American Queen Voyages (AQV) announced the closure of the company, citing the inability to return to pre-COVID operations as the cause of significant monetary problems.
“Despite our best efforts, demand for overnight cruises has not recovered following the pandemic, and AQV has become financially unsustainable,” AQV said in a statement.
AQV’s seven-ship fleet set sail in 2011. According to Cruise Industry News, the American Queen, the first boat the company obtained, was considered to be the largest river steamboat ever built, with a capacity of 436 guests. This boat was primarily used for cruising along the Mississippi River.
“We are deeply proud of our crew and the outstanding travel experiences and service we have provided to our guests,” the company said in a statement. As we reflect on the journey we have shared over the years, we are filled with gratitude for the privilege of serving our guests, partners, and agents and for being part of our incredible local communities.”
The Mayors of the Mississippi River Cities and Towns Initiative (MRCTI) issued a statement following the announcement noting the significant economic opportunity on the Mississippi River “generating over $37.4 billion in annual revenue supporting over 517,000 jobs.”
The river cruise industry along the Mississippi has dominated the market share of the U.S. river cruising economy. According to Grand View Research, the river cruising industry is expected to grow at a compound annual growth rate of 20.8 percent from 2023 to 2030,” MRCTI said.
While AQV said demand for overnight cruises has not recovered since the pandemic, MRCTI cites AAA travel data saying domestic river cruise bookings for 2022 surpassed pre-pandemic levels by 25 percent.
“We see an overall river cruising industry with significant opportunities and growth potential into the rest of this decade and beyond,” MRCTI said. “In some of our cities, the burgeoning river cruise industry and all the third-party services it supports can account for over 40 percent of that city’s economy and we only see demand increasing.”
MRCTI anticipates a number of cruise companies to take advantage of AQV’s closing, however they added “acquisition of assets and reorganization remain as possibilities.”
As a result of the closure, all cruises have been canceled, and customers may apply for a refund through their website.