The market debut of a cruise line operator causes Viking's stock to increase by over 10%.

• On Wednesday, the New York Stock Exchange welcomed Viking as a new trader with a starting price of $26.15 under the ticker symbol "VIK."
• The company's IPO coincides with a strong rebound in cruise bookings.

Viking is not your typical cruise operator.

The cruise line targets high-income baby boomers on its smaller, upscale vessels, with no children allowed.

Casinos? Not on these cruise ships.

Viking Holdings' prospectus stated that its cruises are designed for the "thinking person," emphasizing the company's focus on providing adventure and new experiences for travelers.

According to Torstein Hagen, CEO and chairman of Viking, who spoke to CNBC, having the money and time to do everything for everyone does not necessarily mean success. In fact, he believes that trying to please everyone can lead to doing nothing well. Therefore, Viking is very focused on its goals.

On Wednesday, the luxury cruise line aimed for a $10.4 billion valuation in its initial public offering on the New York Stock Exchange, making it the third-largest cruise operator after and . Viking began trading at $24 a share under the ticker "VIK."

The Viking IPO was upsized to 18 million shares after existing shareholders sold an additional 9 million shares, driven by strong demand from mutual fund investors, a source close to the matter revealed.

In 1997, Viking had four ships. Now, it has a fleet of 92 vessels, with 80 being river-based ships that travel on major rivers such as the Seine in France and the Nile in Egypt.

"Hagen stated that we differ from the big cruise lines as we have a small presence in the Caribbean, while the majority of our operations are in Europe."

On April 25, Royal Caribbean raised its guidance for 2024, coinciding with a strong rebound in cruise bookings.

"In a recent interview with CNBC, Royal Caribbean CEO Jason Liberty stated that cruising has emerged as a competitive travel option. With the overall travel industry valued at $1.9 trillion, the cruise industry accounts for $56 billion of that. Liberty believes that cruising is now at a much higher level than before the pandemic."

Viking reported a net loss in 2023, despite bringing in $4.71 billion in sales. However, what is getting investors excited is the company's revenue per passenger, which is much higher than any other publicly traded cruise line. Viking's premium price point allows it to make more money on each customer.

Viking's expansion plans will also be of interest to investors, as Norwegian Cruise Line recently announced the order of eight new ships to be delivered over the next 12 years.

Despite concerns of overcapacity due to their extensive portfolios, Carnival, Royal Caribbean, and MSC Cruises have seen a strong rebound in demand from the pandemic. While prices have increased, cruising remains more affordable on average than hotel vacations.

Robin Farley, a UBS leisure analyst, stated that land-based hotel rates have increased by 25% since 2019, while cruise line rates have risen by 10% during the same period.

Farley stated that the difference between cruising and hotels is significant, which makes cruise travel alluring at the moment.