MSC Cruises to stretch Lirica class of ships/Hawke reassures agents as he takes on MSC role

By Hollie-Rae Merrick MSC Cruises to stretch Lirica class of ships

MSC Cruises is poised to announce a major refit of its 1,500-passenger Lirica class of ships.

Travel Weekly understands the ships will be cut and stretched, with up to 800 extra cabins being installed across the fleet.

The cruise line is focusing on ensuring its current fleet is of the highest standard and it is unlikely any new ships will be added within the next three years.

However orders for ships to be introduced after that period are expected to be placed soon.

The Lirica refit is likely to be part of the company’s strategy to build revenue from the UK market, and to help build greater brand awareness.

More balconies will be added to the ships during their refit in order to attract more UK customers.

One of the ships could also sail from the UK on a regular basis.

Hawke reassures agents as he takes on MSC role

By Hollie-Rae Merrick

Hawke reassures agents as he takes on MSC roleThe new UK managing director of MSC Cruises has insisted he is not looking to repeat a strategy he spearheaded at former employee Carnival UK.

Speaking to Travel Weekly on his first day in his new position, Giles Hawke moved to reassure agents that he wouldn’t be “coming in and slashing commission”.

When asked about commission, he said: “I think most of the big commission moves in the market have already been made. The market has been stabilised, discounting is largely gone.

“MSC is in a good place and well positioned and I don’t see going in to the market and slashing commission happening.”

He added: “You do different things at different companies. There isn’t a one size fits all model, whatever the industry you don’t move from one company to another and decide to repeat everything that you did before.

“To reassure travel agents, I haven’t come in here with a mindset to repeat everything I did at Carnival UK.”

Hawke reiterated the importance of travel agents in helping to raise brand awareness for MSC.

He said: “I want people going into travel agents and asking about MSC because they already have awareness and I also want travel agents to know what MSC is all about and to understand the brand.

“I think currently you ask 10 different travel agents to tell you about MSC Cruises and you get 10 different answers.

“I would like 10 agents and 10 answers that are the same.

“I’m in the listening, learning and understanding mode for the next few months – then working out how we market to customers and give them clarity and getting people’s minds more on the brand than they have ever been before.”

Giles said MSC had always been a very trade-focused brand, and maintained that would not change. He said the line would be doing more ship visits and fam trips for agents because agents represent a large proportion of MSCs sales.

In the short term, Giles said he would be meeting with key agents to hear their thoughts on MSC, he hopes to see a many agents as possible before the end of the year.

Top Carnival bosses reaffirm commitment to agents

Top Carnival bosses reaffirm commitment to agents

By Lee Hayhurst

Top Carnival bosses reaffirm commitment to agents Two Carnival bosses have reaffirmed their commitment to agents and rejected claims that moves to make distribution more efficient were an attempt to cut out the trade completely.

Speaking exclusively to Travel Weekly last week, Carnival Corporation chairman Micky Arison and new chief executive Arnold Donald (pictured) said inefficiencies in the system in the UK and the US had to be addressed.

Changes made to agent terms, automation and commission in both countries have angered some agents and Carnival has already initiated a charm offensive on both sides of the Atlantic.

In the UK, potential earning levels 
have crept back up and an Agent Matters initiative has been started.

Arison said: “Our goal was never to cut agents out or to not work with them, but to make this system more efficient so we can all make more money.

“As an operator, if you get a booking on your website, it’s efficient, but that’s a very small piece of the business. If a customer goes to an agent who has an efficient system, that’s as efficient as them calling our call centre. The worst situation is when an agent calls us because then you have two ‘call centres’ talking to each other.

“We were trying to get to a situation where the customer calls our call centre or an agent. In the UK it was also an attempt to control our pricing.”

Donald said the agent community was one of the key stakeholders he has engaged with since taking the role from Arison on July 3. “Travel agents have always been valued,” he said.

“You are always trying to tweak what you are doing to motivate and incentivise the behaviour you want so you can effectively manage costs so the money you are spending has an impact.

“There were some measures taken that aggravated [agents] and did not have the desired results but there was never a feeling that travel agents did not count or were not important.”

Carnival UK chief executive David Dingle said the commission changes in the UK were driven by travel agents themselves. “There were a number of long-standing partners who kept saying to us can’t you do something to stop us cutting each other’s throats by this competitive rebating.

“It led to this massively inappropriate behaviour of customers shopping around and agents finding it impossible to close the sale. Some agents were cutting away so much they had nothing to sustain themselves and we lost control of pricing as a result.”

Carnival to build new Barcelona cruise terminal

Carnival to build new Barcelona cruise terminal

By Tom Stieghorst
Carnival Corp. and the port of Barcelona reached an agreement on the construction of a new $27 million cruise terminal that will handle post-Panamax sized ships.

The terminal will be about 107,000 square feet, large enough to accommodate 4,500 people. It is expected to open in 2016.

Carnival already operates a terminal at the port, which will be expanded by about 14,000 square feet. Both terminals are on the Adossat Wharf.

Carnival will invest the $27 million and run the terminal as a concession. The port will invest about $2.7 million on roads and other infrastructure and about $2 million on signage.

Barcelona is the fourth-busiest cruise port in the world, with an estimated passenger volume of 2.6 million passengers this year.

Post-Panamax ships

Post-Panamax or over-Panamax denote ships larger than Panamax that do not fit in the canal, such as supertankers and the largest modern container ships. The “largest oil tanker in the world”—whichever ship held the title at the time—has not been able to transit the Panama Canal at least since the Idemitsu Maru was launched in the 1960s; it carried about 150,000 deadweight tons. All US Navy aircraft carriers since USS Midway have been in the post-Panamax class