2024 will be about building up in the North American market and the return of China, said Gianni Onorato, CEO of MSC Cruises.
“We are investing more in North America,” he said, pointing to the Meraviglia’s program year-round out of New York, the Magnifica sailing short cruises out of Miami, and the expansion of Ocean Cay as the company will have five ships service North America for winter 2023-24
This is part of the groundwork the brand is laying for the 5,400-guest World America, which will start service from Miami in early 2025.
“And, we are finalizing our new venture in Galveston that will happen in 2025,” Onorato said.
The company, he said, wants its piece of the cake in North America, and has made significant investments in marketing, brand awareness and systems for the travel advisor community.
Without a newbuild in 2024, Onorato said MSC’s capacity would be up “only” 7 percent.
Investments are not just ships, he continued, but in supporting infrastructure, such as Ocean Cay, as well as MSC’s new terminals in Miami, Barcelona and investment into the port in Durban as well.
Big Return to China
“We are very excited about our return to China,” Onorato continued. “The Bellissima will be the first ship from an international company, and then we are putting a second ship there, the Splendida, later in the year.”
Both ships are expected to rotate in and out of Japan, where MSC is also building up.
The Mediterranean will continue to play a key role as well, Onorato said, as the company has three ships in the region this winter, all sailing week-long cruises.
Major source markets include Italy, Spain, France, Germany and the UK, where MSC has one ship based out of Southampton in the Euribia.
More World Class
In late 2023, MSC committed to two more World Class vessels, making it official with Chantiers de l’Atlantique for a third ship in 2026, a fourth in 2027, and an option for a fifth ship.
Onorato said it demonstrated the company’s commitment to the market, as there have been no ship orders for large vessels since the pandemic started.
A deployment announcement for the 2026 newbuild is slated for early in the year.
Of note, the new ships will be ready for a variety of alternative fuels including bio and synthetic methane and green methanol.
“We need to be ready for future fuels,” said Onorato, “and with these ships, we are ready.
“Sustainability is at the center of our decision making.
“We are confident with this new technology we can be a more sustainable company and meet the targets we have set for 2030 and 2050. We are also confident there will be new solutions for new fuels to be available on a large scale.”
Onorato said that sustainability efforts, such as the company’s current two LNG powered ships, are starting to pay off in showing how sustainable cruising can be.
“Being a family company, and a private company, we can make decisions much easier and much faster,” he said.
More consumers, Onroato continued, are making decisions based on sustainability.
“And it’s part of our daily decision-making choices. We always look at how it aligns with our sustainability goals.”
Looking Ahead
“I’m not concerned about the general economy,” Onorato said. “The cruise industry is more resilient during tough times. There is value for money and we can take advantage of it if there is economical distress.”
Other good news includes the company’s crew turnover rate, which has normalized.
While the company is always looking at being more efficient, 2024 will be the first year since 2019 that MSC is back at what Onorato said was a normal booking window.
“That makes a big difference,” he said.
Excerpt from the Cruise Industry News Quarterly Magazine Winter 2023-2024
