The Pandemic didn’t stop us – Nobody is growing like Us (MSC)

With the new flagship MSC Seashore recently named at its private island Ocean Cay, MSC Cruises is eyeing US expansion, sustainable innovations and “hidden” destinations in the Middle East. Tom Parry speaks to chief executive Gianni Onorato.

A Welsh journalist and an Italian cruise boss discussing Darwin on board a ship in Miami might sound to some like the set-up for a Christmas cracker joke – December is upon us after all.

But the reference to the famous naturalist by MSC Cruises chief executive Gianni Onorato neatly conveys the journey his line has taken in recent years, and the course it has plotted out of the pandemic and into the future.

“I love Darwin and his theory of survival,” says Onorato, relaxing in his chair in MSC Seashore’s Top Sail Lounge. “Covid has led us to do things we would never have thought about – we’ve adapted and evolved.”

Evolution is an appropriate label for Seashore. MSC’s new flagship is its first Seaside Evo-class vessel, larger than sisters MSC Seaside and MSC Seaview. In fact, it’s the largest ever built by Italian shipyard Fincantieri.

We’re speaking in mid-November, the day before Seashore is christened 65 miles east at Ocean Cay in the Bahamas, MSC’s private island and marine reserve.

A former aragonite sand mine and “industrial wasteland”, the island has undergone an environmental evolution of its own since it was acquired by MSC in 2015, one the line hopes will entice guests.

Bringing Seashore to Miami marks “the next phase” in the Italian-owned line’s stateside aspirations.

EXPANSION PLANS

Onorato says the brand is hoping to reach one million US guests across its fleet within the next two years, an ambition fuelled by plans to open a new PortMiami terminal in 2023 – the world’s largest – capable of housing three ships and welcoming 36,000 passengers a day.

British cruisers will be a vital source market, with Onorato of the belief that MSC is the “only truly international cruise company” able to adapt its offering to suit multiple nationalities on board.

Seashore is MSC’s seventh ship to launch in four years, with the line’s fleet due to growing to 23 ships by 2025. “Even the pandemic did not stop us – nobody is growing the way we are growing,” says Onorato.

Ocean Cay will be central to attracting new customers. A three-year restoration project has seen 7,500 tonnes of industrial waste and scrap metal removed from the island and 75,000 plants and shrubs planted, while 64 square miles of Ocean Cay’s waters are now protected. A marine research centre is also being built to support coral conservation.

It’s been a labour of love for MSC executive chair Pierfrancesco Vago. Speaking at Seashore’s christening ceremony, Vago said it was “a dream come true” to see Ocean Cay’s transformation come to fruition, six years after he conceived the plan.

Onorato says the Bahamian island “fits perfectly with UK expectations” of a Caribbean cruise; but with the destination marketed more on its environmental credentials than visitor attractions, MSC is taking a different approach to industry rivals.

“Everyone has conceived their islands differently – it depends on the DNA of the company,” he says. “In some cases, lines want to fill an island with waterslides [but] that wouldn’t be MSC and our love for the sea. In our case, we wanted to create a natural lagoon.”

At a press conference the following day, Vago adds: “We didn’t want to offer a theme park – the ship is already the theme park. We wanted natural authenticity [and] I think the island speaks for itself.”

Given its shipping heritage, the company having been founded by captain Gianluigi Aponte in 1970, sustainability – or more specifically love and desire to protect the sea – is an issue high on the agenda for MSC.

Several of the line’s upcoming ships will be fuelled by the more environmentally-friendly liquefied natural gas, while its future Miami home and the Horizon terminal opened in Southampton this summer offer plug-in shore power.

Other methods for cleaner cruising are also being developed, says Onorato, including better ways to store energy onboard and use it for hotel operations. MSC is already exploring hydrogen fuel, with testing taking place on its cargo ships.

So could a hydrogen-powered ship be a reality in the next decade? “It’s a long process,” he says. “We can’t do it alone, but we’ve got great partners to help us.”

Other efforts such as itineraries enabling ships to sail more slowly, using more environmentally-friendly silicone paint and developing air conditioning systems that adapt to the number of people in the room, will also play their part. “Each one of these measures is little, but they all add up,” says Onorato.

EYES ON THE EMIRATES

An important milestone, and further evolution, will come with the launch of its next-generation vessel – MSC World Europa – in December 2022.

Hailed by the line as its “most innovative and environmentally advanced ship”, World Europa will make its debut in the Middle East and sail its inaugural season in the Gulf, including a call to Dammam in Saudi Arabia to visit the Unesco World Heritage site of Al Ahsa.

The kingdom is a destination in which MSC has invested heavily and earmarked for future expansion, with MSC Bellissima due to spending the forthcoming winter season operating out of Jeddah, after a five-year agreement with Cruise Saudi for preferential berthing rights at the port.

But with this expansion into the region, both by MSC and other major cruise brands comes a level of scrutiny. Onorato, who insists Saudi Arabia possesses “hidden treasures” for cruise guests to explore, is candid about the reputation of the country and its leaders but believes Saudi opening up to tourism is “a sign they want help” and presents travel companies with the chance to help modernise things.

“They are open to being confronted by our world. They are offering us their hand and we need to take it,” says Onorato. “They’re trying to improve and we have a duty to help. We have a duty to support them. Tourism can change the culture.”

Closer to home, and after being the first line to restart the UK cruising in May, MSC delivered another brand first last month – ex-Southampton winter cruises to northern Europe on MSC Magnifica, which will run through to April.

Onorato returns to Darwin and the adaptability needed to first restart successfully, and then evolve its outlook.

“We’d never thought about domestic cruises in the UK; I think the success we had shown there is undoubtedly a market [for winter cruises from Southampton] and that there is a market for northern Europe.”

So much so, Onorato teases a ship “larger than Magnifica” will sail in Southampton next year. The line’s investment in Southampton’s Horizon terminal “means larger ships and more ships” too, Onorato smiles.

“We need to invest in travel agents’ and consumers’ minds,” he says. “We’ve seen a huge improvement in brand awareness from the trade – they have seen we’re seriously committed to the UK.”

It seems yet more evolution from MSC will soon be on its way.

Global Ambitions

Pierfrancesco Vago, executive chairman of MSC Cruises
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.

The MSC Seaside

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.