American Queen Voyages has shut down just two weeks after this site reported trouble. Now it’s unpaid small business owners and fired employees left holding the bag.
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*Note* While I personally own a travel agency, we’ve sold just one American Queen Voyage two years ago for which we were paid long ago.
American Queen Voyages Closes Its Doors
As reported here on Live And Let’s Fly just two weeks ago, American Queen Voyages, one the largest river cruise operators in the United States wasn’t paying commissions to travel agents and every major consortium halted sales of the line in the last few weeks. Some readers reached out to ask if there was a cashflow issue, a bankruptcy afoot, or bad management. Due to its acquisition by another firm, I thought it was simply bad management.
I was wrong.
“Despite great efforts by our team, crew and partners, American Queen Voyages (AQV) unfortunately has been unable to rebound from the effects of the pandemic. The overnight cruise industry was especially affected by changes in travel preferences and, as a result, AQV has become financially unsustainable.
We are therefore shutting down the business, and all future AQV cruises have been cancelled.
We are deeply proud of our crew and the outstanding travel experiences and service we have provided to our guests. 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.
It has been an honor to bring joy to so many lives, and we are deeply touched by the relationships we have formed and the memorable experiences we have created.
We sincerely regret any inconvenience this decision causes. Our goal is to ensure a smooth process for all AQV stakeholders.” – AQV
Hornblower merged American Queen Steamboat Company with Victory Cruises in September of 2021. The company stated that it never recovered following the pandemic and despite significant efforts demand for overnight cruises has not recovered. I find that remarkable given that most cruise lines are having their best years ever even as they add even more supply to the market.
“Now, American Queen Voyages has declared bankruptcy. Travelers who request a refund are warned they will first receive a denial notice since “AQV has filed for Chapter 11 to conduct its business shutdown and is not making reimbursement payments directly.” Customers must then submit the refund request to Argo Surety, which has insured the cruise line.
“You should expect to be fully refunded for deposits you have paid on cancelled AQV cruises,” the company wrote.” – Travel + Leisure
Small Business Owners Remain Unpaid, Employees Fired
The company has terminated its more than 500 employees and cancelled sailings. Unemployment insurance will help those employees somewhat as they look for new work, though the support will not match what they were making. Luckily for them, cruise lines throughout the United States and many high-end hotels are hiring and they should land on their feet relatively quickly.
However, for travel agency owners, many of them very small businesses and even sole proprietors will likely lose out on their missing commissions. The $121MM company has stiffed these entrepreneurs and commission-based employees who can file as a creditor but will remain low on the list due to other vendors with higher debts taking precedence.
Travel agents rely on commissions to pay themselves, their bills, and failing to pay them over the last 4-6 months while accepting the bookings is essentially robbing the smallest constituents in the sales process. They also have the least agency and voice. If AQV chose not to Google, the search giant would shut off their advertising account and put them into collections. A small-time agency can’t do the same, they can’t afford to be anything but cordial while they wait for their money, and they can’t afford to sue them either.
If you’re going to go out of business, fine. It happens all the time, and frankly, it’s nothing to be ashamed of, some experiments work and some don’t. But stringing out individual travel agents and small business owners is about as low as it gets.
Here’s an AQV resource for submitting an invoice but I don’t hold hope it will be paid:
I have an outstanding invoice. How can I submit that?
“Please CLICK HERE or call toll-free (888) 504-8055, or (747) 263-0163 for calls originating outside of the U.S. or Canada.”
A Hole In The Market
American Cruise Line, a separate unrelated company, remains in business offering service to clients looking to river cruise closer to home. Other river cruise operators continue to run ships in the United States like Viking. Still, there is a hole in the market that some operator should fill. Maybe that will be American Cruise Line or maybe it will be others.
AQV operated a split product of very large steamboat-style paddle boats and one very new (2021) and reasonably advanced expedition vessel capable of reaching some of the most treacherous environments throughout the world. I don’t believe an American replacement is needed for Mississippi cruises on the same level as AQV operated, but the market is ripe for innovation.
In theory, it’s a great product:
- Travelers experience a city in full, even well into the late hours of the night
- They eat breakfast and dinner onboard
- They go to bed in a 4-5 star hotel and wake up in a new city with a full day to explore
But it’s been a tough sell in the States without the cache of cities like Berlin, Paris, and Brussels compared to Chattanooga, and Memphis. Still, for the right operator, with the right product, there are a lot of American markets for which this makes sense and now there’s less risk to enter it.
Conclusion
American Queen Voyages has officially filed for bankruptcy and does not appear interested in operating going forward. Customers will be made whole by its insurer, but employees will be out on the bread line. The unpaid commissions for travel agents that have stretched for half a year will not likely be paid, though I encourage unpaid agents and agencies to at least file an attempt to collect something on the debt.
What do you think?
