Special Report: MSC outlines ambitions for the new fleet

Image result for msc bellissima photos

The line’s bosses gave the most detail yet about the project at a Travel Weekly executive lunch. Harry Kemble reports

MSC Cruises’ chief executive is yet to decide whether to name his new fleet of luxury vessels after its current premium offering, The Yacht Club and asked UK agents for their views.

The line confirmed industry rumours in October that it would be entering the luxury sector by announcing plans to launch four ships from 2023.

Speaking at a Travel Weekly executive lunch for 25 top agents from the UK and Ireland, Gianni Onorato said: “The new ships will have a different brand name to the rest of the fleet. That name is yet to be decided, however.”

Asked if the new luxury ships would be called The Yacht Club, he replied: “I don’t know yet. Maybe. What do you all think?”

Iglu senior vice-president for global supply Simone Clark said she thought he should keep The Yacht Club name for the fleet of newer, smaller, more upmarket vessels since it was established and recognised among the trade and customers.

But Onorato confirmed there would be differences in the new fleet, compared with the luxury area that exists on seven MSC ships.

“We want to position it so it will be like The Yacht Club,” he said. “But the luxury ships will be really different vessels.”

He said the key difference is the luxury ships would sail to different destinations and offer multiple durations, with more flexibility.

“Our customers are saying they do not want seven-night cruises – they want something more. That is why we are investing in luxury,” he added.

Onorato said there would also be a major difference in the food and entertainment found on the new luxury ships, compared with that currently offered on the mainstream ones.

“There will be extra food options, as well as different – and more – entertainment available. It will be a different experience, more luxurious. Cuisine will feature ‘cultured cooking’.”

Onorato also hinted that pricing on the luxury ships would not match that found in MSC Yacht Club. “The pricing today for MSC Yacht Club is really not very much money,” he said.

Families would be welcome on board, and Onorato hopes to transfer MSC Yacht Club passengers to the luxury ships.

msc-island

Private island

MSC Cruises revealed that guests would be able to spend evenings at its new private island, as well as staying overnight. The line will open Ocean Cay (pictured) in the Caribbean next year. [This Travel Weekly executive lunch took place in November 2018]

Onorato said it would offer “cinema under the stars”. “Our guests will be able to watch movies on the beach with the sand between their toes,” he said.

He also revealed that couples who want to have “a special night” will be able to sleep in private beach accommodation elsewhere on the island.

Onorato, who visited Ocean Cay last month to see trees being planted, confirmed that travel agents would be able to sell a one-night stay on Ocean Cay to customers. “The island will be unique and an extension of the ship,” he added.

Onorato explained that his island was being transformed from a former sand extraction site into a marine reserve and private destination, where more than 100 environmentally friendly structures, such as bars, restaurants and housing, are being built. He said he hoped Ocean Cay would be “an example” to other cruise lines who owned private islands, due to its sustainable credentials.

He added that the island’s food offering would be limited because the ships are going to be so close and will have all the services on board for guests to go back and enjoy.

Agent pledge

Antonio Paradiso, the line’s UK & Ireland managing director, issued a bold promise to agents as he revealed that MSC Cruises was entering the final phase of a three-year plan to boost its profile in the UK.

After consolidating its place in the UK market, Paradiso said phase two had been to make “huge investments” to strengthen the UK sales team.

Steve Williams, director of sales, and Rebecca Kelly, regional head of sales in Ireland, were both named as two examples of this investment.

Paradiso said further improving MSC Masters, the line’s online training platform, which launched in August, was phase three.

“We are not going to stop until we have visited the last agent on this island,” he said.

World-class ships

MSC Cruises’ four new 200,000-ton ‘World-class’ vessels will be a combination of both Seaside class and Meraviglia class, according to Onorato.

The chief executive said: “MSC Meraviglia was a change more inside than outside, whereas MSC Seaside was more about the outside. Then we have World-class ships, which will combine the innovation we have seen with Seaside class outside and the internal innovation of Meraviglia class.”

The four new World-class ships are scheduled for delivery in 2022, 2024, 2025 and 2026.

To put the size into perspective, Royal Caribbean International’s four Oasis-class ships are all in excess of 220,000 tons, and Norwegian Cruise Line’s largest ship, Bliss, weighs just over 168,000 tons.

Top-level service

MSC Cruises has 17 vessels on order between now and 2027, and the constantly expanding fleet means crew members must be recruited rapidly. More than 50,000 new personnel have been trained and brought onto the ships to serve passengers.

Onorato identified onboard service as a key area he wants to continue improving.

“We have made big investments across the world and set up recruitment offices,” he said. “At the offices, we have recreated the ship with a mock-up cabin and restaurant.

“At the end of this process, we will have the best ships on the market.”

He also pledged to get crew members introducing themselves to passengers before they have even boarded the ship.

“Today, the customers, or the travel agents in some cases, will receive a message from the cabin [crew],” he said.

“This means that when the customers board the ship they can begin their holiday. It is something that will improve the customer experience, and make [travel agents’] jobs easier.”

Cruise Industry Trends for 2019

MSC Bellissima

A record year of newbuilds, new cruise brands, expedition ships and capacity growth will dominate cruise headlines in 2019, while drydocks grow in scale.

Also impressive will be technology gains, with guests benefiting from the latest connectivity and apps that integrate into the cruise experience while cruise lines continue an arms race to save fuel and reduce their environmental footprint. Among challenges, areas are new shipbuilders and emerging markets.

New Ships

Twenty-four new ships will debut in 2019, making it the biggest year ever for new ship introductions.

The Mein Schiff 2 from TUI Cruises will be the first of the 24 new ships delivered, according to projections from the 2019 Cruise Industry News Annual Report.

Costa Smeralda

The biggest vessel to enter service this year will be the Costa Smeralda with capacity for 5,224 passengers.

MSC’s Grandiosa, a Meraviglia-plus class ship, is also large and will debut in November with capacity for just under 5,000 guests.

The smallest ship debuting? The 100-guest Magellan Explorer from Antarctica21.

MSC is one of four cruise lines with big ship introduction plans in 2019, with the Grandiosa debuting as well as the Bellissima.

Hanseatic Nature

Hapag-Lloyd Cruises will also take delivery of two expedition newbuilds, the Hanseatic Nature and Hanseatic Inspiration.

French luxury line Ponant will get a pair of 180-guest Explorer-class ships, and Costa will take delivery of two megaships.

The Costa Venezia debuts in March from Fincantieri and moves to China for year-round service, while the Smeralda will debut later in the year and sail in Europe.

New Brands

Brands are coming into the cruise industry with newbuild projects and secondhand ships.

Jalesh Cruises will start service in April from Mumbai, offering a short-cruise product for the Indian source market.

In China, CTS (China Travel Service) is expected to start service in the third quarter, which will help boost capacity in the region, which is considerably lower, according to the 2019 China Market Report by Cruise Industry News.

Heading into the future, both The Ritz-Carlton Yacht Collection and Virgin Voyages are bringing their new brands and bold new concepts and their brands into the industry with newbuild projects.

Capacity Growth

New ships on order and set to be delivered in 2019 represent an additional 42,488 berths into the industry, obliterating 2018’s record introduction of approximately 34,000 new berths.

According to the  2019 Cruise Industry News Annual Report, the 42,488 berths represent 7.5 per cent additional berths across the industry.

The companies with the biggest plans to fill cabins this year are both European brands. MSC will add 9,388 berths between the Bellissima and Grandiosa, while Costa will add 9,120 berths with the Costa Venezia and Smeralda.

Drydocks Grow in Scale

Refurbishment projects across the industry are only growing in scale, according to the 2019 Drydocking and Refurbishment Report by Cruise Industry News.

Queen Elizabeth in Drydock

The biggest project this year, and the biggest drydock ever to take place will see the Carnival Triumph converted into the Carnival Sunrise over a two-month work period in Cadiz with a budget of $200 million. The ship will debut in Norfolk, Virginia in late April with additional capacity, and a number of new entertainment and food and beverage features.

Elsewhere, Royal Caribbean International’s Navigator of the Seas will be reimagined with a budget of $115 million and then reintroduced into the hot short cruise market in May 2019.

Expedition Boom

The newbuild boom in the expedition market that saw the first of a large number of new ships launching in 2018 shows no signs of slowing down for 2019.

Expedition newbuilds are all over the orderbook this year, with 12 expedition ships set to launch into service.

Hapag-Lloyd Cruises has the single biggest year, with 460 berths coming online with the Hanseatic Nature and Hanseatic Inspiration.

Ponant Explorer-class Ship

Ponant will mark its second year in a row in which it takes delivery of two ships as well, with the new Le Bougainville being joined by Le Dumont-d’Urville.

The most notable delivery will happen in China, as SunStone will welcome the first of up to 10 expedition newbuilds. The Greg Mortimer will debut in August on a long-term charter contract to Aurora Expeditions.

China Questions

China was set to become the world’s largest cruise market, and may still get there, but 2019 will be about the so-called readjustment period in the region.

Too much supply brought on too fast, a challenged distribution model (chartering), a short-in booking window and lack of product differentiation put a stop to runaway growth in China.

Royal Caribbean Ship in Shenzhen

A readjustment period is now the term, and will give Chinese officials time to work on policies and port development; it will also give way to another new Chinese cruise brand coming late this year.

China State Shipbuilding Corporation (CSSC) will buy two cruise ships ahead of building a series of new ships.

The company will take delivery of the Costa Atlantica in late 2019, followed by the Costa Mediterranea a year later.

Shipyard Problems

Delayed deliveries, strikes, ownership changes and other major questions revolve around a new set of shipyards that have aggressively entered the cruise business in recent years.

Facing a collapse in the offshore business, shipyards turned to small, expedition and niche cruise lines to gain business back.

Those yards have been met with a host of challenges ranging from ownership changes to yard strikes as they have found out that building a cruise ship is a highly complex task – mainly attributed to the customized hotel aspect of the project.

Technology

While Princess Cruises continues to roll out its OceanMedallion platform, the cruise lines are working hard to upgrade connectivity and provide new apps and digital experiences for passengers.

Royal Caribbean Cruises is utilizing facial recognition to get passengers onboard the ship within 10 minutes of arriving at the terminal; while on the new Celebrity Edge, guests can use an app to turn on and off stateroom lights and even unlock the door.

At MSC Cruises, a personal assistant, Zoe, will debut in every stateroom aboard the Bellissima when the ship is delivered in February.

Passenger-facing apps and connectivity solutions will continue to be hot topics, but behind-the-scenes, a technical arms race will continue to save fuel while lowering environmental impact when it comes to air and water emissions.

Venice to charge tourist entry fee for short stays

Gondola in Venice, 27 Aug 17
For most of the year, Venice’s canals are crowded with boats

Venice has won approval to introduce an entry fee of up to €10 (£9; $11.50) for short-stay tourists.

Italy’s budget for 2019 has a clause enabling Venice to impose the fee, which will especially target day-trippers arriving on cruise ships.

Tourists already pay a similar “landing tax” when they visit Italy’s tiny Aeolian Islands.

Venetians have long complained that mass tourism is swamping the city, adored for its picturesque canals.

Hundreds of cruise ships moor in Venice every year, allowing over a million passengers to see the city’s sights.

Venice Mayor Luigi Brugnaro said the “landing tax” would generate much-needed income to keep the city clean.

It is expected to be set at €2.50 to €5 per person, but at peak times in the summer it could rise to €10. Venice plans to have the tax in place for the 2019 high season.

It will apply only to tourists, but it is not clear whether it will replace a city tax already levied on hotel occupants. That tax brings in about €30m annually, but the “landing tax” could generate more – an estimated €50m.

https://www.bbc.co.uk/news/av/embed/p06npwsb/46721456

Media captionVenetians are trying to find solutions to stop the exodus from their city

Cruise passengers are easily identified, Italian officials say, but it may prove harder to tax day-trippers arriving by air, road or rail.

Local residents, workers and students will be exempt. For years there have been protests by Venetians who say mass tourism is spoiling the city’s character.

Claudio Scarpa, head of the Venice hotel managers’ association Ava, said: “the principle is that whoever visits from morning to evening, contributing just a tiny amount to the revenue from tourism, but imposing costs on our services, must understand that it’s not all there for free”.