Anthony-Shephard Williams explores why MSC’s pricing strategy is sinking the competition
I’m a bit of a cruise addict; always planning my next one or daydreaming about being at sea. I took my first cruise in 2017 and was instantly hooked; as someone who has always loved to travel, the idea of seeing multiple destinations in one trip was the clincher. But what really sealed it? That feeling of standing on deck, staring out at endless ocean with nothing in sight. It’s my happy place, in a bubble away from the real world.
I’ve cruised with a few different companies including Virgin, Princess, Carnival, P&O and MSC. But overall, I’ve cruised the most with MSC, and so have others – their global market share has grown significantly over the past five years, rising from around 7–9% pre-pandemic to approximately 10–12% by 2024, overtaking Norwegian Cruise Line to become the third-largest cruise operator in the world.
This growth has been driven by rapid fleet expansion (nearly doubling its capacity since 2017) and dominance in the European market, where it’s now the leading cruise brand. MSC has also made strategic inroads into North America and other emerging regions, positioning itself as a major global player with further growth momentum.
It got me thinking about the reasons I cruise most with MSC and when I strip it all back, it comes down to one thing – value. Not just price, but what you get for it.
In a category crowded with mega-brands, MSC Cruises is cutting through with a different playbook – aggressive pricing, not aggressive marketing.
As an example, deals can be found for £85 a day, two people can cruise the Caribbean with food, drinks, WiFi, taxes and entertainment included. That’s roughly half the price of Carnival or Royal Caribbean. The shock factor is clear, but this isn’t just a discount. It’s a deliberate pricing strategy backed by sharp operational choices and deep market insight.
Strategic pricing, not just cheap deals
MSC’s low prices aren’t an accident. This is pricing psychology in action. They’re designed to:
- Anchor value: Customers see £2,600 cruises, then a £1,100 MSC option and reframe what “value” means.
- Drive upgrades: Their tiered packages (Bella, Fantastica, Aurea) mirror airline upselling models; psychological nudges that feel like smart choices.
- Exploit elasticity: They know where guests will pay more (WiFi, drinks, specialty dining) and what must be included.
This is a value-based pricing strategy, built on understanding not just what customers pay, but what they value.
Why (and how) MSC can pull this off
MSC’s edge comes from more than pricing acumen:
- Global shipping empire: Logistics, ports, and ships are vertically integrated; they control cost from end to end.
- Private ownership: No shareholder pressure = long-term thinking.
- Segment targeting: They’re not chasing the premium crowd. They’re targeting value-seekers who want “luxury-lite.”
It’s not about selling a cheaper cruise, it’s about delivering the right experience for the right customer at an unbeatable price point.
Key takeaways for pricing strategy
MSC’s rise holds lessons for any brand thinking seriously about pricing:
✅ Use pricing to create demand, not just capture it
✅ Tier for control, not confusion; let customers self-segment
✅ Research what is non-negotiable vs. upsellable
✅ Pricing is more than numbers; it’s perception, behaviour, and brand position
At Mustard, we help brands decode these dynamics. Pricing is not just a finance function, it is a crucial part of the brand offer that should be underpinned by principles of behavioural science and market research. Know what your customers value, and you will know what they will pay and how to get them onboard.
