Why are MSC Cruises so cheap? Secret business tactics explained! - 이중 자막
Hey everyone, welcome to Cruise Blog.
This is Angie and today I'm going to be talking about why MSC Cruises are so cheap.
Let's get started.
Do you want a cheap cruise?
Well, MSC Cruises might be what you're looking for.
They have some of the lowest cruise fares around, even beating Carnival Cruise Line, who's known for offering a great value.
MSC Cruises has become increasingly popular, especially in North America.
Not only do they have some of the best budget-friendly cruise prices,
but they also often include add-ons, like basic Wi-Fi and drink packages, luring cruisers from other cruise lines.
But why are MSC cruises so cheap?
What's the catch?
Let's take a look at how MSC cruises can possibly deliver these discounted fares and what cruisers need to know when sailing with this European
cruise line.
First, let's discuss MSC Cruises.
Who are they and who owns them?
MSC Cruises has grown to become one of the most popular cruise brands globally, competing against giants like Royal Caribbean, Norwegian Cruise Line and Carnival.
Despite many stories to the contrary, MSC Cruises is not owned by one of the other mass market cruise lines.
In fact, they are the largest privately owned cruise line in the world.
They are part of the larger Mediterranean shipping group, a leader in container shipping and logistics.
They have over 180,000 staff worldwide and 760 ships, a maritime giant to say the least.
MSC Cruises currently sales to over 100 countries.
and another five due by 2027.
So how cheap are MSC cruises?
MSC cruises has been growing in popularity with cruises leaving from several US ports such as Miami,
New York, Port Canaveral, and Galveston starting in 2025.
A major factor for this growth has been price,
and glancing at their fairs, we can see why so many cruisers are giving the cruise line a try.
Looking current MSC cruise deals, there are some pretty low cruise fairs.
If you're dreaming of a cruise to the sunny western Caribbean,
MSC has a 7 night sailing for $200, leaving on MSC Seaside, including the stop at their popular private island Ocean K.
Compare rate to $450 per person on Carnival Magic and $420 per person on the brilliance of the seas
for week-long cruises in the Caribbean.
In terms of the age of the ship, MSC Seaside was launched in 2016.
and it's much newer than brilliance of the seas, which set sail in 2001, and Carnival Magic in 2010.
How is MSC Cruises able to offer such low prices?
They have some financial strategies to help manage profitability while embarking on these aggressive marketing strategies to grow market share.
Strategy number one is cost control.
MSC stretches their passenger to crew ratio to keep costs down.
One of the biggest expense categories for cruise ships is payroll.
Carnival, one of MSC Cruises' main competitors, notes on its financial statements that
labor costs are their single largest expense at 18% of total revenues.
That's a little over $2 billion in payroll costs per year.
year.
Being able to effectively manage these costs can translate to significant savings on the bottom line.
Cruise lines like MSC need to watch these costs closely if they want to lead the market on price.
One of the ways MSC cruises can manage these costs is by stretching the passenger-to-crew ratio.
In simple terms, this is the number of passengers divided by the total number of crew.
The higher the ratio, the more people a crew member needs to attend to, which can impact service levels.
To get a sense of these ratios, I looked at some newer ships among the mass market cruises.
This was Norwegian Prima at 1.99,
followed by Royal Caribbean's Wonder of the Seas at 2.4, MSC Seascape at 2.75, and Carnival Celebration at 3.04.
MSC's ratio is one of the highest, although lower than Carnival.
One of the ways that MSC can offer cheap cruises is by maximizing the number of guests it welcomes on board.
While management of crew costs is one part of the financial equation, maximizing revenue is another.
How do cruise lines do this.
They get as many passengers as they can onboard.
This is especially important as cruise lines charge per person and not per cabin.
Similar to the passenger crew ratio, a space ratio helps us to compare cruise lines and how effectively they use their space to maximize earnings.
A common measurement used in cruise lines is gross tonnage, which is a measure of the inside volume of the ship.
Gross divided by passenger numbers gives a comparables when evaluating different cruise lines.
I looked at the same cruise ships as before, and not surprisingly, they ranked in the same order as their service ratios.
Another strategy is that MSC reduces cabin size to save money.
Every needs a place to lay their heads somewhere at night.
Cruise lines like MSC, who want to achieve.
optimal passenger count, have adjusted some of their cabin sizes to allow for more people on board.
Although MSC Cruises has numerous categories of state rooms,
I had to look at their entry-level interior cabins, which tend to be the cheapest option for cruises.
On MSC Cruises, the average inside cabin size varies.
But on MSC's seascape, it starts at 151 square feet, which is close to Carnival Celebrations interior state rooms, which are 158 square feet.
Both of these are smaller than wonder of the seas whose interior rooms measure at 172 square feet and Norwegian Primas at 160 square feet.
their next strategy is that low prices are part of a marketing strategy to achieve rapid growth and gain in market share.
MSC Cruises is part of the larger MSC Group, a shipping conglomerate with sizable assets.
The company is privately held, but some analysts estimate the shipping empire to be worth.
dollars thanks to their diversified holdings in shipping, cruises, cargo, fairies, and more.
Large companies with deep pockets like MSC can implement short-term strategies to gain market with lower prices.
Also, because MSC is privately held, they don't need to focus as much on short-term earnings.
but rather on long-term profitability, with no dividends for shareholders to worry about.
While it's not known what their debt and equity structure is like,
a private company can reinvest funds and sell finance expansion along with private funding options.
Their next strategy is sell, sell, sell.
MSC cruises upsells numerous onboard services and add-ons.
Everything from drink packages to Wi-Fi, excursions, specialty dining, spas, and even entertainment like bowling and race car simulators.
These really add up.
on MSC ships, activities like racing are $12 per person, and movies are $11, which can quickly add up.
Most their add-on packages are cheaper if booked pre-cruise, enticing customers to lock in savings, and the cruise line provides lots of options.
Guests choose from five different drink packages, eight different Wi-Fi packages, and several specialty dining combinations.
for every budget and preference.
Another of MSC is the MSC Experiences.
They provide additional revenue for the cruise line.
Something unique when booking an MSC cruise is that guests can select from five distinct MSC Experiences in addition to their cabin options.
The lowest tier, Bella, has the best value prices, but also has bare-blown perks compared to upgraded experiences like Fantastica and Aurea.
For example, Bella cabins include the basics, such as food, entertainment, and cabin attendant service.
However, if cruisers upgrade to Fantastica,
they get one free cruise change,
free delivery in their cabin,
the ability to choose their room location, 20% off specialty dining packages, and the ability to request their preferred dining time.
For a seven night cruise to the Caribbean, the upgrade is currently priced at $140 per person.
As guests move up to Araya, the benefits become even more, and so too are the prices.
MSC allows its guests to customize the cruise experience, but the super cheap cruise prices offer the basic cruise experience.
The strategy is that many of MSC's best deals are on older ships.
While MSC Cruises has been on a building site.
When we launched eight ships in the last five years, there are still many older ships in the fleet.
In fact, 12 of their ships are at least 10 years old, with the oldest being MSC Armonia, which was launched in the year 2000.
MSC Cruises has an incredibly strong presence in the European cruise market,
offering tons of cruises at bargain prices with ships like MSC Fantasia, MSC Lyrica, and MSC Poisia.
While the ships offer the classic cruise experience,
they may not have all the bells and whistles of the new ships, like water parks, slides, and other fun activities.
So what do cheap cruise fares mean for the MSC Cruises?
You still get the basics, like food, entertainment, and cabin options.
What these low prices come with limited perks.
Also, there are many upgrades and packages you can purchase, which can quickly add up.
I have enjoyed my MSC Cruise experiences, but having the right expectations and knowing what's not included is important.
In particular, their newer ships are beautifully designed and have lots of light in space.
I found the MSC Seascape to be as nice as Celebrity Edge and Wonder of the Seas.
However, the food options and service could be enhanced.
The bottom line is that MSC Cruises are cheap, but they don't come with a lot of extra perks that cruisers are cheap.
enjoy.
The cruise line uses several strategies to be able to offer these low prices, including less staff and less space in certain cabins.
For cruisers booking these ultra low fares,
it's important to be clear about what you're getting for the price and budget for the add-ons accordingly.
So, have you sailed on MSC?
Will you consider a cruise?
on MSC?
Let us know your thoughts in the comments below.
And while you're at it,
don't forget to like and subscribe to our channel so you can be notified every time we have a new video.
Thanks for watching and be sure to visit Cruise Blog for more Cruise Tips and Advice.
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