A Member of Pat McKeough’s Inner Circle recently asked for his advice on a leading global travel provider operating destination-focused river, ocean, and expedition cruises tailored to curious travelers aged 55 and older.
Pat likes the firm’s undisputed market leadership position in premium, culturally immersive travel. Its core demographic (affluent, retired baby boomers) remains economically resilient, enabling predictable booking cycles and superior pricing power. However, Pat notes the business model is capital-intensive and vulnerable to macro travel disruptions, geopolitical tensions in destination ports, currency volatility, and seasonal environmental events such as low European river levels that can force itinerary alterations.
Viking Holdings Ltd. (Symbol VIK on New York; www.ir.viking.com) operates luxury river, ocean and expedition cruises.
The company was founded in 1997 by CEO Torstein Hagen. It started with four river ships in Europe. Hagen’s intent was to provide travel that was more destination-focused and culturally immersive. In 2015, Viking entered the luxury ocean market. Today, it’s also a global leader in experience-focused travelling.
The company went public on April 30, 2024, issuing 73.6 million shares at $24 each.
Viking operates 103 vessels worldwide, including 89 river vessels, 12 ocean ships and 2 expedition ships, covering 7 continents, 85 countries and 500 ports. In 2025, the company’s ships carried 791,582 passengers, who spent a total of 7.4 million cruise days onboard.
River Segment: The company’s original business, providing destination-focused river cruises for English-speaking passengers.
Ocean Segment: Launched in 2015, this segment offers luxury ocean cruises on small vessels (typically around 900 passengers) for English-speaking guests. It currently holds a 24% share of the luxury ocean market.
Expeditions: Small-ship cruises to remote areas like Antarctica, where Viking holds roughly 12% of the market.
The Ocean and River segments each generate 50% of the gross income.
The company has a committed order book through 2030, including plans to take delivery of 11 additional ships by 2031 and potentially the world’s first hydrogen-powered cruise ship in 2026.
In October 2025, Viking celebrated reaching a 100-ship fleet with a global ceremony naming nine new river vessels across six countries.
In January 2026, Viking entered a multiyear marketing partnership (through 2030) with the PGA Tour, becoming the “Official Cruise Line of the PGA Tour and PGA Tour Champions.” This partnership aims to connect Viking’s experiential travel with golf fans through brand placement on Tour platforms.
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Viking’s revenues and earnings surge by double digits
In the three months ended June 30, 2026, Viking’s revenue rose 16.5%, to $2.19 billion from $1.88 billion a year earlier. Revenue rose due to higher capacity passenger cruise days and increased revenue per passenger cruise day.
Excluding one-time items, earnings rose 33.8%, to $587.4 million, or $1.31 a share, from $439.0 million, or $0.99 a share. The earnings jump reflected fleet expansion, higher passenger yields, and operational efficiencies.
Investors should note that while Viking’s ocean, expedition and Mississippi products operate year-round, the primary cruising season for its river product is from April to October.
Additionally, the company’s highest occupancy occurs during the Northern Hemisphere’s summer months. It recognizes cruise-related revenue over the duration of the cruise, and it expenses its marketing and employee costs when the related costs are incurred. As a result, most of Viking’s revenue and profits are historically earned in the second and third quarters of each year.
Viking needs consumer confidence to remain high in order to continue delivering improved results. While the demographic target is impressive—55 years old and over, the fastest-growing population segment, which accounts for 70% of U.S. wealth—advance bookings appear to be slowing.
Meanwhile Viking remains focused on the places its cruises visit, unlike its competitors, which sometimes market their ships as the destination. This means lower costs to build and maintain its ships.
The company’s shares have jumped 253.9 since the IPO and over 37% this year. The stock now trades at 25.6 times the $3.32 a share forecast for 2026.
Recommendation in Pat’s Inner Circle: Viking Holdings Ltd. is okay to hold.
