バイキング（VIK）2026年第2四半期決算説明会：予約堅調で売上高16.5%増

主要なポイント

• 2026年第2四半期の売上高は、10.9%のキャパシティ拡大と乗客クルーズ日数（PCD）当たり売上高の増加に支えられ、前年同期比16.5%増の22億ドルとなりました。
• 調整後EBITDAは18.2%増の7億4800万ドルとなり、調整後EPSは33%増の1.31ドルに増加しました。ネットイールドは6.2%伸びて645ドルとなりました。
• 8月9日時点で、バイキングの2026年主力キャパシティの予約率は96%に達し、前売り予約額は64億ドルに上りました。2027年については、15%のキャパシティ拡大が計画されているにもかかわらず、53%が予約済みとなっています。
• ドナウ川およびライン川の一部の区間における記録的な渇水は第2四半期業績には影響しませんでしたが、経営陣は第3四半期、および2027年と2028年に引き換えられる将来のクルーズバウチャーからの影響を予想しています。
• 8月中旬時点で、第3四半期の河川クルーズキャパシティPCDの50%以上が渇水条件の影響を受けました。経営陣によると、影響を受けたキャパシティのうち顧客によるキャンセルは10%〜12%にとどまり、バイキングはクルーズをキャンセルすることなく運航を継続しました。
• 経営陣は2026年および2027年の両年において、1桁台半ばのネットイールド成長を引き続き目指すとともに、良好な旅程ミックスが現在2027年の前売り予約単価を押し上げていると指摘しています。

主要財務データ

2026年上半期の連結調整後売上総利益は16.5%増の21億ドル超となりました。調整後EBITDAは20.9%増の8億5300万ドルに増加しました。

2026年6月30日時点で、バイキングは40億ドルの現金および現金同等物を保有し、未実行の10億ドルのリボルビング融資枠を有していました。純負債は24億ドル、純レバレッジ比率は1.2倍、前受収益は計50億ドルでした。社債の償還期限は2028年以降となっています。

事業および営業業績

河川部門

6月30日に終了した6か月間において、河川部門のキャパシティPCDは3.2%増加し、搭乗率は94.8%となりました。全地域での需要増と良好な旅程ミックスに牽引され、調整後売上総利益は11.3%増加し、ネットイールドは8.8%増の660ドルとなりました。

2027年について、河川部門は8月9日時点で42%が予約済みでした。前売り予約額は13%のキャパシティ拡大に対し、前年同期の予約時点から11%増の約18億ドルとなりました。前売り予約単価は、前年同期の2026年シーズンの942ドルに対し、1,029ドルとなりました。

経営陣によると、欧州の渇水状況に対する需要への目立った影響は見られませんでした。バイキングは、専用に建造されたフリート、ほぼ同型の客船、確立された船乗り換え手順を運航上の強みとして挙げました。

海洋部門

上半期の海洋部門キャパシティPCDは11.4%増加し、搭乗率は95.4%に達しました。調整後売上総利益は20.3%増の11億ドルとなり、ネットイールドは7.7%増の593ドルとなりました。

2027年について、海洋部門は18%のキャパシティ拡大が計画されているにもかかわらず、約62%が予約済みとなっています。前売り予約額は前年同期比で29%増加し、単価は前年同期の2026年シーズンの781ドルに対し、877ドルとなりました。

フリート拡大と目的地プロダクト

バイキングは2026年中に河川客船10隻と海洋客船2隻の計12隻を受領する見込みです。前回の決算説明会以降、河川客船4隻と海洋客船1隻を追加し、2032年受領予定の追加海洋客船2隻のオプションを行使しました。

2026年の確定済み船舶設備投資額は約19億ドル（資金調達控除後の純額で6億5000万ドル）です。2027年の見込み確定済み船舶設備投資額は約10億ドル（資金調達控除後の純額で2億6000万ドル）です。

同社はまた、クルーズ前後の陸上延長ツアーやオプショナル寄港地観光を拡大しています。経営陣によると、約40%の乗客がクルーズ前後の延長ツアーを購入しており、これらの体験を追加した乗客は満足度スコアが高くなる傾向があります。

経営陣によると、バイキングの2027年および2028年シーズンのインド旅程は完売しています。同社はまた、河川客船4隻と「バイキング・エデン」に支えられた、中国語圏の乗客を欧州へ案内するツアーの成長を強調しました。

経営陣の見通し

経営陣の目標は引き続き、2026年および2027年の両年において1桁台半ばのネットイールド成長を維持することです。同社は、現在の2027年予約単価が高価格のエジプトやベトナムの旅程を含む良好なプロダクトミックスの恩恵を受けており、欧州の主力在庫の販売が進むにつれて落ち着く可能性があると注意を促しました。

バイキングは、調整後売上総利益に影響を与える追加の輸送コストや、船舶経費に影響を与える運航経費など、渇水条件による第3四半期への一定の影響を予想しています。経営陣は、全般的な影響を数値化するには時期尚早であると述べるにとどめました。

将来のクルーズバウチャーは、2026年後半、ならびに2027年および2028年中のクルーズ運賃に適用できます。その価値は、乗客が引き換える期間の報告売上高を減少させることになります。

リスクと注目事項

• ドナウ川およびライン川の一部の区間における記録的な渇水が、一部の欧州河川旅程の運行を乱しています。
• 状況の悪化が7月中旬に始まったため、渇水の影響は第2四半期業績には反映されませんでした。
• 8月中旬時点で第3四半期の河川部門キャパシティPCDの50%以上が影響を受け、顧客によるキャンセルは影響を受けたキャパシティの10%〜12%に相当しました。
• 経営陣はその価値を数値化しなかったものの、将来のクルーズバウチャーは2027年および2028年に及ぶ財務的影響をもたらす見通しです。
• 航空運賃は引き続きコスト圧迫要因となっており、ネットイールドの計算に含まれています。
• バイキングは販売すべき2027年の在庫を依然として多く抱えているため、経営陣は現在の前売り予約単価をそのまま推計に使用しないよう注意を促しました。

アナリスト質疑応答の要点

アナリストは欧州の河川水位低下の影響に強い関心を寄せました。経営陣によると、バイキングは必要に応じて客船の変更（船乗り換え）、旅程の調整、追加の地上輸送を利用し、クルーズをキャンセルすることなく運航を継続しました。また、乗客への初期コミュニケーションが遅れていたことを認め、その後は周知や運航状況の更新をより積極的に行っていると説明しました。

予約需要について、経営陣は河川部門の予約ペースは鈍化していないと述べました。2027年の河川部門キャパシティは既に40%以上が予約済みで、海洋部門は60%を超えています。同社はバウチャーの予想される影響にもかかわらず、1桁台半ばのイールド成長目標を維持しました。

資本配分について、経営陣は最優先事項がフリートの拡大への現金の再投資であると述べました。買収候補については、拡張性があり、利益率を向上させ、バイキング・ブランドを補完し、自社による客船投資と同等以上のリターンを生み出せることが条件となります。

2025年にバイキングを利用した顧客のうち、リピーター客が約52%を占めました。経営陣は、新たな目的地、多様な旅程、オプショナルツアーが、フリートキャパシティの拡大に伴いリピート需要を支えることを意図していると説明しました。

決算説明会文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Good morning. My name is Matthew, and I'll be your conference operator today. At this time, I'd like to welcome everyone to Viking's Second Quarter 2026 Earnings Conference Call. As a reminder, this call is being recorded. [Operator Instructions] Thank you.

I would now like to turn the program to your host for today's conference, Vice President of Investor Relations, Carola Mengolini.

Carola Mengolini

Good morning, everyone, and welcome to Viking's Second Quarter 2026 Earnings Conference Call. I am joined by Leah Talactac, President and Chief Executive Officer; and Linh Banh, Chief Financial Officer. Also available during the Q&A session is Torstein Hagen, Executive Chairman.

Before we get started, please note our cautionary statement regarding forward-looking information. During the call, management may discuss information that is forward-looking and involves known and unknown risks, uncertainties and other factors, which may cause the actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release as well as in our filings with the SEC. The forward-looking statements are as of today, and we assume no obligation to update or supplement these statements.

We may also refer to certain non-IFRS financial metrics, which are reconciled and described in our press release posted on our Investor Relations website at ir.viking.com. Leah and Linh will provide a strategic overview of the company, a recap of our second quarter results and an update of the current booking environment. We will then open the call for your questions. To supplement today's call, we have prepared an earnings presentation that is available on our Investor Relations website.

With that, I'm pleased to turn the call over to Leah.

Leah Talactac

Thank you, Carola. Good morning, everyone, and thank you for joining us. We are very pleased to have delivered another quarter of strong year-over-year performance. As we reported this morning, during the second quarter, revenue increased 16.5%, driving an 18.2% growth in adjusted EBITDA. These results reflect the continued strong demand for our destination-focused travel experiences and the great execution of our teams across the organization.

On Slide 3, you can see that demand for Viking is strong. From an advanced booking perspective, our 2026 season is effectively sold out with 96% of the capacity for our core products already booked. Looking further ahead, our focus is on continuing to build our book position for 2027. As of August 9, 53% of the capacity for our core products for 2027 was booked, and this includes a 15% year-over-year increase in capacity. Overall, we are very encouraged by the early booking trends for 2027. As you can tell from these trends, the visibility provided by our advanced bookings gives us confidence in the demand for our product allows us to manage pricing dynamically and supports our thoughtful approach to capacity growth.

As you can see on Slide 4 and since our last earnings call, we have continued to expand our fleet, adding 4 new river vessels and 1 ocean ship consistent with our long-term growth strategy. During 2026, we expect to take delivery of 12 ships in total, 10 for River and 2 for Ocean. As we grow the Viking fleet, we remain committed to the characteristics that make our ships unique and support the distinctive earnings profile of our business.

First, we operate one of the youngest fleets in the industry, which contributes to lower maintenance costs, greater operational reliability and long earnings power; second, our ships have been thoughtfully designed to maximize operational efficiency while providing the constant and great experience that our guests expect; and third, within each of our product categories, our ships are designed to be almost identical and indistinguishable to our guests.

Guests choose Viking because of the destinations and itineraries we offer, not because of a particular ship. As a result, when ships are deployed on similar itineraries, they are generally able to achieve comparable yields regardless of when they entered service. We believe this is a significant competitive advantage and an important driver of the long-term returns generated by our fleet.

Moreover, our almost identical ships also create significant operational advantages. Because our ships are built to common specifications, we benefit from efficiencies across sales and marketing, operations, deployment, purchasing and shipbuilding. This approach simplifies everything, from crew training and maintenance to inventory management and fleet deployment. Taken together, we believe that these advantages reinforce the strength of our business model, and the distinctive earnings power of the Viking fleet.

Now while a thoughtful fleet expansion remains the engine of our growth, we are also focused on further enhancing the experiences we offer our guests. Moving to Slide 5. You can see that we continue to increase our offering of land extensions and optional shore excursions, providing guests with more opportunities to explore the destinations they visit before, during and after their voyage.

One example is our new St. Moritz, Lombardy and Alpine Train extension, which takes guests through the Swiss ALPS aboard the Bernina Express. This four-night fully guided trip can be added before or after the cruise. And we have also expanded our shore excursion portfolio with experiences such as a Zeppelin flight over Cologne, which offers breathtaking aerial views of the city's most iconic landmarks.

Additions such as these reinforce our commitment to providing meaningful and memorable ways for our guests to explore the world. We believe that they are an important differentiator for Viking as our fleet continues to grow, so does the range of experiences available to our guests.

Now before turning the call over to Linh to discuss our financials, I would like to address the low water levels currently affecting some rivers in Europe. As we have discussed in the past, River Cruising is inherently dependent on natural conditions and no two seasons are alike. This year, portions of several European Rivers, particularly the Danube and the Ryan, have experienced historically low water levels, creating operational challenges across the industry.

Generally, Viking's purpose-built river fleet deployment flexibility and well-established ship swap capabilities are significant competitive advantages that enable us to minimize disruptions as much as possible. That said, the historically low water levels this year, combined with conditions that have deteriorated week by week have impacted guests on some of our itineraries this season.

Delivering a great guest experience is one of our highest priorities, and our teams are working tirelessly to ensure that any necessary adjustments are handled as smoothly as possible.

With our guests at the center of every decision we make, we are also enhancing our communication protocols to ensure they understand what to expect on disrupted itineraries. We are doing this through more proactive outreach and more frequent operational updates. We are also issuing future cruise vouchers to certain affected guests. While we believe this is the right approach from both a guest satisfaction and loyalty perspective, these vouchers will have a financial impact extending beyond 2026 and into 2027 and 2028 as they are redeemed. We believe this investment reinforces the trust that our guests place in Viking and supports the long-term loyalty that has been fundamental to Viking's success.

Our focus remains on taking care of our guests, operating our European River fleet through these challenges and continuing to deliver the exceptional experiences for which Viking is known.

With that, I'll turn it over to Linh to discuss our financials.

Linh Banh

Thank you, Leah, and good morning, everyone. I will start by reviewing our very strong second quarter results. On a consolidated basis, total revenue for the quarter increased 16.5% year-over-year to $2.2 billion. The year-over-year increase was mainly driven by increased capacity and higher revenue per PCD.

During the second quarter of 2026, capacity PCDs increased 10.9% compared to the same period in 2025. This year-over-year growth was mainly driven by the expansion of our fleet, which included the addition of 7 River vessels and 2 ocean ships. Their growth also reflects additional capacity of the Viking Eaton and Ocean ship dedicated to our guests from Asia. It is now selling in Europe, and we are pleased to be expanding our European itinerary offerings to this important and growing customer base.

Adjusted gross margin increased 16.3% year-over-year to $1.4 billion, resulting in a net yield of $645, 6.2% higher than the second quarter of 2025. Vessel expenses excluding fuel per capacity PCD increased 2.7% this quarter compared to the same period last year.

Regarding SG&A, expenses were slightly lower as a percentage of adjusted gross margin when compared to the same time last year. As we have mentioned in the past, our priority is to invest in our teams as well as in sales and marketing to support future growth and drive demand generation. Adjusted EBITDA for the second quarter was $748 million, 18.2% higher than the same period last year. This significant year-over-year increase was mainly driven by higher capacity and higher net yields in both the Ocean and River segments. As we have shared before, capacity growth, coupled with net yield growth translates into strong EBITDA improvement and margin expansion.

Net income was $588 million, an improvement of $148 million when compared to the same period in 2025. Adjusted net income attributable to Viking Holdings Limited was $587 million, 33.8% higher than the same period in 2025. Adjusted EPS was $1.31 for the second quarter, 33% higher than the same period in 2025.

Before moving to our reportable segments, which are on Slide 8, I would like to highlight that for the first half of the year, our consolidated adjusted gross margin increased 16.5% year-over-year to over $2.1 billion, and our adjusted EBITDA was $853 million, 20.9% higher than in the same period last year. It is important to note that the prolonged low water conditions we are experiencing across some of our European rivers are not yet reflected in our financial results. As conditions evolve, we will see some impact in the periods ahead, although it is too early to determine the extent.

Now I will briefly discuss our two reportable segments, River and Ocean. Unless noted, I will be referring to the year-to-date metrics or 6 months ended June 30, 2026. For the River segment, Capacity PCDs increased 3.2% year-over-year and occupancy for the period was 94.8%. Adjusted gross margin grew 11.3% year-over-year and net yield was $660, up 8.8% year-over-year, driven by strong demand across all regions and favorable itinerary mix.

For Ocean, capacity PCDs increased 11.4% year-over-year, mainly due to the addition of the Viking Investa in July of 2025. Occupancy for the period was 95.4%. Adjusted gross margin increased 20.3% year-over-year to $1.1 billion, while net yield increased 7.7% to $593. Similar to River, the year-over-year increase was driven by strong demand and favorable itinerary mix.

Now moving to the balance sheet. On Slide 9, you can see that as of June 30, 2026, we had total cash and cash equivalents of $4 billion, and we also have an undrawn revolver facility of $1 billion. Our net debt was $2.4 billion and our net leverage was 1.2x. As of June 30, 2026, deferred revenue was $5 billion. Also on Slide 9, we show our bond maturity outlook. As you can see, maturities are in 2028 and beyond.

With this, I'd like to confirm our debt amortization for 2026 and 2027. As of June 30, 2026, the scheduled principal payments for the remainder of 2026 were $117 million and $234 million for the full year 2027. From a committed capital expenditure perspective and for the full year 2026, the total committed ship CapEx is about $1.9 billion or $650 million net of financing. And for the full year 2027, the total expected committed ship CapEx is about $1.0 billion or $260 million net of financing.

We will now dive into the booking curves, which are all as of August 9, 2026. On Slide 11, we show our consolidated metrics for our core products. As you can see, we are in very good shape for both the 2026 and the 2027 seasons. The 2026 season already has 96% of the capacity PCDs booked. Advanced bookings equal $6.4 billion, which is 13% higher than the 2025 season at the same point in time, while capacity is increasing by 7%. And for 2027, we are already 53% booked with capacity increasing by 15% year-over-year. We have $4.7 billion of advanced bookings which are 21% higher than the 2026 season at the same point of time in 2025.

I will now talk about the advanced bookings curves for the segments. On the next slide, you will see our curves for ocean cruises. This is Slide 12. I will start with the yellow line, which shows the bookings for 2026. Overall, we have sold 96% of our capacity PCDs for the year and have $2.9 billion of advanced bookings, which is 17% higher than last year at this point in time. Capacity is increasing by 9%. Our rates have remained strong as we finished selling the year.

If you look at the gray line, you will see the booking trend for the 2027 season, which is in very good shape, too. As of August 9, we had sold about 62% of the 2027 capacity for Ocean, which is quite notable since the capacity is increasing by 18% year-over-year. Advanced bookings are 29% higher than last year, with rates equal to $877 compared to $781 for the 2026 season at the same point in time.

Now we move to Slide 13, you will see the curves for the River segment. I will start with advanced bookings for 2026, which is the yellow line. As you can see, we are having a very good year with 96% of the 2026 capacity already sold. We have over $3 billion in advanced bookings which is 11% higher than last year at this point in time. Similarly to Ocean, we have continued to book our remaining inventory at very attractive rates. Capacity for the River segment is growing approximately 6% during 2026.

Now looking at the gray line, these are the advanced bookings for the 2027 season. As you can see, we have sold about $1.8 billion in advanced bookings, which is 11% higher than the 2026 season at the same point in time. Our operating capacity for River is up 13% year-over-year, and we are already 42% booked. These are good trends for 2027 with relatively high rates equal to $1,029 compared to $942 in 2026. Keep in mind that the river operation is seasonal as our core European product starts in March. Given this, the booking curve builds through the year.

So recapping. Demand for our product is strong and we are very pleased with how the booking curves are developing. Now Leah will add some color to our order book and capacity.

Leah Talactac

Thank you, Linh. As we reported this morning and since our last earnings call, we took delivery of four river vessels and one ocean ship and exercised our options for two additional ocean ships scheduled for delivery in 2032. We are very pleased with our performance year-to-date and our ongoing fleet expansion underscores confidence in the business, the resilience of demand and the long-term growth opportunity before us. We look forward to updating you on our progress in the quarters to come.

With that, operator, we are ready to open the line for questions.

Operator

[Operator Instructions] Your first question is coming from Steven Wieczynski from Stifel.

質疑応答

Steven Wieczynski

[Technical Difficulty]

Operator

Your line is not coming clearly. Are you able to repeat your question?

And once again, Steve, your line is not coming through very clearly. Are you able to repeat your question, please?

Steven Wieczynski

Yes. Can you [indiscernible]

Operator

Your next question is coming from Xian Siew from BNP Paribas.

Xian Siew Hew Sam

Maybe on the low water levels, are you seeing kind of any near-term indicators that suggest consumers might be kind of avoiding river cruising at all? Just given the low water levels? Are you seeing any near-term impact on demand? And then maybe longer term, how do you think about how low water levels might impact guest experience and brand loyalty? I know in the past instances -- I think it was in 2022, low water levels in the Rhine, guest ratings were similar for change with ship swaps and to those without, and maybe it's a little bit more difficult this year, but anything you could kind of share in terms of brand loyalty over time and guest satisfaction?

Leah Talactac

So for nearly 30 years, Viking has successfully operated on Europe's Rivers through a wide range of water conditions. So river levels, they naturally fluctuate from year to year. Some seasons, we experienced high water. Other seasons, we experienced low water. So that's really the reason why our River fleet was designed with these realities in mind. And we have, over the course of 30 years have really worked on our operational expertise that allows us to minimize disruptions through proven solutions, including ship swaps when necessary, so that our guests continue to enjoy the itineraries that we offer.

This year was exceptionally low water. We understand that it was not ideal conditions. But nevertheless, we continue to operate without any cancellations. I think our booking curves for the River segment speak for themselves. You have not seen any particular impact in terms of booking cadence, but I'll let Linh expand on that.

Linh Banh

Thanks, Leah. I mean, I think I completely agree with what Leah said. If you look at our 27 curves as of August 9, we are already over 40% booked for Rivers, and that is a great position to be in. So based on that, we don't believe low water is impacting our bookings, and we're pleased with how the curve is tracking.

Unknown Executive

Maybe I could add a point. It's Tor here, I'm in Europe. I mean, also as a matter of fact, and my daughter, Karina, was on board of Vitera here in Oslo and guests there, I mean, 100 guests there have been on river cruises -- on the combined river cruise down the Rhine and then on to the And of course, we all are a little bit concerned of how I guess, reactions. As you know, we try to go a bit of a board to treat, I guess, well. She said that the people she has spoke to said that they were very pleased with the way Viking handled the whole situation. And worse, we have the benefits that we can do the ship swaps and all that. So of course, it's not ideal, but I think we've been able to hand it very well. We were a little bit slow initially, but I think we have handled it very well.

Operator

Your next question is coming from Matthew Boss from JPMorgan.

Matthew Boss

Congrats on another nice quarter. So Leah, with your 27 advanced bookings for PCD, up 10%, more or less unchanged relative to a quarter ago. Can you touch on recent pricing trends across River relative to cruises? Or just any constraints to delivering at least the mid-single-digit historical yields in 2027 despite the impact that you cited from vouchers? And Linh, on expenses, any transitory impact to expect in costs, excluding fuel for this year? Or just any constraints to your ability to manage costs below yields for this year and next year as we think about the impact from the water levels?

Leah Talactac

Matt, so I think our booking curves show that our rates are actually pretty good. And also the pacing is also good with 40% of the River capacity and more than 60% of Ocean capacity for 2027 already being booked as of this point in time. We don't see an impact on demand and in what the bookings that are coming in based on recent events, we've seen our guests kind of proved to be resilient and are continuing to book 2027 in future seasons.

Linh, do you want to add additional color?

Linh Banh

Sure. Thanks, Leah. So for 2027, as Leah noted, our net yields are quite nice, about 10% higher compared to the same point in time prior season. And so I think this goes to the same -- our curve reflects some favorable product mix. And so we see that 10%. I think our goal remains mid-single-digit yield growth for 2027.

As it relates to expenses, as you know, we don't guide. But the first half has shown where expenses have been. Cadence of expenses may differ from one period to the next. It's not always like-for-like. So we wouldn't say we should extrapolate, but our goal is always obviously to be prudent and diligent with cost management. We noted earlier that there may be some impact from low water. We will possibly see that in the third quarter and then also from the voucher issuances. So as vouchers are issued and utilized for future periods, those future periods will reflect the voucher value.

Operator

Your next question is coming from Robin Farley from UBS.

Robin Farley

Great. If you could help us quantify a little bit the vouchers issued. It's interesting that you're saying you've done that even though you haven't had any cancellations. Just thinking about assuming if all those vouchers were to be used in '27 kind of what the total impact would be. I would assume it's relatively small across the base of your fleet. But if you could help us quantify the value that you've issued.

And then also on that 10% increase in '27 booked revenue per day. You mentioned there's favorable product mix in there. Is it fair to assume there's also some benefit that's gross revenue number that airfares are may be higher in '27 versus '26? And any color you could give us on how the cruise ticket price itself is trending if you didn't have that higher airfare in there, just even in whatever way you can help us quantify that?

Leah Talactac

Robin, this is Leah. So yes, we did proactively issue future cruise vouchers, as Tor mentioned earlier during the call. We want to be -- we want to make sure that the guests feel that we understand that the -- nobody wants disrupted cruise. We understand that this was not what they had hoped for when they first initially booked. And so really that future cruise voucher generates the goodwill and in the hopes that they will return for future seasons, so that they can experience the experience that Viking is known for.

Based on conditions, they continue to evolve week to week. So at this stage, our focus is on the direct impact to our third quarter. So as of mid-August, more than 50% of the River capacity cruise days reflected with about 10% to 12% ultimately canceling. So we have proactively started to issue vouchers for these guests to acknowledge that we understand what's going on. We understand that this is not what they had purchased. And hopefully, to Linh's point, these vouchers would encourage them to really come back to Viking and experience the what we are known for, the experiences that we're known for. And with that, I'll turn it over to Linh for you had some cost questions about airfare.

Linh Banh

Thanks, Leah. So as it relates to 2027 and net yields, our curves show advanced bookings per PCD, which is revenue that we generate from our guests that have booked thus far. So it is favorable product mix. We price to demand is the reality, keeping in mind that we want to ensure that our pricing is -- we have good pricing for our guests to ensure that they come back.

What we would point to is net yields, if you want to look at airfare. So net yields will reflect costs and as many of us know, airfare is something that most companies are seeing pressure with. That being said, our goal remains mid-single-digit yield growth year-over-year. That remains the same for '26 and the same for 2027.

Operator

Your question from Trey Bowers from Wells Fargo.

Raymond Bowers

Just want to confirm when we look at the booking curves. Is there any impact of that from the issued vouchers? Or is that a totally clean number? And then I guess as well, kind of unrelated. The sales and marketing spend was really solid this quarter. It was down year-over-year. If you guys could just talk about any efficiencies you're seeing in kind of your marketing spend and where you see that heading over time?

Leah Talactac

Sure. So the second quarter results do not include any impact for the low water. The low water really started in mid-July. The future cruise voucher is a credit that can be applied toward new future bookings, and they're used towards the cruise fare. So they're effectively providing a discount on the price of the future crews. These can be applied for cruises later in '26 and into 27 and '28 in future years.

Operator

Your next question is coming from James Hardiman from Citi.

James Hardiman

I wanted to circle back to sort of the discussion about mix and ultimately, how that seems to benefit your advanced bookings per PCB number. We spent a lot of time on the last call sort of talking about that outsized 11% number and how it wasn't likely to stay where it is. Maybe speak to sort of how much of that mix being sort of released, so to speak, is responsible for going from the 11% to 10%. And how much as we think about what's left to be booked should impact that number or how much that 10% is likely to stay closer to where it is. And maybe as part of that, we did see River in particular, decelerate a couple of points versus the last advanced booking per PCB number, I think it went from about 12% to closer to 9%, whereas Ocean was pretty consistent. What's the narrative there? Is that really just about mix? Or did River in fact, sort of slow more so than Ocean. Just help us understand those pieces.

Leah Talactac

Sure. So we did speak about this in the last quarter call, which is that we do have a product mix benefit here for the year-to-date curves for 2027. So as we sell more, for example, Egypt, Vietnam, that does heavily weight the price so that year-over-year, it looks much stronger. I think as we continue to sell our bread and butter, which is Europe as most of you are aware, the average price will start to come to more a reasonable or natural number, and our goal remains mid-single-digit yields for both rivers and oceans.

As it relates to oceans, the price year-over-year for 2027 did stay around that 12% range. And while there may be upside, I think we need to let the booking season develop before we extrapolate trends as we noted, mid-single-digit is our goal for net yields, which includes costs such as transportation and air. And we still do have a good chunk of inventory left to sell. And so overall, I mean the current strength is driven by higher pricing and itinerary mix, but our goal remains mid-single-digit yield growth.

Operator

Your next question is coming from Lizzie Dove from Goldman Sachs.

Elizabeth Dove

You talked a bit more about the offering of more land extensions, our extensions and things like that. Could you maybe share how you're thinking about that longer term? And whether from an acquisition perspective, that's something that might kind of fit into the overall portfolio? And especially within the context of I think you still got about $4 billion of cash, how do you think about the relative priorities of capital returns or just -- yes, capital allocation over time?

Leah Talactac

Lizzie, so yes, so -- we have been quite clear from the start that our focus is really about the destination and the experiences. So our teams have -- with that top of mind, when we think about our future itinerary planning as well as what offerings we have available for either optional shore excursions or pre and post excursions when they are in our app. Having said that, I think this one, I'll invite Tor into the call because he actually was quite keen on the Zeppelin that we announced. I think he went on it a couple of times. So Tor, do you kind of want to just give a little bit of color on that and also on how we see extensions and other experiences kind of enhancing our core products.

Operator

Your next question is coming from Conor Cunningham from Melius Research.

Conor Cunningham

I didn't know if Tor wanted to on there or not.

Leah Talactac

Yes. Tor, I think you might be on mute. Do you want to respond on the experiences. Anyway, so -- unmute. Well, Conor, hang on with -- let me just finish the second portion. So on the capital allocation question, so we do have a healthy cash balance of $4 billion. Our priority, as you can see from our order book, is really to reinvest the cash in the business to generate strong returns. This we do have the framework in which we look at all acquisitions. So first, it has to be scalable. So it has to be able to move -- when we think about acquisitions, it's like you have to compare it to our organic growth. So it has to be able to generate the same, if not more, returns than our ships. So it has to be scalable, it has to be margin accretive and then, of course, complementary to the brand and fits within the brand ethos.

So sorry to interrupt but go ahead in with your question.

Conor Cunningham

Okay. Sorry. So maybe just a point of clarification and then piggyback and just on the excursion stuff. But can you -- so occupancy in the second quarter for River decelerated year-over-year, and you're saying there was no impact. So if you could just talk about that. I think it may just be in the context of the supply growth. So that's one maybe easy one. And then just on the excursion and shore product, can you just talk about what's actually resonating and where attach rates are today and where you see the opportunity for attach rates 5 years from now or so something like that.

Operator

Your next question is coming from David Katz from Jefferies.

Leah Talactac

Sorry, I need to answer the question. Thank you. Apologies for that. For the second quarter of 2026, as we can see from the numbers, we performed quite well in the second quarter for River occupancy. Occupancy was slightly lower than Q2 2025. There was some impact as it related to our Egypt crudes, but that itinerary sells very well for us, well priced and has done quite well and is doing quite well.

As it relates to excursions, we've mentioned this in the past, I think it was slightly a little lower than 40% of our guests up to take a pre or post land extension. And obviously, that helps from a margin perspective. But in addition to that, what we found is our guests take a pre or post or optional shore excursions with us, they tend to rate their experience better. And so from that perspective, that's really what we want. We want our guests to have a great time. And by adding additional different experiences that our guests can opt to purchase what we've seen as quality scores for those guests are actually higher. Apologies for some of this disconnect. But please go ahead with your question.

David Katz

No, we're going to -- Leah, we're going to take the cadence back right now, okay? I appreciate you taking my question. What I wanted to ask is, within some perspective on the portion of bookings that are repeat customers. And the reason I asked the question is the degree to which these customers have been on multiple Viking cruises in the past and are having a challenged experience at this time. And it may be quite a bit easier to take given that they've been a repeat customer. So any qualitative sense around what the current book is of repeat customers that have been with you multiple times before would be helpful.

Leah Talactac

Sure. So as of last year, so as of 2025 -- I'm going off memory now, also Linh, correct me if I'm wrong, but I believe 52% of the guests who traveled with us in the 2025 season were repeat guests. So that's a number that we publish every year. And that number is quite important to us as well as new to brand, of course. As you grow the fleet, a healthy mix of making sure that you're addressing your addressable market as well as making sure that your guests repeat like that mix is important to continue to grow the capacity.

So when we think about our product offerings, what would allow guests to repeat. So it's new itinerary. So it's itinerary mixes, new destinations, such as India. Egypt has proven very well for us in terms of repeat brand. And then also these excursions, some of our guests have already been on the itineraries and they already have the included excursions. And so when we have optional excursions that they can augment in their cruise, then that gives them something new to experience even though the itinerary is the same. And I think a combination of that, when we think about the 520 unique destinations to go to, when we think about the 21 major rivers were in 7 continents. We're in all oceans, that really that portfolio breadth really allows guests to go with us wherever they want to go in the world to travel with Viking wherever in the world they want to travel to. And that's also where we keep our focus on when we think about operationally, what other areas would it be difficult for an individual traveler to go to that our guests 55 with lots of time, they have -- they have the time, they have the opportunity and they have the means to travel. Where else can we reduce the travel friction so that they can essentially travel the world in comfort. So that's what we think about when we think about our destinations and our expanded product offerings.

Operator

Your next question is coming from Andrew Didora from Bank of America.

Andrew Didora

Maybe just going back to the European Rivers, again, a question for Linh. As when you look back historically at times like this, maybe 2022 or before that, what kind of impact did you see in future bookings? Just trying to frame your commentary about. We will be seeing an impact in '27 and '28. Just trying to get a sense of what that's looked like historically? And then is the impact that you -- I think that you said that 50% of cruises are impacted. Is that a 3Q cruises? And just curious on how that compared to other times of low water levels. Is this the worst that you've seen? Just trying to put it all into perspective.

Linh Banh

Sure. Andrew, so as of mid-August, more than 50% of our River capacity PCDs during the third quarter. So July -- this really started in July and then into mid-August. So more than 50% of that has been impacted. And so for those impacted cruises, we have -- Leah mentioned, we want our guests to we understand where our guests are coming from. We understand that this is not the experience that they initially purchased. And so there were some disruptions to their cruise experience, so we are giving vouchers. And that voucher will impact the next booking that they choose to book. So whatever is available or open for sale, which is later in '26 and really mainly '27, '28. What we would say is this low water that's occurring right now is probably historically, I would say, compared to other seasons, this is probably more low water than what we've seen in the past. And so we want to be proactive. We want to ensure our guests feel good, and we want to at least try to deliver the best experience we can with these conditions. And so there will be some impact to the third quarter of 2026 and some impact into future years.

That being said, as you can see from our curves, pricing to date has been quite healthy. And with this in mind, we still will try to achieve our goal of mid-single-digit yield growth.

Operator

Your next question is coming from Richard Clarke from Bernstein.

Richard Clarke

I guess just quickly on the booking curve. Obviously, you cut at the ninth of August. Would you expect that to look meaningfully different if you cut it today or yesterday? And as you're sort of planning going forward, are you happy to treat 2026 as a one-off year? Or are you going to sort of operationally change anything ship capacity ship in the in destinations going to more land-based excursions possible to mitigate if these conditions do repeat more often?

Leah Talactac

So I'll address the operational and I think, as I mentioned, river levels naturally fluctuate from year to year. So some seasons, there are high water, some seasons, there are low water. And for the 30 years that we've operated in this rivers, we know this. And so our fleet is specifically designed to navigate through these seasonal variations of water flow. That's where having nearly identical ships actually makes for a better experience in times of whether it's high or low water because the ships are able to meet in the middle and then the guests can then ship swap on a normal variation in terms of water levels.

Now this year has been particularly low. We've also seen this, I believe, in 2018 and 2022. We also did not cancel cruises during those times. This is just a part of operating in the rivers. We know that this happens. This is a reality of operating in the rivers. So -- because of that, our team has been really -- they have it down to a science of having a combination of operational flexibility, contingency planning and itinerary adjustments to minimize disruption for our guests.

Unknown Executive

And maybe if I can add, I'm finely back online. Of course, we have seen this before. And I think as long as we inform our guess what they can expect then I think that solves most of the problem. And of course, we are in a unique position, as Leah said, by having our identical chips so that we can hopefully get away with only one ship swap. So I think we're in a very, very unique position. I see no reason whatsoever for lowering ambitions in terms of what volume on the river should be. As a matter of fact, one is a little contrarian, maybe such a situation as now can create some opportunity to do things that otherwise would have been difficult because of was we are in a very strong financial position. So we might be able to be contrarians too. But that may be wishful thinking.

Operator

Your next question is coming from Stephen Grambling from Morgan Stanley.

Stephen Grambling

Maybe two follow-ups. The first one is quick, which is just -- so that comment on the cancellations in 3Q, I think you said 10% to 12% cancellations. Was that on just the 50% impacted or of the total River? And then second on another follow-up on excursions and extensions. Just -- any sense for how the economics and operations of these extensions work as we try to think about incremental margins? And then just strategically, as we think about the opportunity to expand further that you mentioned, how do you balance that with staying true to the all-inclusive and no upsell associated with the brand?

Leah Talactac

Thanks for the question. So the clarifying point, the cancellation of 10% to 12% is on the affected 50% of River capacity PCDs. And when we think about the all-inclusive nature of our products, it's still all inclusive. It's -- it is the guests discretion whether or not they want to augment their cruises, but if they don't want to open their wallet again when they come on board and they don't have to. So that -- we believe that, that still is a balance between the all-inclusive nature which it is with all of the amenities that we have and all of the included beer/wine included excursions, but it was also a balance of making sure that guests are able to experience what they want to experience beyond what is included. And as Linh mentioned, when we do have these additional things that guests can choose from, it does increase the quality scores. So we also see that the guests also want to have a choice. And then I'll turn it over to Linh on your question about extensions.

Linh Banh

Sure. So I mean I think as mentioned earlier, plus or minus 40% of our guests do you opt to purchase our pre or post extension and a good amount of our guests do add an optional shore excursion. So that's already reflected in our net yields that you see today. I think over time, it will contribute, and we will continue to provide different options for our guests. But as you mentioned, we are all-inclusive. So this is up to the guests, whether or not they would like to opt in for more. We're constantly looking at whether it's our deployment or itineraries and what it provides versus what we can also add incrementally. So overall, at the end of the day, what we want is our guests to have a great experience with Viking.

Operator

Your next question is coming from Meredith Jensen from HSBC.

Meredith Prichard Jensen

I was hoping you might speak a little bit more about the other portion of revenues, which is obviously also performing very well. But maybe if you could just sort of unpack some of the drivers there. And including how the U.S. product, Mississippi and Ohio River are performing as well given everything going on in the world. It would be great to hear about that as well.

Leah Talactac

Meredith, I hope you're well. So in our other segment is a mix of a few things. As you noted, it is the Mississippi. It is our expedition product, and it is our China outbound efforts. So taking our Chinese-speaking guests to Europe. And so in the second quarter, we did bring on the Eden. And the Eden will start operating for our Chinese guests. And over the summer, we did take that ship to Europe. And so we are quite excited about that opportunity. So the growth that you see really is reflective of that. We have currently today four long ships operating in Europe for our Chinese-speaking guests and now the Eden for our ocean going itineraries. I

don't know, Tor, if you would like to add anything on that effort.

Unknown Executive

Sure. I've been spending a fair amount of time on our China outbound business, which, of course, we operate very differently from anybody else. We have the benefit that we can start with our Chinese -- our river ships in Europe, where we have a Chinese staff and the same mobile as we did when we started American rivers, they then come and feel at home on the Chinese speaking and Chinese food ships in Europe. Ratings are very, very high. It has turned out, we took the Viking Eden and now deploy that in Europe, too. So we fly the Chinese across there and then now see Europe. I think it's -- the reactions have been very positive. And I think that could be this ought to be a real opportunity for us in the medium term, I would say.

Operator

Your next question is coming from Alex Brignall from Rothschild & Company.

Alex Brignall

Maybe I'll try my luck into a follow on to the previous question and then one original one. So -- on China, also there was an opportunity for sort of domestic China business. Could you talk about any progress you've made on that, the opportunity? And then in terms of cruising domestic as to how the India itineraries have started, obviously, not for -- no domestic business, but how the demand for those is going and how the booking cabs -- looking for those?

And then just in terms of Q3, it's obviously very hard to model, but it feels like we can do a job on occupancy because we just take the 10% to 12% of the 50% of the proportion, which is River. But could you just help us to understand what happens with actual costs? Obviously, you've built an incredibly resilient business for ship swaps. But are there other costs that we should think about within just Q3 specifically outside of just the lower amount of people that would be on board if there's been a composition?

Unknown Executive

Could I take the China follow-up first?

Leah Talactac

Sure.

Unknown Executive

Again, we did operate in China for Chinese were in Chinese water for Chinese. But unfortunately is that the people who operate there locally, not much in name, but it's a fiercely price competitive market. And they, to a large extent, have been selling the American style product to Chinese customers through wholesalers -- for the wholesalers or the price setters and the cruise lines really have to take whatever is left over. Our strategy has been very different and following what we did in the U.S. But what we do in China, it may not be new to. We market directly to the Chinese consumer. And that means that we own them, and we set the price and we're not subject to any of the tenants that tour operators implement.

It means it takes us a bit longer time to get there. But if we get -- I'd say if -- when we get there, then I think it will be a much more profitable business than competing and local waters with the big U.S. guys or for that matter, Chinese guys. So we'll be the European cruise line for Chinese tourists, I think that could be very, very interesting.

Leah Talactac

All right. And the other questions were India. So how is India itinerary tracking. So -- we announced India for the first time in 2025 to start sailing in 2027. So we are pleased to report that for the 2027 and 2028 seasons, the India itinerary is completely sold out, so they're full.

Unknown Executive

Yes. No, this sounds like summer to trying to get into the river cruise business. How quick they sold out their stuff. So...

Leah Talactac

It's per for the course for us for not for a press release on it.

Unknown Executive

Okay, sorry.

Leah Talactac

And then 2029, well, we haven't received any figures on that. 2029 is also selling quite well. And as far as the expenses for low water, the situation is ongoing. So we are -- it started in mid-July, it's now mid-August. So I am happy to say and to verified it that it is raining in Europe, -- so we are optimistic that people turn the corner. But having said that, it is a bit premature to provide any figures. So we will see some incremental expenses from transportation, impacting adjusted gross margin. And then some operational expenses impacting vessel expenses, but we'll have an update for that in Q3.

Operator

I'll now turn the conference back over to Leah Talactac, Viking's President and CEO, for closing remarks.

Unknown Executive

Maybe, Leah, I could make a couple of comments before you close the books, because...

Leah Talactac

Sure.

Unknown Executive

If you look in that presentation, we see -- or your presentation, rather, we see the phenomenal order book we have on Slide 14, I think it is. And I think it's -- when we talk about water levels and all that, it's sometimes counterintuitive to talk about the value of having such an order book. But I'm so sure that this order book will be very good for us. And as long as we make sure we spend enough for marketing, treat our guests well, and we have very good contract prices with the arts, so I think this will be one of the main assets of working, if I may say so.

Leah Talactac

Yes. Thank you, Tor -- that sums up our position. And again, these are historically low water levels, but this is something that we are experts at dealing with, it's something that we deal with from time to time, whether it's low or high water. And fortunately, our operations team is quite excellent at handling it.

Having said that, thank you, everyone, for joining us today. We apologize for the various hiccups we've had throughout this call. We appreciate you bearing with us. And thank you, and we will speak to you next quarter. Thanks, and have a great day.

Unknown Executive

Thank you.