Cruise lines ‘are paying agents extra under the table’

Cruise lines ‘are paying agents extra under the table’

By Lucy Huxley

Cruise lines 'are paying agents extra under the table'Cruise lines that have cut commission are giving money back to travel agents “under the table” as they accept that reducing payments to 5% was a mistake, according to the UK boss of MSC.

Giulio Libutti, UK managing director, told Travel Weekly: “Under the table, these lines are now starting to give money back.

“They aren’t going back to fixed rates of 15% or up to 18%, but they are offering double commission for certain months, or bonus commissions.

“Through variable means they are making it back up.”

He added: “The fact that Princess moved back from 5% to 10% shows it was a mistake. You have to have mutual respect for agents and, by cutting commission, they were basically saying the value of an agent wasn’t important any more.”

 

Libutti’s comments come a month after he accused lines of “underestimating the value of agents” by cutting commission.
MSC revised its terms to offer performance-based commission rates of up to 13%, a move Libutti claimed had increased revenue by 35% year on year in 2013, and had also developed new agent partnerships.

“We are now working with some small cruise specialists that a year ago were doing no business with us at all,” he said.

Libutti said competition was particularly challenging as growth in the cruise market had stalled due to the economic crisis and high-profile incidents involving Costa, Carnival and Thomson Cruises.

“Cruise will continue to grow but it is suffering so we all need to find travel agent partners who understand and share our targets.”

MSC expects to attract about 100,000 passengers from the UK in 2014, up from an anticipated 70,000-75,000 in 2013.

MSC Cruises returns to the United Arab Emirates

MSC Cruises returns to the United Arab Emirates

Dubai and Abu Dhabi to host MSC Lirica in 2013/2014

MSC Cruises is delighted to announce that MSC Lirica will return to the United Arab Emirates (UAE) for the 2013/2014 winter season, taking travellers on an unparalleled journey of discovery through the region’s rich traditions, vibrant modernity and dramatic landscapes.

On 5 November 2013, MSC Lirica will set off on a 19-day/18-night grand voyage from Genoa, Italy, arriving in Dubai, UAE, on 22 November 2013 after calls in Civitavecchia, Italy, La Valletta, Malta, Piraeus, Greece, Port Said, Egypt, Safaga, Egypt, Salalah and Muscat, Oman.

From 23 November 2013 until 29 March 2014, MSC Lirica will offer 18 eight-day/seven-night cruises from Dubai, calling in Abu Dhabi, UAE, Khor al Fakkan, UAE, and Muscat and Khasab, Oman, with an overnight stay in Dubai allowing travellers to enjoy the unique nightlife of this glittering oasis of the desert.

“MSC Cruises’ return to the Emirates reaffirms our strong belief in the region’s potential as an innovative and highly desirable destination for cruise travellers,” said MSC Cruises CEO Pierfrancesco Vago. “As part of a broad commitment to encouraging future growth, the UAE government’s recent decision to allow multiple entry visas for cruise ship passengers has dramatically simplified visa procedures, making the region even more attractive to cruise lines and ensuring that many more travellers can discover this truly unique destination with ease.”

During MSC’s Emirates adventures, travellers can enjoy a shore excursion programme designed to reveal the magic and mystery of this enigmatic world of spectacular contrasts.

Enjoy unspoiled beaches and rugged mountains views 

Khor al Fakkan is the perfect gateway from which to discover desert dunes, typical wadis and spectacular oases, as well as the rugged Masafi and Hajar Mountains and the stunning beaches and warm waters of the Indian Ocean. Visitors can also enjoy trips to the oldest mosque in the UAE, Fossil Rock, famed for fossils dating back some 80 million years and Camel Rock, a spectacular, eponymously shaped outcrop in the middle of the desert.

Explore mystical Muscat 

Travellers in Muscat have a whole host of mystical landmarks to behold, from the Al Alam Palace, flanked by the breath-taking Al Jalali and Al Mirani forts, to the captivating Sultan Qaboos Grand Mosque with its five impressive minarets. Popular sites include the old town’s bustling souk, the Bait Al Zubair archaeological museum and the exclusive Amouage perfumery with its timeless natural fragrances.

Cruise crystalline fjords in a traditional dhow 

A relaxing cruise on a traditional Arabian dhow is the perfect way to discover Khasab – also known as the “Norway of Arabia” thanks to its sinuous coastline – and its fjord-like waters, pretty fishing villages and limestone cliffs. Travellers can enjoy a refreshing dip by historical Telegraph Island and, if they’re lucky, a friendly dolphin may even stop by to say hello.

Discover the wonders of Dubai 

An ultramodern city steeped in tradition and flanking both the coast and the Arabian Desert, Dubai and its eclectic mix of natural and man-made wonders is impossible to define. For the glitz and glamour of modern Dubai, travellers can head to the sumptuous Burj Al Arab Hotel, the only 7-star hotel in the world; the magnificent Palm Jumeirah, the largest man-made archipelago of islands in the shape of a palm tree; or one of Dubai’s swanky neighbourhoods. The city’s incredible shopping, amazing skyscrapers, beautiful modern marina, perfect weather and unparalleled nightlife make it a true haven for hedonists.

Behold awe-inspiring architecture and magnificent mosques in Abu Dhabi

Abu Dhabi is home to some awe-inspiring architecture, futuristic skyscrapers and magnificent mosques, including the hauntingly beautiful Sheikh Zayed Mosque, a masterpiece of neo-Islamic architecture and one of the largest mosques in the world. Heritage Village, Emirates Palace, Al Ain archaeological site and Manarat Al Saadyat, a centre recounting the development of the richest city in the world, are all fascinating insights into this modern metropolis. Travellers can also experience the thrill of an unparalleled shopping experience, or of riding the world’s fastest roller coaster at the Ferrari World Theme Park.

Are you tempted by one of these cruises?

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Nisha At Sea

The construction of MSC Cruises

The construction of MSC Cruises

By Tom Stieghorst

TInsighthe retirement of MSC Melody underscores one of the most remarkable transformations in the cruise business.

Starting at the back of the field, MSC Cruises has become a competitive force by spending massively on new ships.

When the Melody began sailing for the line in 1995, it was state-of-the-art for MSC, even though it was already 13 years old.  The Melody’s main virtue was that it was newer than MSC’s other ships, the Rhapsody (1977) and the Monterey (1952).

With a small pool, no balconies and cramped public spaces, it arrived at Port Everglades about the time that Princess Cruises was designing the 3,100-passenger Caribbean Princess.TomStieghorst

MSC’s parent company, Mediterranean Shipping Co., is huge in the container shipping business but was just a tiny player in the cruise sector.  It recognized it would have to either commit in a big way to cruising or get out.

In 2003, it began planning for the $275 million Lyrica, and in 2004 it moved its U.S. headquarters from New Jersey to Fort Lauderdale to be closer to the pulse of the industry.

The 1,580-passenger Lyrica was MSC’s first new-out-of the-box ship. It wasn’t the biggest ship in the Caribbean, but it was big enough and, more importantly, new enough, to command a decent price.  At the same time, an 11-night cruise at $999 was enough of a bargain to fill easily.

From there, it went on to build the Opera, and to acquire the Armonia and Sinfonia from the now-defunct Festival Cruises. MSC now has 11 ships, with an average age of a little over five years, going from perhaps the oldest fleet in the industry to the youngest in two decades.

The 30-year-old Melody has reached the end of its useful life at MSC. In a few months MSC will take delivery of Preziosa, which at 139,400 gross tons is at the upper end of the size spectrum for any cruise company. The exit of one and the entrance of the other shows how far MSC has come.

It will be interesting to see what the next 20 years hold.