Atlantic Marketing Journal Atlantic Marketing Journal
Volume 13 Number 1 Article 3
April 2024
A Review of River and Small Ship Cruising in the Mid-Atlantic, A Review of River and Small Ship Cruising in the Mid-Atlantic,
Northeastern United States, and Eastern Canadian Markets Northeastern United States, and Eastern Canadian Markets
Mark Mitchell
Coastal Carolina University
Michael Dowd
Coastal Carolina University
Paul Clark
Coastal Carolina University
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Recommended Citation Recommended Citation
Mitchell, Mark; Dowd, Michael; and Clark, Paul (2024) "A Review of River and Small Ship Cruising in the
Mid-Atlantic, Northeastern United States, and Eastern Canadian Markets,"
Atlantic Marketing Journal
: Vol.
13: No. 1, Article 3.
Available at: https://digitalcommons.kennesaw.edu/amj/vol13/iss1/3
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A Review of River and Small Ship Cruising in the
Mid-Atlantic, Northeastern United States, and Eastern
Canadian Markets
Mark Mitchell, Coastal Carolina University, mmitchel@coastal.edu
Michael Dowd, Coastal Carolina University
Paul Clark, Coastal Carolina University
Abstract – Currently, there is a lack of cruise industry related articles in the tourism, business, and
marketing literature. This manuscript provides an overview of river and small ship cruise activity
in the Mid-Atlantic, Northeastern United States and Eastern Canada in three geographic clusters
and waterways: (1) Mid-Atlantic Coast; (2) New England Coast and Canadian Maritimes; and (3)
Eastern Canada & the Saint Lawrence Seaway. The existing cruise options in each market are
identified. The operating characteristics of this region that aid and challenge cruise operators are
then explored. Finally, the Product-Market Growth Matrix is used to present growth strategies
available to cruise line operators as they seek to expand the reach of their industry following the
COVID pandemic.
Key Words – river cruises, small ship cruises, cruise industry, cross-border travel
Relevance of Marketing Educators, Researchers, and/or Practitioners – Many consumers are
familiar with ocean cruising and the topic has received much research attention. By contract, small-
ship or river cruising has received limited research attention, particularly in the United States and
Canada. This manuscript presents an overview of the industry along with a model to plan for
growth in the future.
Introduction
A consumer interested in a cruise vacation that explores the New England coast has many options.
For example, Carnival Cruise Line offers itineraries ranging from 4-days to 14-days leaving from
Norfolk, VA; Baltimore, MD, and New York, NY. A 4-day cruise leaves New York, travels to one
port (Saint John, New Brunswick Canada) and returns to New York. The 8-day voyage from
Norfolk includes stops in Maine and Nova Scotia. Conversely, a 14-day cruise from Baltimore
includes 6 days at sea with port visits to two locations in Greenland and three locations in Canada
(Newfoundland and Nova Scotia, Canada) (Carnival, 2022). Other large ship cruise lines (such as
Royal Caribbean, Norwegian, Holland America, Princess Cruises, and others) also compete in this
market.
Vacationers who choose a large cruise ship experience are attracted by the large list of
options a larger ship can provide: more dining options; more entertainment options; more pools
and spas; more activities; more children’s programs; more alone time; and more flexibility to
create a unique cruise experience just for you (Bogle, 2021). However, the ‘cost’ of having more
options includes longer treks to each activity, dining option, or entertainment venue, larger crowds
to contend with, and the presence of many obstructed views of the ocean or waterway given the
large ship cabin layouts.
Hines (2021) noted that many cruise passengers find the smaller ships with few passengers,
including river cruises, to be preferable to the larger ocean ships while cruising during the COVID
era. Smaller ships can access ports that cannot accommodate the larger ocean vessels. These
smaller ships can take their passengers right into the center of a port city to provide a closer
connection to the local culture. By operating closer to land, passengers can see the aesthetic beauty
of the coastline, which is part of the draw of cruising areas such the New England coast and the
Canadian Maritime provinces.
The purpose of this manuscript is to provide an overview of river and small ship cruises
with a focus on the geographic markets and waterways of the mid-Atlantic, the northeastern United
States and eastern Canada. First, an overview of river cruising is offered, including a comparison
to larger vessel ocean cruising. Second, the current state of the United States and Canadian river
and small ship/expedition cruise industry is provided. Third, a listing of current (and announced)
river and small ship cruises in the northeastern United States and eastern Canada is presented.
Finally, some of the operating characteristics of the region that may aid and/or challenge cruise
operators are offered.
An Overview of the River/Small Ship Cruise Industry and
Experience
Scholarly research does not provide a formal definition of a river cruise. Broadly put, a river cruise
is a multi-day voyage taken for leisure purposes on a river vessel along navigable rivers or inland
waterways where passengers spend the night on the vessel (von Balen et al., 2014). The vessels
may also pass through connected lakes and rivers, including seacoasts if the waterways are
connected (Bosnic and Gasic, 2019). Therefore, excursions such as a day-trip on Boston Harbor
or a 4-hour whale watching cruise from the Gloucester, MA area not included in this study.
Currently the river cruise industry is heavily concentrated in Europe, which serves
approximately 90% of river cruise passengers. The majority of these cruises are on the Danube
and Rhine rivers and their tributaries. In 2018, there were 1.64 million river cruise passengers in
the European Union compared to 7.8 million ocean cruise passengers (or, river cruises are roughly
about 20% the size of the ocean cruise market) (Tomej and Lund-Durlacher, 2020). Steinbach
(1995) notes that European countries offer extensive networks of navigable waterways traversing
through historic towns with castles, wineries, and monasteries located along the waterways.
Cruises get the added benefit of visiting multiple countries (and experiencing multiple cultures)
all in one itinerary.
A river or small ship cruise vacation allows the traveler to unpack just once for their
vacation and to never change hotels rooms. They travel on smaller vessels with 100-400 passengers
to smaller destinations which allows for a deeper engagement with the local cultures they
encounter. Smaller cruise ships can also help foster a more personal connection between
passengers and with the crew/staff. River and small ship cruises are typically offered as all-
inclusive vacations that combine staterooms, meals (and alcohol), guest lectures and enrichment
programs, entertainment, and most shore excursions for one price. Many cruises include a pre-
cruise hotel stay and transfers to the ship. The pace is casual as is the dress code. Shore excursions
tend to be cultural or educational, relating to such topics as history, military history, national parks,
etc.). Passengers seeking the above travel experience in the northeastern United States and eastern
Canada can avoid flying overseas (spending both money and time) to begin their cruise vacations
(section relies heavily on Zable, 2022), although international visitors to the United States and
Canada can also participate in these itineraries. Table 1 provides a broad comparison between the
smaller ship river and coastal waterway cruises and larger-ship ocean cruises.
Table 1: A Comparison of River and Ocean Cruises
River and Small Ships
Ocean Ships
Port location
Often in center of city
Often in outskirts of city
Ship length
300-400 feet
1,000 feet or more
Number of decks
4-6
10-16
Number of passengers
100 – 400
2,500-5,000
Boarding process
Less cumbersome
More cumbersome
Cost
More expensive per day
Less expensive per day
Meals
Included
Included
Alcohol
Included
Additional Charge
Port Cities
Smaller communities
Larger cities
Cabins
Fewer options
More options
Number of restaurants
1-2
10 or more
Number of bars
1-2
Many more
Entertainment options
Fewer
Many more
Health spa
Not common, can get services
in port cities
Commonly available
Casino gambling
Not available
Commonly available
Motion sickness
Less likely to occur
More likely to occur
On-land excursions
Included
Additional charge
Passenger age
Tend to be older
Tend to be younger
On-land scenery
More interesting
Less interesting
On-board shopping
Limited
Prevalent
Source: Draws heavily from Woodruff and Woodruff (2022).
River Cruise Passenger Profile
Approximately 80% of river cruise passengers are Baby Boomers (i.e., those born between 1946-
1964) with the remaining 20% typically being people in their 50’s attracted by the addition of yoga
rooms, gyms and unique gathering areas to modern riverboats. These target markets are active
travelers with the time and money needed to explore a region at the slower pace of the riverboat
(Sampson, 2020). The river cruise industry tends to follow a one-port-per-day model, with ports
typically visited in the daylight hours for a specific amount of time. Some researchers have noted
that this model may need to be modified in the future as the next generation of consumers (i.e.,
Generation X) reports a preference for a less structured cruise experience with docking times
expanded and overnights stays in select ports which can allow for more interaction with the local
community (Cooper et al, 2019).
To continue to expand the market for river cruises beyond its primary Baby Boomer
market, cruise operators are currently focused on family travel, small group travel (such as
girlfriend’s get-away cruises) and passenger willingness to spend more on upper-level cabins. In
the post COVID market, many consumers are attracted to the smaller ships cruising closer to home
and the desire to reconnect with family and friends (Edenedo, 2022).
Waterways of the Mid-Atlantic, Northeastern United States and
Eastern Canadian Markets
There is much similarity between river cruises and small ship cruises and the passengers attracted
to them. Many cruise lines (such as American Cruise Lines or American Queen Voyages) provide
both experiences in a variety of locations. In this geographic region, however, there are fewer
rivers included in the overall regional transportation system compared to other regions (such as
the Mississippi River, Ohio River, or the Columbia and Snake Rivers). The Hudson River (New
York) along with the St. Lawrence River and Ottawa River in Canada, provide river cruising
opportunities. The remainder of the cruises offered in this region are the coastal waterways tied to
the Atlantic Ocean and its associated Bays (e.g., Chesapeake Bay; Cape Cod Bay; Massachusetts
Bay; Penobscot Bay; Bay of Fundy; and many others), Gulfs (e.g., Gulf of Maine; Gulf of St.
Lawrence) and the Intercoastal Waterway along the east coast of the United States.
At the time of this writing, cruise lines are working with boat manufacturers to develop
new boat designs that will allow the development of new cruise experiences by allowing access to
waterways that cannot be sailed with existing ships. For example, American Cruise Lines has plans
to introduce up to twelve catamaran-style twin-hull river boats over the next several years. The
design allows the vessel to cruise in more shallow waters as well as ocean coastal waterways along
the East Coast, Pacific Northwest, and Alaska (Jainchill, 2022). This may allow the development
of cruise excursions along the Connecticut River, the Delaware River, or the Penobscot River in
the future (see American Rivers (2022) for a description of these waterways).
The Current State of the U.S. and Canadian River and Small Ship
Cruise Industry
There are currently 12 cruise lines offering river and small ship cruises in the United States, Great
Lakes, and Eastern Canada. These firms vary in the size of their fleets, variety of cruises offered,
and variety of markets served. There are 11 distinct geographic clusters of waterways in the United
States and Canada: (1) Lower Mississippi River; (2) American Heartland and Tributaries to the
Mississippi River; (3) Upper Mississippi River; (4) Great Lakes & St. Lawrence Seaway; (5) New
England Coast and Canadian Maritimes; (6) Mid-Atlantic Coast; (7) South Atlantic Coast; (8)
Pacific Northwest – Puget Sound; (9) Pacific Northwest – Snake & Columbia Rivers; (10)
California Coast; and (11) Alaska & British Columbia Coast.
The focus of this manuscript is the markets and waterways of the mid-Atlantic and
northeastern United States and eastern Canada. A review of current cruises serving this market
reveals there are four itinerary groups: (1) Mid-Atlantic; (2) New England – All USA Ports, (3)
Canadian Maritimes and St. Lawrence River/Seaway (No USA Ports); and (4) Connecting the
USA and Canada with both USA and Canadian Ports). Table 2 shows the major cruise providers
in each market.
Table 2: Cruise Lines Serving Each Market and/or Itinerary Type
Mid-Atlantic
Cruises
Northeastern USA
(no Canadian
Ports)
Connecting USA
and Canada (Both
USA and
Canadian Ports)
Canadian
Maritimes and St.
Lawrence River
(No USA Ports)
American Cruise
Lines
X
X
American Queen
Voyages
X
Hapag-Lloyd
Cruises
X
Lindblad
Expeditions
X
X
Pearl Seas Cruises
X
Ponant Cruises
X
Silverseas Cruise
Lines
X
St. Lawrence
Seaway Cruise
Lines
X
Tauck
X
Current Small Ship Cruises Offered in Each Geographic Market or
Itinerary Type
Mid-Atlantic Coast
The three most common embarkation/debarkation ports of the mid-Atlantic region are: New York,
NY; Baltimore, MD; and Annapolis, MD. Fall foliage cruises on the Hudson River tend to start
and end in New York City in the month of October. Cruise operators (such as American Cruise
Lines) package history-focused tours in this region under such names as “American Revolution
Cruise,” or the “Chesapeake Bay Cruise” and visit such historically important cities as
Williamsburg, VA, Yorktown, VA, Annapolis, MD, and others. Given the weather in the mid-
Atlantic region, tours tend to run from March to December. Here is a list of the most common port
stops in this region across all operators:
• West Point, NY
• Catskill, NY
• Albany, NY
• Norfolk, VA
• Williamsburg, VA
• Yorktown, VA
• Washington, D.C.
• Mount Vernon, VA
• Cambridge, MD
• St. Michaels, MD
• Crisfield, MD
• Tangier, VA
Table 3 provides a look at the itineraries available to mid-Atlantic cruisers.
Table 3: Cruise Offerings in Mid-Atlantic States
Cruise Line
Cruise Name
Cruise Length
# of Passengers
Cruise Embark and
Debarking Location
American Cruise
Lines
Hudson River Cruises
8 Days / 7 Nights
100-170 Passengers
New York, NY to
New York, NY
Lindblad Expeditions
Exploring the Hudson
River: Fall Colors,
Conservation &
Creativity
8 Days / 7 Nights
62 Passengers
New York, NY to
New York, NY
American Cruise
Lines
American Revolution
11 Days / 10 Nights
109-170 Passengers
Baltimore, MD to
Baltimore, MD
American Cruise
Lines
Chesapeake Bay
6 Days / 5 Nights
100-170 Passengers
Baltimore, MD to
Annapolis, MD (and
reverse)
Lindblad Expeditions
Wild Chesapeake
Escape
6 Days / 5 Nights
62 Passengers
Annapolis, MD to
Annapolis, MD
Northeastern United States
The port city of Boston, MA is the hub of New England cruises for both ocean cruises and small
ship cruises. According to the Massachusetts Port Authority, Boston’s Flynn Cruiseport generates
$135.5 million in annual economic impact and supports 2,200 jobs in the local community. In
2022, the Port of Boston welcomed 125 ships across 19 different cruise lines. Four ocean cruise
lines (Norwegian, Holland America, Celebrity, and Royal Caribbean) starting using Boston as
homeports for its ships for at least part of the year (Gove, 2022). Gus Antorcha, President of
Holland America Line, describes the appeal of this cruise market as follows: “Our summer sailings
are popular with couples, families and friends that love the rich history of this region, while the
fall foliage departures attract those looking for a bucket-list experience with the beautiful colors
of the season” (Gove, 2022).
The cruise industry is important to the smaller port cities of the region as well. Bar Harbor,
Maine expected to welcome 175 ships (typically for day visits) while Portland, Maine projected
95 cruise ship calls in 2022. According to a 2019 study by the Maine Office of Tourism, cruise
passengers in Maine spent approximately $70 each at every port they visited (Maguire, 2022).
Cruises in this region tend to run from May to October. Here is a list of the most common port
stops in this region across all operators:
• Portland, ME
• Bar Harbor, ME
• Gloucester, MA
• Newport, RI
• Rockland, ME
• Providence, RI
• Martha’s Vineyard, MA
• Nantucket, MA
Table 4 provides a look at the itineraries available to cruises visiting only U.S. ports in the
New England while Table 5 presents the small ship or river cruises visiting with both U.S. and
Canadian ports of call.
Table 4: Cruise Offerings in Northeast United States (no Canadian Ports)
Cruise Line
Cruise Name
Cruise Length
# of Passengers
Cruise Embark and
Debarking Location
American Cruise
Lines
Cape Codder Cruise
8 Days / 7 Nights
109-170 Passengers
Boston, MA to
Boston, MA
American Cruise
Lines
New England
Explorer Cruise
11 Days / 10 Nights
170 Passengers
Boston, MA to
Boston, MA
American Cruise
Lines
Grand New England
Cruise
15 Days / 14 Nights
109 Passengers
Boston, MA to
Boston, MA
American Cruise
Lines
Maine Coast and
Harbors Cruise
8 Days / 7 Nights
100-109 Passengers
Portland, ME to
Portland, ME
American Cruise
Lines
New England Island
Cruise
8 Days / 7 Nights
100 Passengers
Providence, RI to
Providence, RI
American Cruise
Lines
Downeast Maine
Cruise
8 Days / 7 Nights
109 Passengers
Bangor, ME to
Bangor, ME
Table 5 Connecting the United States and Canada (both USA and Canadian Ports)
Cruise Line
Cruise Name
Cruise Length
# of Passengers
Cruise Embark and
Debarking Location
American Queen
Voyages
Boston to Halifax
11 Days / 10 Nights
202 Passengers
Boston, MA to
Halifax, NS
American Queen
Voyages
Boston to Saint John
9 Days / 8 Nights
202 Passengers
Boston, MA to Saint
John, NB
American Queen
Voyages
Portland to Toronto
12 Days / 11 Nights
202 Passengers
Portland, ME to
Toronto, ONT
Hapag-Lloyd Cruises
St Lawrence River
and Nova Scotia -
Canadian way of life
15 Days / 14 Nights
230 Passengers
Boston, MA to
Toronto, ONT
Hapag-Lloyd Cruises
The states of New
England: the historic
cradle of the USA
12 Days / 11 Nights
400 Passengers
New York, NY to
New York, NY (with
stop in Canadian
Maritimes)
Cruise Line
Cruise Name
Cruise Length
# of Passengers
Cruise Embark and
Debarking Location
Pearl Seas Cruises
Maine Coast and
Canadian Harbors
8 Days / 7 Nights
210 Passengers
Portland, ME to
Portland, ME (with
stops in Canadian
Maritimes)
Pearl Seas Cruises
Canada and New
England Fall Foliage
11 Days / 10 Nights
210 Passengers
Quebec City, QC to
Portland, ME
Pearl Seas Cruises
Canadian Maritimes
and St. Lawrence
Seaway
15 Days / 14 nights
210 Passengers
Portland, ME to
Toronto, ONT
Ponant Cruises
From Canada to the
American East Coast
15 Days / 14 Nights
64 Passengers
Toronto, ONT to
Gloucester, MA
Ponant Cruises
From the St.
Lawrence River to
the American East
Coast
13 Days / 12 Night
64 Passengers
Montreal, QB to
Boston, MA
Ponant Cruises
From Québec to the
Big Apple: nature &
remarkable cities
15 Days / 14 Nights
64 Passengers
Montreal, QB to New
York, NY
Silverseas Cruises
Quebec City to New
York
11 Days / 10 Nights
392 Passengers
Quebec City, QB to
New York, NY (and
reverse)
Silverseas Cruises
Quebec City to
Boston
9 Days / 8 Nights
392 Passengers
Quebec City, QB to
Boston, MA
Silverseas Cruises
Quebec City to New
York
10 Days / 9 Nights
392 Passengers
Quebec City, QB to
New York, NY (and
reverse)
Silverseas Cruises
Quebec City to New
York
12 Days / 11 Nights
392 Passengers
Quebec City, QB to
New York, NY (and
reverse)
Tauck Cruises
Shores of Eastern
Canada and New
England
13 Days / 12 Nights
690 Passengers
New York, NY to
Quebec City, QB
Canadian Maritimes and St. Lawrence River/Seaway (No U.S. Ports)
The Canadian Maritime Provinces – Nova Scotia, New Brunswick, and Prince Edward Island –
are located east of the U.S. coast of Maine and are dominated by their large coastlines and small
seaside port communities. The following description is offered by Roughguides.com (2022), a
travel booking website:
“As their name suggests, Canada’s Maritime Provinces – Nova Scotia, New Brunswick
and Prince Edward Island – are dominated by the sea, with a long, jagged coastline
punctured by picturesque bays, sandy beaches, towering cliffs, some of the prettiest towns
in Canada and the freshest, tastiest lobster in the world – Nova Scotia’s slogan “Canada’s
ocean playground” is no exaggeration. Indeed, the ocean was crucial to the development
of the Maritimes, not only in bringing waves of settlers but also accounting for its greatest
industries: shipbuilding and fishing. Forestry became important in the nineteenth century,
and even today, the bulk of the region remains intractable wilderness – 84 percent of New
Brunswick, for example, is covered by trees.”
Geographically, the Maritimes are part of the Atlantic Canada region with the addition of
Newfoundland and Labrador. This region, which includes the Gulf of St. Lawrence, serves as the
geographic entry point to the St. Lawrence Seaway via the St. Lawrence River to provide ocean
access to Canada’s inland provinces through the Great Lakes. It took over four years to construct
the 189-mile waterway connecting Montreal to Lake Ontario and, ultimately, to the Atlantic Ocean
(St. Lawrence Seaway System, 2022).
As its name implies, Canada’s St. Lawrence Seaway Cruise Lines (2022) offers passengers
the opportunity to explore the seaway from Kingston, Ont. (in the west) to Montreal, QC to Quebec
City, QC (in the east). Cruisers can also explore the Ottawa River, a tributary to the St. Lawrence
River. Linblad expeditions offered dedicated cruises focused on the Maritime provinces
themselves. Table 6 provides a look at the itineraries available to cruises serving the Canadian
Martimes and St. Lawrence Seaway with no U.S. ports.
Table 6: Cruise Offerings in Canadian Maritimes and St. Lawrence Seaway (no U.S. Ports)
Cruise Line
Cruise Name
Cruise Length
# of Passengers
Cruise Embark and
Debarking Location
Lindblad Expeditions
The Canadian
Maritimes and
Newfoundland
10 Days / 9 Nights
148 Passengers
Saint Johns, NF to
Saint Johns, NF
St. Lawrence Seaway
Cruise Lines
Celebration of Spring
Seaway Discovery
Heritage Summer
Fall Harvest and Colour
8 Days / 7 Nights
66 Passengers
Kingston, ONT to
Kingston, ONT
St. Lawrence Seaway
Cruise Lines
Canadian Connection
Cruise
7 Days / 6 Nights
66 Passengers
Kingston, ONT to
Quebec City, (QB)
(and reverse)
St. Lawrence Seaway
Cruise Lines
Canada's Capital Cruise
Confederation Cruise
6 Days / 5 Nights
66 Passengers
Kingston, ONT to
Ottawa, ONT (and
reverse)
St. Lawrence Seaway
Cruise Lines
Upper River
Expedition
5 Days / 4 Nights
66 Passengers
Kingston, ONT to
Kingston, ONT
Local Market Conditions that Aid the Small Ship Cruise industry
The operating environment is multi-faceted and ever-changing. Company leaders seek a match
between the opportunities present in the marketplace and the firm’s ability to capitalize on them.
Below is a list of local market conditions that aid the small ship cruise industry in the mid-Atlantic,
northeastern United States, and eastern Canada.
Appealing Embarkation and Debarkation Ports
Dimitrov and Stankova (2019) found that attractive tourist destinations tend to make river cruises
beginning from those locations more appealing to consumers. In essence, when cruising from
Boston or Toronto, a consumer also gets to experience that city. According to the World Atlas,
New York, NY is the most visited U.S. city while Boston, MA is the 9
th
most visited U.S. city.
The list of most-visited Canadian cities includes: Toronto (#1); Montreal (#3); and Quebec City
(#6) (World Atlas, 2022a & 2022b). These three cities are all located along the waterways listed
above. As illustrated in Tables 3, 4, and 5, these cities are common embarkation and debarkation
ports for cruises in the markets evaluated in this study.
Appealing Ports of Call
The characteristics that make European river cruises popular (i.e., historic towns, numerous
attractions to visit, multiple cultural influences) are very present in the mid-Atlantic, northeastern
United States and eastern Canadian cruise markets. In 2022, New England Travel named it’s “Top
10 Prettiest Coastal Towns in New England.” Five of these cities are common small ship cruise
ports of call (Minkin, 2022):
• Bar Harbor, Maine
• Camden, Maine
• Newport, Rhode Island
• Oak Bluffs (Martha’s Vineyard), Massachusetts
• Provincetown, Massachusetts
A similar list of Canada’s “7 Charming Coastal Towns in Canada” includes popular small
ship destinations such as Lunenburg, Nova Scotia, Percè, Quebec, and St. John’s, Newfoundland
(Big 7 Travel, 2021).
The region offers an abundance of natural attractions, some of which are visible from the
balcony or sun deck of a small cruise ship. Examples include:
• Cape Cod National Seashore (near Wellfleet, MA)
• Thunder Hole in Acadia National Park (Bar Harbor, ME)
• Aquinnah Cliffs (near Martha’s Vineyard, MA)
• Block Island (near Shoreham, RI)
• Bay of Fundy (New Brunswick)
• Grand Manan Island (New Brunswick)
The legendary castles visible during European river cruises are ‘replaced’ by the estates of
Newport, RI, the fishing villages and lighthouse of New England, and the historic homes of the
Hudson Valley in New York. Here is how American Cruise Lines describes its Hudson River
cruises (American Cruise Lines, 2022a):
“Surrounded by the Catskill Mountains on the western shore and the Taconic and
Berkshire Hills to the east, the Hudson River is rich in both history and beauty. The cities
and towns along the river date back to Dutch and English rule and feature some of the
most magnificent architecture in America.”
“Our expert guides will lead you through these grand and historic sites including the
Vanderbilt Mansion, the home of Franklin D. Roosevelt, and the Olana State Historic Site,
home to one of the most influential Hudson River School Painters, Frederic Church.”
“At West Point Military Academy, walk the hallowed grounds traversed by some of the
nation's greatest generals, and later visit the riverside town of Sleepy Hollow made famous
by the great American writer Washington Irving.”
Cultural Diversity
This region of analysis offers a rich diversity of cultural experiences for travelers. For example,
the dichotomy of busy urban areas and smaller coastal towns is present. The British, French, and
broader European influences present in the province of Quebec as well as the provinces of Atlantic
Canada (i.e., Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador)
provide for easily accessible daily excursions for cruise passengers. Additionally, there are many
opportunities to learn more about the indigenous people of Canada (Destination Indigenous, 2022).
American Queen Voyages (2022a) describes its 12-day cruise from Portland, ME to Toronto, ONT
as follows:
“Lighthouse-illuminated capes hug rocky shorelines and beachside vistas embrace
emerald pastures on this postcard-worthy journey. Portland’s cobbled walks and Halifax’s
Citadel Hill are complemented by Charlottetown’s pastoral beauty and the European
contemporary design of Montreal.”
Convenience of Coastal Destinations
Traditionally, river- and small ship cruises follow a ‘one port per day’ model. All areas under
evaluation for this manuscript offer an abundance of attractive destinations for daily stops while
concurrently providing a scenic experience for travel between ports of call. American Queen
Voyages (2022b) describes its 11-day Halifax to Boston cruise as follows:
“Between Halifax and Boston, this cruise gives you a front-row seat to New England’s
impressive coastline. Enjoy cruising along North America’s stunning East Coast as the
Ocean Navigator or Ocean Voyager traces historic sites from the Tea Party-era buildings
of Boston to the hilltop citadel in Halifax. Along the way, you’ll experience the postcard-
pretty sites in the United States as well as Canada’s Atlantic Ocean ports. Revel in the old-
world elegance of Newport’s summer homes and explore galleries in lively Provincetown.
Tour the first Pilgrim settlement in Plymouth and the old port waterfronts of Portland.
Then sail to Bar Harbor, the gateway to the mountains, and the spectacular cliffs of
neighboring Acadia National Park, before arriving in Halifax.”
Waterway Stability
In Summer 2022, low river water levels affected shipping and cruise ship traffic on the Mississippi
River in the United States. For example, Viking had to cancel select voyages and ports visited
during their inaugural 2022 Mississippi River cruises due to drought conditions which led to
historic low water levels. The same issue afflicted European river cruises in Summer 2022 (Watts
et al, 2022). The cruise markets discussed in this study in the mid-Atlantic, northeastern United
States, and eastern Canada traverse ocean waters or river waters connected directly to ocean waters
which makes the likelihood of disruptions due to low water levels less likely. This geographic trait
may also make these cruise markets less impacted (at least in the short-run) by any changes in
water levels due to climate change.
Local Market Conditions that Challenge the Small Ship Cruise
industry
Much as local market conditions can aid a specific product or industry, there are typically some
local market conditions that offer unique challenges to firms that elect to compete in that market.
Below is a list of local market conditions that challenge the small ship cruise industry in the mid-
Atlantic, northeastern United States, and eastern Canada.
Seasonal Operations
The climate of the northeastern United States and eastern Canada typically experiences 4-6 months
of winter weather, including the freezing of some slow-moving waterways. The St. Lawrence
Seaway closes each year based on local weather conditions. The system tends to close in late
December and re-open in mid- to late-March (American Great Lakes Port Association, 2022).
Furthermore, the anticipated cold weather makes small ship cruises, with outdoor deck seating and
port visits less appealing to their traditional consumer group of older passengers. This operating
characteristic limits the length of the cruise season thereby reducing revenue potential of the
industry.
St. Lawrence Cruise Lines operates its ship from May to October each year. The firm has
a 6-month season in which to generate the majority of their revenue each year (St. Lawrence Cruise
Lines, 2022). Like all seasonal operations, it can be difficult to retain employees from season to
season when there is little off-season earnings potential offered by the firm.
The short season of ‘fall foliage changes’ is a seasonal trait to address as there is a limited
amount of time for this natural phenomenon to occur each year. Cruise passengers interested in
booking the “Maine Coast and Harbors Cruise” offered by American Cruise Lines have six options
with all cruises offered in September and October (American Cruise Lines, 2022b). The popularity
of its fall foliage cruises on New York’s Hudson River allows American Cruise Lines to assign
two ships to serve passengers during its September and October operating season (American
Cruise Lines, 2022a).
High-Cost Fixed Asset Utilization
The cruise industry is very capital-intensive and requires a significant investment to introduce and
update a fleet of ships (Cooper, 2014). It can take 12-18 months for a cruise ship to be built (Ma,
2022). Then, a cruise operator seeks to keep the ship moving and full of passengers to recoup their
investment and cover their operating costs. This operating characteristic impacts the various small
ship cruise lines differently. Some examples are provided below.
Pearl Sea Cruises operates the Pearl Mist from May to August in the Great Lakes and
September in New England and the Canadian Maritimes (Pearl Seas Cruises, 2022a; Pearl Seas
Cruises, 2022b). The company did offer its 12-Day Cuba Cultural Voyages in November and
December 2018 via a round-trip cruise from Fort Lauderdale, FL. However, the U.S. government
changed its travel regulation to Cuba in 2019 prompting the cancellation of such trips (Leposa,
2019). This cancellation effectively blocked the firm from diversifying their revenue with the
addition of this Caribbean cruise. There may be additional opportunities for Canadian cruise
operators, as Canadian citizens are free to travel to and from Cuba for vacations.
In 2023-24 cruising season, American Cruise Lines’ deployed its American Constitution
in the following geographic regions over the year: Mid-Atlantic (March-April); New England
(May-September); Hudson Valley (September-October); and Mid-Atlantic (October-December)
(American Cruise Lines, 202c). The reader will note the ship will be active for nine of the twelve
months of the year. The Lindblad Expedition ship National Geographic Sea Lion operates year-
round offering itineraries ranging from 6-days to 21-days in Alaska, Bahamas, Belize and
Guatemala, Pacific Northwest, USA and South Atlantic Coast USA (National Geographic Sea
Lion, 2022). It must be noted the ship can only accommodate 62 passengers per voyage (which
limits its overall revenue potential even though it achieves 12-months of operation).
Influence of Currency Fluctuations
To aid passenger planning, cruise lines typically announce their cruise itineraries and dates one or
two years in advance. With cruises serving both the United States and Canada, the influence of
currency fluctuations on consumer decision-making must be considered. From October 22 to
October 2023, the exchange rate between the U.S. Dollar (USD) and the Canadian Dollar (CAD)
fluctuated between $1.30 USD-CAD to $1.40 USD-CAD. That is, in October 2023, $1.00 USD
was worth $1.30 CAD. One year later, $1.00 USD was worth $1.40 CAD, which is a 7.6% change
in currency values (barchart.com, 2023).
Due the changes in exchange rates, the U.S. Dollar commands more local purchasing
power in Canada. This makes it less expensive for Americans to travel to Canada and/or buy
Canadian goods. However, it makes it more expensive for Canadians to travel to the United States
or buy U.S. goods. With passengers from both countries considering cruise travel in the region,
cruise ship executives must monitor currency exchange rates to predict their impact on the
purchasing patterns of their possible consumers.
The cruise industry allows passengers to purchase future trips up to two years in advance.
While this practice allows a passenger to lock in the price of their trip, international passengers
must accept exchange rate risk or ‘transaction exposure.’ That is, the price of their trip is
established in the present time but the actual out-of-pocket cost due to changes in exchange rates
will be determined in the future (Hill, 2023, p. 329). Cruise lines must also deal with ‘translation
exposure.’ That is, changes in exchange rates affect their overall profitability as reported on their
financial statements (Hill, 2023, p. 329).
Port Facilities in each City Vary
As river cruising and small ship cruising in the United States and Canada is enjoying an increase
in demand in the post COVID era, some port facilities are lacking in select markets. For example,
the port of Detroit was not ready for the maiden cruise of the highly-anticipated Viking Octantis
to visit in May 2022. The ship had to be diverted to a larger cargo terminal. Cities that used to
welcome freighters are learning how to welcome cruise ships. Some of these communities are
upgrading their port facilities for passenger traffic, including the needed customs facilities, as
passengers from a variety of countries may be attracted to the cruise itinerary (Starr, 2022). Since
cruise ships make timed visits to each port to stay on schedule each day, it is not desirable for
passengers to wait in long lines to begin their shore excursions.
Match between Ship and Waterway Characteristics
Cruise operators must find a match between their ships and any local requirements such as ship
beam (width), ship height, and ship draft (or depth in water). In May 2022, during its maiden
voyage on the Great Lakes, the Viking Octantis became the largest passenger ship to ever pass
through the Welland Canal. The ship had 11 inches of total clearance, or less than 6 inches on
either side of the vessel (Mayntz, 2022). The dimensions of the Welland Canal were factored into
the design of the ship in anticipation of offering Great Lakes cruises.
As previously noted, cruise lines are working with boat manufacturers to develop new boat
designs that will allow the development of new cruise experiences by allowing access to
waterways that cannot be sailed with existing ships. American Cruise Lines’ CEO Charles
Robertson noted the transformative effect of the new ship design (Jainchill, 2022):
"There's a lot of new itinerary potential. We go to about 100 ports in total now, and this
boat can go to hundreds more. It can get into some really cool nooks and crannies in Maine
and get further south down the waterway in Florida and do more in the Chesapeake Bay.
It can hit these gems of towns that have really never been on cruise itineraries before.”
The catamaran ship design, which requires less water depth to safely operate, is appealing
as cruise operators seek “to enter small, New England harbors with a draft shallow enough for the
Intracoastal Waterway on the East Coast yet stable enough to run coastwise routes in the Pacific
Northwest and Alaska” (Jainchill, 2022).
Planning for Growth: Product/Market Growth Matrix
At the core, businesses (and industries) sell goods and services to consumers. Growth can be
achieved by the sale of existing or new products to existing or new consumer groups. Some
cruise operators are trying to expand the overall market by appealing to younger cruisers,
expanding the summer cruise season, expanding into winter-month voyages, and expanding into
new waterways (Futuremarketinginsights.com, 2022). By focusing on increasing overall
demand for the river cruise industry (market growth vs. market share growth), all operators in the
industry benefit. Generally, only the largest competitors/operators can employ this strategy
however.
The Product/Market Growth Matrix can be an effective way to present the four growth
options from this product/market mapping: Market Penetration; Market Development; Product
Development; and Diversification (Grewal and Levy, 2023, p.45). Figure 1 presents the
Product/Market Growth Matrix applied to the river and small ship cruise industry. Each strategy
is then discussed with examples provided.
Figure 1: Product/Market Growth Matrix
Market Penetration
Current Markets / Current Products
• Serving Repeat Customers
• Pre-Cruise City Tours
• Cruise Line Exclusive Attractions
Product Development
Current Markets / New Products
• New Cruise Itineraries with New Ship
Designs
• Shorter Cruises in Current Destinations
Market Development
New Markets / Current Products
• Addressing the “Holy Grail”
• Multi-Port Stops Per Day
• Family Cruise Excursion Option
• More International Travelers
Diversification
New Market / New Products
• Guided Travel Experiences
• Bundling of Cruise and Rail Experiences
Market Penetration
A market penetration strategy involves a focus on current customers consuming more of a firm’s
current product/service offering. American Cruise Lines (ACL) created The Eagle Society, a guest
loyalty program which provides incentive for satisfied customers to cruise again and to recommend
others to do so. After one sailing, cruisers are eligible for membership. Eagle Society members
receive a variety of benefits, including VIP access to ships when in port near their homes, payments
of guest referrals to recommend others take American Cruise Line trips, travel gear, and
cumulative rewards for subsequent cruises taken. Each year, ACL dedicates several cruises
specifically for Eagle Society members, which include a welcome reception, onboard gifts, an
exclusive dining experience, and VIP access at a historically significant venue (American Cruise
Lines, 2022d).
Pearl Seas Cruises offers its pre-cruise experience, including 1-night pre-cruise lodging
and a guided city tour the day of departure. The guided city tour ends at the ship where guests find
their luggage conveniently placed in the staterooms. Passengers departing from Portland, Maine
enjoy a hotel stay just blocks from the port. They get to take in the maritime history of Portland
before a late afternoon departure for their 8-day/7-night Maine Coast and Canadian Harbors
cruise (Pearl Seas Cruises, 2022b). The operational advantages for the company include the
certainty that passengers are on-time for their departure. Furthermore, the firm is generating
revenue and providing value for passengers before the cruise begins.
Another strategy for implementing a market penetration strategy is the development of
exclusive cruise-line attractions that draw passengers to a specific cruise line experience. For
example, American Queen Voyages (AQV) (2022c) features an exclusive port at Nottoway
Mansion on the south bank of the Mississippi River just outside of Baton Rouge, LA. Cruise
passengers have many options along the lower Mississippi. However, it is reasonable to assume
that some cruise passengers may be drawn to this exclusive AQV experience which is akin to
ocean ship cruises spending the day on an island owned by Disney, Carnival, or other ocean cruise
providers.
Market Development
A market development strategy involves expanding the market (i.e., reaching new consumers) for
a firm’s current product/service offering. Approximately 80% of river cruise passengers are Baby
Boomers with the remaining 20% typically being people in their 50’s attracted to the addition of
yoga rooms, gyms and unique gathering areas to modern riverboats. These target markets are active
travelers with the time and money needed to explore the United States at the slower pace of the
riverboat (Sampson, 2020). A challenge for the industry is to expand the market for river and
small ship cruises while concurrently maintaining and serving their traditional target market.
As noted previously, the river cruise industry tends to follow a one-port-per-day model,
with ports typically visited in the daylight hours for a specific amount of time. Some researchers
have noted that this model may need to be modified in the future as the next generation of
consumers (i.e., Generation X) reports a preference for a less structured cruise experience with
docking times expanded and overnights stays in select ports to allow more interaction with the
local community (Cooper et al, 2019).
River and small ship cruises tend to be scheduled for 8-days (7-nights) or longer. The time
commitment needed for a 7-night cruise may discourage younger cruises from these itineraries,
particularly those travelling with children. While there are some 3-4 day ocean cruise experiences
available, there are very few 3-4 day river or small ship cruise itineraries. One strategy (which
combines product development to reach a new market segment) could be the development of 3-4
day trips from Boston, New York, Portland, or other attractive destinations. Port destinations in
these markets are clustered together sufficiently to allow an easy-to-construct 3- or 4-day cruise
experience. To test the appeal of this model, a cruise line could simply take 1-2 weeks per year
and offer two 3-or 4-day trips (likely in the summer months to allow families with children to
participate) rather than offering the familiar 8-day/7-night trip popular with older travelers.
In the post COVID market, many consumers are attracted to the smaller ships cruising
closer to home, and have the desire to reconnect with family and friends (Edenedo, 2022). To
continue to expand the market for river and small ship cruises beyond its primary Baby Boomer
market, these shorter-duration trips can appeal to families and small group travel (such as
girlfriend’s get-away cruises).
Large eastern cities such as New York, and Boston in the United Stated and Toronto and
Montreal in Canada have large numbers of international flights. For example, Boston’s Logan
Airport served over 650,000 international passengers in September of 2022 (approximately 28%
of total passengers) with over 60% of these passengers from Europe (Massachusetts Port
Authority, 2022). In Canada, over 64% of the airline passengers at both Toronto and Montreal
airports were international travelers in 2019. Together, these two airports served more than 44
million international passengers during that year (Statistics Canada, 2022). As travel to Canada
was more restricted than travel to the United States during the global pandemic, the pre-pandemic
year of 2019 is used as it is more illustrative of normal operations and travel patterns. This
passenger volume allows cruise companies to more easily target international travelers for river
and small ship cruise vacations.
Product Development
A product development strategy involves developing new products/services that appeal to existing
consumer groups. New ship designs will allow cruise experiences to be developed to explore new
waterways and communities. Three U.S. rivers (Delaware River, Connecticut River, and
Penobscot River) were identified earlier for possible new cruise itineraries. Earlier quotes offered
by industry leaders noted the great potential in the northeastern United States and eastern Canada
for new cruise itineraries. Shorter-duration cruises are both a product development and market
development strategy by offering a new cruise experience to attract an under-represented market
segment (i.e., younger cruise passengers) (Cooper et al, 2019).
A geographically clustered area, such as the New England coast or Canadian Martimes,
allows the development of new 2-ports-per-day cruises. While this may counter the traditional one-
port-per-day model, shorter port stays (with short distances in between) may also attract younger
passengers who have embraced such concepts as speed dating, speed golf, and even speed job
interviews. One can imagine a ‘speed cruise’ of 3-4 days with 2 ports per day.
The excursions offered for river and small ship cruises tend to be cultural or educational,
relating to such topics as history, military history, national parks, etc.) (Zable, 2022). Small ship
cruise lines, in select locations, could develop ‘family-oriented’ cruises and introduce excursions
that are more appealing to children and their parents (such as children’s museums in Boston, MA,
Portland, ME, or Halifax, N.S.). The appeal of this strategy is a cruise line can offer the standard
itinerary with a parallel ‘family friendly’ option and experiment with new excursions with minimal
risk.
Diversification
A diversification strategy involves the development of new products/services that appeal to a
market segment not currently served by the firm. In essence, new products/services bring new
consumers to the organization. At the core, small ship cruise lines are providers of group travel
with a focus on water and land travel. A cruise line could use their group travel expertise to develop
on-land group travel experiences (likely via motorcoach and/or rail).
Cruise lines could also offer inter-model travel experiences. There may be overlap in the
consumers interested in rail excursions and cruise excursions. One can imagine a cruise that
terminates in Montreal connecting those passengers to a cross-Canada rail excursion provided by
VIA Rail. Similarly, cruise passengers in Boston could connect to Amtrak for group travel to New
York, Philadelphia, and Washington, DC.
Concluding Remarks
River and small ship cruises were gaining in popularity before the COVID global pandemic hit in
Spring 2020. Research by the American Automobile Association (AAA) found that 40% of
Americans are considering a cruise vacation in the next two years with Millennials even more
eager (52%) for cruise vacations (Edmunds, 2022). The pent-up demand for travel spending (and
cruise vacations, in particular) has helped propel cruise bookings above their pre-COVID levels.
The successful summer 2022 cruise season suggests we may see growth in this travel category in
the future. The strategies offered above may aid industry leaders in reaching their growth goals
and desire to expand the market for river and small ship cruises beyond their traditional consumer
groups.
The christening ceremony at the launch of a new ship is meant to offer ‘good luck and
protection’ to the vessel and its crew in the future. Similarly, this study offers a baseline on current
operations and the possibility of an expanding market for river and small ship cruise travel in the
eastern United States and eastern Canada in the future.
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Author Information
Mark Mitchell serves as Professor of Marketing at Coastal Carolina University. He earned his
D.B.A. in Marketing from Mississippi State University. His recent research has been published
in Health Marketing Quarterly, Southern Business and Economic Journal, Atlantic Marketing
Journal, and Journal of East-West Business. He has travelled extensively throughout the Great
Lakes region and its waterways.
Michael Dowd is a Lecturer of Management at Coastal Carolina University. He earned his J.D.
from Suffolk University Law School. He is the former President, Chief Executive Officer (CEO)
and Chief Operating Officer (COO) of Grand Circle Cruise Line, a leading river cruise line
serving the European river market since 1958. His operating insights into the river cruise
industry, as well as industry contacts, were very valuable to the development of this research
study.
Paul Clark serves as Professor of Marketing at Coastal Carolina University. He earned his Ph.D.
in Marketing from the University of Memphis. His recent research has been published in Journal
of Education for Business, Journal of Case Studies, Business Case Journal, and the Journal of
Critical Incidents. Paul earned his undergraduate degree from Brock University (St. Catharines,
Ontario), which is located a few miles from the Welland Canal. The Welland Canal is a key
component of the Great Lakes Waterway by bypassing Niagara Falls to connect Lake Ontario
and Lake Erie.
