Disney is increasing its bet on cruises, more than doubling its fleet and embarking on a $12 billion expansion that includes expansion into Asia.
According to sources, the Mouse House plans to increase its fleet from six to 13 ships by 2031 through major investments. report From Sunday's Wall Street Journal.
“Given the fact that we're still a relatively small company and there's this strong demand, this is actually the perfect time to invest in this business,” said Thomas Mazloum, head of Disney's cruise division. He added that Disney currently only owns a 5% stake. 2.5% in the Caribbean market and 2.5% globally.
The move comes as Disney plans to “turbocharge” investments in its experiences sector, which includes theme parks, resorts and consumer products. The company announced last year that 20% of its $60 billion over the next 10 years would go toward cruise operations and other unannounced projects.
Overall cruise travel exceeded pre-pandemic levels last year, with 31.7 million passengers, up from 29.7 million in 2019, according to the Cruise Lines International Association, an industry group.
Disney Chief Executive Bob Iger is looking to transform the company's streaming business, looking for ways to take advantage of the areas with the most demand as the company struggles with slowing growth in its parks and legacy TV businesses. I've been focusing on it.
As a result, Iger bets that increased interest in cruises will lead 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 and dining at a Mexican restaurant where you can watch mariachi musicians sing the song “Coco.” It will be. Guests can also interact with Disney characters like Pluto, Goofy, and Donald Duck who roam the decks during regular cruises, but these cruises are more expensive.
A four-day cruise to the Bahamas for a family of four aboard the Disney Wish will depart from Port Canaveral, Florida during the popular spring break week next April, with fares starting at $7,692, according to the Journal. . On Royal Caribbean, a much larger cruise line, comparable trips start at $3,368.
So far, that gamble appears to be paying off.
Disney said revenue in its Experiences segment, which includes cruises, rose 5% in the year that ended in September, due in part to higher average ticket prices for cruise lines.
Disney wants to focus more on the Caribbean region as well as the Asian market, where hundreds of millions of potential Disney customers live without theme parks nearby.
The ship, named Disney Adventure, will be able to accommodate up to 6,700 passengers and will initially operate in Southeast Asia, making it the company's largest ship to date.
The ship will depart from Singapore and will be Disney's first service there, aiming to attract wealthy Indian, Indonesian and Malaysian travelers.
