Copyright Fast Company
Disney has been in the cruise business for 27 years now, but over the past few years, the company has doubled down in an unprecedented manner. On November 20, the entertainment giant will see the inaugural sailing of the Disney Destiny, a 144,000 gross ton ship capable of carrying 4,000 passengers that is the latest in a growing fleet. It’s the fourth addition in the past four years. And five more ships are coming by 2031, which will bring the total to 13. An expansion like that isn’t cheap, but Disney is making a lot of sizable wagers these days. The new ships are part of a $60 billion capital investment between now and 2033, which includes a variety of planned updates and changes at its park, updating legacy attractions and unveiling what it called “the largest ever” expansion plans for the Magic Kingdom. Josh D’Amaro, chairman of Disney Parks, Experiences and Products, is overseeing the expansion of it all—and when it comes to cruises, he’s particularly bullish. “We believe in what we’re doing in this space,” he tells Fast Company. “Our fans believe in what we’re doing in this space and we’re being incredibly ambitious.” There’s good reason for that optimism. AAA projects that 21.7 million Americans will hit the high seas next year, setting a record. That’s the fourth straight year of record-breaking cruise passenger volume. And according to Bank of America credit and debit card data from May 2024, spending on cruises was up 12% year-over-year. Disney cruises have been especially popular. The existing fleet, including Destiny, is already nearly 50% booked for 2026 – with newer ships showing higher booking percentages. Prices for a journey on the Destiny run from $1,994 to just shy of $10,000. Disney does not break out financial metrics for its cruise ships, but those are part of the company’s Disney Experiences division, which saw operating income of $2.5 billion in the company’s fiscal third quarter, a $294 million increase over the year prior. That figure included a roughly $30 million impact from pre-opening expenses at Disney Cruise Line, the company said. Cruises are more than just a contributor to the company’s bottom line, says D’Amaro. They’re a chance to offer Disney experiences beyond the theme parks, including some areas where those parks may be difficult for families to get to. “These ships are tremendous ambassadors for our brand,” he says. “We have an opportunity to take these experiences anywhere we want.” After the christening of the 6,700-passenger Adventure in Singapore next year, Disney will introduce Disney cruise vacations to Japan in 2029, the result of an agreement with Oriental Land Co., Ltd. And D’Amaro says the company is not tying its ships to a specific ports forever. In the years to come, they could rotate to new ports of call, giving passengers a fresh experience without a new capital outlay. “We can move them anywhere in the world we like and you’re seeing us do that with the Adventure,” says D’Amaro. “That will be an opportunity to bring the Disney brand to a brand-new market and bring Disney to fans that may not have had an opportunity to experience one of our parks.” The bet is: If someone experiences the Disney bubble on a cruise, it will whet their appetite to visit one of the parks. Analysts like that. In June, Jefferies upgraded Disney from a hold to a buy, citing, in part, the positive performance in the cruise business. A different kind of storytelling Entertaining 4,000 guests on a cruise is a bit different than hosting 40,000 at a theme park. While some of the experiences are roughly the same (character meet and greets, pin trading), a cruise ship can’t (and arguably shouldn’t) support all the rides of a theme park. It’s a slower pace. advertisement On the Destiny, that means Imagineers focus on things like effects and details in gathering spots, like the Pirates of the Caribbean-themed Cast & Cannon bar or The Haunted Mansion Parlor. Younger passengers have dedicated spaces that incorporate the Disney, Pixar, Marvel and Star Wars universes. And teens have two areas to hang out with people their age. The onboard shows, meanwhile, are Broadway-caliber and feature Imagineer-influenced effects. And familiar stories, like The Lion King, can be rethought as part of a dining experience. Part of the secret to storytelling on a smaller basis, says D’Amaro lays in how the company steers guests through their stay onboard. “[It gives] us a great opportunity to fully choreograph a show,” he says. “So if you think about a Disney cruise experience, you’re moving in a sequence from dining hall to dining hall. You are able to take in a show on specific nights. We’re basically trying to create a three-, four-, five-, or seven-day experience that we can completely choreograph and make sure you’re seeing everything on the ship, make sure you’re getting exposed to all the stories we have.” Another difference between cruises and theme parks: Families also get to know each other on cruises, instead of bobbing and weaving around each other in a mad dash to get to the next attraction. And guests interact with the same cast members, forming a relationship. The rides that are offered are generally water attractions, such as Aqua Mouse on the Destiny, Wish, and Treasure ships. And each ship focuses on a different theme (the Wish centers around enchantment, Treasure tells a story of adventure and Destiny tackles heroes versus villains). That, says D’Amaro, has made the cruise experiences among the most highly rated in the company. Disney has plenty of intellectual properties it hasn’t tapped for Experiences yet. Villains are getting their own land in the Magic Kingdom—and Zootopia and Encanto will be featured heavily in a new area in Disney’s Animal Kingdom. But the Disney catalog is deep. That gives the company plenty of opportunities to expand its experiences at sea, as well. (The focus on 1997’s Hercules film on the Destiny is a shining example.) D’Amaro says the company plans to continue exploring new destinations and push itself from a story-telling perspective. Disney’s cruise efforts may still be tiny compared to industry giants like Carnival and Royal Caribbean, but its ambitions are sizable. “We’re still relatively small in this space,” says D’Amaro. “I think there’s a tremendous opportunity for the Walt Disney Company here.”
