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I have heard from several US travel agent friends that MSC North America (Rick Sasso, CEO/Pres.) has had to chop more staff again.They had to cut 2 VP's, a director, inventory mgr., and 2 sales reps recently.It appears MSC's Northern Europe cruises are not selling well thus far.The fastest growing cruise line is not growing market share. That can be very costly.How lean can this group get and still survive?They will ONLY have MSC Lirica doing Fall/Winter cruises (10 nights with a few 7 nights) from Ft. Lauderdale starting December 2007.That's not a good sign for any chance at North American growth.Friends tell me that Dino Schibuola (former Costa CEO) is consulting for MSC 3 days per week.Could the end be near for MSC's N. A. office?2 vessels and 11 night itineraries obviouly cost this company dearly in 06/07.What makes them think 1 ship and 10 night sailings will fair any better?Let the discussion begin.......Your thoughts and comments on the future of MSC Cruises position in North America please.......
But this was in the Caribbean - I am assuming the Euro product is different.
Managing a cruise line is VERY different than operating container ships... But I'm sure they have now (at last !) realized it.
Pam
quote:Originally posted by Pascal:I think MSC still has to get lessons from cruising "professionals" such as RCI or Carnival Corp.
no thanks!!!!!!! We don't want anymore homogenisation! It's nice to have something different to sail on from time to time. If every experience were an RCI or Carnival one, it would be awful! imho
Lirica Review
Opera Review
[ 02-19-2007: Message edited by: joe at travelpage ]
quote:Originally posted by PamM: no thanks!!!!!!! We don't want anymore homogenisation! It's nice to have something different to sail on from time to time. If every experience were an RCI or Carnival one, it would be awful! imhoPam
You misunderstood me, I wasn't talking about turning MSC into a "clone" line, but simply about the fact that RCI and Carnivore are quite experienced in what they are doing, which is far from being always the case with MSC. There's no contradiction in keeping its own identity and becoming a better managed buisness.
quote:Originally posted by Ernst:Well, MSC is not run by amateurs
Mmm, it's doubtfull... But I have to recognize they are improving.
I absolutely don't care about the fact MSC isn't performing well on the American market, and even more, I'm happy of this because it means they will eventually dedicate all their ships year round to the Euro market and bring more competition on this side of the Atlantic.
I have nothing against MSC and would gladly cruise with them. Their ships are attractively decorated and I'm pretty sure they are able provide a good experience.
But when I look at their brochures, see photos of other lines ships, pictures of Opera photoshoply renamed Lirica, and read sentences such as "our hostesses will provide you a very great amount of pleasure" (translated from French, keeping the original impression as much as I can), I can't take these people seriously. It's details, of course. But an attractive brochure and a well runned website are crucial if you have MSC ambitions. I can't even imagine how they could have been so negligent with such details (even Louis brochures are better done).
Those things are indeed improving but it's just like if they were progressively discovering what it takes to be a major internationnal line.
quote:Originally posted by Pascal:[...]But when I look at their brochures, see photos of other lines ships, pictures of Opera photoshoply renamed Lirica, and read sentences such as "our hostesses will provide you a very great amount of pleasure" (translated from French, keeping the original impression as much as I can), I can't take these people seriously. It's details, of course. But an attractive brochure and a well runned website are crucial if you have MSC ambitions. I[..]
I agree with you - but it seems as if that does not play too much of a role.This is a phenomenon not limited to MSC or the cruise industry - I remeber many absolutely ridiculous brouchures of hotels etc. which are still well booked - speaking of - how is MSC actually doing?
quote:Originally posted by mec1:In my opinion, the problem isn't that the MSC product is European but just that it wildly inconsistent. I have sailed with them twice and both times the food lurched between outstanding and inedible. Until they deliver a regular, consistent product they will always have trouble.
I think this stems from the fact that the MSC onboard product delivery is totally controlled by Naples. The USA team could not or did not achieve a product that truly fits North American tastes/needs.
quote:Originally posted by Frosty 4:Did they dump Sophia yet????F4
I believe they did Frosty.....she said arriverdecci in December 2006. Ciao Ciao Sophia....It seemed Ms. Loren was a budget cut also!!!!I wonder if MSC will exit the N.A. market especially if the Lirica does not turn a profitable yield in 07/08.They could exit N.A. and sail from Canary Isles or S. A. in the future.Your thoughts...
quote:Originally posted by Ernst:I remeber many absolutely ridiculous brouchures of hotels etc. which are still well booked - speaking of - how is MSC actually doing?
I remeber many absolutely ridiculous brouchures of hotels etc. which are still well booked - speaking of - how is MSC actually doing?
Ernst.....from this report http://www.shipsandcruises.com/Future_of_Cruising.htmit seems MSC broke even in 2005......I don't recall hearing any fiscal news yet for 2006. We may never know how MSC is doing Ernst as they do not have to report being a privately held company.
quote:Originally posted by BR BOB: We may never know how MSC is doing Ernst as they do not have to report being a privately held company.
I would speculate that the cruise arm of MSC is a tax write-off to bury the profits of the commercial and container ship operations.
A business can report a loss and still have a positive cash flow.
I would believe that the Italian government wants full employment in their shipping and maritime industries, and make it advantageous for MSC's cruise operation to run.
This is a county where the government subsidised the Michelangelo and Rafaello in full ocean liner form so late in the game where any private funding would have them as hybrid cruisers.
I learned from this board that the Italian government bankrolled turning the Stockholm into the Athena by the expensive gut renovation and total rebuilding.
[ 02-21-2007: Message edited by: desirod7 ]
quote:Originally posted by BR BOB:Ernst.....from this report http://www.shipsandcruises.com/Future_of_Cruising.htmit seems MSC broke even in 2005......I don't recall hearing any fiscal news yet for 2006. We may never know how MSC is doing Ernst as they do not have to report being a privately held company.
Thanks for the link!
quote:Originally posted by Ernst:Thanks for the link!
If they broke even that is great. The start-up costs in the States w/new ships etc. must have been very costly and I would guess they would be in the red for quite a few years. Of course clever accounting tricks can make a profitable company look like it is losing millions and vice versa.
quote:Originally posted by claudio:they can send one thier ships to australia im sure it would do well here
Claudio......you and Lynne Clarke, Managing Director, MSC Cruises Australia have to share similar thoughts on that potential deploymnet.I would have to say Australia may be some time off as MSC has brand power in Europe and S.A.Deploy to your strengths.
quote:BR BOB wrote:Claudio......you and Lynne Clarke, Managing Director, MSC Cruises Australia have to share similar thoughts on that potential deploymnet. I would have to say Australia may be some time off as MSC has brand power in Europe and S.A. Deploy to your strengths.
Claudio is right. Many Aussies aren't as fussy as North Americans and would be grateful to have them Down Under. Unfortunately for us it may be a few years down the track. Europe is MSC's mainstay and I don't blame them if they eventually cut most of their ships out of the North American market. They may just target Europeans to the Caribbean if all fails.
I think MSC should follow Costa's foray into the Asian new markets. I'll bet plenty of (Continental) Europeans would cruise with them over there.
Thanks for the news BR BOB.
Cheers
Costa should operate 3D2N cruises so they can care both the passangers who want a 3D2N cruise and 6D5N, just like what Star does.
Also, they should have some 2D1N to let their protential passangers to have an experience about what Costa is different from Star. It will be a good marketing strategy and Costa can make a lot money from the casino from those cruises.
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