Disney is widening its bet on its cruise business with a $12 billion expansion that includes more than doubling its fleet and pushing into Asia.
With the big investment, Mouse House will increase its fleet from six to 13 ships by 2031, according to a report from The Wall Street Journal on Sunday.
“Given the fact that we’re still a relatively small player and we see this strong demand, it’s actually the best time to invest in this business,” said Thomas Mazloum, head of Disney’s cruise division, adding that Disney currently only holds 5% of the Caribbean market and 2.5% globally.
The move comes as Disney plans to “turbocharge” its investment in its Experiences division, which includes theme parks, resorts and consumer products. Last year, the company said 20% of the $60 billion over the next decade would go to its cruise business and other yet-to-be-announced projects.
Overall cruise travel surpassed pre-pandemic levels last year, climbing to 31.7 million passengers, up from 29.7 million in 2019, according to trade group Cruise Lines International Association.
Disney Chief Executive Bob Iger is focused on transforming the company’s broadcast business while looking for ways to capitalize on sectors where he is seeing the most demand — as the company struggles with slowing growth in the company’s parks businesses and old tv.
As a result, Iger is betting that increased interest in cruises will prompt travelers to pay more for Disney’s more immersive — and expensive — cruise experiences.
These experiences include entertainment such as “Moana” and “Beauty and the Beast” themed stage shows, or dining at a Mexican restaurant where you can watch mariachi musicians sing songs from “Coco.” Guests can also interact with Disney characters like Pluto, Goofy and Donald Duck who roam the decks during a typical cruise — but those cruises cost more.
According to The Journal, a four-day Bahamas cruise for a family of four on the Disney Wish ship, departing from Port Canaveral, Florida during a popular spring break week next April, starts at $7,692. On Royal Caribbean, a much larger cruise line, a comparable voyage starts at $3,368.
So far, the gamble seems to be paying off.
In the year ended September, Disney said a 5% increase in revenue for the Experiences division that includes cruises was driven in part by higher average cruise line ticket prices.
Disney hopes to focus more on the Caribbean as well as the Asian market, where hundreds of millions of potential Disney customers live without a nearby theme park.
Launching next year, the Disney Adventure ship, which can hold up to 6,700 passengers and will initially operate in Southeast Asia, is the company’s largest ship to date.
It will sail from Singapore – Disney’s first service there – and aims to attract affluent Indian, Indonesian and Malaysian travelers.
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