Sitka’s Alaskan Dream Cruises Shuts Down and Cancels Sailings

Alaskan Dream Cruises, a Sitka-based small-ship operator known for expedition-style itineraries in Southeast Alaska, has ceased operations and canceled future sailings, according to a notice posted on its website Feb. 4.

The company framed the move as a strategic shift rather than a sudden operational disruption. Owner Jamey Cagle said the decision followed a review of long-term objectives. “This decision was intentional and necessary,” Cagle said, adding that the goal is to focus resources “where they will have the greatest impact.”

Cagle also thanked guests, communities, and crew, saying the company was grateful for the trust placed in it over the past 15 years and for the opportunity to share Alaska and Alaska Native heritage with passengers.

Refunds and options for booked guests

Alaskan Dream Cruises said guests with existing reservations, and their travel advisors, are being contacted directly by email with instructions for refunds and next steps. In a separate statement to Fox News Digital, Allen Marine spokesperson Zak Kirkpatrick said guests are being fully refunded for deposits and payments.

Kirkpatrick also said guests were offered a transfer program with UnCruise Adventures as an alternative for travelers still hoping to take a small-ship Alaska trip.

Alaskan Dream Cruises directed guests and travel advisors with questions to contact the company at [email protected] or by phone at (855) 747-8100.

A seasonal small-ship product built around remote Southeast Alaska

Founded in 2011, Alaskan Dream Cruises operated seasonal sailings during Alaska’s May-to-September cruise season. At the time of the closure announcement, the company was not actively sailing and had been in its winter hiatus.

The line marketed an intimate alternative to large-ship cruising, using small vessels that could navigate fjords and narrow passages typically out of reach for bigger ships. Many itineraries were designed for approximately 40 to 80 guests. One example of its pricing model included an eight-night Inside Passage voyage listed at $7,600 per person (double occupancy), with an itinerary that included multiple glaciers and visits to Alaska Native villages.

Four U.S.-flagged vessels are laid up in Sitka

Alaskan Dream Cruises operated a fleet of four U.S.-flagged vessels totaling 223 berths. The ships are currently laid up in Sitka, and the company has not confirmed future plans for the vessels.

• Chichagof Dream, built 1984, 76-guest capacity, 1,471 gross tons
• Admiralty Dream, built 1979, 58-guest capacity, 514 gross tons
• Baranof Dream, built 1980, 49-guest capacity, 97 gross tons
• Alaskan Dream, built 1986, 40-guest capacity, 490 gross tons

Several of the vessels were acquired from the former Cruise West operation and adapted for Southeast Alaska’s expedition-style itineraries.

Allen Marine’s day-tour business continues

Alaskan Dream Cruises operated as a subsidiary of Allen Marine Tours, a family-owned business with broader marine tourism interests in Alaska, including day tours and shore excursion infrastructure.

Kirkpatrick said Allen Marine’s day-tour operations will continue as the company shifts priorities following the end of the overnight cruise program. “This chapter is closing and that’s always tough, and little nostalgic,” he said. “But there are many, many more incredible chapters to come in the book of Allen Marine.”

Rising costs, competitive pressure, and local impacts

The company’s closure comes amid cost pressures that have been squeezing small-ship operators, including rising expenses for fuel, insurance, provisions, wages, and port-related fees. Alaskan Dream Cruises also faced the broader challenge of competing with larger cruise lines that can spread operating costs across far more passengers and offer more competitive pricing.

In 2025, the company offered Alaska residents a 70% discount on cruise fares, a move that highlighted the difficulty of filling cabins in a crowded marketplace. The Alaska cruise market has also seen expanding competition, including luxury operators such as The Ritz-Carlton Yacht Collection, and new entrants cited by the company’s coverage including Virgin Voyages and MSC Cruises.

In addition, larger cruise operators, including Princess and Holland America, have dominated access to key destinations such as Glacier Bay National Park, where entry permits are limited. Alaskan Dream Cruises held permits for Glacier Bay National Park and Preserve, though it has not been clarified whether those permissions will be reallocated.

The shutdown is expected to affect several hundred jobs connected to the cruise line’s operations in Sitka, Juneau, and Ketchikan, where the company maintained operational bases. Because the line operated U.S.-built and U.S.-flagged ships on itineraries that remain within U.S. waters without foreign calls, it relied on American crews and employed a higher share of Alaska residents than is typical on many large cruise ships.

The closure also arrives as the broader cruise sector reports strong demand. Cruise Lines International Association said its 2025 report showed a record 37.7 million cruise passengers globally in 2025, even as operators across categories manage rising costs.

For booked guests, the immediate next steps are centered on email communications about refunds and, for those who want to keep Alaska plans in place, potential re-accommodation options through UnCruise Adventures as Allen Marine continues its day-tour operations.

Frequently Asked Questions (FAQs)

Why did Alaskan Dream Cruises shut down?

The company said the closure was a strategic decision tied to a shift in business focus. Owner Jamey Cagle said the decision followed a review of long-term goals and was intended to focus resources “where they will have the greatest impact.”

How do guests get refunds for canceled Alaskan Dream Cruises sailings?

Alaskan Dream Cruises said guests and travel advisors are being contacted directly by email with instructions for refunds and next steps. The company directed questions to [email protected] or (855) 747-8100, and Allen Marine spokesperson Zak Kirkpatrick said guests are being fully refunded for deposits and payments.

Can guests transfer their booking to another small-ship line?

Zak Kirkpatrick said guests were offered a transfer program with UnCruise Adventures for travelers seeking an alternative small-ship Alaska itinerary.

What ships did Alaskan Dream Cruises operate, and where are they now?

The line operated four vessels, Alaskan Dream, Baranof Dream, Admiralty Dream, and Chichagof Dream, totaling 223 berths. The fleet is currently laid up in Sitka, and future plans for the vessels have not been confirmed.

Is Allen Marine Tours still operating in Alaska?

Yes. Allen Marine’s day-tour operations are continuing even though Alaskan Dream Cruises has ended its overnight cruise program.