Opportunities in the industry’s Asia expansion

The development of China as a cruise market means new ships are going there instead of to North America, which is a mild source of anxiety for travel agents in the U.S. and Canada.

But it also serves to put the spotlight on Asia and encourage travelers to explore that part of the world.

At Expedia CruiseShipCenters, trips to Asia were up 10% in 2013, up 37% last year and up 95% so far in 2015, said Matthew Eichhorst, president of the Vancouver-based franchise.

“That’s sending people on itineraries to Asian ports,” Eichhorst said. “It’s not all China; there might be a little bit of Hong Kong, Singapore, Thailand, Japan.”

Two types of customers are likely prospects. The first is experienced cruisers who have seen other places — the Caribbean, Europe — and want to expand their horizons. North Americans of Asian heritage who are curious about their ancestral homes, or have relatives in Asia, are another active segment, Eichhorst said, adding that Vancouver in particular has a large population of Asian ancestry to draw on.

River cruises in Asia have been around for a while but are benefitting from the overall rise in river cruise interest, Eichhorst said.

Because of the long flight times involved in travel to Asia, cruise customers are often looking for pre- or post-cruise activities and lodging there, adding to the attractiveness of the sale for agents.

Asian cruise sales are up, in part, because at every age travelers are more adventurous than they were 20 years ago, Eichhorst said. But travelers want to feel secure about their provider.

“They are looking for a trusted brand when they go there,” he said. “There’s definitely a few operators that are in the Asia market that aren’t what you’d call North American brands.”

Eichhorst encourages his agents to think big and initiate the conversation with clients.

“Speak to all the places they can go, and people will put it on their bucket list and maybe they’ll do Caribbean four more times before they go there, but really tell the stories about amazing places you can go,” he said. “You sort of plant that seed as to the opportunity, because it’s probably an 18-months-out buy.”

MSC effort to recast image gets mixed reaction from agents

By Tom Stieghorst
MSCDivina410A year after MSC Cruises introduced its MSC Divina into the Caribbean, U.S. travel agents remain unusually divided about whether to sell the Italian-run brand.

MSC has made a vigorous effort to woo agents and change views of the line, which until recently was perceived as having rock-bottom pricing, a European focus and mediocre product quality.

Efforts to change that image include doubling the North American sales force, mounting a 20-city road show for travel agents, paying a 5% commission on amenities not matched by other cruise lines, and introducing a new pricing structure that gives agents more ways to upsell MSC.

Ken Muskat, executive vice president of sales, public relations and guest services for MSC Cruises USA, said that because of its single-ship presence in North America, MSC depends vitally on agents to deliver its marketing message.

Still, while he said MSC has clearly gained ground in the past year, he also acknowledged that agents were still struggling with how to sell the Divina.

That impression was confirmed in interviews with a half-dozen travel agents.

Shelley Carey, president of Windswept Travel in Plantation, Fla., said she just had a group come off the Divina and the reviews were mixed.

“Half of them said, ‘I’d never go again.’ Half of them said, ‘I got what I paid for,’” she said.

Carey said clients don’t generally ask for MSC because it isn’t as recognized as brands with large fleets, long service records in North America and big advertising budgets.

“We have a hard time here in Fort Lauderdale selling MSC,” Carey said. “It’s a hard sell.”

Some agents are resolved not to sell the line.

“Their service stinks,” said Karin Arden, an agent at MCC Sea Freed Travel in Tampa, who sailed on an MSC ship from Fort Lauderdale two years ago. “The cabins are tiny. The drinks are watered down. The check-in was long. It’s not a line I could ever recommend unless someone asks for it.”

Others back MSC.

“I wouldn’t hesitate to sell them,” said Lena Marroletti, master cruise counselor at Circle Travel in Laurel Springs, N.J., who said she had sailed the Divina within the last year. “It was wonderful. Great service.”

Other cruise lines also trigger mixed responses from travel agents, notably Carnival Cruise Lines. But agents who don’t sell Carnival have typically criticized its low prices or agent polices rather than the product itself.

Price can be an issue with MSC. Al Ferguson, owner of Legendary Journeys in Sarasota Fla., said that to earn a profit on a recent MSC sale, he bundled the cruise with motorcoach transportation to the port and sold it strictly online to minimize agent contact.

“MSC continues to have challenges based on the brand awareness in North America,” Ferguson said.

Still, he counts himself a supporter, calling MSC “a very viable, independent cruise line,” that provides an important competitive check on big, publicly owned rivals. “It’s good for consumers, but it’s especially good for retailers,” he said.

An example of that is MSC’s decision last week to offer 18% commission on groups for the Divina’s 2015-16 season in the Caribbean. No other cruise line pays such a high commission.

In June, MSC launched a short-term promotion that paid 25% on Divina balcony cabins. Measures like that gain goodwill with agents.

Janet Goldman, managing member of Cruise and Travel Partners in Vero Beach, Fla., said she makes an effort to persuade clients to try MSC, inviting those who voice objections to join her for lunch on Divina to see it firsthand.

“They’re trying,” Goldman said of MSC. “They have a good product, but the mistakes of the past are hard to overcome.”

Prior to the Divina, MSC’s tonnage in North America was seasonal and tailored for Europeans. It also had a reputation for being run from its Italian headquarters in Naples, a view that was reinforced in April when it was announced that the Divina would be pulled back to Europe for the summer next year.

Muskat said that despite that decision, the American-style product will remain in place, including menus, smoking restrictions and fewer multi-language public announcements.

He said the line has just hired a manager who is responsible for keeping those changes in place, and the parent company has recently set up a training school for crew hires, a big step in addressing service complaints. Previously MSC trained new crew onboard.

MSC seems to be making some headway on its perceived quality, as judged by a Vacations to Go post-cruise survey of its clients, which found that those who rated their satisfaction with MSC as either excellent or very good had improved from 34.4% in 2012 to 43.4% today.

Muskat said the holdover perceptions of MSC are increasingly outdated and urged agents to give it a try, even if only with a small portion of their business, as a test of the new product.

“The people who are not in our corner are predominantly the ones that sailed with us five or six years ago and have not seen the new things we’ve done with Divina,” he said. “There’s still a lot of consortia that think of us as a one-ship brand or a seasonal brand. We’re really trying to get away from that.”

MSC offers free Caribbean cruise with purchase of Med sailing

By Tom Stieghorst
MSC Divina 410MSC Cruises said it will give a free, transferable cruise on select 2014 sailings of MSC Divina in the Caribbean for anyone who books the ship for a Mediterranean cruise next summer before Oct. 31.

A $500 deposit on the Mediterranean cruise is required to take advantage of the offer.

Divina began sailing in North America about a year ago on seven-day Caribbean itineraries out of Miami. It will return next summer to Mediterranean itineraries from May 16 through Sept. 19.

MSC is promoting a $1,899 package that includes roundtrip airfare to Rome or Barcelona, a seven-day cruise, a two-night post-cruise stay in a four-star hotel and all transfers needed.

Travel gateways are New York, Chicago and Miami. Government taxes and fees are extra.