The rise of cruise lines comes as the COVID-19 crisis, which left the sector without a global shutdown, comes to an end. The number of passengers is expected to reach 34.7 million this year, an increase of 17 % from 2019. The Cruise Lines International Association anticipates this number to increase by 20 %.
The ships offer the opportunity to deliver themed leisure to sites that are not close to the bank’s style parks, such as Melbourne or Vancouver, according to Josh D’Amaro, president of Disney Activities, in a recent interview.
Disney also appeals to households, a portion of the cruise industry that has lost interest previously.
” Forty percent of the people on those ships now did say,’ The only explanation I’m on a cruise ship today is because Disney’s around,’ which means we’re creating a market”, D’Amaro said.
” When we are in Singapore, with this unbelievable ship that we’re building, the same thing is going to happen”, he added. ” We know there’s an insatiable demand for everything Disney”.
Disney’s experiences business, which includes its domestic and international parks and cruise line, accounted for more than one-third of the company’s revenue in the March quarter, and nearly 60 per cent of its operating income.
The company’s stock dropped in May after Hugh Johnston, the company’s chief financial officer, warned about a “global moderation” in travel in the fiscal third quarter and other effects, including higher salaries and pre-opening expenses related to two of the new cruise ships and the new vacation island, Lookout Cay.
The rising tide for Disney’s cruise lines could help offset any softness in the company’s domestic theme park business, UBS analyst John Hodulik said. The company reported that its second quarter booking occupancy for all five ships is at 97 %.
The rapid expansion of Disney’s cruise capacity “helps de-risk the medium-term outlook” for the parks business, Hodulik said.
Disney’s other recent investments include three new areas at the Tokyo DisneySea theme park, recreating the worlds of” Frozen”,” Tangled”, and” Peter Pan”, the opening of a” Frozen” themed land at Hong Kong Disneyland, and a” Zootopia” experience in Shanghai.
At its D23 fan convention in August, the company is expected to make announcements about new attractions at Disneyland in California and Walt Disney World in central Florida.