What You Need to Know About Safeguarding Your Cruise Booking After a Renowned River Cruise Line Closes

American Queen Voyages, which revitalized the iconic American Queen paddle wheeler on the Mississippi River in 2012, has shut down operations.

“Despite the tremendous efforts of our team, crew, and partners, AQV has struggled to fully recover from the pandemic’s impact,” stated Adam Peakes, president of Hornblower Group, the parent company of American Queen Voyages, in a message shared with Dinogo. “Consequently, the financial burden has become unmanageable, leading us to make the tough choice to sell the company, or if that isn’t feasible, to wind down its operations.”

This announcement was made through a press release on February 21. At that time, the company owned six vessels, including four paddle wheelers operating on the Mississippi, Columbia, and Snake rivers, along with two coastal cruisers that had navigated the Great Lakes. AQV also had a long-term charter for an expedition ship that sailed through Alaska’s Inside Passage. None of the ships had passengers on board at the time, and all upcoming sailings were immediately canceled.

Earlier this month, rival river cruise operator American Cruise Lines announced to Dinogo that it successfully bid for the river vessels of American Queen Voyages, which include the 436-passenger American Queen, the 245-passenger American Countess, the 166-passenger American Duchess, and the 223-passenger American Empress. “We anticipate sharing more details once the Hornblower Holdings bankruptcy process reaches this stage,” ACL stated. Alongside ACL, Viking remains the only other significant operator offering overnight passenger cruises on U.S. rivers and lakes.

Prospective cruisers are now being directed to the American Queen Voyages website, where they can request a full refund for all payments made to date.

Annie Jones, owner and travel advisor at Telos Travel, noted that in situations like this, the process of obtaining a refund “is frequently lengthy and filled with frustrations.”

For guests of American Queen Voyages, the reimbursement process involves three steps, starting with submitting a claim form on the cruise company’s website, which requires details such as reservation number, travel dates, and payment method. Due to the company's Chapter 11 bankruptcy filing, American Queen Voyages will not issue direct refunds, instead sending customers a denial notice to submit to Argo Surety, the insurance provider handling refunds.

American Queen Voyages is not the first cruise line to shut down due to the pandemic. In February 2022, luxury cruise line Crystal Cruises halted operations abruptly (with some crew members remaining aboard ships seized over unpaid fuel bills). A year and a half later, after being acquired by the luxury, small-group tour operator Abercrombie & Kent, the cruise line was rebranded as simply Crystal. Additionally, last year, Life at Sea Cruises, which marketed a three-year, around-the-world cruise concept, canceled its inaugural voyage, leaving eager passengers ready to transition their lives to the ocean stranded.

These recent events serve as a warning for travelers.

How to Safeguard Your Cruise Booking

“To protect your travel investment from a cruise line going under, the best approach is to buy travel insurance,” advised Todd Smith, founder and president of AdventureSmith Explorations, a small-ship adventure cruise agency.

Lauren Gumport, vice president of communications and brand at Faye Travel Insurance, supported this view, emphasizing that when booking a cruise, it’s essential to secure a travel insurance policy with trip cancellation coverage from a third party—purchasing through the cruise line often won’t safeguard you in case of insolvency.

“Eligible reasons for trip cancellation can include the financial insolvency or default of an organization that provides travel arrangements, like a cruise line,” Gumport explained. “This means your insurance policy’s trip cancellation coverage could reimburse you for up to 100 percent of non-refundable trip costs if the financial default occurs more than 14 days after the start date for your trip cancellation benefit.”

Smith also suggested another strategy: book with a reliable agency that can handle the complexities of retrieving your funds if a cruise line fails, but more importantly, one that stays informed about industry developments.

“We maintain very strong relationships with our partner operators, aren’t afraid to ask tough questions, conduct thorough research on behalf of our clients, and can often detect when something isn't right,” Smith stated. “Ultimately, our goal is to guide clients toward the operators, ships, and itineraries that will deliver an experience that surpasses their expectations.”