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

Amid Europe river cruise boom, lines say there’s room for more

Amid Europe river cruise boom, lines say there’s room for more

By Michelle Baran
Viking FreyaIt’s hard to believe that 2014 will see considerably more investment and expansion in the European river cruise market than the previous couple of astonishing years of growth and interest — but it will.

For starters, Viking River Cruises will break its own shipbuilding record with 14 additional vessels in Europe next year; a startup river cruise line, Emerald Waterways, is launching with two ships and competitive pricing; and the largest river cruise company in France, CroisiEurope, has decided to make a run at the U.S. market.

And that doesn’t even cover the standard handful of newbuilds and itineraries that most other existing river cruise players are planning to introduce next year.

But even with all that added inventory, retailers insist there’s still a lot of room to grow in this category. That’s because despite all the new capacity and itineraries in the industry, river cruising still only accounts for a small percentage of retailers’ overall business.

In Travel Weekly’s Travel Industry Survey this year, river cruising accounted for 6% of travel agents’ overall business mix, and 22% of travel agents said they were already selling river cruises. But agents say that client requests for river cruises are mounting as the category continues to grow and gain exposure.

“Everybody’s asking about river cruises now,” said Debby Hughes, owner of a CruiseOne franchise in Big Bear City, Calif. “People are hearing about all the new ships and all the new changes. People are looking for something different, something a little more cultural, a little more unique. It’s more inclusive than the larger cruise lines.”

Hughes said her river cruise bookings probably account for between 10% and 20% of her overall bookings, and there is still plenty of opportunity in the river cruise market.

But even Viking, which launched 10 ships this year and six in 2012, in addition to the 14 it plans to unveil next year, has acknowledged that while the demand merits the growth, the industry needs to make sure the infrastructure in Europe can keep up.

“We have 14 Longships on order for next year because the demand among our passengers is there, and we believe that the waterways we sail in Europe can accommodate that type of growth,” said Richard Marnell, Viking’s senior vice president of marketing. “But we do recognize there is a need for investments in local infrastructure, and we will actively work to play a role in those discussions.”
Emerald pool deck
Asked if her clients have started to notice any degree of crowding on European river cruises, Hughes said they had not, nor did she expect they would.

“People are used to larger ships,” Hughes said. “They’re used to getting off with thousands of people. I’ve never had a complaint that there were too many other tourists in town.”

As for the growing issue of rafting, where river cruise ships are forced to dock alongside one another, thus requiring passengers to walk through other vessels to embark and disembark, Hughes said, “Being able to go from one boat to the next, it’s one of the quirks of being able to cruise in Europe. It’s just one of those neat things.”

Few can deny that the growth and increased competition in the river cruise industry has spurred a race for better and more diversified product.

While for some river cruise lines, such as Tauck, that has meant amping up its upscale accommodations with more suites (Tauck is launching two newbuilds in Europe in 2014 that will each have 57% more suites than the company’s existing vessels), for others, such as Emerald Waterways, it has meant coming to market with more attractive pricing and amenities.

Earlier this fall, Scenic Tours, an Australian company, announced that it was launching Emerald Waterways, which would serve as the lower-priced alternative to its existing river cruise brand, Scenic Cruises.

In an attempt to capture the four-star river cruise market, Emerald Waterways will officially launch on April 15 with the unveiling of two newbuilds, the 182-passenger Emerald Star and the 182-passenger Emerald Sky, both of which are being outfitted with more playful features such as a heated swimming pool and a movie theater.

An eight-day cruise along the Danube, Rhine and Moselle rivers on Emerald Waterways will start at $2,230 per person, compared with an eight-day sailing throCroisiEurope1ugh the Netherlands on Scenic Cruises that starts at $2,735 per person.

French river cruise line 

CroisiEurope thinks there is space in the lower-priced river cruise market, as well. After 38 years of selling river cruises in Europe, CroisiEurope this fall launched a website and call center devoted to U.S. retailers and clientele. The company’s pitch: low-cost river cruises with a multicultural mix of passengers.

“The founder of the company had the philosophy to make this product available for the mass market,” said Michel Grimm, international sales director for CroisiEurope. “Our pricing is very aggressive.”

An eight-day CroisiEurope river cruise, including meals, open bar and excursions, won’t run more than $2,400 per person, Grimm said.

As a European river cruise operator, CroisiEurope will host a mix of nationalities onboard, something the former Peter Deilmann Cruises tried to do with German- and English-speaking clients on its ships. Some observers say that strategy played a role in Deilmann’s demise several years ago.

But CroisiEurope’s executives are adamant that for the right customer, having people from different countries onboard will be seen as an added draw, not a drawback.

“This is not for people who want the safety of being with all other English speakers,” said John McGlade, director of CroisiEurope’s U.S. reservation center. “For people who want the international experience, it’s the perfect marriage.”

CroisiEurope is also building up its own fleet of canal barge vessels that have a capacity of 24 guests. The barges will allow the pricing on the canal itineraries to also be more aggressive than existing, more expensive canal barge trips that can often host only six to 12 passengers onboard.

CroisiEurope2Tour operator Abercrombie & Kent had resisted the river cruise market for years, focusing solely on those much smaller capacity and intimate canal barges in Europe.

But last year, the company introduced its first river cruise program with the launch of Connections by A&K, its new line of itineraries priced about 30% less per diem than a typical A&K small-group journey.

For 2014, Connections by A&K is expanding its river cruise offering from three departures in 2013 on the 152-passenger Amadeus Brilliant, to 18 departures in 2014 on a fleet of three Amadeus ships. The vessels are owned by Austrian shipping company Luftner Cruises, and Connections will limit its onboard group sizes to 24 passengers.

For 2014, Connections will offer nine river cruise itineraries ranging from nine to 17 days.

The river cruise industry “is growing by leaps and bounds,” Hughes said. “They’re getting innovative, they’re getting more competitive.” All of which, she said, is better for retailers in this swelling market segment, as well as for their clients.

Land tours, Europe strong sellers for Montrose Travel

Land tours, Europe strong sellers for Montrose Travel

By Laura Del Rosso
InsightSales are up for Montrose Travel, one of the country’s oldest and largest host agencies. “It’s up in double digits so far this year, and that’s across the board for us: leisure, corporate and groups,” said Andi Mysza, president of the Southern California-based company.

One segment in particular seeing a boost is land packages and tours to Hawaii, Mexico, the Caribbean and Europe, she said.

“Both cruises and land are up, but we’re seeing larger increases in land travel, presumably because of the negative press that Carnival has gotten,” Mysza said. “People are asking for more land packages, and we’ve increased our marketing efforts there.”LauraDelRosso

As for Europe, Mysza said that the high airfares to the Continent are becoming standard, and travelers are growing accustomed to paying more than $1,000 for flights.

“Last year, I think Europe suffered because of the high fares, but this year it looks like people are getting used to the ‘new normal,’ if you will, and they are going to Europe even with the fares as they are.”

Mtravel.com, the hosting division of Montrose Travel, scheduled its annual educational conference for Oct. 3 to 7 in Los Angeles, with specialized training at Montrose’s headquarters, followed by a three-night Princess cruise to Ensenada, Mexico.

The host agency, which has about 500 affiliated home-based travel agents, typically draws around 125 attendees to the annual conference, which enables them to meet face to face with preferred suppliers and other independent agents and attend training seminars, she said.

“This is the fifth year of doing the annual conference and the first time we’ve done it featuring our headquarters. The theme is ‘Homecoming,’ and we want to get our agents to our home to meet all the Montrose Travel staff that they normally do not get the chance to meet at a conference.”

In the last year, Montrose (No. 47 on the Travel Weekly Power List) rolled out a customer relationship management program for its agents.

“We’ve done extensive training throughout the year on the new platform, which is integrated from a marketing standpoint,” Mysza said. “It’s helping everyone’s business with the ability to push out marketing to our customers, if they choose to receive it. We’ll review it at our conference.”