Global Ambitions

Posted on 25 January, 2018 by Spacejunkie2

Pierfrancesco Vago, executive chairman of MSC Cruises.

“In three years we will double our capacity and in 10 years we will triple it,” said Pierfrancesco Vago, executive chairman of MSC Cruises.

In 2018 MSC will operate a fleet of 14 ships with an average size of 2,892 guests at double occupancy and is expected to be the largest operator by capacity in Europe. It has ambitious expansion plans in North America and China and is the market leader in South America and South Africa. By 2028 the company will have 24 ships in service, with an average size of 3,734 passengers.

“Our objective is to deliver a holiday experience which is unique to our customers and to tourism in general,” Vago told Cruise Industry News. “It’s also to expand the concept of cruising to the world,” Vago added.

Between now and 2026, MSC will take deliveries of ships on the Seaside, Meraviglia, Meraviglia Plus, Seaside EVO and the LNG-powered World Class platforms.

Vago described MSC as a global brand, with a premium level product offering at a contemporary price.

“Our common denominator is that we are a Mediterranean brand with the capability to fine-tune the experience to the area of operation,” Vago said. “We can fine-tune the product delivery.”

While its peers have a house of brands competing in the cruise market, MSC has a single brand with large ships.

“MSC has traditionally believed in organic growth,” Vago said.

But that doesn’t mean they may not one day explore other market segments as customers grow with the brand.

In Europe, Vago said the company has realized their ambition to conquer the market, also entering the business later than all their competitors.

That strategy is now expanding to the rest of the world, he said, and the plans will follow demand.

In China, the MSC Splendida is replacing the Lirica on a seasonal basis, upping summer capacity out of Shanghai. In South America, the new Seaview will sail from Brazil for winter 2018-2019.

In North America, the new Seaside is year-round, to be joined by the 2017-built Meraviglia come 2019.

“We have customers travelling to the Caribbean and we needed to introduce new ships, with a different platform,” Vago said. “We had the need to put more cabins and a new offering into the North American market if we wanted to evolve our brand there.

“We had one ship (in North America) and she was filled with customers from Europe. We did not have the opportunity to grow,” he continued. “There is an opportunity for MSC to grow in North America but we needed to create both the hardware and the software for the market. That is the vision behind the building of a very new platform and prototype, the MSC Seaside.

“The Seaside is a spirit of our leadership in many ways. We are setting the pace for innovation and we will see many reflections of this platform for years to come.”

The Seaview, a sister ship, will be delivered this summer. The Seaside EVO platform, essentially an enlarged version with more staterooms, will be launched in 2021, with a second ship scheduled for a 2023 delivery from Fincantieri.

MSC Eyes Larger Piece of North American Market Pie

Posted on 13 January, 2018 by Spacejunkie2

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.

“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.

Cruise ‘breaking through glass ceiling’ as it goes mainstream

Posted on 27 November, 2017 by Spacejunkie2

Image result for norwegian bliss construction

The cruise industry is “breaking through the glass ceiling” and is finally being recognised as a mainstream holiday.

David Dingle, Clia Europe’s deputy chair, also said the number of UK cruise passengers will hit two million by 2020.

He said: “We are getting to that two million figure. We hit 1.9 million passengers in 2016, so I definitely think we will hit two million by 2020.

“We are really breaking through the glass ceiling. I think we are at the stage where cruising is being recognised as a mainstream holiday.

“Whether we see the same year on year growth yield as we did this year that will unfold, but at the moment we are seeing further growth.”

The cruise industry is undergoing a “significant” new shipbuilding programme following the financial slump in 2008.

“During that period there has been a lag in the introduction of new capacity,” Dingle said. “So as much as anything we are going through a catching up exercise.”

There are 72 ships on order all of which are set to be built before 2025. The value of that order is $50billion.

All the major lines, including Royal Caribbean, Celebrity Cruises, Norwegian Cruise Line and MSC Cruises and Carnival, have ships launching in 2018.

Marella and AIDA Cruises, Germany’s largest line, also have new vessels due to launch.

“The year of 2017 has been a very good year for yield growth but whether we can have that much growth year on year remains to be seen,” Dingle added. “At the moment they are good indicators.”

Dingle pointed to the role of the trade press in helping to boost the cruise sector and also highlighted how comedian Rob Brydon might not have fronted a P&O Cruises television advertisement campaign “five or 10 years ago”.