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Disney is enlarging its bet on its cruise business with a $12 billion expansion that includes more than doubling its fleet and pushing into Asia.
With the major investment, the Mouse House will grow 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 are 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 holds only 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.
Cruise travel overall surpassed prepandemic levels last year, reeling in 31.7 million passengers, up from 29.7 million in 2019, according to trade group, Cruise Lines International Association.
Disney Chief Executive Officer Bob Iger has focused on transforming the company’s streaming business while looking for ways to capitalize on sectors where he’s seeing the most demand– as the company struggles with slowing growth in the firm’s parks businesses and legacy TV business.
As a result, Iger is betting that a heightened interest in cruises will push travelers to pay more for Disney’s more immersive — and expensive — cruise experiences.
Those experiences include entertainment such as “Moana” and “Beauty and the Beast” themed stage shows, or dining at a Mexican eatery where you can watch mariachi musicians sing songs from “Coco.” Guests also can 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 cruise to the Bahamas for a family of four on the Disney Wish ship, leaving from Florida’s Port Canaveral during a popular spring-break week next April, starts at $7,692. On Royal Caribbean, a much larger cruise line, a comparable trip starts at $3,368.
So far, the bet appears to be paying off.
In the year ended in September, Disney said a 5% jump in revenue for the Experiences division that includes cruises was driven in part by higher average cruise line ticket prices.
Disney is hoping to focus more on the Carribbean, as well as the Asian market, where hundreds of millions of potential Disney customers live without a nearby theme park.
Launching next year, the ship dubbed the “Disney Adventure,” which can hold up to 6,700 passengers and will initially operate in Southeast Asia, is the company’s biggest vessel yet.
It will sail out of Singapore—the Disney’s first-ever service there—and aims to attract affluent Indian, Indonesian and Malaysian travelers.
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