The Disney distinction

Posted on 12 May, 2015 by Spacejunkie2

The Christening of the Disney Dream

Walt Disney Co. and its cruise line are on a roll.

The entertainment and media giant reported earnings rose 10% for the second quarter of this year with the fastest growth at its Parks and Resorts unit (which includes Disney Cruise Line), where operating income grew 24%.

What is Disney doing right?

First and most directly, it is raising prices. Disney said its earnings growth at parks and resorts was “primarily due to increases in average ticket prices at our theme parks and cruise line,” along with more spending on food and merchandise and higher average hotel rates.

Single-day tickets at Walt Disney World in Orlando cracked the $100 barrier last year. And Disney Cruise Line prices are generally much higher than competitors on similar routes.

A random comparison shows a balcony cabin on a 7-day Eastern Caribbean cruise departing Port Canaveral on Dec. 5 listed at $1,814 per person on Disney’s website and $912.50 on Carnival Cruise Line’s site.

Several things that underlie Disney’s pricing power are qualities that other cruise lines are also trying to achieve.

One is brand strength. On a 2014 ranking compiled by Interbrand, a unit of ad giant Omnicom, Disney held the 13th strongest global brand, just behind Intel and just ahead of Cisco Systems. Interbrand said Disney’s power as a brand stems from its “use of technology and data to understand what customers want and personalize their experiences.”

A second pillar of pricing power is capacity control. Disney has resisted the temptation to expand its fleet of four ships, the last of which was delivered three years ago. Unlike many lines, Disney has no ships on order. That helps keep supply scarce and drives demand.

But that doesn’t mean Disney gets stale. It frequently upgrades the experience, especially with new entertainment including shows from hit movies like Frozen and Tangled.

And Disney has a pipeline to first-time cruisers through its theme parks, where much of the programming on a Disney ship can be experienced. Disney cruise customers know what they’re getting even if they’ve never been on a cruise ship before.Of course, we don’t know exactly how Disney’s higher pricing translates into profits, as those vital numbers are buried in the results of the overall parks and resorts division.
My guess is that Disney Cruise Line makes a solid contribution.

Disney Magic to Visit Dublin Port next year

Posted on 11 May, 2015 by Spacejunkie2

By Jack Quinn

The longest ship to ever call at the port arrived today

Dublin Port has cruised into the history books with the arrival of the 333m long MSC Splendida cruise liner today – the longest ship to ever call at the port.

She is one of 83 cruise calls confirmed for the port this year, which will see a total of 140,000 passengers arriving.

Currently ranked as the 11th longest cruise ship in the world, the arrival has pushed the boundaries of the port’s operational limits.

The ship’s 4,600 passengers and crew were greeted this morning by a Celtic-inspired welcome on the quayside – featuring a live ceili band, Irish drummers, dancers and entertainment – before passengers departed for the city’s shops and attractions.

But in a further boost for cruise tourism to the city, Dublin Port Company has confirmed it will become the first Irish port to welcome Disney Cruise Line with ‘Disney Magic’ calling to Dublin in 2016.

The 300m long Disney Magic will make her maiden call to Dublin Port on May 26th 2016 as part of a transatlantic cruise starting in Port Canaveral, Florida and finishing in Dover, England.

Disney Magic will visit Dublin again on June 13th 2016 as part of a 12-night cruise around Britain – with Dublin selected as the only destination in Ireland.

It will bring 2,700 passengers and a complement of 950 cast and crew to the city each time.

While Dublin Port Company and Dublin City Council will also jointly host the Cruise Europe Conference in Dublin in 2016.

The three-day event attracts over 200 delegates from leading cruise destinations throughout Europe, from all the major cruise lines and service suppliers to the cruise industry worldwide.

Disney Cruise Line’s enviable kid clout

Posted on 25 February, 2015 by Spacejunkie2

By Tom Stieghorst

Almost without exception, you can tell which cruise lines are serious about attracting families by whether there are animated characters prowling the pool deck.

Whether it is Smurfs, Cinderella, Kung-Fu Panda or SpongeBob SquarePants, they generally signify which lines have a year-round business attracting kids and which don’t.

Some lines make no claim to providing characters or attracting children, including Oceania Cruises, Azamara Club Cruises and, soon, Viking Ocean Cruises. Others don’t do a lot of family business during the school year, often because of longer itineraries.

Of the lines that do provide characters, one stands above the rest. Disney Cruise Line’s advantage is almost unfair, its roster of characters so deep and historic, that if characters are a primary consideration, it has to be tops on the list.

And the line isn’t content to rest on its laurels. Its animation factory just keeps turning out the hits.

On Sunday night, Disney took home an Oscar for its movie “Big Hero 6,” featuring Marvel Comics superheroes, who are also present on Disney Cruise Line ships. That comes on top of last year’s Oscar for “Frozen,” the top-grossing animated movie of all time.

“Big Hero 6” topped DreamWorks Studios’ entrant in the Oscars derby, “How To Train Your Dragon 2.” DreamWorks characters such as Shrek are exclusive to Royal Caribbean International ships.

Of course, popular films emerge from other studios besides Disney. The DreamWorks stable includes notable franchises such as Kung Fu Panda and Madagascar.

But Disney’s four ships have so many characters to pick from. This summer it will feature characters from “Frozen” on cruises to Norway and Iceland. Next year it will have “Star Wars Day at Sea” on eight selected sailings, featuring characters from the Star Wars movies.

The ownership of Disney Cruise Line by entertainment powerhouse Walt Disney Co., of course, gives it access to these properties. And it kind of puts the success of the cruise industry in perspective. When you ask which cruise company has the biggest investor value, it isn’t Carnival Corp, valued at $34 billion. It is Walt Disney, valued at $178 billion.