Disney CEO Bob Chapek’s outlook for the Disney Cruise Line
The Disney Cruise Line will probably be the last of Disney’s travel-oriented businesses to come back online, but is expected to come back strong because of the Disney brand, Walt Disney Co. CEO Bob Chapek said.
The biggest hit to the Walt Disney Company comes in the closure of its parks and other travel related businesses such as the Disney Cruise Line and Adventures by Disney.
The Parks, Experiences and Products division of the company lost $1 billion in the second quarter due to all of the closures. While Disney is planning on a phased reopening of Shanghai Disneyland there is one business that a lot of people question will come back – the cruise industry.
All eyes were on cruise ships as the COVID-19 pandemic surged and cases were reported on a number of ships. Lacking the ability to social distance, unless you sequester yourself in your room, some ships became nothing more than incubators for the spread of the virus.
The impact of the shutdown has even lead Norwegian Cruise Line Holdings to warn investors that it might be forced to go out of business as it tries to raise funds to stay afloat during the closure.
Chapek, during the second quarter earnings call, acknowledged that the cruise ship business will probably be the last of the travel-oriented business to come back online, but he believes the brand is so strong people will return.
“Interestingly enough long term all of our data and our research shows that our guests will be just as interested in cruising with us long term. Obviously not in the next few months but much more resilient than any of the competitive businesses because of that love for Disney and assurance that they feel, that they trust our business to act in a responsible way to help to the extent possible protect them against some of the woes that have plagued the industry since COVID has hit.”
The current cancellations include all new departures of the Disney Dream and Disney Fantasy through Thursday, June 18, 2020, all Disney Magic sailings through Thursday, July 2, 2020, and all departures on the Disney Wonder through June.
