TORONTO — The post-pandemic rebound didn’t come soon enough for American Queen Voyages (AQV).

The cruise line has announced its immediate closure and the cancellation of all future cruises.

Meanwhile AQV’s parent company, Hornblower Group, is being acquired with millions of dollars in new equity investment.

American Queen Voyages’ American Countess

In connection with Hornblower Group’s new acquisition agreement, AQV will either be sold, or if a sale cannot be achieved, its operations will be wound down. In a statement this morning Hornblower said it is taking this action “because of the underperformance of AQV, which has not rebounded from the pandemic.”

Adam Peakes, President, Hornblower Group, told Travelweek that the financial impact from the pandemic has proven unsustainable. “It is most unfortunate that, despite great efforts by our team, crew and partners, AQV has been unable to fully rebound,” he said.

Peakes told Travelweek: “Please know this decision was not made lightly. We are deeply proud of our employees and crew for the outstanding services they have provided our guests over the years.”

He also praised AQV’s travel agent partners, among others. “We would also like to express our heartfelt gratitude to our guests, partners, agents and the local communities where we call who have each been integral to our journey. It’s been a sincere privilege creating unforgettable experiences and lasting memories with all involved. Thank you for the support and understanding as we navigate through this transition.”

A statement from the company and FAQs can be found at AQVinfo.com.

A STRONG NICHE, BUT IT WASN’T ENOUGH

In operation since 2011, with a focus on river sailings in the U.S. (and later in Costa Rica), AQV had carved out a strong niche, with its beautiful and historic fleet of paddlewheelers.

In early 2019 AQV acquired Victory Cruise Lines, known for their Great Lakes sailings. The M/V Victory I and M/V Victory II ships were renamed to Ocean Voyager and Ocean Navigator in 2021.

In June 2023 AQV announced its intentions to sell Ocean Navigator and Ocean Voyager. The move was part of a strategic decision to refocus its business on river cruises.

“I WAS EXPECTING AQV TO CLOSE DOWN”

Despite AQV’s strong reputation in years past, the company had shown signs of distress recently, and there were some in the industry who saw this coming.

As one industry expert told Travelweek: “I was expecting AQV to close down … they ran it into the ground, and the issue is there is still a parent company (Hornblower Group) that could have paid its bills. Lots of travel advisors and clients will have to spend lots of time and effort trying to get compensation.”

A story this morning in USA TODAY cites the cancellation of at least three AQV voyages earlier this year, and delayed commission payments.

TICO CLAIMS PROCESS

Travelweek also reached out to TICO for their take.

Registrar Dorian Werda told Travelweek: “Consumers who are affected by the closure of American Queen Voyages and purchased their travel services from a TICO registered travel agency or website may file a claim against the Ontario Travel Industry Compensation Fund. There is a legislated six-month filing deadline, which will be on August 21, 2024. There is a maximum claim limit of $5,000 per person and an event limit of $5 million. TICO will publish a closure advisory with the steps consumers need to take to file their claim. This information will be posted on TICO’s website and emailed to all registrants.”

TRAVEL ADVISOR COMMISSIONS

Travelweek asked AQV about travel advisor commissions, and was told that agents are asked to use the resources listed in the FAQ section at ACVinfo.com:

For further information and FAQS: Additional information, including FAQs, is available at www.AQVinfo.com, or by calling toll-free (888) 202-5784, or (747) 288-6437 for calls originating outside of the U.S. or Canada.

For refund submissions: “Hornblower has ensured that appropriate information and resources are available for AQV customers. For information about AQV refunds, please visit www.AQVrefunds.com.”