Will MSC's New Luxury Brand Help to Lower Luxury Prices Company Wide?

[MotownVoice]

MSC Cruises revealed a new luxury brand in their fleet today, which will see 4 new well-appointed vessels to appear on the water by 2024.

Reading this story, it really sounds like they've pulled out all the stops.

https://www.cruiseindustrynews.com/cruise-news/25193-msc-group-reveals-new-luxury-cruise-brand-explora-journeys.html

It makes me wonder: 

I have to think that a lot of the high wealth folks who occupy the luxury suites, and Yacht Club members may think about abandoning their favorite roosts for a while and give these new gals a looksie.

Will that potential drop in reservations make MSC think about making those experiences more affordable, and thus intice a little "upward mobility" within its regular fleet?

[Beamafar]

https://www.cruiseandferry.net/articles/msc-group-debuts-new-luxury-cruise-brand-named-explora-journeys?fbclid=IwAR1iWNXWZpqNSg8_DwDicyXHqbSifFe5GoR7OdpFMjIIjNdXZITLvAr9oog

[CGTNORMANDIE]

23 minutes ago, MotownVoice said:

It makes me wonder: 

I have to think that a lot of the high wealth folks who occupy the luxury suites, and Yacht Club members may think about abandoning their favorite roosts for a while and give these new gals a looksie.

Will that potential drop in reservations make MSC think about making those experiences more affordable, and thus intice a little "upward mobility" within its regular fleet?

Don’t plan on it.  The YC is snowballing.  It is becoming tremendously popular.

[Two Wheels Only]

18 minutes ago, MotownVoice said:

Will that potential drop in reservations make MSC think about making those experiences more affordable, and thus intice a little "upward mobility" within its regular fleet?

 

Probably not. MSC is probably looking to steal guests from Regent Seven Seas, Seabourn, Silversea, Azamara, etc..

 

I think of it as when Acura, Lexus, & Infiniti debuted.  They were trying to steal customers from Mercedes-Benz, Audi, & BMW as well as get their own customers to "move up". There was no drop in price nor popularity in Honda, Toyota, and Nissan (that happened years later).

 

 

[MotownVoice]

15 minutes ago, CGTNORMANDIE said:

Don’t plan on it.  The YC is snowballing.  It is becoming tremendously popular.

Yeah, I don't question its popularity.  That's not the question I raised.
 

[At Sea At Peace]

41 minutes ago, MotownVoice said:

MSC Cruises revealed a new luxury brand in their fleet today, which will see 4 new well-appointed vessels to appear on the water by 2024.

Reading this story, it really sounds like they've pulled out all the stops.

https://www.cruiseindustrynews.com/cruise-news/25193-msc-group-reveals-new-luxury-cruise-brand-explora-journeys.html

It makes me wonder: 

I have to think that a lot of the high wealth folks who occupy the luxury suites, and Yacht Club members may think about abandoning their favorite roosts for a while and give these new gals a looksie.

Will that potential drop in reservations make MSC think about making those experiences more affordable, and thus intice a little "upward mobility" within its regular fleet?

 

Thanks for the heads up and the link.

 

Very, very nice looking amenities.

 

We've been fortunate to have sailed Divina, Seaside and Meraviglia in the Yacht Club for quite a few back to backs each and really enjoyed it.  One more older booking on the Seashore B2B in December if "it all works out."

 

We'd definitely look at this new brand with an eye towards a try.

[MotownVoice]

10 minutes ago, Two Wheels Only said:

 

Probably not. MSC is probably looking to steal guests from Regent Seven Seas, Seabourn, Silversea, Azamara, etc..

 

I think of it as when Acura, Lexus, & Infiniti debuted.  They were trying to steal customers from Mercedes-Benz, Audi, & BMW as well as get their own customers to "move up". There was no drop in price nor popularity in Honda, Toyota, and Nissan (that happened years later).

 

 

I appreciate the thought, but the comparison is flawed.

A more accurate metaphor would be if one of those auto makers introduced a luxury vehicle, and then started marketing the vehicles that were once the high end of their marketing strategy to a lower wealth holding demo.  It happens all the time, in just about all sectors of the global market.

The exception that stands out to me would be Audi, one of your examples above.  They've never marketed themselves toward the middle class.  In fact they have a tacit pledge to their customer base to never do so in the future.

[Selion]

Looks to be a even more upscale product than YC, to the tunes of Viking, RSSC, Seabourn, etc.  I wonder if MSC will have "introductory" rates for this brand initially, like when YC products were significantly less expensive than competitors (still are, but have gone a bit since).

[CGTNORMANDIE]

46 minutes ago, MotownVoice said:

Yeah, I don't question its popularity.  That's not the question I raised.
 

Yes…and “don’t plan on it” was my response to your question…

[MotownVoice]

2 minutes ago, CGTNORMANDIE said:

Yes…and “don’t plan on it” was my response to your question…

I can read what you have actually written.
Maybe you can return the favor when you reply to one of my comments.

[Two Wheels Only]

26 minutes ago, MotownVoice said:

A more accurate metaphor would be if one of those auto makers introduced a luxury vehicle, and then started marketing the vehicles that were once the high end of their marketing strategy to a lower wealth holding demo.

 

I was referring to the late '80s and early '90s when the brands were first introduced. At that time, Honda, Toyota, and Nissan introduced a more expensive line (Acura, Lexus, and Infiniti). 

 

The Japanese manufacturers didn't lower prices of their standard lines just as MSC won't lower prices of their usual experiences. YC prices won't go down because of the introduction of the MSC luxury brand. 

 

37 minutes ago, MotownVoice said:

The exception that stands out to me would be Audi, one of your examples above.  They've never marketed themselves toward the middle class.  In fact they have a tacit pledge to their customer base to never do so in the future.

 

Where does that leave the A3?

 

[Homosassa]

When I cruise MSC, I don't book the Yacht Club or "luxury" suites as I am not paying for the privilege of being in a "ghetto" to obtain certain services that are not available throughout the ship.

 

I usually book a Bella inside.

 

When I want an upscale experience, I book Viking, Azamara or one of the other upscale lines.

 

As a matter of fact, we are considering replacing our cancelled July Meravigilia cruise (Bella inside) with a Viking Oceans Iceland cruise (fully vaccinated).

 

That being said, I have been looking forward to the MSC small ships to see of they are an option for us.

 

The article makes it seem as if they might be.

 

LOL - the pictures of the ship décor in the article looks like the designers traveled on a Viking ship.

 

No mention is made of the passenger numbers or if children will be allowed.

 

"Explora" Journeys - I wonder if they talk to an Italian--American from Brooklyn for name suggestions....

 

 

Edited June 10, 2021 by Homosassa

[Two Wheels Only]

5 minutes ago, Homosassa said:

No mention is made of the passenger numbers or if children will be allowed.

 

 

461 staterooms

922 passengers (double occupancy....figure more actual passengers)

All balcony staterooms

Crew to guest ratio is 1.25 to 1

Rumored starting price of about $4500pp for a 7 night. (guests 1&2)

No mention of evening dress code

No mention of age restrictions

 

 

[Stockjock]

It's a very interesting concept.  I wonder what the pricing will be like?

I've harped on the lack of MSC customer service many times, most of the issues relating to lack of communications and lack of empowerment from Italy.

I work for one of the biggest Wall Street firms in the world.  We cater to a high net worth and ultra high net worth clientele.  While everyone deserves excellent service, if you're doing business in that luxury/high and ultra high net worth space, then you have to deliver absolute first class service.  In fact, that's a part of my firm's motto.

My sister recently retired from Neiman Marcus and was in a management position for decades.  Same thing there.  Customers are paying a lot more than they'd pay at Walmart or Macy's, but they have expectations of, and typically receive, a very high level of service that goes above and beyond those expectations.  The product has to be first class and the service has to be first class.

So I think if MSC is going to try to compete in this space, they'll need to rethink or reimagine (I don't love that word) the way that they do business and how they communicate with their customers (I'd call them clients, if I were them).  Just having really nice ships and good food won't be enough.

I would consider assigning a team of "Expedition Concierges" who would assist "clients" with their various needs, including changes and updates.  If there was a problem, it would be the job of the concierge to inform the client and fix things quickly with minimal effort from the client.

Edited June 10, 2021 by Stockjock

[Selion]

1 hour ago, Two Wheels Only said:

 

 

461 staterooms

922 passengers (double occupancy....figure more actual passengers)

All balcony staterooms

Crew to guest ratio is 1.25 to 1

Rumored starting price of about $4500pp for a 7 night. (guests 1&2)

No mention of evening dress code

No mention of age restrictions

 

 

So this ship is basically a design variation of Viking Ocean's.  Not that it's a bad thing.

[Nunagoras]

To each, its own. Explora will certainly to be far out of my budget, but again, congrats to MSC for doing so and for those fortunate enough to go there!...

 

In fact Explora product will to be far away from the YC!... And TBHH, the gap between Explora product and YC is so big that it won't ever to be any cannibalization risk towards both products. And as regarding the other companies they have their loyal clients more than captured, so no influence at all. I believe MSC is trying to create a new niche market for their own, perhaps with Italian/French and other continental European and some American mostly upper middle and high class land vacationers in mind.

 

Curiously, and while this trademark is outside the regular MSC one, all the renderings shown today reveal ships that incorporate all the usual MSC's symbolic designs that are so characteristic of them even more than what they're doing on the likes of the World class!... And, no: I can't see any Viking Oceans influence there!... Actually Explora ships seem to be far more opulent than anything Viking might to have in the market right now!... Maybe: They're on the way forward to become such a Regent or Hapag Lloyd lite experience, so I believe their pricing as being somewhat on the likes of little bit above the likes of Viking or Oceania, but below the likes of Regent or Hapag Lloyd!...

 

So; now here is the interesting question: For now, MSC has 2 products on nearly the real opposite points of the cruise market: The baseline mainstream and almost near the top of the tops!... So, what is their vision to whatever else might to go in the middle between those 2 corners?...

 

Back in the day, when I started with them in 2006-2007, I taught they could easily have gone towards the likes of such an X or Princess lite... TBHH, they're now becoming somewhat such an RCI or NCL lite, so now, why don't they launch such an X or P lite, Italian inspired company. And they don't even need new ships. IMHO: Pick all the Musica class (ships that are now more than paid from the shipyard and for which 2nd hand market would to be difficult these days...), remove all the deck 5 inside and outside cabins, remove some of the upper decks inside rooms to make room for auto laundry and some communal deck space, and reprice those ships accordingly so that they become sort of Aurea+ experience with food and bars according to that market level!... That way they could to have a way to tweak the experience for newer builds when the market restores its usual course and they're able for new builds at that segment somewhat retaining their "good ole days" Affordable Elegant Environment forever, at least to an extent!...

 

What do you think?

[TrulyBlonde]

It caught my eye. I have yet to try MSC Yacht Club, only because I find the website difficult to manage. Many good reviews on MSC. Looking forward to hearing more about their luxury concept.

[At Sea At Peace]

6 minutes ago, TrulyBlonde said:

It caught my eye. I have yet to try MSC Yacht Club, only because I find the website difficult to manage. Many good reviews on MSC. Looking forward to hearing more about their luxury concept.

 

Seaside Class, stunning layout of amenities.  Simply an incredible lounge, access to outside seating, pool and bar and grill.

 

Meraviglia Class, a touch different, but still really nice.  Outside of the Yacht Club a lot more to the ship.

 

Will definitely look to this new (possibly originally themed Yacht Club ships?) brand.  Pricing obviously above Yacht Club by significant amount, and even above NCL Haven a bit.  Will likely give it a try.

 

Agree on website, agree on customer service comments, agree on TA's not too thrilled with dealing with them.  However, by far the absolute BEST onboard amenities and service in and by the Yacht Club staff.

[Nunagoras]

1 hour ago, At Sea At Peace said:

 

Seaside Class, stunning layout of amenities.  Simply an incredible lounge, access to outside seating, pool and bar and grill.

 

Meraviglia Class, a touch different, but still really nice.  Outside of the Yacht Club a lot more to the ship.

 

Will definitely look to this new (possibly originally themed Yacht Club ships?) brand.  Pricing obviously above Yacht Club by significant amount, and even above NCL Haven a bit.  Will likely give it a try.

 

Agree on website, agree on customer service comments, agree on TA's not too thrilled with dealing with them.  However, by far the absolute BEST onboard amenities and service in and by the Yacht Club staff.

Only by watching today's wonderful presentation, me thinks they surely know very well what they're doing!... They'll have it the way it is supposed to be, no doubts on that one, nor it should be!...

 

The same towards MSC regular offering. They're not another X/Princess because they decided to be just another RCI/NCL/Carnival/Costa! No more, no less!... :) If they wanted otherwise, they could very well to have been so, alas, when they started the Musica class, that was exactly what they were. They only decided to go otherwise far after the 2008 global crisis, I believe somewhere from 2012-2014...

 

With Pullmantur out of business and Costa going out of their usual 3* experience level (at least on the new builds) MSC will in average to become perhaps the most budget line available with all the consequences, good and bad, for both the clientele environment and the company itself. That is their decision. Would they have potential for far more than that? Surely! And their current pricing shows it perfectly. They're sometimes nearly at par with RCI at least!... What I don't know is for how much time will it be possible. The more affluent MSC clientele will find other options sooner rather than later and lots of inventory to fill due to the ongoing covidical ordeal for the next years to come. They'll need to decide. Price or service upgrade... Interesting times!...

 

Have a nice day!...

[deliver42]

Pricing on the MSC ships will be done with supply and demand. Just as any price is .I remember when the YC was pretty cheap a few years ago, but as demand for MSC and the YC in particular, the prices have doubled.

[JohnIreland]

5 hours ago, Two Wheels Only said:

461 staterooms

922 passengers (double occupancy....figure more actual passengers)

All balcony staterooms

Crew to guest ratio is 1.25 to 1

Rumored starting price of about $4500pp for a 7 night. (guests 1&2)

No mention of evening dress code

No mention of age restrictions

 

So about twice the price of the YC.  Will check it out , but hard to justify at that price.

[RD64]

I think that MSC will launch this product as a true luxury concept. Hopefully it will have a European focus! Although, it does remind me of Costa in the early 1990s.

 

At that time Costa attempted to launch a “Euro-luxe” version of its mainstream Costa line for the new Classica and Romantica. The effort was criticized as being neither Euro nor Luxe. The venture was quickly dropped and the ships became part of the regular Costa fleet.

 

At the end of the day - fifteen years ago, I am sure most cruise line executives dismissed MSC as a non-competitor. Look at them now! If anyone can make a success of this concept it will certainly be MSC and the Aponte family.

[neptuno]

Well...having sailed MSC USA for a decade, hopefully they focus a bit more on shoreside customer service to accomodate their loyal guests.

[sealynx]

7 hours ago, RD64 said:

I think that MSC will launch this product as a true luxury concept. Hopefully it will have a European focus!

 

And that might exactly the niche they are looking for. This decade the European cruise marked has definitely matured, but most luxury cruise lines are still focussed on American clientele. Only in the ultra-ultra luxery niche, their are some true European operators like Hapag, Ponant and maybe Hurtigruten. I expect Explora to be in the range of Seabourn, Viking, Oceania, Regent, Azamara and/or Crystal, but more focussed on Europeans.

[dexddd]

16 hours ago, Homosassa said:

When I cruise MSC, I don't book the Yacht Club or "luxury" suites as I am not paying for the privilege of being in a "ghetto" to obtain certain services that are not available throughout the ship.

 

I usually book a Bella inside.

 

When I want an upscale experience, I book Viking, Azamara or one of the other upscale lines.

 

As a matter of fact, we are considering replacing our cancelled July Meravigilia cruise (Bella inside) with a Viking Oceans Iceland cruise (fully vaccinated).

 

That being said, I have been looking forward to the MSC small ships to see of they are an option for us.

 

The article makes it seem as if they might be.

 

LOL - the pictures of the ship décor in the article looks like the designers traveled on a Viking ship.

 

No mention is made of the passenger numbers or if children will be allowed.

 

"Explora" Journeys - I wonder if they talk to an Italian--American from Brooklyn for name suggestions....

 

 

Isn't it a moot point since you won't be sailing MSC anymore?   And let me put in a disclaimer...your opinion may defer from mine...