Viking Cruise Line Went Public, Will They Offer a Shareholder Benefit?

Viking Cruises went public on May 1, 2024.  A cruise line going public was nearly unthinkable during the pandemic, but now that cruising is back with record numbers of bookings, this is a major step for the industry.  It’s also a major step for Viking which began back in 1997. On May 1, 2024 offered more than 64 million shares at an initial price of $26.15 per share or a total offering of just over $1.673 billion according to the Viking Investor Relations press release.  This site is dedicated to cruising smartly and saving money but it is not providing investment advice.  So this had me asking that when Viking Cruise Line went public, will they offer a shareholder benefit?

A Quick History of Viking Cruises

Viking Cruises, founded by Torstein Hagen in 1997, emerged as a pioneering force in river cruising, popularizing European river cruising with its signature Scandinavian design and immersive experiences. The company initially focused exclusively on European river journeys, introducing travelers to the Danube and Rhine rivers before expanding to other iconic waterways. Building upon this success, Viking expanded its offerings to ocean cruises, launching its first ocean-going vessel, the Viking Star, in 2015.

Viking Cruises today boasts a fleet of more than 80 river vessels and ocean ships. The river fleet comprises a stunning number of modern, Scandinavian-inspired longships, meticulously crafted to navigate Europe’s iconic waterways with grace and style. On the high seas Viking’s ocean ships have a similar look and feal albeit on a much larger scale than their river fleet.  The ocean ships are now plentiful in numbers and nearly identical in construction and design including ships like the Viking Star, Viking Sea, Viking Sky, and more covering the world’s oceans. From their roots in the majestic fjords of Norway to the sun-drenched shores of the Caribbean and to more exotic ports of call including Asia and South America.

Most recently Viking has joined the expedition cruising game with the introduction of Viking Expeditions in 2022 with Octantis and Polaris taking passengers to the polar regions.

What Do Viking’s Competitors Offer?

For those that are not familiar, a shareholder benefit is typically an onboard credit (“OBC”) or discount for investors that hold a minimum number of shares with their cruise line (or in many cases the parent company of your cruise line).  This is common across all three of the major US based cruise conglomerates.

So which cruise companies currently offer shareholder benefits and what are those benefits?  Here’s a brief summary for the major US based companies as well as links to their websites that describe how to request the benefits:

Carnival Corporation, the parent company of cruise brands including Carnival Cruise Line, Holland America, Princess Cruises, Cunard, and Seabourn. For owning 100 or more shares of Carnival Corporation stock, you will receive OBC of $50 for cruises of 6 nights or fewer, $100 OBC for cruises of 7-13 nights, or $250 OBC per cabin for cruises of 14 or more nights.

Royal Caribbean Group, the parent of Royal Caribbean and Celebrity offers a shareholder benefit on most of their cruises with the notable exception of Celebrity’s Galapagos cruises (which are all-inclusive) and any charter or themed cruises.  You can read about our past sailing on Celebrity Flora where we had no need for onboard credits.  Like Carnival Corporation you need to hold 100 shares of Royal Caribbean Group stock to receive $50 OBC for sailings of 5 or fewer nights, $100 OBC for sailings of 6-13 nights, and $250 OBC for sailings of 14 or more nights.

Norwegian Cruise Line Holdings, the parent of Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas.  Like Royal Caribbean Group charter sailings are excluded from their Shareholder Benefit program and like both Royal and Carnival you need to own at least 100 shares of Norwegian Cruise Line Holdings stock in order to receive OBC.  On sailings of 6 or fewer nights you will receive $50 OBC, for sailings of 7-14 nights the credit goes up to $100, and for sailings of 15 nights and longer it tops out at $250 OBC.

Will Viking Offer a Shareholder Benefit?

So the question I have is if or when will Viking join their cruise line peers on the New York Stock Exchange in offering a Shareholder Benefit?  I think the answer will likely be yes given how consistent it is across the industry; however, there’s nothing posted currently on the Viking website or noted in the press releases around their NYSE listing.

If I were to guess it will probably look a lot like the three programs above except Viking may forgo the short-cruise tier with a typical $50 OBC as Viking rarely offers cruises shorter than 7 nights.  Most of their river cruises are 7 nights while most of their ocean voyages are significantly longer than 7 nights there are a handful of 7 night itineraries.  I would guess that they will probably offer $100 OBC for itineraries under 14 nights and $250 OBC for itineraries 15 nights and longer.

$250 in OBC can be a nice thing to have, but it’s not a reason to purchase stock worth many times this amount.  For some it may make sense, but others should steer clear.  Ultimately purchasing cruise line stock is an investment decision that may also provide a nice perk.

What do you think?  Now that Viking Cruise Line went public, will they offer a Shareholder Benefit?  If so, how do you think that it will be structured? Share your thoughts.  – Michael

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