- D'Ambrossio, your arrival in Spain comes at a turning point for the Spanish cruise market. It seems that after several years of decline, our source market has consolidated and is beginning to grow. What are your first impressions of our market? Are there reasons for optimism?
In Spain, tourism has always been one of its main economic drivers, and we just closed 2016 with very positive figures for the sector. We are currently experiencing a period in which we can be more than optimistic, given the increase in the number of Spanish cruise passengers.
Furthermore, at Costa Cruises we design itineraries tailored to each of our clients, allowing us to reach everyone by offering a product that consistently meets their expectations: escaping winter, enjoying the Christmas holidays with family, circumnavigating the globe, experiencing unlimited fun on unforgettable beaches, or discovering the most beautiful and idyllic corners of the Indian Ocean and the Maldives, or the Caribbean. A cruise offers the opportunity to visit many destinations in a single trip, and this is one of our main attractions: Spanish tourists are adventurous, they want to explore the world, and with Costa Cruises they can do so while enjoying a unique experience.
- Costa continues to invest in Barcelona, but also embarks in Valencia, Alicante, Tarragona, etc. Are we witnessing a diversification of your company's embarkation ports?
Barcelona is a strategic point in the Mediterranean, receiving millions of tourists each year, whether by sea, land, or air. The city is also the leading cruise destination in Spain. For this reason, Costa Cruises, as the industry leader, will continue to maintain a significant presence in the area, with this port serving as a homeport for some of the company's most important itineraries.
On the other hand, one of our main objectives is to offer our clients the best connectivity and accessibility. Therefore, in addition to strengthening our agreements with pioneering companies in the industry, such as our alliances with Iberia and Renfe, we work daily to increase our presence in other Spanish ports. Tarragona is a good example of this, becoming the new homeport for the Costa neoRiviera for the 2017 season and demonstrating a clear commitment to the Spanish market, which is growing faster than ever.
- The Costa Diadema and the Costa Mediterranea will offer 7-night cruises in winter 2016/2017 from Barcelona. What is your view of the winter cruise market in Europe in general? And in Spain?
The winter cruise market is experiencing exponential growth thanks to extremely high demand, driven not only by the need to disconnect during the first months of the year, but also by the desire for a different kind of vacation, discovering the most beautiful corners of the Mediterranean. Explore Eternal Rome or Pisa and Florence from La Spezia in winter aboard the Costa Diadema, or enjoy Naples and Palermo on the Costa Mediterranea. Consider also the growing number of passengers who choose a winter vacation to discover the various itineraries we offer in the Caribbean (Costa Favolosa, Deliziosa, and Magica), the Indian Ocean with the Seychelles, Madagascar, Réunion, and Mauritius (Costa neoRomantica), India, the Maldives, and Sri Lanka (Costa neoClassica), or the exotic United Arab Emirates (Costa neoRiviera).
These are just a few examples of the kind of experience our customers can enjoy with Costa in winter. Furthermore, all excursions are designed not only for discovery, but also to create truly memorable experiences.
- You come from the French market. What are the most important differences you have found between the French and Spanish markets?
France and Spain were the 4th and 5th largest cruise passenger markets in Europe in 2015.
The two markets have some similarities - and both are growing - but they also have major differences:
- Seasonality is different. In France it is more constant throughout the year, however, in Spain it grows every quarter, but with an even higher peak in June, July and August.
- Distribution – which plays a key role in the development of the sector in both markets – has grown exponentially online, although in Spain I am seeing very ambitious and interesting development models both online and offline, which we want to support and provide with the appropriate technological solutions for our partners.
- Consumer: In France, consumers decide to book a cruise more than four months before departure. In Spain, this figure is three months. Regarding destinations, French consumers have been taking cruises for longer, and therefore, the range of destinations is considerably broader (more Caribbean, more Indian Ocean, more passengers on round-the-world cruises). This represents a clear opportunity in Spain, which we must capitalize on in partnership with our partners.
- Before your experience in France, you were Director of Strategic Projects at the Genoa headquarters. In that role, you were responsible for designing new sales strategies for both traditional and digital channels. How will cruises be sold in ten years? What role will travel agencies play?
Travel agencies have been, are, and will continue to be a strategic partner for Costa Cruises. At Costa, we are confident that we will witness the development of digital and multichannel technology for managing customer relationships and sales.
For this reason, over the last few years, we have done important work with Agencies to help us convey the cruise experience to our clients, and the results are very positive.
Furthermore, we have made a significant effort to incorporate new technologies into the sale and distribution of our product through travel agencies, so it is undoubtedly likely that they will continue to be a key element in cruise sales in the coming years. The substantial investment we have made in Costa Extra—possibly the best digital platform for cruise information and bookings for travel agencies—is, I believe, a clear indication of our conviction in its strategic role.
At the end of January, a new tool for travel agencies is scheduled to launch to support sales and create an even stronger connection with their end customers: the 'Emotional Budget,' a platform integrating videos, images, itineraries, ideas, and budgets so that agencies can send it to consumers interested in a specific option. This way, our clients can view it at home and get excited about the possibilities a cruise vacation can evoke.
Additionally, our Sales Force systematically conducts training and refresher sessions to further enhance our partners', the Travel Agencies', knowledge of our product. Recently, our Sales Force received training on how to support Agencies in using digital tools and Social Media. Our policy is to support Agencies as a business partner throughout all phases of the end customer lifecycle.
- He was also the top manager of WelcomeTravel and GEO Travel Network, two sales and distribution joint ventures in Italy. What did he gain from that experience?
In recent years, I've had the privilege of serving as a board member for WelcomeTravel and GEO Network. It has been an enriching experience both professionally and personally, as I've been involved in all aspects of managing a network of travel agencies. This interaction, along with my extensive insider knowledge of a consortium, has been crucial in defining and successfully implementing a number of support initiatives.
- With the new “Fun & Beach” product of the Costa Neo Classica and the Costa Neo Riviera for summer 2017, does this signify a different concept of cruise?
At Costa Cruises, we strive to offer the best products and services, always tailored to the needs and expectations of our customers. That's why we've launched "Fun & Beach," a brand-new program that offers a unique way to enjoy a cruise, focusing on the best beaches in the Mediterranean and unlimited fun, both on board and ashore. This includes extended stops and even overnight stays in several unforgettable destinations (Ibiza, Myknos, Santorini, etc.)
As an example of total fun, for the Costa neoRiviera itinerary we have reached an agreement with Port Aventura whereby Agencies can offer a combined package in which the cruise is complemented with one or two nights and days in the Park under very advantageous conditions.
- In 2017, its main competitor added a new ship to the Western Mediterranean, and two more in 2018, while Costa would have to wait three years for a new ship, in 2019. Do you think this situation will put Costa Cruises at a competitive disadvantage?
Since 2016, Costa has introduced (and continued to develop) a truly revolutionary commitment to the quality of its onboard entertainment and dining offerings – which, together with destinations and excursions, are the basic pillars of a cruise holiday.
For adult entertainment, we introduced two exclusively licensed formats: 'The Voice' and 'You've Got Talent'. Both shows take place every week across the entire fleet. In the case of 'The Voice' ('The Voice of the Sea' on board), any passenger can audition and then receive daily training from the coaches (in performance, coordination, pitch, etc.) to be well-prepared for the Grand Final each week. As a fun fact, the winner of the first time it was held on board was Spanish!
For the entertainment of the little ones, we have also exclusively licensed the well-known Peppa Pig, who has her own spaces and formats on board each of the Costa Ships.
In terms of gastronomy, our menus have been designed by Italian chef Bruno Barbieri (7 Michelin stars to his name, and a judge on MasterChef Italy). We've also introduced the innovative 'Bravo Chef' initiative, an onboard culinary show where passengers can enjoy live cooking demonstrations.
Additionally, we have added examples that demonstrate why we are 'the best of Italy': mozzarella produced directly on board, exclusive pizzerias, artisanal gelato… all aimed at reinforcing our positioning and making each passenger's experience something very different and truly unforgettable.
We continue to be pioneers in the sector, market leaders, and among the companies most highly rated by customers.
- Virtually all new cruise ships soon to enter the market offer capacities of around 5,000 passengers. Is the market ready for this scale of ships?
The important fact is that there is plenty of room for further growth. According to data published by CLIA, the global number of cruise passengers has steadily increased in recent years, rising from almost 18 million in 2009 to over 25 million projected for 2017. In Spain alone, 466,000 travelers embarked on a cruise in 2015. This is a growing trend that began three years ago. Clearly, the figures show that interest in cruises is increasing not only internationally, but also in Spain.
In this way, we opt for larger capacity ships for a very specific reason: because they have space to offer even more leisure and entertainment opportunities, so that each passenger can further personalize their onboard vacation.
These investment efforts, which allow us to grow, have their reward: 9 out of 10 customers who have enjoyed a cruise with Costa recommend us, and more and more travelers are opting for a different way to enjoy their holidays with us.
- And what about destinations? What strategies does your company propose to reduce the negative impact of mega-ships on certain ports?
As I mentioned earlier, responsible business practices are a top priority for Costa Cruises. For this reason, the company publishes its annual Sustainability Report, a document outlining our sustainability strategy, which we call: “Sea, You, Tomorrow. Onward to the Future.” In it, we present the policies aimed at achieving better environmental preservation, all focused on responsible innovation and the creation of shared value.
In the report presented in 2016, we obtained very favorable results, data that support our commitment to minimizing the environmental impact of our activity. Among other things, I would like to highlight a 4.8% decrease in energy consumption, a 2.3% reduction in the company's carbon footprint, and an 11% reduction in SOx emissions and a 3% reduction in NOx and PM emissions, as well as the elimination of 100% of the waste generated, which is collected and separated for disposal and recycling.
Another activity included in the report is the installation of the ECO Exhaust Gas Cleaning system on seven of Costa's ships. This industry-leading technology features a filtration system that can remove more than 90% of the pollutants from exhaust gases, regardless of the ship's navigation status.
Finally, as we mentioned, one of Costa's major sustainability milestones is the construction of the first ships powered by Liquefied Natural Gas. We will receive two of these ships in 2019 and 2021. Furthermore, in line with the Sustainable Development Goals, we aim to continue increasing energy efficiency to reduce CO2 emissions and those resulting from fuel use by 25% by 2020.
- Costa's top executives in Spain have had a relatively short tenure in their positions. Do you think this situation has led to some inconsistency in the product, or a loss of confidence in the sales channels?
Since joining Costa in Spain, I have been familiarizing myself with the company and its performance over the past few years. Therefore, I must express my sincere gratitude for the fantastic work done by my predecessor, María Jesús García, with the partners and the Costa Spain team.
As previously mentioned, the Costa product has benefited from a continuous innovation process that has been successfully transferred to the market and the end customer through excellent teamwork with our strategic partners. Costa Cruises enjoys an outstanding reputation among travel agencies in Spain. And our customers, our reason for being, recommend us very highly.
- And finally, what is Costa Cruises' proposal for this season?
We have launched many new features at Costa Cruises for the upcoming season: new itineraries and an extensive range of first-class products and services both on board and on land.
One of the most exciting new features this season is “Fun & Beach.” We are very proud to continue creating new concepts and ways of experiencing a cruise, changes that allow us to attract new customers. This season, we want to reach everyone who wants to discover the best beaches of the Mediterranean or the Greek Islands on vacation and enjoy top-notch entertainment both on board and ashore. All of this in an unbeatable setting, where idyllic beaches, the Mediterranean sun, and boundless fun take center stage.
These new itineraries and concept, together with the series of onboard innovations and the increased connectivity I mentioned earlier, are aimed at offering our guests the best vacation option, and ensuring they experience our Brand promise: Felicitá al quadratto, Happiness Squared.
