PortMiami Set to Continue Record-Shattering Growth Pace

Discussions are underway for another terminal for Norwegian Cruise Line.
Norwegian Getaway turning in Miami port.

“We do have space. I want that to be very clear, that we have space for growth here at PortMiami,” said Juan Kuryla, port director. “We are growing and need to continue investing.”

Miami is coming off a record year, with 5.3 million cruise passengers, and a similar, slightly better year is expected in 2017-2018. After that, Kuryla is forecasting a continued pattern of record-breaking cruise traffic.

Going from 4.9 million to 5.3 million passengers in a year, the most ever recorded anywhere; Kuryla is juggling multiple projects for a 20 percent bump up in 2019, and even more growth behind that.

“We will likely be at 6.4 million passengers,” he added.

Multiple Projects

The biggest bump up in numbers last year came from Royal Caribbean, with 350,000 more passengers. That figure will grow exponentially when the company opens Terminal A for its Oasis-class ships come 2018.

Talking to Cruise Industry News on a November Monday, there were a staggering seven cruise vessels docked and Kuryla was weeks away from the grand opening of Terminal F, a new facility developed for MSC Cruises and the MSC Seaside.

That terminal is only the beginning, as MSC has bigger plans, including the deployment of the Meraviglia in the Caribbean, sailing from Miami alongside the Seaside in summer 2019.

Discussions are ongoing with Virgin and Norwegian for new terminals.

“Both would be additional to the terminals we have,” Kuryla said. “We are taking some land on the north side from the cargo operations to create a footprint for additional terminals.”

Not to be overlooked, Carnival Cruise Line has been the port’s largest customer dating back to the 1970s and accounted for more than 2 million passenger movements last year. This year the new Carnival Horizon will homeport in Miami after a brief summer in New York.

“We are also in discussions with them on how to work together to accommodate further growth,” explained Kuryla.

‘Total Commitment’

He attributed the growth to a total commitment to the cruise industry not only by the port but by the willingness of elected officials to accept the port’s and cruise line’s recommendations on investments.

New terminal projects must consider not only the space for the terminal, but land infrastructure ranging from parking to utilities, apron needs, traffic patterns and more, Kuryla said.

“The speed at which we need to grow to accommodate new ships is unprecedented,” he continued, “and we are moving quickly.”

Various studies have been conducted on LNG, and the port is moving toward a solution regarding whether bunkering would be a land or water-side operation. Kuryla said he expects Miami to receive its first LNG-powered ship in 2022.

MSC Eyes Larger Piece of North American Market Pie

Image result for MSC Seaside in Miami
MSC Seaside Homeport in Miami.

Gianni Onorato is helping drive MSC Cruises’ ambitious growth plan, covering just about the entire world in 2018 and beyond.

Miami will play an increasingly important role as the company pushes its way into the North American market, part of a strategic long-term plan, according to Onorato, CEO of the cruise brand.

Come winter 2019, the MSC Divina, Seaside and Meraviglia will offer Caribbean itineraries from PortMiami.

“It started with the MSC Divina, that was the biggest change,” Onorato told Cruise Industry News. “It was the first time we broke with the legacy of just having a winter ship (in North America) occasionally.”

With the company hitting its goal to become the largest single brand in Europe, it opened up more assets to be moved into the North American market, starting with the Divina on a year-round basis, which has now been joined by the Seaside.

“Even with the Divina, Seaside and Meraviglia compared to the size of the North American market, this is a little drop,” he said.

The MSC Seaside

“We will reach a 4 to 5 percent market share here. It is a start in the most mature market in the world. It has been a process that has been planned and now we’re in the implementation phase.”

With the Divina and Seaside based in Miami come 2020, MSC plans to rotate the Meraviglia north for a summer season sailing from Manhattan.

“We are looking at New York for summer 2020 with the Meraviglia,” Onorato said. “That is why we are adding a sort of presentation of the ship with a number of cruises in 2019. We are preparing to have the Meraviglia out of New York in 2020.”

It differs from previous attempts to sail out of New York by the company and its European competitors.

Onorato noted the hardware will help drive demand, calling the Meraviglia a newbuild that is very competitive.

“The North American trade and distribution also knows our brand better now. The timing is right because the market is looking for something new and different, which we offer.”

Come 2022, Onorato sees MSC as a key player in North American, although not at the level of the other main North American brands.

“We will have our piece of the cake,” he added.

Special Report: The great cruise gratuities debate


I took this Photo on the Norwegian Jade, the gentleman in the front has gained a promotion. The crew that you see and don’t see work hard to make sure that we have the best possible cruise experience, they deserve our Gratuities and more.

A hike in rates by Royal Caribbean and Celebrity Cruises reignited the debate about onboard tipping. Amie Keelie and Harry Kemble report

News that Royal Caribbean International and Celebrity Cruises have upped their gratuities by 7% prompted dozens of responses from cruisers on consumer forums (Travel Weekly, January 4).

Some questioned whether the service they receive justified the hike. Some asked if charging gratuities meant cruise lines get away with paying staff low basic salaries. And some wondered if the tips even went to the staff.

Others said they were happy to reward hardworking crew for the long hours they put in to make their holidays as good as possible.

So which lines charge the most, why do gratuities even exist and are they justified?

Why do gratuities exist?

The concept of automatic gratuities stemmed from cruise ships being a cashless environment. Generally, passengers did not carry wads of cash and so were unable to reward crew members for excellent service.

It also became a way to distribute tips fairly to all the crew, including those behind the scenes working just as hard as the butler that passengers saw every day.

Lines justify the cost by claiming a superior level of customer service guests receives on a cruise ship compared with a hotel or resort on land.

“When we do our survey of guests, one of their top reasons they give to cruise is the service levels, so we stand up well against other sectors,” says Andy Harmer, Clia’s senior vice-president for membership.

“In cruise, you get to build up a relationship with the crew – you see them several times a day – compared to a hotel where you might not see the person turning down your bed at all.”

Ben Bouldin, associate vice-president of Royal Caribbean International and managing director for the UK and Ireland, agrees. “Gratuities are something our customers are comfortable with because they understand the outstanding level of service.”

However, as one agent told Travel Weekly: “If a cruise line is going to increase its gratuities, it had better make sure its customer service is impeccable”.

It is accepted that American cruisers are more than happy to pay automatic gratuities, often in advance of their cruise, but Brits much less so. Cruise lines have adapted their policies to reflect the different markets they sell in, allowing cruise customers to opt out of paying auto-gratuities at the end of their cruise when they pay their final bill.

“[In Britain] we don’t have a history of tipping in the way other cultures have,” says Harmer. “What a lot of passengers don’t realise is that if they do have issues, they should raise these on the ship so they can be dealt with and if they’re not happy they can have [the gratuity] taken off.”

Mike Hall, Cruise & Maritime Voyages’ head of marketing, says: “The reason why gratuities are such an issue is because of that cultural difference. Americans will give a staff member $50, while here in the UK, a conversation about gratuities is one we do not want to have.”

Gratuity rates

Royal and Celebrity Cruises’ recent increases now mean passengers pay $14.50 a day in standard accommodation, making it one of the highest in the sector.

“Royal and Celebrity need to be careful because it could put customers off,” the cruise agent added. “For a couple travelling on a 14-night cruise that’s an extra $400, so it needs to be better than a hotel which doesn’t have auto-gratuities.”

The agent also warned that if gratuities continued to rise on mainstream lines, luxury cruise brands, which more often than not include them in the price, would become more appealing.

By comparison, discretionary gratuity fees for P&O Cruises, MSC Cruises, Fred Olsen Cruise Lines, CMV and Carnival Cruise Line range from £4 to €13 per passenger per night and continue to be automatically added to onboard accounts. The majority of river cruise lines suggest a recommended amount to give the crew at the end of their cruise.

Last year, Norwegian Cruise Line became the first mainstream line to incorporate gratuities, among a host of other ‘extras’, into its fares, when it rolled out its Premium All Inclusive concept.

NCL’s Nick Wilkinson said: “Premium All Inclusive has driven greater simplicity for agents having to explain and sell cruises, and greater confidence in consumers having to budget.

“The biggest change since introducing Premium All-Inclusive is double-digit growth we’ve seen in the long-tail of agents we’ve never worked with before, now selling Norwegian. They are comfortable selling us.”

So could other mainstream lines follow suit? Wilkinson added: “I think it’s very telling how many mainstream lines are using the term ‘all-inclusive’ in their wave campaigns as they recognise it appeals to agents and consumers.

“But we are the only mainstream line offering a truly all-inclusive product, including gratuities.”

Full breakdown by cruise line here

Views on gratuities

“Gratuity fees should be phased out, not increased. They are an archaic way of paying salaries, they should be included in the fare.”

David Speakman, chairman, Travel Counsellors

“I wish all cruise companies would include them [gratuities], then everyone would pay the same. It would stop a lot of people asking for them to be taken off once on board.”

Travel agent, name withheld

“As customers, we would never take off service and hotel charges but, in a way, I hope many do. You never know, we might yet see the dawn of non-deductible service or all-inclusive charges on cruises. If all passengers paid their gratuities on a two-week cruise, that would be $578,000 on Eclipse – getting a little silly, don’t you think? The cruise lines are cutting back and increasing gratuities.”