Disney (DIS, Financial) is significantly investing in its cruise business, with the launch of its sixth ship, the Disney Treasure, scheduled for December 21. The company plans to introduce seven more ships by 2031. This expansion is part of Disney's experiences division, which includes theme parks and has been a key growth area. The Disney Treasure, accommodating 4,000 passengers and 1,555 crew, is already sold out for its maiden voyage, starting at $8,511 per person.
Morgan Stanley analyst Ben Swinburne highlights the high investment returns from Disney's cruise operations, driven by strong occupancy rates and per-room revenue. Disney's CFO Hugh Johnston anticipates a 6%-8% profit growth in the experiences division next year, with the Disney Treasure as a catalyst. By 2026, Swinburne projects cruise cabin capacity to double, significantly boosting revenue and operating profit margins.
Despite current startup costs, Disney's historical cruise profit margins suggest potential for substantial future earnings. By 2032, the cruise business is expected to generate $9 billion in revenue and $2.3 billion in operating profit, underscoring its importance to Disney's growth strategy.
