One thing that I think works in MSC's favor, from a business perspective...

[Stockjock]

Is their diversification of income/revenue sources.  With respect to other cruise lines, when their travel and cruise business is off, they're pretty much cooked and have to hope they have enough cash and borrowing ability to ride out the storm, such as what we've seen during the coronavirus pandemic.

But MSC is unusual in that they are the world's #2 shipping company, so when cruise revenues are soft, they can make it up on the shipping side, which could potentially give them greater financial stability.

[Stockjock]

Here's an article on the shipping boom/windfall...
https://www.bloomberg.com/opinion/articles/2022-05-23/shipping-s-500-billion-profit-can-take-on-amazon

[rkacruiser]

Thank you for posting this.  2022, are there other cruise lines that have their roots in freight?  And, how have they fared?  

 

HAL had a freight business of some size along with their early passenger business.   Two 20th Century Cunard ships--the Media and Parthia--were designed to carry guests as well as freight.  Others?  I suspect there are.  

 

 

[Stockjock]

14 minutes ago, rkacruiser said:

Thank you for posting this.  2022, are there other cruise lines that have their roots in freight?  And, how have they fared?  

 

HAL had a freight business of some size along with their early passenger business.   Two 20th Century Cunard ships--the Media and Parthia--were designed to carry guests as well as freight.  Others?  I suspect there are.  

 

 

To my knowledge, there aren't any other major cruise lines with deep roots in the shipping business, such as what we see with MSC.

That's probably why they seemed to me to be "sweating" less than some of the others.  Guessing that the parent was in relatively good shape due to strength in their container shipping business.

[rkacruiser]

3 minutes ago, Stockjock said:

To my knowledge, there aren't any other major cruise lines with deep roots in the shipping business, such as what we see with MSC.

 

I am thinking, as a result of your post, that some Asian companies have dabbled in the cruise business as a result of their freight business.  NYK, the parent company of the now defunct Crystal; Genting's history is so convoluted that I can't easily follow it, but, I would not be surprised if that company has a freight connection.  

[no1talks]

From Freightwaves.com (American Shipper) on the subject of the freight parent "floating" the cruise kid...

 "MSC Cruises reported a net loss of $1.1 billion (935.1 million euros) for 2021. It lost $1.07 billion in 2020. The parent began funneling support to its cruise company in December 2020, after the container sector started to rev up, continuing into this year. The parent has now provided $2.13 billion in equity and debt funding to MSC Cruises, plus a pledge for a further $226 million. Total support is on par with the combined 2020-21 net loss of $2.17 billion."

[Stockjock]

39 minutes ago, no1talks said:

From Freightwaves.com (American Shipper) on the subject of the freight parent "floating" the cruise kid...

 "MSC Cruises reported a net loss of $1.1 billion (935.1 million euros) for 2021. It lost $1.07 billion in 2020. The parent began funneling support to its cruise company in December 2020, after the container sector started to rev up, continuing into this year. The parent has now provided $2.13 billion in equity and debt funding to MSC Cruises, plus a pledge for a further $226 million. Total support is on par with the combined 2020-21 net loss of $2.17 billion."

Yep, puts the cruise business on a more solid footing with a cash infusion from the parent's container shipping business.  

[8420PR]

 

To further the diversification, MSC has just bid for 60% of ITA Airways (formerly Alitalia):

 

https://www.reuters.com/markets/deals/lufthansa-bids-20-stake-ita-airways-source-2022-05-24/

[rkacruiser]

3 hours ago, 8420PR said:

 

To further the diversification, MSC has just bid for 60% of ITA Airways (formerly Alitalia):

 

https://www.reuters.com/markets/deals/lufthansa-bids-20-stake-ita-airways-source-2022-05-24/

 

Interesting and was glad to read the realistic statement from Delta about their interest.  

[Hlitner]

We have oft pointed out that MSC has very deep pockets when compared to any of the other major cruise corporations (i.e. CCL, RCI and NCLH).  But even more important is that MSC if essentially a closely held company (family company) which avoids many of the pitfalls faced by Public Companies in terms of having too many regulatory agencies looking over one's shoulder.  The Aponte family is able to make strategic moves without having to deal with an active Board of Directors and stockholders.  This made it relatively easy for them to develop concepts like the Yacht Club and new Explora Journeys.  

 

As one who has cruised on 16 different lines (over many years) we have found MSC a true "breath of fresh air" and an innovator.   They, along with NCLH, have developed the "ship within a ship" concept to a degree not seen on most other lines.  We now see other lines (such as Celebrity) following MSC's lead.   

 

Hank

[Stockjock]

Just got off Grandiosa yesterday (10 night sailing), and while I haven't written my review yet, we found a major improvement in the onboard experience.

[rkacruiser]

On 9/22/2022 at 9:01 AM, Hlitner said:

we have found MSC a true "breath of fresh air" and an innovator.   They, along with NCLH, have developed the "ship within a ship" concept to a degree not seen on most other lines. 

 

A "breath of fresh air" is what I experienced as an experienced cruiser when I said as a YC guest.  Have not tried what NCL offers--and from what I have learned, won't be doing so--but, MSC has found a "sweet spot" for me with YC.  

[Hlitner]

24 minutes ago, rkacruiser said:

 

A "breath of fresh air" is what I experienced as an experienced cruiser when I said as a YC guest.  Have not tried what NCL offers--and from what I have learned, won't be doing so--but, MSC has found a "sweet spot" for me with YC.  

Makes two of us

[no1talks]

36 minutes ago, Hlitner said:

Makes two of us

Not a briny ol' salt like you experienced types, but it makes three of us.

We see no need to look anywhere other than YC for cruises at this time. If, Heaven forfend, MSC lets Yacht Club slide and concentrates their better cruise experiences in Explora, then we'll go elsewhere.

[Stockjock]

4 hours ago, rkacruiser said:

 

A "breath of fresh air" is what I experienced as an experienced cruiser when I said as a YC guest.  Have not tried what NCL offers--and from what I have learned, won't be doing so--but, MSC has found a "sweet spot" for me with YC.  

We were not YC passengers, but we were treated extremely well.

In my first review, in 2015 on Divina, I wrote that we had a nice time but they had a largely unfriendly and uncaring Eastern European crew that seemed to "hate their life, hate MSC and hate the passengers."

My GF is originally from the Philippines and I had suggested several times that MSC should hire more Filipinos, as they tend to be friendly, loyal, hard-working and service-oriented.  They did just that and it's made a massive difference.

I also noticed that the MSC supervisors were not only very kind to us, but they were on it in terms of making sure everything went smoothly.

As much as I've criticized their off-shore customer service, which still needs work, I have to give them compliments when they deserve it and they did deserve it.  Both my GF and I noticed a huge change from our last several sailings on MSC.

 

[iwtobek]

2 hours ago, Stockjock said:

As much as I've criticized their off-shore customer service, which still needs work, I have to give them compliments when they deserve it and they did deserve it.  Both my GF and I noticed a huge change from our last several sailings on MSC.

Always nice to hear crew on board going above and beyond to make guests' experiences top notch. 

Not sure we're going to say the same for their call centers one day though.

[deliver42]

We were on the Seashore back in May, our 3rd MSC cruise, and it really was a pleasure. The crew was mostly Oriental and Caribbean, and couldn't be friendlier aor more accomodating. While on board, we booked the Divina for next May, and hope for the same result. This will be our 3rd Divina cruise. We just love that ship.

[Inveterate Cruiser]

I’ve only done 2 cruises on MSC vs >10 on RCL/Carnival/HAL. Both times were on YC after bidding on the MSC Upgrade program. YC is definitely good value especially if you can snag it at a a good upgrade price. I have read that it is similar to NCL’s Haven or RCL’s Suite Class but at far more affordable price.