MSC Cruises chief executive Pierfrancesco Vago talks to Jane Archer about bringing Italian style to British cruise customers, tipping and the importance of the travel trade
MSC Cruises started cruising from the UK last year. How is it selling?
Last year we operated MSC Rhapsody on just five sailings from Dover. The ship holds 812 passengers and we were selling it in the UK and Holland so we carried very small numbers of British passengers.
This summer MSC Armonia is sailing 13 cruises from Dover and has twice that capacity, so we expect a big improvement in numbers.
What does MSC Cruises offer British passengers that other cruiselines can’t?
I think we offer the best product in Europe for British cruisers, from the Italian food and professional Italian service to the cleanliness and standard of the ships. It’s not US-style efficiency, but we think it’s better; it’s something different.
We are Italian and we don’t pretend to be anything else. It doesn’t suit everyone, but British passengers who have cruised with us have raved about the product.
Are we likely to see more expansion in the UK in 2009?
Next year we will be operating MSC Lirica from the UK, which is the same size as MSC Armonia, but for 2010, I am looking at positioning a ship the size of MSC Poesia for the UK market – possibly MSC Orchestra, which was launched last year.
That has capacity for more than 3,000 passengers. We are making a big commitment to the British market so we have got to be prepared to deliver the best product.
Why did you choose to name MSC Poesia in Dover?
It’s a way for us to get our name across in the UK. As the largest cruising market in Europe, Britain is paramount for our future growth so this christening is important to us. We see it as a way to show more agents the hardware and software.
We will be having a spectacular ceremony, with Sophia Loren naming the ship and Andrea Bocelli singing, but also two sittings for dinner and two shows. Agents will see the ship as passengers would.
What are MSC Cruises’ relations with the trade like?
Agents are paramount for us. We believe agents are key to market growth in the UK, so we are relying heavily on them. In return, we direct customers to agents so all bookings come through the trade.
In the UK, consumers are used to the Internet, but we don’t allow them to book online because partnerships, and building relations with the trade, are more important to us.
What are you doing for agents?
We do fam trips and take every opportunity to let agents visit when the ships are in UK ports. We have also started sales blitz events, so we can talk to agents face to face.
We have improved our technology so agents can book online. We are also on the Amadeus Cruise system. We are the only cruiseline that pays agents commission on pre-booked excursions and spa treatments. The message is: if agents work well with us, we will make them money.
The company just floated out MSC Fantasia, which has capacity for 4,000 passengers. Are you concerned there is too much capacity coming on to the market?
In Europe overall, only about 1% of the people who go on holiday take a cruise because there is still a lot of ignorance about cruising.
Penetration is higher in the UK, but is still not that great. It means there is a lot of growth still to come and I believe it will come because cruiselines have room to expand whereas destinations don’t.
Europe is getting cramped, especially cities such as Venice. They can’t build more hotels because there’s no room. A cruise is an alternative way for people to visit these places.
MSC Fantasia will be a destination ship, based year-round in the Mediterranean with lots to do on board. We must compete with land-based holidays, not other cruiselines, if we want to expand.
What will happen to the smaller ships in your fleet?
There are passengers who like MSC Rhapsody and MSC Melody because they are smaller and more intimate, but an increasing number of people want balconies, so these ships will be phased out – I would guess over the next couple of years – leaving us with the most modern fleet in the world.
Are you likely to follow the Costa Cruises example and introduce a mandatory service charge instead of optional tipping?
No. We keep an eye on what others are doing but prefer to do it our way. We trust our passengers to reward staff if they think they have given good service and we have confidence that our staff will give a good service. We recommend how much adults and children should tip, but it is up to them.
Profile
Age: 46
Lives: Geneva, Switzerland.
Employment history
2004: Appointed chief executive of MSC Cruises
2002-2004: Worked for Mediterranean Shipping Company
1999: Involved in joint venture between SNAV and Hoverspeed
1984-1999: Worked for his father’s company Franco Vago as general manager
