International Flair Drives MSC Cruises’ North American Growth

MSC Cruises is moving to solidify and expand its visibility among North American travelers. The contemporary cruise company will homeport 4,500-passenger MSC Meraviglia at New York’s Brooklyn Cruise Terminal starting in April 2023 for year-around voyages to the Caribbean, Bermuda, New England and Canada.

The new sailings will provide cruisers with access to Ocean Cay, MSC’s private Bahamian island and marine reserve. MSC is also building a state-of-the-art cruise terminal at Port Miami, as it works on multiple fronts to carve a distinctive profile amidst strong competition from the industry’s largest brands

We spoke with Gianni Onorato, MSC Cruises’ CEO, to discuss the company’s approach to the North American market.

TP: Has MSC successfully established its brand in North American market?
GO: It’s true that we have had quite few years of presence here, but in the first years were not very successful because we were too much focused on becoming leaders in Europe. So I would mark 2017 as the year where we started to, let’s say, contend seriously for a stronger presence here in the North America. We were very pleased with the results we were starting to achieve beginning in 2019.

TP: What followed was the most difficult period in the industry’s modern history. How did MSC navigate the pandemic in 2020 and 2021?
GO: MSC was the first cruise line to restart the business in Europe. Prior to the restart, I had been actively participating with my colleagues from Royal Caribbean International, [president and CEO] Michael Bayley and [Carnival Corp. CEO and president] Josh Weinstein to manage the CDC relationship following the restart of operations. At the end it was clear we would have been successful restarting in North America because we were able to restart in other parts of the world. This is also sign of the of the growth of MSC.

TP: What specific difficulties did MSC encounter?
GO: For the first time we were confronted with a very unexpected situation that CDC and no one else was prepared for. We had responsibility for thousands and thousands of families of workers who overnight found themselves without remedies. So it has been important that we all used common sense. There has been good cooperation.

We’re not sailing at full capacity now, but at least we’ve been able to give jobs back to 20,000 people. They represent 20,000 families that otherwise will not have a livelihood. You cannot keep people on furlough forever.

TP: The pandemic impacted cruises more severely than other travel segments. What were you thinking during this period?
GO: There were some strong misconceptions [portraying] cruising as the worst place to be during a pandemic. We were impacted a lot by the Diamond Princess case in Japan. But we proved that with the proper protocols in place cruise ships can operate safely.

TP: What makes cruise ships safe travel environments?
GO: There is more controlled area on a cruise ship. You can decide when to isolate people and you have the chance to control [Covid infection] in a way that does not happen in any other industry. So I think that this now has been the properly understood and people feel that cruise ships are safe environments. That’s why bookings are up. People are coming back.

TP: What other strategies has MSC Cruises employed to increase its North American presence?
GO: We have invested heavily in our Ocean Cay MSC Marine Reserve. We have also committed with PortMiami for the terminal we are going to build. And then also the presence of our executive chairman, Pierfrancesco Vago, as the chairman of CLIA as a sign of, I’d say, much more consideration for our brand and for our company.

TP: What are your plans for MSC’s future?
GO: Our plan is to continue to grow. We will never be as big as Royal Caribbean or Carnival, but we want to have the correct size in terms of positioning in the market here in the North America. We’re looking to be distinctive.

TP: How so?
GO: We have a very European brand with more international character than other companies. We have customers coming from 70 different places around the world, and I think we are unique because there’s no other cruise line serving that segment of non-U.S. travelers coming into cruise to the Caribbean from North America.

TP: What other steps are you taking to increase MSC’s market presence?
GO: This year we start homeporting in New York for the first time. Our aim is also to look at a destination like Alaska and maybe add more North American ports, even including the West Coast. We will have 25 ships, so we have the opportunity to maintain our leadership in Europe but in the same time also grow more in North America.

TP: MSC underwent significant management changes in May, with [executive vice president] Ken Muskat leaving and Lynn Torrent joining MSC in the new role of executive vice president and chief commercial officer. How will this impact MSC?
GO: Ken decided to leave as he had personal issues he needed to take care of, which we respect. But I think there’s always a place here for Ken. He is MSC family. As for Lynn, I did have the pleasure to be her boss many years ago with another company. So we have worked together.

I think she can ensure that very strong relationship with the travel advisors and in terms of our sales organization. After the pandemic there have been a lot of changes. We need qualified people, people who know what they’re talking about who are recognized as a talented, honest and serious. Lynn fits that profile.

TP: Where do travel advisors fit into MSC’s sales equation?
GO: They remain one of the most important partners to come along with us and ensure our growth. We can offer them something that I would say not everybody can: a new product. We have a European heritage, a strong international flavor [and] very modern, technologically advanced ships.

TP: How does your global deployment compare with other cruise lines?
GO: As I speak, we have 11 ships in the Mediterranean. Americans can join an MSC ship in almost in every part of the world, in Genoa and Venice in Italy, in Sicily, in Naples, in Barcelona, in Pireaus, and in Haifa, Israel. We have five ships in northern Europe.

Now we will have a ship homeporting in Miami and one homeporting in New York. This is an opportunity for our travel partners to sell a new product that is different from the others. I think this is what they’re looking for so this is a good advantage for everyone. It’s a win-win situation.