MSC Cruises USA’s Rick Sasso

MSC Cruises USA’s Rick Sasso

By Tom Stieghorst
Rick SassoRick Sasso was appointed president of MSC Cruises USA in 2004. Earlier this month he spoke about MSC and its 3,502-passenger MSC Divina’s year-round presence in North America with cruise editor Tom Stieghorst

Q: Can the importance to MSC of homeporting Divina in Miami be overstated?

A: We’ve been gearing up for this for about a decade now as we started to introduce ships during the winter season only. Now we’ve made that decision to position our strongest hardware, a remarkable ship, and she’ll be very competitive here in this market. 

Q: How have agents reacted to the Divina?

A: We’ve just recently concluded an advisory board meeting, which represents about 80% of the cruise traffic that gets produced here in North America, and these very select, high-profile sellers of travel are very enthusiastic with us. They have offered their fullest support knowing that we’re bringing such a magnificent ship and we’re going to be here with some continuity. 

Q: What type of agents are you focusing on the most?

A: You have to have more than one front. You have to make sure you’re with the online producers, because that’s what the consumers are using very frequently to search for cruises, to book cruises. So you have to have your hand very tight on the big online guys. But there’s also a lot of opportunity in the group arena and the retail arena. We have done a good job penetrating the likely producers of groups and those who are looking for magnificent ships in the premium-plus category, and even those who want a luxury component, because we have Yacht Club on the Divina, as we do on the other three ships that also feature the Yacht Club. So I think we’re now able to set up a little more penetration for those who are looking for a very high-quality product. 

Q: Agents say they have to focus their business, and that means selling the cruise lines that have a big presence in North America. Your response?

A: I don’t think that’s something unusual. When you have the gorillas in the marketplace that have dozens of ships in one marketplace like North America year-round, there’s certainly a lot activity going on and a lot of relationships. But we offer an extraordinary alternative, because we are a serious group of managers, there’s incredible talent in our organization, so they like working with people they can trust. They also know that we are growing, that we have a presence in Europe, we’re the No. 1 cruise line in the Mediterranean in Europe. And that alone is a lot of source [business] in North America that’s going on for those products. 

Q: A travel agent said, “I did send some of my clients over on MSC and they came back and said, ‘This isn’t our cup of tea.'”

A: I think that was probably very, very true three years ago, not so true two years ago and a lot less a year ago, and today we have taken the steps to actually re-engineer the product. So there’s very few places to smoke on board. There is a very strong emphasis on all the culinary items that an American would want, whether they’re cruising in Europe or cruising in the Caribbean. We’ve super-trained our crew in fluent English, there is an abundance of TV channels in the cabins, and we really take quality and service as a main priority now. 

So I think we are a different cruise line than we were 12 months ago, and if you have some comments of a historical perspective, they can now start seeing the new MSC. And [after] Divina comes on Nov. 20, people are going to start talking about that

Norwegian Cruise Line and Avis Budget sign marketing deal

Norwegian Cruise Line and Avis Budget sign marketing deal

By Tom Stieghorst
Avis Budget Group and Norwegian Cruise Line said they’ve signed a multiyear marketing agreement that will make Avis Budget part of pre-cruise tour packages for Norwegian Getaway, the line’s newest ship.

The packages will be available to guests and travel agents through Norwegian’s call center.

Information about the Avis and Budget car rental brands will be featured in Norwegian’s electronic marketing channels, while Norwegian Cruise Line will be featured in communications to Avis and Budget customers.

Norwegian Getaway is scheduled to begin cruises from Miami in February.

Optimism in the cruise market

Optimism in the cruise market

By Tom Stieghorst

*InsightIs the cruise business in the process of turning a corner?

 

There’s no objective proof that it is, but as with improvements in the general economy, turning points are often discernable only in retrospect.

 

Subjectively, it feels like something is happening. Business feels like it is getting better. People feel primed to spend again, and travel is one of the areas they want to spend more money on.

 

Some travel executives have been saying this for awhile. “I do feel like travel is back,” said Michelle Fee, CEO of Cruise Planners, who noted her company is having a record year for both franchise and travel sales.*TomStieghorst

 

The legs for a turnaround are in place.  The stock market is consistently hitting new highs. Equally important, home prices have been resurgent for some time now. Unemployment remains a drag, but the jobless rate is several points below its peak of a couple years ago. Driven by a potential easing of tensions with Iran, oil prices have fallen for the past four months, which should give cruise lines leeway to offer better fares without destroying the bottom line.

 

The prevalence of fare sales and promotions suggest that the bedrock seven-night domestic cruise market is still in recovery. But cruise lines continue to make impressive gains in cost reduction, leaving room to fill ships profitably at somewhat lower prices.

 

Individual agents who are having good years are not hard to find. “Personally, my business has been fabulous,” said Muffett Grubb, a Cruise Holidays franchisee in Knoxville, Tenn., who said travelers are loosening their wallets to take cruises in Europe rather than the five-to-seven-day Caribbean trips of 2011-12.

 

Likewise, Rose Stevenson, who owns a Cruise Holidays franchise in Charles Town, W. Va., said she’s doing well and that clients have a comfort level with Alaska and Hawaii cruises they didn’t have before.

 

Kevin Weisner, president of Cruise Holidays, said that in the big picture, success depends on market segment. Once you take the first-time cruiser out of the equation, “business is very, very healthy,” he said.

 

Those consumers that have never been on a cruise became tougher to persuade after the Carnival Triumph incident in February. But memories of that incident are fading, and barring some sort of lightning strike for the third year in a row, the cruise industry could finally be on its way to the smooth sailing it used to enjoy routinely during a good economy.

 

If November turns out to be a tipping point, that’s something everyone in the cruise industry could be thankful for.