MSC Cruises Goes Ultra Luxury Targeting High Net Worth Travelers

Chances are good that people who care about cruises will have heard of MSC Cruises. After all, it might not be the biggest cruise operator that can be found out there, but it isn’t too far from it, seeing as how it occupies the number four position for the time being.

For those who are unfamiliar, MSC Cruises started out as Lauro Lines with a couple of cruise ships in 1960. Like most companies, it encountered both weal and woe, though the striking nature of some of those woes means that they tend to be much better-remembered than their counterparts. Eventually, Lauro Lines was bought out by the Mediterranean Shipping Company (MSC) in 1989, with the result that it was renamed StarLauro Cruises and then MSC Cruises.

In the present time, there can be no doubt about the fact that MSC Cruises occupies a very powerful position in its chosen industry. However, it is clear that it isn’t content with treading water, as shown by the fact that it is planning to expand into the ultra luxury market.

How Is MSC Cruises Planning to Expand Even Further?

In short, MSC Cruises has commissioned four new cruise ships from Fincantieri that will start seeing service in 2023, 2024, 2025, and 2026. Said ships will be used to offer an even more exclusive set of services for an even more exclusive clientele than the cruise operator’s current premium brand called The Yacht Club, though for understandable reasons, information is scarce at the moment save that the services will be personalized in nature.

Otherwise, some other small tidbits have been shared with interested individuals as well. For example, MSC Cruises is still partnering with De Jorio Design for the interior design of the cruise ships, meaning that interested individuals can expect something that will presumably be similar but not the same as the cruise operator’s current interiors for its premium brand. Likewise, it is interesting to note that the four ships will have a value of more than $2 billion euros, which is considerable sum to say the least. After all, one euro tends to have a higher value than one USD, as shown by the exchange rate of 1 euro to 1.12 USD as of April 3 of 2019.

It remains to be seen whether MSC Cruises will succeed at establishing its new brand for its new target. Certainly, it promises to be an interesting showcase of the economics of luxury goods if nothing else. For those who are unfamiliar with the concept, luxury goods are products and services that people consume more of when their income increases, so much so that such expenditures become a bigger proportion of their overall spending. Some people have been known to confuse the concept of luxury goods with the concept of Veblen goods, but this is inaccurate because the latter refers to products and services that see their demand go up when their price goes up, which is a blatant violation of the standard assumptions about the nature of demand. Certainly, the two overlap to a considerable extent, but they are by no means synonymous with one another.

In any case, the establishment of an ultra-luxury brand should be possible so long as MSC Cruises can implement its plan in the right manner. After all, while luxury goods do tend to be higher-quality than their non-luxury counterparts, much of their value lies in their prestige. As a result, it isn’t difficult to see why some consumers might be convinced to go for an ultra-luxury brand rather than a luxury brand with the right marketing, particularly if the ultra-luxury brand really does come with noticeable improvements as is being promised in this case.

Final Thoughts

With that said, what might be even more interesting is that these four new cruise ships are just one component of MSC Cruises’s expansion effort, which will cost more than 13 billion euros in total. This is a massive investment that is meant to bring the cruise operator’s fleet to 29 cruise ships by 2027, thus enabling it to expand its revenue intake by that much more. Considering that the general market for luxury goods is expected to continue rising for the near future, this does seem like a bold move that could very well pay off handsomely.


Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scott Heiferman
20 Things You Didn’t Know About Scott Heiferman
Corey Schiller
20 Things You Didn’t Know About Corey Schiller
Oscar Munoz
20 Things You Didn’t Know About Oscar Munoz
Mandy Ginsberg
20 Things You Didn’t Know About Mandy Ginsberg
Do You Really Need to Save That Much for an Emergency Fund?
10 Recession Proof Dividend Stocks You can Lean On
York Water Stock
20 Reasons You Might Consider York Water Stock
10 Creative Ways to Boost Your Social Security Benefits
airplane technologies
20 Technologies That Will Rule the World in 2020
Chatbots
The Growing Use of Chatbots in Customer Service
Data Breach
Four Reputable Companies That Faced Massive Data Breaches
Video Cards
Why are Video Cards So Expensive? Here’s the Answer
Kensington
The 20 Best Seafood Restaurants in NYC
Seattle Center
The 20 Best Hotels in Seattle 2019
The 10 Best Golf Courses in all of Ireland
The 20 Best Seafood Restaurants in Boston
2016 Mercedes-Benz GLC Class
The 10 Best Mercedes GLC Models of All-Time
Best Cadillac Escalade Models
The 10 Best Cadillac Escalade Models of All-Time
Best Ford Ranger Models
The 10 Best Ford Ranger Models of All-Time
Best Ford Explorer Models
The 10 Best Ford Explorer Models of All-Time
Oris Martini Racing Limited Edition
The 20 Best Oris Watches of All Time
Timex Men's Weekender Tan Leather Strap AnalogWatch
The 20 Best Timex Watches of All-Time
Orient Mako XL
The 20 Best Orient Watches of All-Time
The 20 Best Tissot Watches of All-Time