Disney CEO Confident on Cruise; New Ships Could Be Delayed

Disney Ship

Speaking on the company’s second-quarter earnings call, Walt Disney Company CEO Bob Chapek was bullish on the future of Disney Cruise Line but admitted cruises may be among the company’s last businesses to come back online.

“And in terms of the cruise ship business, we agree that that will probably be the last of our travel-oriented businesses to come back online,” Chapek said.

“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.”

Disney Cruise Line operates four ships: the Magic, Wonder, Dream and Fantasy.

The brand has three more ships on order for introductions in 2021, 2022 and 2023.

The company is also anticipating delays to its newbuild schedule, according to an SEC filing.

“The company has credit facilities to finance three new cruise ships, which were to be delivered in 2021, 2022 and 2023 although delays are now expected as a result of the COVID-19 impact on the shipyard,” Disney stated.

Disney World Eyes Phased Reopening With Limited Capacity, Enhanced Safety Measures

Main Entrance to Walt Disney World Florida photo credit Dave Jones.

Disney Springs has announced it will begin a phased reopening on May 20 with limited capacity, parking and operating hours.

Under the initial phase, a limited number of shopping and dining experiences owned by third-party operating participants will open.

Walt Disney World Resort also issued an update on its overall reopening strategy on Thursday, stopping short of announcing a reopening date but confirming that it will limit capacity and encourage social distancing in an effort to slow the spread of coronavirus.

“Upon reopening, theme parks, Disney Resort hotels, restaurants, attractions, experiences and other offerings may be modified and will be limited in capacity and subject to limited availability or closure, based on direction from health experts and government officials to promote physical distancing,” Disney said.

“Additionally, attractions, experiences, services and amenities may have limited availability or may remain closed. We will provide more information as it becomes available. We reserve the right to cancel any reservations, admission media or purchases and provide applicable refunds. Please also see our policies regarding cancellations by guests,” the update reads. “Our focus remains on the health and safety of the entire Disney community—including the well-being of the cast members who are caring for and securing our parks and Resorts during the closure. We’re currently evaluating new and enhanced safety measures to help us all stay well.”

The update comes on the heels of a message from Disney Parks Chief Medical Officer Dr Pamela Hymel outlining the steps the company will take to safely reopen.

Shanghai Disneyland is scheduled to reopen with controlled capacity on Monday.

Disney has reported massive losses since temporarily closing its parks in mid-March. However, a new report predicts a positive long-term outlook for theme parks in the wake of the COVID-19 crisis.

Disney Cruise Line tightens alcohol policy

Starting in October, Disney Cruise Line guests will no longer be able to bring spirits on board with them.

The cruise line posted a change in its policy, limiting guests over 21 to two bottles of wine on embarkation or at each port of call, or one six-pack of beer.

Disney was one of the few cruise lines that allowed passengers free rein to bring alcohol on board.

As before, guests bringing alcohol aboard must bring it in carry-on luggage, not checked baggage. Carry-on alcohol cannot be consumed in public areas or lounges, Disney said.

A corkage fee of $25 will apply to carry-on wine or champagne consumed in the dining room.

Spirits or wine and beer in excess of the limits will be safeguarded until the end of the cruise, Disney said.

The policy takes effect for cruises departing on or after Sept. 30.