Mario Zanetti has extensive experience at Costa, which began in 1999 in the Revenue Management unit. In 2017, he was appointed president of Costa Asia, where he demonstrated his leadership skills, turning Costa's business around.
Article from CruisesNews magazine no. 57 – June 2021
Since July 2020, he has been back in Genoa, first as commercial director of Costa Cruises Europe and, since March, as president of the company. Zanetti takes the helm after Michael Thamm temporarily assumed management following Neil Palomba's departure to Carnival Cruise Line.
After the paralysis caused by the pandemic, how quickly will the cruise industry recover? Is there cause for optimism?
The cruise industry reacted quickly and effectively to the pandemic. In a short time, and despite a very complex scenario, we managed to develop protocols that incorporated the best of our experience and scientific knowledge on the subject. No other tourism sector has adapted so well to the new reality. This is further proof that cruises are a strong and robust industry that can look to the future with optimism. I would say that 2021 is the year of restarts, 2022 will continue to be a period of transition and partial settling in, while from 2023 onwards I expect a return to pre-pandemic levels.
You've been with Costa Cruises for over twenty years, since the late 1990s. What has changed in the cruise industry over the last two decades? And at Costa?
Over the last two decades, the cruise sector has experienced significant growth rates, both in terms of supply and demand. Many things have changed, both in terms of hardware and software: the size of the ships and the technology used, onboard features, entertainment programs for different types of guests, shopping, new itineraries, and opportunities during vacations both onboard and ashore at each destination. Furthermore, digitalization has grown substantially in recent years. The ways we interact are different; consumers are more "digitally oriented," including in their purchasing habits. The entire customer journey is completely different.
According to the latest CLIA figures, Costa has relinquished its leadership in Europe and become the leader in the Asian market, specifically the leading source market in China, where the Costa Venezia arrived this year and the Costa Firenze will arrive in 2022. Will Costa continue to strengthen its presence in China? What is the plan for European markets?
The Costa Group, which includes both Costa and Aida, remains the number one cruise company in Europe and China. We were the first international cruise company authorized to operate in the Chinese market and depart from local ports, starting in July 2006. Thanks to our long-standing presence, the Costa brand is extremely popular in China, and local customers have increasingly appreciated Costa's offerings over the years. The Chinese/Asian markets present significant growth opportunities, and we, as a company, are here to capitalize on them.
Cruise ships are one of the most heavily regulated vacation destinations today.
In Europe, following the restart, we have redesigned our offering through the end of 2022 to further consolidate our presence in all the areas where we operate. In summer 2021, we will have four ships—Costa Smeralda, Costa Luminosa, Costa Deliziosa, and Costa Firenze—all sailing the Mediterranean with convenient, local itineraries. In winter 2021-22, we will welcome the new flagship, Costa Toscana, and reintroduce our most popular winter cruises, such as those to the Caribbean, South America, the United Arab Emirates, the Canary Islands, and the World Cruise.
For the summer 2022 season, we will have the three most innovative ships in the fleet—Costa Firenze, Costa Smeralda, and Costa Toscana—in the Western Mediterranean, three more ships in the Eastern Mediterranean, and four ships in Northern Europe.
Before assuming this role, he was president of Costa Group Asia. Having experience in both markets, what are the most significant differences between the Asian and European source markets?
The cruise industry is still in its early stages in Asia. Cruising remains a relatively new vacation experience for consumers and represents both a great opportunity and a challenge for companies interested in exploring the market. We established our operations in 2006 and gained extensive experience understanding the preferences and desires of Chinese and other Asian consumers. We brought our Italian style to Asia, which is very popular there, and adapted the experience to local tastes. The successful launch of the Costa Venezia validated our decision to build two ships dedicated to the Asian market; thanks to this unique infrastructure, we have been able to offer an immersive Italian lifestyle experience, exploring unique concepts in food, entertainment, and hospitality.
The Costa Cruises Group has been present in Spain for almost thirty years. How has our market evolved during this time? How important is Spain as a source market for Costa? And how important is it as a destination for other markets?
Spain remains a key source market for Costa and the second largest European market for cruise passengers. The cruise industry's weight in Spain has grown in recent years in terms of spending, employment, and overall economic impact, consolidating Barcelona as the most popular port in Europe.
Spanish guests have always shown great appreciation for our offerings. And now, with an enhanced and personalized dining experience tailored to Spanish tastes, I'm confident that guests from Spain will appreciate us even more, thanks to a dedicated Spanish culinary offering (with more traditional Spanish recipes at breakfast, lunch, and dinner), a new and extended lunch/dinner schedule adapted to Spanish habits, and a new entertainment lineup featuring renowned Spanish comedians.
What market share will Costa gain from Pullmantur in the coming years? Is the Spanish consumer so different?
Spain, like some other European markets, has great growth potential. So, I think we need to find the best way to make cruising an excellent vacation for people who haven't yet considered this experience as a holiday option. Our Spanish customers have always greatly valued being served entirely in Spanish while enjoying a truly international atmosphere on board.
Let's talk about the Costa product. What are the main changes you, as the new CEO, have implemented or will implement in the coming months?
We are focusing on three pillars: health and safety, customer satisfaction, and sustainability. Regarding safety, the implemented protocols are proving to be effective, but also very flexible, so they can be easily updated in accordance with any further progress in knowledge and available tools.
Guest care has always been fundamental to Costa and will continue to be so in the future. Since the restart of our ships, we have made several changes to our offering, not only to adapt to the new protocols but also to offer new experiences.
This product renewal process will continue after the summer, with new innovations that we will gradually introduce on board. In addition, we can look forward to the arrival of new ships, which will join the Costa Smeralda. In fact, the Costa Firenze will be in service from July 4, 2021, and the Costa Toscana from December 2021.
Spain remains a key source market for Costa.
Our approach to sustainability is 360°; so much so that we were the first company to integrate the UN's 2030 Agenda goals into our business model. Therefore, our commitment extends beyond simply introducing technological innovations to reduce the impact of ships, as we have done with LNG (liquefied natural gas). It also includes promoting increasingly responsible and sustainable tourism that enhances the excellence of the destinations we visit. Our approach to this issue is always collaborative, involving institutions and all those who share our vision.
Health and safety are paramount these days. Costa was one of the first companies to restart cruises amidst the pandemic. How has the experience been so far?
Costa was the first Carnival Corp. brand to restart cruises. We immediately received many expressions of gratitude from guests on board, and the protocols proved to be very effective. We firmly believe that cruises will return to pre-pandemic levels and even surpass them, thanks to the investments we made. Cruises are among the most controlled vacation options today, and we believe this is invaluable for people seeking safer ways to travel and explore destinations. It is certainly necessary for cruises to return to pre-pandemic levels. According to a recent study published by Deloitte, the Costa Group, with 3.2 million guests, generated a total economic impact of €12.6 billion in Europe in 2018, creating more than 63,000 full-time equivalent jobs.
Now that people are beginning to travel freely again, they will have a great desire for vacations. The full resumption of our operations will make a positive contribution to the economies of the countries.
What plans does Costa have for its traditional Spanish destinations, such as Barcelona or Palma? Will there be new destinations in our country, like Tarragona with the Costa Victoria? Will Costa ever position a ship in the Canary Islands?
While there are no short-term plans for Tarragona or to establish a ship in the Canaries, Costa is constantly looking for opportunities to offer our Spanish guests new and varied options that are in line with demand.
Costa has distinguished itself by adopting strict ecological and environmentally friendly policies. How do you plan to strengthen your company's environmental strategy?
In addition to the low-emission cruise ships already in operation, we are testing batteries this year and are also working on fuel cells. Finally, we have a project ready for a zero-emission cruise ship based on a combination of sustainable technologies. We continue working to complete our transformation.
How do you view the initiatives of Mediterranean ports to begin installing onshore power for cruise ships?
We welcome these initiatives wholeheartedly. Most of our ships are ready to use shore power. We believe this is a great opportunity for all cruise lines, and we must all work together to make this happen quickly. We need to ensure a reliable ecosystem that includes ports, energy providers, infrastructure, and local authorities, and we are ready to actively contribute to the realization of this project.
In the first months of 2020, your company launched Costa Smeralda, your company's beautiful first LNG-powered ship. What has this new prototype meant for Costa?
Costa Smeralda is a tribute to Italy and represents an exceptional combination of environmental innovation, smart technologies, and Italian excellence in design, food, and experiences.
The ship is a true breakthrough for the entire cruise industry in terms of innovation and responsibility. It embodies our corporate vision focused on integrating the Sustainable Development Goals of the United Nations' 2030 Agenda.
This is the concept behind the entire ship project, of which the propulsion system is undoubtedly the central element. The new flagship has been created as a mobile smart city. The significant reduction in emissions, the intelligent energy-efficient system, the production of all necessary water directly from the sea, and the 100% waste sorting are concrete examples of the commitment made to onboard infrastructure.
The introduction of LNG on cruise ships is another pioneering milestone for our Group, but above all, a major step forward for the entire sector, as other companies have followed us in this bold choice. It wasn't easy, because when we announced the order for these ships, there wasn't even a widespread fuel supply infrastructure. We created it ourselves by activating partners and building an ecosystem that is setting the standard for the industry.
Now, everyone is focused on the pandemic. But we have an even more demanding and decisive challenge ahead: the green transition of the economy. In this process, I am convinced that Costa is at the forefront because we embarked on this path years ago, pioneering new technologies and smart solutions, and we maintain our ambition to remain the first to move towards zero emissions over time.
