Why Disney Is Plowing Cash Into a Cruise Line Expansion

Chief Executive Bob Iger had christened the 1,119-foot-long Disney Treasure the previous evening while 1,000 drones hovered overhead in the shape of a Champagne bottle. The fleet of drones transformed into shapes of images from “Aladdin,” “Coco,” “Moana” and other movies as pop star Jordin Sparks belted out a song written specially for the new ship.

The spectacle was a coming-out party of sorts for a business that for years has played a bit part in Disney’s overall entertainment empire, but is now increasing in prominence. Growth is slowing in the entertainment company’s parks businesses, and its legacy TV business is suffering from cord-cutting , but Disney fans worldwide can’t seem to get enough of cruises.

When Disney announced plans last year to “turbocharge” investment in its Experiences division, which includes theme parks, resorts and consumer products, the company said 20% of the $60 billion over the next decade would go toward its cruise business and other projects that haven’t been announced yet. Disney plans to more than double its fleet from six to 13 ships by 2031 and further expand its service internationally. undefined undefined “Given the fact that we are still a relatively small player and we see this strong demand, it’s only natural and actually the best time to invest in this business,” said Thomas Mazloum , who leads the part of Disney’s Experiences division that includes cruises.

Cruise travel overall surpassed prepandemic levels last year, attracting 31.7 million passengers, up from 29.7 million in 2019, according to the Cruise Lines International Association, a trade group.

More affluent millennials are choosing cruises over land-based vacations in part because a host of new, larger ships with premium amenities make them feel they get good value for the money, JPMorgan Chase said in a June research note. Rising international airfares have also made cruises that leave from ports in their home country more attractive to some overseas families.

Most cruise lines offer chaperoned children’s activities. On the Disney Treasure, parents can sunbathe with cocktails by the pool while children are entertained until as late as midnight with activities such as playing in a “Star Wars”-themed workshop, completing hero’s missions set in the Marvel Comics universe or designing a virtual theme-park ride to their specifications.

The Disney Treasure offers “Moana” and “Beauty and the Beast” themed stage shows, a piano bar themed after the movie “The Aristocats,” and a Mexican eatery where you can watch mariachi musicians sing songs from “Coco” while you sip a margarita and eat enchiladas. On a typical Disney cruise, costumed characters such as Pluto, Goofy and Donald Duck roam the decks and movie theaters show Disney films that are playing on land in cinemas.

Disney is betting that interest in cruises will prompt travelers to pay more for its cruises, which tend to cost more than mass-market cruise lines such as Royal Caribbean or Carnival. 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.

“You’re paying up to cruise with Mickey,” said Matt Hochberg, editor of Royal Caribbean Blog, which focuses on the cruise industry and isn’t affiliated with the cruise line.

Disney says that some of the cost of cruise tickets comes from docking fees charged at ports, which are largely passed on to the customer. Entertainment and dining options and even free unlimited soda—a perk harder to come by on competitors’ cruises—are part of the value proposition that passengers find attractive, the company said.

“You want it to feel like part of the mythology,” said Danny Handke, one of Disney’s parks and attractions designers who helped create the Haunted Mansion-themed bar aboard the Treasure.

The company discloses certain financial metrics for its cruise business but doesn’t share its full financials. In the year ended in 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.

“Passenger cruise days,” the number of passengers aboard Disney ships multiplied by the days they spend on voyages, rose 14% in the company’s 2023 fiscal year (the most recent time period for which such figures are available) and 32% the previous year.

Mazloum, the head of the division that includes cruises, said that with only 5% of the Caribbean market and 2.5% of the global market, Disney is still a small player in cruising. But among Disney’s menu of entertainment options, it is one of the experiences that rates the highest among guests.

Consumer satisfaction surveys show that 82% of Disney’s cruise passengers intend to take another and that sea journeys are the highest-rated experience in Disney’s Entertainment division portfolio, Mazloum said.

At Disney’s busiest cruise port, Port Canaveral, two of the line’s ships launched 157 voyages that were on average 92.4% full in the year ended in September, publicly available port information shows. That metric, the average number of passengers per vessel as a proportion of each vessel’s maximum capacity, has returned to prepandemic levels for Disney.

Disney is now increasingly focused on the Asian market, where hundreds of millions of potential Disney Experiences customers live without a nearby theme park.

Launching next year, the Disney Adventure, which can hold up to 6,700 passengers and will initially operate in Southeast Asia, is Disney’s biggest ship yet. It will sail out of Singapore—the company’s first-ever service there—and aims to attract affluent Indian, Indonesian and Malaysian travelers.

For Ray White AKG Group chief executive Avi Khan and his fiancée, top-performing agent Kaylea Sayer, no multimillion-dollar property transaction could rival their most treasured arrival, daughter Zara Mae Khan, born just in time for Valentine’s Day.

In a testament to her renowned work ethic, Ms Sayer continued assisting clients from her hospital bed just days after giving birth, finalising settlements while cradling her newborn daughter.

“I had two properties settle yesterday,” said Ms Sayer, who worked right up until Zara’s arrival.

“I am so grateful for my clients, buyers and sellers, they’ve been amazing – I was literally lying in bed organising settlements.”

Weighing 3.5 kilograms, Zara made her entrance at 11.28 pm on Sunday, February 8, at Mater Mothers’ Private Hospital in South Brisbane, arriving just one day after her due date.

“It was my due date, and I was having lunch at mum’s when I started feeling a bit off,” Ms Sayer said.

“I said to Avi, ‘I think we should go home.”

Later that day, her waters broke at home, and the couple headed to the hospital, where an emotional four-hour labour followed.

The experience became even more meaningful when Ms Sayer’s obstetrician, Dr Jill Cox, who was not scheduled to work that weekend, logged in remotely before travelling to the hospital to personally assist with the birth.

“She wasn’t supposed to work that weekend, but she came in around 10 pm,” Ms Sayer said.

“I thought she had just come into work, but she told me she came specifically to help Avi and I. It was so nice having her there.”

For Mr Khan, already a devoted father to Aisha, 12, and Amir, 10, welcoming Zara brought a profound sense of perspective.

“It’s hard to put into words,” he says softly. “In that instant, everything else fades away. Nothing matters except that little heartbeat in your hands.”

“Even the third time, it doesn’t feel routine. It feels sacred. You look at them and think, ‘I am a father.’ And it hits you just as powerfully as the first time.”

The couple selected the name Zara for its shared cultural significance.

“We wanted something that resonated with both our identities,” Mr Khan said.

“Zara means princess, radiance, and blooming flower. It has really cool meanings in both English and Muslim backgrounds”.

Ms Sayer’s professional drive has been evident throughout her career. Entering real estate at just 16 years old, she worked throughout her pregnancy, including helping organise the company’s flagship The One conference, which attracted more than 1000 of Australia’s leading real estate performers while she was nine months pregnant.

“January was actually the easiest month,” she said.

“I knew I was on the home stretch.”

Valentine’s Day celebrations this year, however, will take on a more intimate tone.

“We’ll probably be changing nappies, eating in, and watching a cool movie together,” Mr Khan said.

With strong family support, a high-performing team and now baby Zara completing their household, Mr Khan believes balancing professional ambition with family life is both achievable and deeply rewarding.

“There’s no manual for any of this,” he said.

“But with good family, good support, and a good team around us, we’ll figure it out.”

Why Disney Is Plowing Cash Into a Cruise Line Expansion

Entertainment titan plans to launch seven new ships by 2031, looking to overseas markets far from theme parks

Powerhouse real estate couple Avi Khan and Kaylea Sayer welcome their daughter while balancing record-breaking careers, proving success and family can grow side by side.