On The Deck: Stephen Moffett
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If circulated reports are correct Italian family line MSC Cruises underwent a very successful 2012 with rising profits, new ships announced and more itineraries planned. The UK market is also developing well for the brand which puts a firm emphasis on its family values and its new ‘Keep It Simple’ campaign. If predictions on this year come through – the line will go from strength to strength. Cruise News spoke to Stephen Moffett, director of sales for MSC Cruises, to discuss where the company will go in 2013.
What current developments do you have underway at MSC?
Our forward bookings, looking to 2013, are in great shape right now. If we carry on the way we’re currently projected, we’ll be +40% for 2013 year-on-year. That’s great compared to our competitors. The Preziosa comes out at the end of March which will mean more capacity for the UK and the Opera is 50% sold out for next year already. Our two strongest months have been August and September, which is quite unusual. Initiatives like National Cruise Week have definitely helped.
There is also the ‘Keep it Simple’ campaign…
Yes, we launched that in January and it’s essentially one price for all inside rooms, outside rooms and balconies. It means that the consumer can understand the pricing policy – and the travel agents have been getting great feedback. They are now able to communicate and sell our cruises because it’s so easy to understand.
Then in October you developed a new campaign?
In October we added all-inclusive onto the package. That’s for our Mediterranean cruises where we’ve raised the prices slightly, because demand is so good for the Med, and added on the all-inclusive package. It’s fantastic value for money and is still very competitive in the market place. So our med cruises are now all-inclusive.
Why was the decision made to go all-inclusive?
It’s down to a few factors. Primarily, we had a very successful 2012 which meant that we’ve not had to enter the discounting market. It’s allowed us to switch our focus to 2013 sales. On top of that we are fully aware that people’s budgets are tight right now and the new package has been tailored to current economic circumstance. Fundamentally we want to make it as affordable as possible to go on a cruise holiday. There are no hidden costs or fees and all-inclusive seems to be a trend that is developing across the industry.
What’s your relationship like with the travel agents?
We have a very good relationship with our agents. Some of them are very demanding but overall we have a great relationship with the trade. We try to be everything to everybody but you can’t necessarily be that all the time. We work closely with some selected MSC partners but they believe strongly in the MSC brand. We’ve got a lot of things going on and in the next few months I wouldn’t be surprised if you heard more about additions to our fleet – so it’s an exciting time to be involved with us.
Why have you been seeing such success out of the UK?
People are looking at more options rather than the traditional P&O or Royal Caribbean cruises. We have gained market share in the UK and I think it comes down to the commission cuts from firms like CCS. We pay very healthy rates of commission and agents can see a real earnings potential with us. The other factor is that our brand is becoming stronger in the UK and agents can sell us far more confidently than ever before. We’ve had such success that we’ve been able to raise our prices by 10% which is a strong sign of the climate MSC is operating within.
Who is the typical MSC customer?
We’re aimed at the 45 plus market. Our average age is less than most other cruise lines purely because we do so much business in the med. Children under 18 also cruise for free too. It’s very cosmopolitan on board – very much a European audience. Typically it’s people who interact with other nationalities comfortably and would typically go on city breaks for their holidays.
If a travel agent wants to be successful selling a MSC cruise, and isn’t doing so already, what advice would you give them?
Target the right consumer database. We’re not aimed at every client out there and that’s important. We can train you on the consumer we’re trying to get, which in turn will help your repeat customer rates. We have a dedicated sales team and are able to help you with marketing opportunities and always look to go 50/50 on marketing spend. We don’t do print marketing anymore – we’re very much focused online now – and have moved away from print advertising in national newspapers.
What training do you offer?
We have dedicated training modules which need to be completed at a number of levels. Once completed you are invited onto our ships and we enter you into competitions to win different prizes. We also run webinars and roadshows, giving agents the chance to meet us and see the product first hand.
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