By Teresa Rivas

Viking's Octanis is a different kind of ship -- not in how it looks but who it aims to attract. It's a cruise liner for intellects who know how to have a little fun, too.

CEO Torstein Hagan put it like this, just before the expedition vessel set off Tuesday from New York City for a cruise to the Great Lakes -- with a pass through Canada.

"This is a thinking man or woman's cruise, not a drinking man's," Hagen, who is also Viking's chairman, speaking aboard Octanis. "But still, there's nothing wrong with a gin and tonic once in a while."

That mixture -- curiosity, comfort, fun -- was evident from Hagen's seat in the ship's auditorium, Aula, inspired by the ceremonial hall of the same name at the University of Oslo. On the walls, another nod to the idea of thinking: reproductions of works by Edvard Munch, the deeply intellectual painter.

Quiet luxury, or stealth wealth, rose in popularity in the 2020s, but has long been the hallmark of Viking's sleek, minimalistic ships, shaping everything from amenities to excursions. The Scandinavian aesthetic is "serene and cerebral," as Leah Talactac, who is both president and CFO, describes it.

Talactac and Hagen spoke to Barron's before the Octanis's sold-out voyage. Viking shares have been on a similarly enviable journey.

The stock is up more than 83% since Barron's recommended it almost a year ago. Shares have climbed about 14% this year, while the Big Three publicly traded cruise lines -- Royal Caribbean Cruises, Carnival Corp., and Norwegian Cruise Line Holdings -- have floundered.

Royal Caribbean is up just over 1% this year -- trailing the S&P 500's 2% gain -- but Carnival and Norwegian are firmly in the red -- both down more than 5%.

Viking, which had its initial public offering less than two years ago, has grown quickly, and is now nearly as big, in terms of market capitalization, as Carnival.

The Iran war has sent both oil prices and geopolitical uncertainty soaring -- and both have weighed on cruise stocks. For Viking, though, those twin worries are far more manageable.

Hagen and Talactac have weathered far worse -- the Covid-19 pandemic, for example. They navigated the difficult passage, confident enough even to order new ships.

Then there is the loyalty of Viking's core customers -- well-heeled Americans 55 and up. They want to enjoy themselves, despite all that's happening in the world.

Viking is also aware, though, that sometimes its passengers need a nudge. The company spurs interest by contacting consumers directly, using its proprietary databases. Both executives, interestingly, characterize Viking as in the business of marketing first, cruising second.

Since the pandemic, Talactac has seen a clear shift: Viking passengers want experiences more than things, and are less deterred by global anxieties.

"Whereas before, if there was any mention of any war in the news, you would see an immediate and dramatic impact to the booking pace," she said. "Today, what we've found is that it may slow, but it's very temporary and it recovers much quicker than it had in the past."

If anything, the pandemic helped boost interest in Viking, because older travelers realized the risk of putting off their dream vacations.

"Of course, it's concerning to watch the news, and you can't help but feel terribly sorry for people who are exposed to all these terrible things," Hagen said. "But then you realize that for us, and for our guests, the consequences are not significant."

Viking will release its latest order information when it reports results on June 3, but notes that its 2026 bookings are already almost entirely accounted for. Viking doesn't offer last-minute discounts, so passengers know they have to book early. Most sailings are paid for more than six months in advance.

Hagen and Talactac are confident beyond this year, pointing out that at least half of passengers have booked on Viking before and some 30,000 have three or more cruises booked.

The stock's stats still look good, too. The company's Gross margins are expected to nearly double from 2023 to 2027, even as the stock's price-to-earnings ratio stands at less than 20 times next year's earnings. Consensus calls for per-share earnings to jump more than 28% year over year in 2026 and nearly 24% in 2027.

The company's bread-and-butter river cruises remain as popular as ever, but Viking is also expanding into ocean travels and expeditions to more far-flung locales.

Hagen's his favorite trips have been Christmas in Antarctica and between Moscow and St. Petersburg, though that route is closed now because of the Russia-Ukraine war.

Sometimes, even a cruise line CEO can't go where he wants. Still, that doesn't stop him from sailing. The same obviously goes for many of Viking's customers -- and shareholders, too.

Write to Teresa Rivas at teresa.rivas@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 15, 2026 13:35 ET (17:35 GMT)

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