, the total expected committed ship Capex is about $1 1 billion or $140 million net of financing.
tour: The main drivers of the total committed chip Capex for 2026 are two ocean ships, Viking mirror and Viking Libra, which are scheduled for delivery in 2026 with that I'll turn it back to tour to review our business outlook, including our booking curves.
Torstein Hagen: With that, I'll turn it back to Tor to review our Business Outlook, including our Booking Curbs. Thanks, Leah. Let's now dive into the booking curves, which are all as of May 11, 2025. On slide 11, we show our consolidated metrics for our core products. As you can see, we are in very good shape for both the 2025 and the 2026 season. The 2025 season already has 92% of our capacity PCTs booked. Advanced bookings equal $5.5 billion, which is 21% higher than the 24th season at the same point in time, while capacity increased 12%. And for 2026, we are already 37% booked.
tour: Thanks Liam.
Speaker Change: I'll dive into the booking curves, which are all as of May 11 2025.
Speaker Change: On slide 11, we show our consolidated metrics for our core products.
Speaker Change: As you can see we are in very good shape with both the 2025 and the 22006 seasons.
Speaker Change: The 20th 25 season already has 92% of our capacity piece of these books.
Speaker Change: Advanced bookings equal five $5 billion, which is 21% higher than the 24 season at the same point in time, while capacity increased 12%.
Speaker Change: For 2026, we are already 37% booked with $2 $7 billion of advanced bookings. These are 11% higher than the 20 to 25 is not the same point of time in 'twenty 'twenty four.
Torstein Hagen: with $2.7 billion of advanced bookings. These are 11% higher than the 2025 season at the same point of time in 2024. Our capacity is increasing by 8% for our core products, driven by the full year impact of the ships introduced during 2025, and the additional two ocean ships and six river vessels in 2026.
Speaker Change: Our capacity is increasing by 8% for our core products driven by the full year impact of the ships introduced during 2025 and the additional two ocean chips and six river vessels in 2026.
Torstein Hagen: Let's not talk about the advance booking curves for these segments.
Speaker Change: That's not talking about the advanced booking curves for these segments.
Torstein Hagen: On the next slide, you will see our curves for the ocean cruises.
Speaker Change: On the next slide you will see our curves for the Ocean cruises. This is slide 12.
Torstein Hagen: This is slide 12. I will start with the blue line, which shows the bookings for 2025. Overall, we have sold 91% of our capacity PCTs for the year and have $2.4 billion of advanced bookings, which is 27% higher than last year at the same point in time. Capacity increased by 18%. So you can tell that we have been booking at a very attractive rate.
Speaker Change: I will start with the Blue line, which shows the bookings for 'twenty or 'twenty five.
Speaker Change: Overall, we have sold 91% or a capacity piece of these for the year.
Speaker Change: $2 $4 billion of advanced bookings, which is 27% higher than last year at the same point in time.
Speaker Change: Capacity increased by 18%. So you can tell that we have been booking at very attractive rates.
Torstein Hagen: If you now look at the yellow line, you will see the booking trend for the 2026 season. As of May 11, we have sold about 45% of the 2026 capacity for the ocean, which is increasing by 9%. Advanced bookings are 15% higher than last year at the same point in time. Regarding the rates, they equal $784 compared to $747 for the 2025 season at the same point in time.
Speaker Change: If we now look at the yellow line.
Speaker Change: You will see the booking trend for the 22006 season.
Speaker Change: As of May 11.
Speaker Change: All of about 4% to 5% of the 2026 capacity for the Ocean.
Speaker Change: Which is increasing by 9%.
Speaker Change: Advanced bookings are 15% higher than last year at the same point in time.
Speaker Change: Regarding the rates, they equal seven or eight to $4 compared to $747 for the 2025 season at the same point in time.
Torstein Hagen: Now if you move to slide 13, you will see the curve for the river cruise. I will start with the advance bookings for 2025, which is a blue line. As you can see, we're having a great year with 95% of the 2025 capacity already sold as of May 11. We have almost $2.7 billion in advance bookings. which is 17% higher than last year at this point in time. The operating capacity for rivers increased 7% year over year and rates are equal to $825 compared to $773.
Speaker Change: Now if we move to slide 13, you will see the curve for the river cruises.
Speaker Change: Start with advanced bookings were 2025, which is the blue line.
Speaker Change: As you can see we're having a great year with 95% of the 'twenty to 'twenty five capacity already sold as of May 11.
Speaker Change: We're almost $2 $7 billion in advanced bookings.
Speaker Change: Which is 17% higher than last year at this point in time.
Speaker Change: The operating capacity of flavors increased 7% year over year and rates are equal to $825 compared to $773 in 2024.
Torstein Hagen: in 2020. Like Ocean, we have very little to sell for 2025, and our teams are now focused on 2026 and beyond. Now, looking at the yellow line, these are the advance bookings for the 2026 season. As you can see, we have sold about $1 billion in advance bookings, which is 5% higher than the 2025 season at the same point in time. Our operating capacity for the river is up 8% year-over-year, and 28% of the capacity is already sold. These are good trends for 2026 with rates equal to $986 compared to $952 in 2025.
Speaker Change: Like Ocean, we have witnessed this out for 2025 and our teams are now focused on 2020 six and beyond.
Speaker Change: Now looking at the yellow line.
Speaker Change: So the advanced bookings for the 22006 season.
Speaker Change: As you can say, we have sold about $1 billion in advanced bookings, which is 5% higher than the 2025 season at the same point in time.
Speaker Change: Our operating capacity or whatever is up 8% year over year and 28% of this capacity is already sold.
Speaker Change: These are good trends with funding in 2006 with rates equal to $986 compared to $952 in 2025.
Torstein Hagen: So overall, these results give us confidence that our core consumer demographic remains financially resilient, prioritizing travel, and choosing Vikings.
Speaker Change: So overall these results give us confidence that our core consumer demographics remains financially resilient prioritizing travel introducing biking.
Leah Talactac: Now Leah will add some color to our order book and capacity. Thank you, Tor.
Speaker Change: No Leer will add some color to our order book and capacity.
Speaker Change: Thank you tore now turning to our order book and capacity, we have several updates since our last earnings call on March 11 2025.
Leah Talactac: Now turning to our order book and capacity, we have several updates since our last earnings call on March 11, 2025. First, we exercised our options and signed contracts for two new ocean ships, both scheduled for delivery in 2016. We also entered into an option agreement for two additional ocean ships, which, if exercised, would be delivered in 2033. Each of these ships will accommodate approximately 998 guests and will be built by Fincantieri, the shipyard that has constructed our entire Viking Ocean On top of this, we also announced the construction of a new river vessel for Portugal to sail along the Jero River.
Speaker Change: First we exercised our options and sign contracts for two new Ocean ships scheduled for delivery in 2031.
Speaker Change: We also entered into an option agreement for two additional ocean chips, which if exercised would be delivered in 2033.
Speaker Change: Each of these ships will accommodate approximately 998 guests and will be built by Fincantieri shipyard that has constructed our entire Viking ocean freight.
Speaker Change: On top of this we also announced the construction of a new river vessel for Portugal to sale on that Euro River. This will be our sixth vessel on this river and the deliveries planned for 2027.
Leah Talactac: This will be our sixth vessel on this river, and the delivery is planned for 2027.
Leah Talactac: We believe that these updates reflect our commitment to a disciplined, strategic expansion across both our river and ocean offshores. With a great brand and product range, a very strong balance sheet, and strong demand from our loyal customer base, we remain confident in our long-term growth strategy and our ability to deliver exceptional travel experiences around the world.
Speaker Change: We believe that these updates reflect our commitment towards disciplined strategic expansion across both our river and ocean offerings.
Speaker Change: With a great brand and product range, a very strong balance sheet and strong demand from our loyal customer base. We remain confident in our long term growth strategy and our ability to deliver exceptional travel experiences around the world.
Leah Talactac: With this I conclude our prepared remarks. I'll now turn it back to the operator to take questions.
Speaker Change: With this I conclude our prepared remarks, I'll now turn it back to the operator to take questions.
Paul: Thank you.
Speaker Change: Thank you at this time, we'll be conducting a question and answer session in the interest of time, we ask that participants limit themselves to one question and one follow up on today's call.
Paul: At this time, we will be conducting a question and answer session. In the interest of time, we ask that participants limit themselves to one question and one follow-up on today's call. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the line. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start One moment, please, while we poll for questions.
Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue you.
Speaker Change: You May press star two if he would like to remove your question from the queue.
Speaker Change: For participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please while we poll for questions.
Speaker Change: On the first question today is coming from Steve White Shinskie from Stifel, Steve Your line of life.
Steve Wieczynski: Our first question today is coming from Steve Wieczynski from Stiefel. Steve, your line is now open. Hey, guys. Good morning. So, and congratulations on a very solid first quarter there. So, you know, Tor or Leah, you know, based on your commentary, it sounds like, you know, April and May had pretty solid booking levels. And it, you know, it does seem, you know, at this point, it seems like your book position is pretty similar to where it was, you know, at this point last year. So, you know, if we turn to the pricing side of things, you know, I guess maybe pricing might be a little bit, you know, I'd say maybe a little bit lower versus where you guys were last year.
Speaker Change: Hey, guys good morning.
Speaker Change: And congratulations on a very solid first quarter there so.
Look tour or.
Speaker Change: Based on your commentary it sounds like April and May have had pretty solid booking levels in it.
Speaker Change: It does seem at this point it seems like your book position is pretty similar to where it was at this point last year. So if.
Speaker Change: If we turn to the pricing side of things.
Speaker Change: I guess, maybe pricing might be a little bit you know I'd say, maybe a little bit lower versus where you guys were last year or so.
Steve Wieczynski: So, you know, I'm just trying to figure out, you know, have you guys had to start going down, you know, the route of using promotions or discounting techniques or anything like that in order to, you know, drive bookings right now?
Speaker Change: I'm just trying to figure out.
Speaker Change: Have you guys had to start going down the route of using promotions or discounting techniques or anything like that in order to.
Leah Talactac: Or is that, you know, is that just not the Hi, good morning, Steve. Thanks for the question. So we have not as far as future seasons, you know, we have not turned to pricing promotions, I just wanted to level set, you know, that the pricing dynamics is pretty nuanced. And also we are comparing to a year, you know, 2025, that has that was pretty steep, and we acknowledge that it was pretty steep. So the pricing yield curve really is dependent on what inventory has been sold, you know, meaning what season, whether it's high or low, what cabin category and what itinerary mix.
Speaker Change: Drive bookings right now or is that is that just not the case.
Steve: Hi, good morning, Steve.
Steve: Thanks for the question. So we have not as far as future seasons, we have not turned to pricing promotions I just wanted to level set you know.
Steve: That the pricing dynamics is pretty nuanced.
Steve: And also we are comparing to a year you know 2025 that has that was pretty steep and we acknowledge that it was pretty steep so the pricing yield curve really is dependent on what inventory has been sold meaning what season, whether it's higher LOE, what cabin category and what itinerary.
Leah Talactac: So what we are seeing, you know, with almost 40% of our 2026 capacity being sold as of May 11, is that our consumer is very resilient, and they are willing to travel and they are willing to book in advance. So, you know, when we look at the current macroeconomic outlook, if it remains steady, and if we combine that with a strong trajectory of demand in recent weeks that we've seen, we feel pretty confident that pricing will evolve toward mid single digit increases alongside our planned capacity growth. So we don't we don't see a concern.
Steve: Very mix. So what we are seeing you know with almost 40% of our 2026 capacity being sold as of May 11 is that our consumer is very resilient and they are willing to travel and they are willing to book in advance. So you know.
Steve: When we look at the current macroeconomic outlook. If it remains study and if we combine that with the strong trajectory of demand in recent weeks that we've seen we feel pretty confident that pricing will evolve toward mid single digit increases alongside our planned capacity growth. So.
Steve: So we don't we don't see a concern there.
Steve Wieczynski: Okay, thanks for that. And then second question, I guess, maybe just in terms of the booking window. Obviously, you guys have a very elongated booking window gives you a lot of visibility into your, you know, into the, you know, the next 12 months or so. But I guess the question here is, you know, have you seen any material changes in that, you know, in that booking window? And I guess I'm just trying to figure out, you know, obviously, January looks strong for you guys, February, where there's a little bit of a change, April, May look good.
Steve: Okay. Thanks for that and then second.
Steve: Second question I guess, maybe just in terms of the booking window. Obviously, you guys have a very elongated booking window. It gives you a lot of visibility into your.
Steve: Into the.
Steve: The next 12 months or so but.
Steve: The question here is have you seen any material changes in that in that booking window and I guess I'm just trying to figure out obviously January looks strong for you guys February where there was a little bit about change April may look good. So just trying to figure out how we should think about the booking window at this point and have you really seen any kind of changes to that.
Leah Talactac: So just trying to figure out, you know, how we should think about the booking window at this point. And have you really seen any kind of changes to that?
Leah Talactac: Sure. No, we haven't. We have not seen any changes to the booking window. It's similar. Our percent sold compared to prior years is similar. Okay, got you guys.
Steve: Sure No. We haven't we have not seen any changes to the booking window with similar or percent sold compared to prior year. So similar.
Steve: Okay got you guys. Thank you very much I appreciate it.
Steve Wieczynski: Thank you very much. Appreciate it. Thank you.
Steve: Thanks.
Matthew Boss: The next question will be from Matthew Boss from J.P. Morgan. Great, thanks and congrats on the continued So maybe just first, if you could elaborate on pricing relative to demand across river versus ocean, or maybe just speak to drivers of the diverging net yield growth in the first quarter.
The next question will be from Matthew boss from J P. Morgan Matthew Your line is live.
Steve: Great. Thanks, and congrats on the continued momentum.
Steve: So maybe just maybe just maybe just first if you could elaborate on pricing relative to demand across river versus ocean or maybe just speak to drivers of the diverging net yield growth in the first quarter and then it sounds like from your commentary that's not representative of how to think about.
Leah Talactac: And then it sounds like from your commentary, that's not representative of how to think about the rest of the year. But maybe if we could just walk through first quarter divergence relative to the progression we should expect across segments for the balance of the year and just what's driving. Um, yeah, so I think, you know, we've seen this in prior years where the ocean curve, because it does operate full year, you know, there may be, it may look like it is booking at higher rates and faster. We have to remember that the river season really doesn't operate until the second quarter.
Steve: The rest of the year, but maybe if we could just walk through first quarter divergence relative to the progression we should expect across segments for the balance of the year and just what's driving it.
Steve: Yeah. So.
Steve: Thank you know we've seen this in prior years, whereas the ocean curve because it does operate full year.
Steve: You know there may be it may look like it is booking at higher rates and faster we have to remember that the river season really doesn't operate until the second quarter and so what you'll see over time is that as the booking.
Leah Talactac: And so what you'll see over time is that as the booking. Booking window for the future season starts to mature that the river curve will then kind of start to also accelerate or go up as we start getting closer to when the river season starts.
Steve: The booking window for the future season.
Steve: Darts to mature that the river curve will then kind of start to.
Steve: So accelerate or go up as we start getting closer to when the river season starts, but I don't know if you want to provide additional color.
Linh Banh: But, you know, Linh, I don't know if you want to provide additional color.
Linh Banh: Sure.
Steve: Sure. So actually I just want to clarify your question one more time. So are you referring to the 25 season or the 2016.
Leah Talactac: So actually, Matt, I just want to clarify your question one more time. So are you referring to the 25th season or the 26th? The First Quarter Net Yields and then how to how to think about the remainder of the year across that Got it. So I think, you know, first quarter for us is, is different, right? So we do have seasonality for rivers, and oceans does operate year round. So we have two different things going on. So for rivers, because it does have seasonality, the first quarter does not have as much capacity as our second, third, fourth quarter.
Steve: First quarter net yields and then how to how to think about the remainder of the year across segments.
Steve: Got it so I think you know first quarter for US is is different right. So we do have seasonality for rivers and oceans does operate year round. So we have two different things going on.
Steve: Sulfur rivers, because it does have seasonality the first quarter. It does not have as much capacity as our second third fourth quarter.
Leah Talactac: So you'll see that first quarter is not actually reflective of the Similar to rivers, for oceans, the first quarter of 2025, we had one world cruise compared to two world cruises in the first quarter of 2024. So really, I would point us back to the curves, you know, the curves show our full season and with rivers 95% booked, you can see where yields are, our rates are. And for oceans, similarly, you know, we're 91% booked and we see where rates are today. So that really shows how we think our season will progress.
Steve: So youll see that first quarter is not actually reflective of the full year similar to our rivers for Ocean. The first quarter 2025, we had one world cruise compare to two world crude is in the first quarter of 2020, or so really I would point us back to the curves the curve show our fall season and with rivers.
Steve: 95% booked you can see where yields are our rates are and.
Steve: For Ocean. Similarly, you know, we're 91% booked and we see where rates are today, so that that really shows.
How we think our season, we'll forecast for the rest of the year.
Steve: That's great color and maybe just on the bottom line as we think about EBITDA margins roughly 200 basis points above 2019 today, just how best to think about maybe structural changes in your model relative to pre pandemic on the margin side and how best to think about margin flow through as we think about the model.
Leah Talactac: City of San Sure. So, you know, we will, as we think through the margins, you know, we will continue to achieve growth on capacity, as you can see from our order book. We also have, you know, not that past performance is indicative of future, but we have been able to achieve mid single digit growth while we're increasing capacity.
Steve: Moving forward.
Sure. So you know.
Steve: We will as we think through the margins we will continue to achieve growth on capacity as you can see from our order book and we also have you know not that past performance is indicative of future, but we have been able to achieve mid single digit.
Steve: Growth, while we're increasing capacity and then we also leverage how we manage our expenses to achieve strong EBITDA growth.
Leah Talactac: And then we also leverage how we Best of luck. Thank you.
Steve: Great Best of luck.
Thank you.
Speaker Change: Thank you. The next question will be from Stephen Grambling from Morgan Stanley Steven Your line is live.
Stephen Grambling: The next question will be from Stephen Grambling from Morgan Stanley. Stephen, your line is Hey, thank you. It's pretty remarkable to hear how resilient the consumer has been given everything going on and no need to promote or take price at this point.
Stephen Grambling: Hi, Thank you, it's pretty remarkable to hear how resilient the consumer has been given everything going on and no need to promote or take price at this point. So I'm curious to hear what you would typically be on the lookout for that.
Leah Talactac: So I'm curious to hear what you would typically be on the lookout for that could change the demand trajectory and then how you think about the levers that you have at your disposal to pull if you did see some change in the trend, meaning would you generally be more looking to increase marketing, change promotions, or perhaps more aggressive use of the balance sheet or shore up liquidity? Thank you. Yeah, sure. So as far as what are our signals, so it's really the booking pace. I think we can get pretty quick indications whether or not the booking pace changes.
Stephen Grambling: <unk> changed the demand trajectory and then how you think about the levers that you have at your disposable disposal to poll. If you did see some change in trend, meaning would you generally be more looking to increase marketing change promotions or perhaps more aggressive use of the balance sheet of shore up liquidity. Thank you.
Yeah sure so as far as how what are our signals. So it's really you know the booking pace.
Stephen Grambling: I think we can get pretty quick indications, whether or not the booking pace change or is that something that we monitor rather closely.
Leah Talactac: It's something that we monitor rather closely. And at the end of the day, it's really what Tor outlined in what makes us different is that it's our strong direct marketing approach. And so our first lever would be to engage the consumer directly to stimulate that demand. It would not be a pricing lever.
Stephen Grambling: And at the end of the day, it's really what tour outlined and you know what makes us different is that our it's our strong direct marketing approach and so our first lever would be to engage the consumer directly to stimulate that demand and it would not be a pricing lever. So tore I don't know if you have something else that you'd like to.
Torstein Hagen: So Tor, I don't know if you have something else that you'd like to add to that. No, I think that's important. You know, it's marketing first, and we haven't had any need to do anything on pricing. We have the strong database, and there's a long booking window. We are really in an excellent position to handle also 2026.
Speaker Change: Add to that.
Stephen Grambling: No I think that's that's important.
Speaker Change: Its marketing first.
Speaker Change: We haven't had any need to do anything.
Speaker Change: On pricing.
Speaker Change: We have the strong database.
Speaker Change: The long booking window, we arent really in an excellent position to.
Speaker Change: A handful or so of 2026.
Torstein Hagen: And I guess two very quick follow-ups on that. First on the indication on the trajectory, would you generally think that you'd see that booking change in river or ocean? first or second, or it would be coincident. And then on the... The marketing, I guess that would generally be something that we would see, for example, in the year, but for potentially next year, right? So if we were to see something for 2026, we'd start to see that this year. Yeah, that's right. So we would see the booking Booking pattern change would occur in both. So it's not like you said in the past, we operate Viking with one brand.
Speaker Change: And I guess two very quick follow up on that first on the indication on the trajectory would you generally think that you'd see that bookings change in river or ocean.
Speaker Change: Kind of a first or second or would be coincident.
Speaker Change: And then on the.
Speaker Change: The marketing I guess that that would generally be something that we would see for example in the year, but potentially next year right. So if we were to see something for 2026 you'd start to see that this year. Thanks.
Speaker Change: Yeah, that's right. So we would see them booking.
Speaker Change: Booking pattern change would occur in both so it's not like you you said in the past we operate Viking with one brand and so we are agnostic as to where there is a book River Ocean them. So we would look at both.
Leah Talactac: And so we are agnostic as to where there is a book river ocean. So we would look at both segments to see if there's any softness. But we are not seeing any at this point in time. The momentum has been very good. And so from all indications, we're pretty positive about that.
Speaker Change: Segments to see if there's any softness but we are not seeing any at this point in time the momentum has been very good.
Speaker Change: And so from all indications, we're pretty positive about the future.
Stephen Grambling: Excellent. Thanks. I'll jump back in the queue. Thank you.
Speaker Change: Excellent thanks, I'll jump back in the queue.
Speaker Change: Sure. Thanks.
Robin Farley: Thank you. The next question will be from Robin Farley from UBS Robin Your line is live.
Robin Farley: The next question will be from Robin Farley from UBS. Robin, your line is Great, thank you. I just wanted to go back to your comment about you feel like if things continue at this pace that you would get to mid-single-digit yields for next year. I guess when we look at the last year, how booked revenue per passenger cruise day tracked, it seemed like it was kind of a normal thing that it would take down sometimes 200 or 300 basis points going from kind of May to August, August to November for 2025, and then it sort of has held at that plus 7%.
Robin: Great. Thank you.
Robin Farley: Just wanted to go back to your comment about you feel like if things continue at this pace that you would get to mid single digit yields for next year I guess, when we look at the last year, how booked revenue per passenger cruise day.
Robin Farley: <unk> tracked it seemed like it was kind of a normal thing that it would tick down sometimes two or 300 basis points.
Robin Farley: Going from kind of mid August August to November for.
Robin Farley: For 2025, and then it sort of has held at that plus 7%.
Leah Talactac: I guess why would 2026, we don't have lots of years of seeing how that tracked, but you have talked about the higher price stuff selling first and so that it's kind of normal for the booked revenue per passenger cruise day, that rate of to kind of tick down. So just wanted to understand why the sort of the plus 4, you know, why would we not see that tick down or what would make that tick up? If that because that sounds like that would be different than kind of what your normal curve looks like. So just want to understand what's happening with 2026.
Speaker Change: I guess why would 2026 you know we don't have lots of years of seeing how that tracked but you have talked about the higher priced off selling first and so that it's kind of normal for the booked revenue per passenger cruise day that rate of growth to kind of tick down.
Speaker Change: Just.
Robin Farley: I wanted to understand why the sort of the plus four you know why would we not see that ticked down or what would make that tick up is that because that sounds like that would be different than kind of what.
Robin Farley: What your normal curve looks like so if just one of them.
Robin Farley: Understand what's happening with twenty-six. Thank you yeah sure hi, Robyn so the booking curve will develop for the remainder of 'twenty to 'twenty six mm is pretty nuanced. So it really depends you know we dynamically price the remainder of the season based on demand. So we've always dynamically priced and so for the 2025.
Leah Talactac: Thank you. Yeah, sure.
Leah Talactac: Hi, Robin. So the booking curve will develop for the remainder in 2026. It's pretty nuanced. So it really depends, you know, we dynamically price the remainder of the season based on demand. So we've always dynamically priced. And so for the 2025 season, it happened to develop that way based on what we were seeing in the marketplace. You know, there have been instances in the past in which year over year comparisons have increased. So for example, in 2024 for oceans, within the similar time frame that we're talking right now for 2026, advanced bookings per PCD was 4%.
Robin Farley: Susan has happened to develop that way based on what we're seeing in the marketplace.
Speaker Change: Yeah, there have been instances in the past in which year over year comparisons have increased so for example in 2024 for oceans within the similar timeframe that were talking right now for 'twenty six advanced bookings per P. C. D. It was 4% and then by the time the year developed it increased.
Leah Talactac: And then by the time the year developed, it increased to 7%. So it's not necessarily a rule of thumb that yields will tick down three to 4%. That's that hasn't been, you know, there have been years where it will go up because we dynamically price and we don't operate in a from all indications given the demand that we're seeing. And if macroeconomics remain stable, you know, we feel confident that we could maintain this mid single digit yield growth. We've done it in the past during disruptions. So, you know, with the management team that we have in place, our direct marketing approach, and the fact that we will not take pricing actions as our line of defense in softness in the market, which we're not seeing today, you know, we feel optimistic at this point.
Robin Farley: 7%, so it's not necessarily a rule of thumb.
Robin Farley: That yields will tick down 3% to 4% that's that hasn't been there have been years, where it will go up because we dynamically price and we don't operate in a static environment. So.
Robin Farley: From all indications given the demand that we're seeing and if macroeconomics remained stable.
Robin Farley: We feel confident that we could maintain this mid single digit yield growth we've done it in the past during disruptions them. So you know with a management team that we have in place our direct marketing approach them and the fact that we.
Robin Farley: We'll not take pricing actions as our first line of defense in softness in the market, which we're not seeing today.
Robin Farley: You know we feel optimistic at this point in time.
Leah Talactac: Thanks.
Speaker Change: Oh, Thanks, and just two follow ups to that if I could when you mentioned the ocean for 2024, I guess that was like sort of in 2023 24 was tracking how did river in other words did river exhibit the same thing did river tick up.
Leah Talactac: And just two follow-ups to that, if I could. When you mentioned the ocean for 2024, I guess that was like sort of in 2023, how 24 was tracking. How did river, in other words, did river exhibit the same thing? Did river tick up or down in that same period? And then also, my other follow-up is, is there something about the mix in 2026 that would kind of make it behave differently than 2025 in terms of ticking up rather than ticking down? Is it mix issues, whether it's ocean versus river, or certain itineraries, or kind of what makes it different versus last year?
Speaker Change: Or down and in that same period and then also at the sort of my follow up is is there something about the mix in 2026 that would kind of make it behave differently than the 2025 in terms of picking up rather than ticking down are there.
Robin Farley: It is it is it mix issues, whether it's versus river or certain itineraries or you know kind of what what makes it.
Robin Farley: Different versus last year. Thanks.
Leah Talactac: Thanks.
Linh Banh: Sure. Hey, Robin, it's Linh. So, I mean, at the end of the day, each curve will be different for rivers and oceans, depending on deployment, depending on what itineraries, what's been sold and what is available for sale. We've seen instances for both rivers and oceans in the past, in which when we're looking at year over year rate increases, we've seen that increase over time. So, we can't necessarily just take 2025 and say that's rule of thumb, as Leah just said. Really, because we dynamically price, and we consider what's occurring in the economy, what we're seeing from our consumer, which right now we're seeing quite good demand, we will ensure we are.
Robin Farley: Sure Hey, Robyn, it's Lynne so I mean at the end of the day, each curve will be different or rivers and oceans, depending on deployment, depending on what itineraries, what's been sold and what is available for sale. We have seen instances for both rivers and oceans in the past and which when we're looking at year over.
Robin Farley: For a year rate increases.
Robin Farley: <unk> seen that increase overtime. So we cant necessarily just take 2025 S. A basketball up that must be you just said.
Robin Farley: Not really because we dynamically priced and we consider what's occurring in that economy, what we're seeing from our consumer which right now we're seeing quite good demand.
Robin Farley: We will ensure we always price to demand.
Linh Banh: Okay, thank you. Thank you.
Robin Farley: Okay. Thank you.
Speaker Change: Thank you. The next question will be from James Hardiman from City James Your line is live.
James Hardiman: The next question will be from James Hardiman from Citi. James, your line is open. Hi, good morning. So I wanted to stay on sort of Robin's line of questioning with regards to the 2026 curve. I mean, it sounds like you feel confident that instead of that sort of decel in the pricing that will be sort of the same or better as we move forward, and I understand the idea of dynamic pricing. I guess, can you maybe give us an example of how you're thinking about strategically why a year ago pricing would have decelerated and from here it might accelerate?
James Hardiman: Hi, good morning, So I wanted to stay on sort of Robin's line of questioning with regards to the 2026 curve.
James Hardiman: I mean, it sounds like you feel confident that instead of that sort of detail and the pricing that will be sort of the same or better as we move forward and I understand the idea of dynamic pricing.
Speaker Change: Can you maybe give us an example of how you're thinking about strategically why a year ago.
Speaker Change: Pricing would have decelerated and from here it might.
Speaker Change: Accelerate.
Leah Talactac: Particularly as everybody feels like the economy today is a little bit dicier than it was a year ago. And I guess to that point, you know, even looking at the curves, it seems like it's already happening, right? I mean, the river curve, when I look at that curve for 2026, when we were sort of in the two years prior to sailing, we were beneath the 2025 curve and we've now accelerated to being ahead of it. Ocean seems like it was more in line and now it's ahead. So it sounds like we're already seeing some of that acceleration.
Speaker Change: Particularly as everybody feels like the economy today is a little bit dicier than it was a year ago.
Speaker Change: And I guess to that point.
Speaker Change: Even looking at the curves it seems like it's already happening right I mean, the river curve when I look at that curve for 2026.
Speaker Change: When we were sort of in the two years prior to failing we were beneath the 2025 curve and we've now accelerated to being ahead of it.
Speaker Change: Ocean. It seems like it was more in line and now its a head so it sounds like we're already seeing some of that acceleration just trying to understand.
Leah Talactac: Just trying to understand, you know, what are the market conditions that are ultimately driving this?
Speaker Change: What are the market conditions or.
Speaker Change: Or ultimately driving that.
Leah Talactac: So that's right. I mean, I think we are, you know, we've said it, we're seeing it definitely in April, May, we've seen a strong momentum as we look to future seasons, you see the uptick for rivers, and similarly for oceans. In the 26th season, the last couple months, I mean, our curves are quite advanced. From where we're sitting and what we're seeing, we are quite pleased that our consumers continue to book and we're, you know, sold out for 2025 for the most part, and almost 40% sold out for 2026. So, I mean, we understand the questions about the curves, but I think at the end of the day, our curves actually show the strength of our consumer and our brand.
Speaker Change: So that's right I mean, I think we are you know we've said it we're seeing it definitely in April may we see strong momentum as we look to future season, you see the uptick for our rivers and similarly for oceans and the 26th season in the last couple of months I mean, our curves are quite at that.
Speaker Change: And I think so.
Speaker Change: Where we're sitting and what we're seeing we are quite pleased that our consumer is continuing to book and were sold out for 2025 for the most part and almost 40% Philadelphia 2026.
Speaker Change: So I mean, we understand the question about the curbs, but I think at the end of the day, our curve to actually show the strength of our consumer and our brand not many can sit here in may of 2025, and already say that they have 37% of their capacity booked for the next year and I think we said this in the past and well reiterate it our bookings are quite sticky.
Leah Talactac: Not many can sit here in May of 2025 and already say that they have 37% of their capacity booked for the next year. And I think we've said this in the past, and we'll reiterate it, our bookings are quite sticky, so we do have great revenue visibility. With the booking momentum we are seeing, and what we've definitely seen in the last few weeks, which has been quite strong, we feel really good about 2025.
Speaker Change: So we do have great revenue visibility and with the booking momentum we are seeing and you know what we've definitely seen in the last few weeks, which has been quite strong we feel really good about 2026.
James Hardiman: Fair enough. And then, you know, one of your peers, you know, if you have any peers, I guess, is open for debate, but called out the idea that there's some hesitation of American consumers traveling to Europe. I mean, I think you've essentially answered this question, because that is very much your consumer. But maybe speak to if you're seeing any differences in terms of how your consumer is thinking about where they want to go, particularly as we think about recent bookings, which are going to be, you know, late 25 and into 26. Got it.
Speaker Change: Fair enough and then.
Speaker Change: One of your peers.
Speaker Change: If you have any peers.
Speaker Change: This is open for debate.
Speaker Change: But called out the idea that there is some hesitation of American consumers traveling to Europe.
Speaker Change: I mean, I think you've essentially answered. This question because that is very much your consumer, but maybe speak to if youre seeing any.
Speaker Change: Differences in terms of of how your consumer is thinking about where they want to go.
Speaker Change: Particularly as we think about recent bookings, which are gonna be late 'twenty five 'twenty six.
Speaker Change: Sure No I mean I.
Speaker Change: Thank you hit it right on the head like are our deployment is head of Europe, I think about 70% of our itineraries operate in Europe and you can see from our curves you know practically sold out for 2025, 26%, 37% salt. So we are not seeing any issues ourselves rather the opposite we do see.
Speaker Change: Consumer demand for our itineraries.
Speaker Change: Got it thanks, and good luck going forward.
James Hardiman: Much thanks and good luck going forward. Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you. The next question will be from Assia Georgieva from Infiniti research.
Asya Georgieva: The next question will be from Asya Georgieva from Infinity Research. I'll share your lines back.
Asya Georgieva: Good morning. Good morning, congratulations on a great quarter and a great outlook. At Infinity, we track about 95% of pricing for the global cruise industry, and I think that figure is actually higher for Viking. And just looking at our pricing curves, which look very similar for 2026 relative to what you had in the presentation, so I had a little bit of a question here in terms of possible timing or seasonality, because it seems that since the start of wave through the first week of March, your pricing was consistently higher, and that was probably the peak, which makes sense.
Assia Georgieva: Good morning.
Assia Georgieva: Good morning, congratulations on a great quarter and a great outlook on it.
Assia Georgieva: Do we track about 95% of our pricing for the global cruise industry and I think that figure is actually higher for Viking and just looking at our pricing curves.
Assia Georgieva: Which looks very similar for 2026 relative to what you had in the presentation. So I had a little bit of a question here in terms of possible timing or seasonality.
Assia Georgieva: Does it seems that since the start of wave two are the first week of March your pricing was consistently higher and that was probably the peak, which makes sense. This was core wave season.
Leah Talactac: This was core wave season. And in the subsequent weeks, especially the last four weeks since mid-April through this past Friday, your pricing seems to be ticking down by about 1% or so on a sequential basis. Is this due to seasonality, sort of a slower booking timeframe? It also coincides with the macroeconomic shock, if you will, with tariffs. So I wondered whether any of these factors would play in. And as a follow-up, should we expect sort of an usual uptick, if you've seen that historically, sort of in the fall of 25 for a time? Bookings. Is that how your booking curves would usually work?
Assia Georgieva: And in the subsequent weeks, especially the last four weeks is Monday April through this past Friday, your pricing seems to be ticking down by about 1% or so on a sequential basis is just due to seasonality a sort of a slower booking time frame. It also quantify.
Assia Georgieva: So with the macroeconomic shock if you will are with tariffs so I wondered whether that in any of these factors would.
Assia Georgieva: Play in and as a follow up should we expect sort of an usual uptick if you've seen that historically sort of in the fall of 'twenty five for 2026 bookings is that how youre booking curves would usually work. Thank you so much.
Leah Talactac: I don't think we can verify your data, but what we can say is about our own, what we're seeing. And what we're seeing is, you know, our pricing remains quite good. We are up year over year. I think if you look at our 2025 season, we last reported in May. And, you know, as we report today, our pricing has remained relatively strong. For rivers, especially, we were 5% ahead at the last call, and now we're 7% ahead. So that, in all indications to us, you know, our pricing is holding, which is great. And, you know, as we just mentioned throughout the call, that the last few weeks have given us great confidence as we look into the future.
Speaker Change: Yeah, I don't think we can verify your data, but what we can say is about our own what we're seeing and what we're seeing is you know our price deck remains quite good we are up year over year I think if you look at our 2025 season, we last reported in May and you know as we report today.
Speaker Change: Our pricing has remained relatively strong.
Speaker Change: Rivers, especially we were 5% ahead at the last call and now were 7% ahead. So that in all indications to US you know our pricing is holding which is great and you know as we just mentioned throughout the call that the last few weeks have given us great confidence as we look into the future.
Leah Talactac: Thank you and would you expect an uptick in booking activity later in the year or is it generally wave season and then stable throughout the balance? I mean, I think this goes back to what Leah mentioned, you know, if things the outlook remains steady, you know, combined with what we've seen in the last few weeks, we feel good about pricing and we do feel that we can evolve to a mid single digit increase, along with our capacity. That sounds great.
Speaker Change: Thank you and would you expect a uptick in booking activity later in the year or is it generally wave season, and then stable throughout the balance of the year.
Speaker Change: Historically.
Speaker Change: I mean I think this goes back to what Leon mentioned, you know if things the outlook remains steady you know combined with what we've seen in the last few weeks, we feel good about pricing and we do feel that we can evolve to a mid single digit increase along with our capacity increases.
Speaker Change: That sounds good I think the.
Leah Talactac: Thank you.
Speaker Change: If I could just add to that so we do sell throughout the year and that goes back to our direct marketing and there have been instances, where we may open up and it's a season earlier just to capture that demand. So it really depends on what we're seeing in the consumer behavior and what the.
Leah Talactac: and David Fairchild. Thank you. like so but generally speaking we do sell Wave season is wave season, but we continue to market throughout the year. Thank you so much.
<unk> would like so but generally speaking we do sell.
Speaker Change: Grape season as wave season, but we continue to market throughout the year.
Speaker Change: Thank you so much I appreciate the clarity.
Leah Talactac: I appreciate the clarity. Thank you.
Speaker Change: Thank you. The next question will be from Patrick Scholes from Truest Securities Patrick Your line is live.
Patrick Scholes: The next question will be from Patrick Scholes from Truist Securities. Hi, good morning, everyone. Thank you. A couple questions here for you.
Patrick Scholes: Hi, good morning, everyone. Thank you.
Patrick Scholes: Couple of questions here for you I understand there you havent.
Leah Talactac: I understand there you haven't done anything as far as lowering price as far as promotions, but how about other types of promotional activities, such as add-ons, booking incentives, cabin upgrades, etc. Has there been any changes this spring, versus historically what you're doing this time of year as far as those incentives to get people to book? And maybe I can take that. I think again, we have said it before, you know, our marketing method is mainly to market more. And we try to shy away from such things. So there's no change in that. Okay, so no change to promotional activity versus this time of year.
Patrick Scholes: Done anything as far as lowering prices as far as promotions, but how about other types of promotional activities such as the add ons are booking incentives cabin upgrades et cetera has there been any changes there.
Patrick Scholes: Spring.
Patrick Scholes: <unk> versus historically, what youre doing at this time of year as far as those incentives to get people to book. Thank you.
Patrick Scholes: Yeah.
Patrick Scholes: Maybe I can take that I think again, we are in.
Patrick Scholes: We haven't said it before our marketing message they've made it to market more and we try to shy away from so it shows sort of things. So so there is no change in that.
Patrick Scholes: Okay. So no change to promotional activity versus this time of year. Okay second question here.
Leah Talactac: Okay, second question here. I just want to be clear, and I think I got the, you had basically implied or said that in April, you saw no softness whatsoever, only accelerating booking trends. Did I understand that correctly? as far as bookings. Thank you. Yes, that's right. Okay. Thank you.
Patrick Scholes: Wanted to be clear and I think I got the.
Patrick Scholes: Basically implied or said that in April you saw no softness whatsoever, only accelerating booking trends did I.
Patrick Scholes: I understand that correctly.
Patrick Scholes: As far as bookings thank you.
Patrick Scholes: Yes, that's right.
Patrick Scholes: Okay. Thank you that's it.
Leah Talactac: That's it. Thank you.
Speaker Change: Thank you. The next question will be from Brian <unk> from Barclays Branch. Your line is live.
Brandt Montour: The next question will be from Brandt Montour from Barker. Brandt, your line is live. Good morning, everybody.
Brian: Good morning, everybody.
Speaker Change: The question.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: For the quarter overall.
Paul: We will get to the first quarter in about a month, sir. Apologies, Brandt, apologies for interrupting, we're unable to hear you, just wondering if you could shift your position a little bit, your line is not coming through clear. Can you hear me? Yes, please go ahead. Okay, sorry about that.
Speaker Change: Okay.
Speaker Change: Quarter end of month to month.
Speaker Change: Okay.
Speaker Change: Apologies brands.
Speaker Change: I apologize, Brian apologies for interrupting and we're unable to hear you I'm just wondering if you could shift your possession with <unk>. Your line is not coming through here.
Speaker Change: Yeah.
Speaker Change: Can you hear me.
Yes. Please go ahead.
Speaker Change: Okay, sorry about that so.
Leah Talactac: So, Leah and Tor, when you look at your bookings cadence throughout the quarter, and you were watching, I'm sure, like everybody else, the macro volatility and the news around tariffs, and sort of gauging your customer reaction to those tariffs, what was your strategy in regards to that dynamic pricing that you were able to pull levers and things like that to be able to keep that bookings cadence going? So, you know, we, we have said many times that our, our first lever would be to directly engage the consumer in order to stimulate demand. So what we can say is that what we wanted to do during the wave season is to close out 2025.
Speaker Change:
Speaker Change: Leah and tour.
Speaker Change: When you look at your bookings cadence throughout the quarter.
Speaker Change: And you we're watching I'm sure like everybody else, the macro volatility and the news around tariffs.
Speaker Change: And sort of gauging your customer reaction to those tariffs what was your what was your strategy.
Speaker Change: In regards to that dynamic pricing.
Speaker Change: Was April that you were able to do we're able to pull levers and things like that to be able to keep that bookings cadence going.
Speaker Change: So you know we we have said many times that our our first lever would be to directly engage the consumer in order to stimulate demand. So what we can say is that what we wanted to do during the wave season is to close out.
Speaker Change: 25, so you could see where 92%, but that's effectively that means we're sold out. So we can focus our engagement with the consumer for the 2026 and forward season, so and when we.
Leah Talactac: So you can see we're 92% booked, effectively, that means we're sold out, so that we can focus our engagement with the consumer for the 2026 and forward season. So and when we executed that strategy, we did see the consumer response so that April and May bookings were very strong. And it shows our consumer resilience. It shows that when we engage with them directly, they do respond in kind and then they start to book because they do want to travel, they are less impacted by feelings of unemployment or what's happening in the macroeconomic. And that resulted in the bookings.
Executed that strategy, we did see the consumer response, though that April and May bookings were very strong and it shows our consumer resilience and it shows that when we engage with them directly they do respond in kind and then they start to book because they do want to travel they are less impacted by feelings of.
Speaker Change: Placement or or what's happening in the macro economic and that resulted in the booking curve that you see today.
Leah Talactac: Okay, thanks for that.
Speaker Change: Okay. Thanks for that and then.
Torstein Hagen: And then, when, you know, when the when the Ukraine war started, I think you had multiple vessels that were in laid up in Russia that were written off. If there was a some sort of, you know, following of that, of that geopolitical situation, and you were able to stand up Russia, how, how, how ready are those ships to get back into service? What would be the lag there? And how much of sort of a, I don't know, capacity or, or, or revenue percentage would that sort of represent for you today? Well, we have kept the ship shape, so to speak.
Speaker Change: When the when the Ukraine, where started I think you had multiple.
Speaker Change: Multiple vessels that were in layup in Russia that were written off.
If there was a some sort of selling.
Speaker Change: Selling of that of that geopolitical situation and you were able to see.
Speaker Change: Stand up Russia.
Speaker Change: How ready are those ships to get back into service.
Be the lag there.
Speaker Change: And how much of sort of I don't know capacity or or revenue percentage would that sort of represent for you today.
Speaker Change: Well we have a.
Speaker Change: We have kept the ships shipshape so to speak we have five ships in Russia in one in Ukraine.
Torstein Hagen: We have five ships in Russia and one in Ukraine, and we would be ready to go. I think it's more a matter of when would Americans like to go to Russia and Ukraine. My past history says that once things are over, we all like to go to these places. So we are really ready to go with them. They would help our contribution to EBITDA, no doubt about it, and it's, as I've expressed several times. The cruise between Moscow and St. Petersburg is probably my favorite cruise. But there we are.
Speaker Change: And we would be ready to go.
Speaker Change: I think it's more a matter of when when would be the right when would Americans like to go to Russia, and Ukraine, well all of my past history says that once things are over we will like to go to these places. So we are really ready to go with them.
Speaker Change: They they would have a they would help our contribution to EBITDA.
Speaker Change: What about it.
Speaker Change: And it's a <unk>.
Speaker Change: Express several times.
Speaker Change: The crews within most of our incentive Petersburg is broken my favorite crews.
Speaker Change: But there there we are we hope this will be over soon.
Torstein Hagen: We hope this will be over soon. Okay, thanks, everyone.
Speaker Change: Okay. Thanks, everyone.
Speaker Change: Okay. Thank you. The next question will be from Connor Cunningham from Melius Research your line of lives.
Paul: Thank you.
Conor Cunningham: The next question will be from Conor Cunningham from Mellius Research.
Conor Cunningham: Conor, your line is live. Hi, everyone. Thank you.
Speaker Change: Hi, everyone. Thank you lasse.
Leah Talactac: Last year, we spent a lot of time talking about potentially changing how the booking curve would look, basically holding back bookings in advance. And when you look at the 2026 book position, it doesn't seem like that was implemented, but maybe it was. I think that the opportunity was more on having more inventory for WAVE. So if you could just talk about how your booking management system is being tweaked right now, that would be helpful. Thank you. I mean, I wouldn't say we said we would hold back inventory. I think what, you know, we as we look to our booking curves and how it trends and what's going on in the economy and consumer sentiment, we use all those factors to play into how we price.
We spent a lot of time talking about potentially changing how the booking curve with book.
Basically holding back bookings in advance and when you look at the 2026, but position it doesn't seem like that was implemented but maybe it maybe it was.
Speaker Change: That the opportunity was more on having more inventory for ways. So if you could just talk about how your how your revenue might how you're how you're booking management system is being tweaked right now that would be helpful. Thank you.
Speaker Change: Hi, I mean, I wouldn't say, we said we would hold back inventory I think but you know we as we look to our booking curves and how it trends and what's going on in the economy and consumer sentiment. We use all of those factors to play into how we price.
Leah Talactac: And our revenue management system is designed to dynamically price. So as we see things shift, you know, we may move prices up. And I which, you know, is a good reflection of what has we've seen in the marketplace. And I think that's something we will continue for 2026. You know, where we are our booking momentum, we will continue to use all the factors, including our curves to determine how we dynamically price.
Speaker Change: And our revenue management system is designed to dynamically price. So as we see things shift you know we made move prices up and I think we saw that with reverse for 2025.
Speaker Change: Up 2% in rates in the last couple of months, which you know is there.
Speaker Change: A good reflection of what have we seen in the marketplace and I think that's something we will continue for 2026.
Speaker Change: You know, where we are booking momentum we will continue to use all the factors, including our curves.
Speaker Change: To determine how we dynamically price.
Torstein Hagen: Okay, and that has obviously been a lot of talk of price on this call, but your unit costs were actually quite good in one queue. Could you just talk about how you're managing costs in the 25 and 26? It just seems like the opportunity to maintain, you know, a spread between cost and price will remain wide as you go into like the end of this year and into next. So if you just talk about the cost side of the equation, I think that that would be helpful. Thank you.
Speaker Change: Okay and then.
Speaker Change: There's obviously been a lot of talk of price on this call but.
Speaker Change: Your unit costs were actually quite good in <unk> could you just talk about.
Youre managing costs in the 25 and 26, it just seems like the the opportunity to maintain.
Speaker Change: Our spread between our costs.
Speaker Change: Costs and prices will remain wide as you go into it like the end of this year and into next so if you could just talk about the cost side of the equation I think that that would be helpful. Thank you.
Speaker Change: Sure.
Torstein Hagen: So, yeah, please Tor, go ahead. Maybe I could make a comment about the design of our vessels. I think we have made that point a few times, that both the river vessels and the ocean vessels are very efficiently designed, so that we can, for example, in the river vessels, we take 190 gas, whereas most competitors take 164. We have been able to utilize the footprint much, much better. So that, of course, makes us more resilient also when it comes to any inflationary pressures. So we are really in very good shape on the design of the vessel.
Speaker Change: Please go ahead.
Maybe I could make a comment about.
Speaker Change: The design of our vessels I think we have made the point a few times.
Speaker Change: Both the reversals on the ocean vessels are very efficiently designed so that they can for example never vessels may take 190, I guess, whereas most competitors say country six support we have merchant we have been able to utilize the footprint much much better. So that of course makes us more resilient also when it comes to.
Speaker Change: So in the inflows.
Speaker Change: Inflationary pressures so we're really in very good shape on that.
Speaker Change: As a sign of the vessel same on the same on the ocean vessels.
Torstein Hagen: Same on the ocean vessels, no unnecessary things, no casinos, no bathtubs. So you can say we have a very efficient vessel and we have a very good crew. When I say good crew to passenger ratio, it means that we manage to get away with fewer crew than many others and still deliver the best service. So we are really quite well positioned.
Speaker Change: No unnecessary things no.
Speaker Change: <unk> seen those no bulk tubs.
Speaker Change: Instead, we are.
Very efficient.
Russell.
Speaker Change: And we have a very good when is a good crew to passenger ratio means that we managed to get away with fewer crew than many others and still deliver the best service. So we are really quite well positioned.
Leah Talactac: Thank you. But is the view that you that you'll actually be able to bend it negative? Like there's still were some inefficiencies as we were kind of coming out of the pandemic. Like, is there an opportunity to get a little bit better on the cost side in general, from a margin driving standpoint? I think our approach to cost management is really focused on a strong internal discipline. I mean, we are committed to enhancing our margins, and we should see some leverage from scale, which is mostly in our SG&A line. But we do want to iterate that, you know, we will make the right investments into our product to ensure that our product remains the quality it is.
Speaker Change: Thank you, but it is the view that you that you'll actually be able to bend it negative like theres still where some inefficiencies as we were kind of coming out of the kind of like is there an opportunity to get a little bit better on the cost side in general for them from a from a margin driving standpoint.
Speaker Change: I mean, I think our approach to cost management is is really focus on a strong internal discipline.
Speaker Change: We are committed to enhancing our margins and we should see some leverage from scale, which is mostly in our SG&A line, but we do watch it to iterate that we will make the right investments into our product to ensure that our product remains the quality. It is.
Leah Talactac: That being said, you know, we are prudent with expenses. And so we've done a good job thus far managing expenses, and we will continue to do so. All right, okay, thank you.
Speaker Change: That being said you know we are prudent with expenses and so we've done a good job thus far matching expenses and we will continue to do so.
Speaker Change: Right. Okay. Thank you.
Meredith Jensen: Thank you. The next question will be from Meredith Jensen from HS. Meredith, your line is live. Yes, good morning. I was hoping you could speak a little bit about the business outside of Europe in terms of both North America with expeditions, as well as in Southeast Asia, as you introduced more ships in the Mekong, etc., and how that might impact or smooth some seasonality and look at sort of the itinerary length and sort of pricing for those itineraries. Thank My colleagues are pointing to me.
Thank you. The next question will be from Meredith Jensen from HSBC Meredith Your line is live.
Speaker Change: Yes. Good morning, I was hoping you could speak a little bit about.
Speaker Change: The business outside of Europe in terms of both North America with expeditions.
Speaker Change: As well as in Southeast Asia, if you introduce more.
Speaker Change: Ships in the knee corn et cetera, and how that might impact or maybe some seasonality and a look at sort of the itinerary length and sort of pricing for those itineraries. Thank you.
Speaker Change: My colleagues are pointing to me, there's a little bit difficult because I'm in Shanghai today.
Torstein Hagen: It's a little bit difficult because I'm in Shanghai today. We are at the Shanghai office where we I think we have a very interesting opportunity. It takes time, but we are in a unique position. As you know, we have four ships operating on the rivers in Europe with Chinese staff on the catering side, Chinese food, Chinese language. And I think we have a very unique opportunity here.
Speaker Change: We are at the Shanghai office.
Speaker Change: I think we have a very interesting opportunity it's not.
Speaker Change: It takes time, but we are in a unique.
Speaker Change: <unk> position.
Speaker Change: As you know we have four ships.
Speaker Change: On the reverse in Europe.
Speaker Change: Chinese stuffs.
Speaker Change: Drink side Chinese Foods Chinese language.
Speaker Change: And I think we are we have a very unique opportunity there it takes time, but thats.
Torstein Hagen: It takes time, but that's That's one of the areas we are focusing a lot on, not for the immediate future, but of course we will.
Speaker Change: That's one of the areas we are great.
Speaker Change: Neither.
Torstein Hagen: Torstein, can you speak a little bit about the Viking Libra and how this design and sort of step towards improved sustainability for the industry, you know, can have not just for the environment, but operational benefits toward you and, you know, sort of aligns with broader industry trends. If you wouldn't mind just speaking a little bit more about what you're thinking there. As you know, we have, we have, we have spent a lot of time and effort on studying what are the best propulsion solutions for the future. And one never knows what the politicians will eventually decide.
Speaker Change: About the Viking Libra, and how this design and sort of stopped.
Speaker Change: Towards improved sustainability for the industry.
Speaker Change: Can have not just for.
Speaker Change: For the environment, but operational benefits towards you and you know sort of aligns with broader industry trends. If you wouldn't mind, just speaking a little bit more about about what you're thinking there.
Speaker Change: As you know where we.
Speaker Change: We spend a lot of time and effort on the answer.
Speaker Change: Studying.
Speaker Change: The best.
Speaker Change: Propulsion solutions.
Speaker Change: Solutions for the future.
Speaker Change: And.
Speaker Change: We will never knows what politicians will eventually decide.
Torstein Hagen: Often they decide wrong, but we know at least that, theoretically, the LNG solution has not been a good one. But everybody will agree that hydrogen is a clean fuel. And in our case, it is, we will base ourselves on hydrogen fuel cells. We can't base ourselves on a full ship on propelled like this. But we'll have at least so that we can go in and out on Norwegian fjords and be a good corporate citizen. So I think, you know, maybe it's a little bit early, but I think it's the right step to show a direction that things can be done and that you can have true zero emission, and not only PR zero emission vessels, which others do.
Speaker Change: Often that it's wrong, but we know at least.
Speaker Change: We have radically the LNG solution that has not been a good one.
Speaker Change: And everybody will agree the hydrogen as a clean fuel.
Speaker Change: In our case it is.
Speaker Change:
Speaker Change: So we will base ourselves on hydrogen and fuel cells.
Speaker Change: This ourselves.
Speaker Change: Paul ship on.
Speaker Change: Propelled by this but we will have at least so that we can go in and out of Norwegian fjords and be a good corporate citizen.
So I think.
Speaker Change: Okay.
Maybe it's a little bit early but I think it's the right step to show a direction that things can be done and that you can have.
Speaker Change: Zero emission.
Speaker Change: On the PR zero emission vessels, which others are.
Torstein Hagen: So we're very, very proud of it. As a result of, of the hydrogen, the ship is 10 meters, 11 meters longer, I think it is. And that allows us to put a few more cabins on. So you can say the economics from that are also good on the new ships. Apart from that, the new ships are identical to the old ones. We're very proud of the position we have. And we hope that that will be the direction for the future. And if we, if I can complete on the other areas, because you know, we were on, we've been on the Mississippi and we are on Mississippi.
Speaker Change: We're very very proud of it.
Speaker Change:
Speaker Change: As a result.
Speaker Change: Of the hydrogen the ship is 10 meters 11 meters long run I think it is and that allows us to put a.
Speaker Change: Two more cabins on so you can say the economics are.
Speaker Change: From that are also good on the newer ships.
Speaker Change: Beyond that the new ships are identical to the old ones, but we're proud of the position we have and we hope that the sort of direction for the future.
Speaker Change:
Speaker Change: And.
Speaker Change: If I can complete on the other areas.
Speaker Change: Because you know we were on we have been on the Mississippi umbrella Mississippi.
Torstein Hagen: It has taken time to get it right, but I think we're very proud of the product we deliver. And we are now moving ahead on in Egypt where we are, we have six vessels operate now, I think we'll be up to 10. And the product is unbelievably attractive. Expedition product is also extremely well received. extremely well received.
Speaker Change: Second time.
Speaker Change: Right, but I think we're very proud of the product will deliver.
Speaker Change: And.
Speaker Change: We are now moving ahead in.
In Egypt, where we are.
Speaker Change: We have six vessels operate in all I think it will be up the term on the product is unbelievably.
Speaker Change: That's right.
Speaker Change: Expedition.
Speaker Change: The product is also extremely well received.
Speaker Change: Extremely well received.
Torstein Hagen: And I think I mentioned that two years ago, I took my first vacation in 27 years in Antarctica. And in September this year, I'll go to Greenland. and going to the Northwest Passage on one of our expedition vessels. It's very, very attractive.
Speaker Change: Yeah, I think I mentioned that two years ago I took my first vacation in 27 years.
Speaker Change: And I'm sorry to go and then December and September of this year I'll go to.
Speaker Change: Greenland.
Speaker Change: I'm going to the northwest.
Speaker Change: On one of our expedition vessels.
Speaker Change: It's very very attractive.
Torstein Hagen: Now, of course, these are smaller things compared to our ocean and river business, but they are very attractive additional segments. as we are doing in India, by the way, where we will also be operating a vessel on the Brahmaputra. So I think these things add to the attractiveness of being with Viking. We can take people to many different places. Thanks so much for the color. That's super helpful. And hopefully we can all make it on one of those too. Thank you, Tor.
Speaker Change: These are smaller things compared to our ocean on their business, but they are a very attractive additional segments.
Speaker Change: We are doing in India by the way.
Speaker Change: We will also be operating or also on the ground will go through.
Speaker Change: So I think these things.
Speaker Change: So the attractiveness of being whereby we.
Speaker Change: We can take our.
Speaker Change: People too many different places.
Speaker Change: Thanks, so much for the color that's super helpful and.
Speaker Change: Hopefully we can all make it I wanted to ask him. Thank you tore.
Jian Su: Thank you and the last question today will be from Jian Su from BNP Paribas. Jian your line is live. Hi, thanks. You mentioned the world tour is a bit of a mixed benefit to yield in the quarter for Ocean as you went from two tours in 24 to one tour in 25. But this also impacts the booking curve in terms of advanced bookings per PCD. Maybe this is one reason Ocean pricing was so high to start the 25 booking curve before moderating. And then 26, you now have, I think, consistent world tours. Is that something to think about?
Speaker Change: Thank you and our last question today will be from Jan Sue from BNP Paribas, John Your line is live.
Jan Sue: Alright. Thanks.
Speaker Change: You mentioned the world towards a bit of a mixed benefit to yields.
Speaker Change: Quarter for Ocean as you went from two tours in 24 to <unk> 25, but this also impact.
Speaker Change: The booking curve in terms of advanced bookings for PCB and maybe this is one reason our ocean pricing was so high to start the 25 booking curve is for moderating and then 26 you now have I think consistent world tours is that something to think about.
Leah Talactac: Yeah, I mean, I wouldn't say that. That's definitely along the right lines. We did have two world cruises in 2024. So as 25 went out to sell, it did have a greater year over year rate. So that is definitely a fair point. I think this is where we point back to our curves, you know, for rivers and oceans. It does show for the full season, so you could see how or what we would anticipate the season to trend towards from a rate perspective. Great, super helpful. Thank you.
Speaker Change: Yeah, I mean, I wouldn't say that that's definitely along the right lines. We did have two world cruises in 2024, So as 25 went out to sell it did have.
Speaker Change: Greater year over year rate increase so.
Speaker Change: So that is that's definitely a fair point I think this is why we point back to our curves for represent oceans. It does show for the fall season. So you could see how our what we would anticipate a season to trend towards from a rate perspective.
Speaker Change: Great Super helpful. Thank you.
Speaker Change: Yeah.
Speaker Change: Thank you.
Torstein Hagen: And that does conclude our Q&A session today.
Speaker Change: And that does conclude our Q&A session. Today I will now turn the conference back over to Tom Hagen Vikings, Chairman and CEO for closing remarks.
Torstein Hagen: I will now turn the conference back over to Tor Hagen, Viking's chairman and CEO, for closing remarks. I thank you very much for joining us on today's call. As you can tell, we are quite optimistic about this year and next year. But we will meet again in three months time and then we'll see what progress has been made. We are very, very optimistic and very proud of what we Thank you.
Speaker Change: Yes, hi, Thank you very much for joining us on today's call are as you can tell we're quite optimistic about this year and next year.
Speaker Change: But.
Speaker Change: We will meet again in three months' time, and then we'll see what progress has been made there.
Speaker Change: We're optimistic and I'm very proud to walk very accomplished but thank you very much and have a good day.
Speaker Change: Thank you. This does conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation.
Paul: This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.