The magic behind Disney’s cruise expansion

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Disney’s plans to “turbocharge” investment in its Experiences division include a significant investment (~$12Bn) in its cruise business.

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Why cruises? Although Disney represents a tiny portion (~2.5%) of the cruise market, its clear cruises resonate with its avid fanbase, making it a good time to invest in growth. Customer surveys show 82% of Disney cruise passengers plan to take another, which makes it the highest-rated experience in Disney’s Entertainment Division portfolio.

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Consumers are also paying more to cruise with Mickey. For comparable trips, Disney commands as much as two times the price of Royal Caribbean, a much larger cruise line.

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When there’s no castle nearby, Disney’s cruises bring the magic straight to customers via the sea.