A market analysis report for Disney Cruise line, created for my Portfolio 2 class at Full Sail University.

1. Page 1
A Market Analysis for
Disney Cruise Line (DCL)
Savannah Louis
Full Sail University
Project & Portfolio II: Business and Marketing
December 10, 2023

2. Page 2
EXECUTIVE SUMMARY
As a reputable entertainment brand that reaches consumers worldwide, Disney Cruise
Line (DCL), aims to find new ways to increase their customer service and satisfaction. This
market analysis report explores Disney Cruise Line’s position as a small fleet among many large
competitors in an industry that is being held to high standards. With the strong recovery from the
COVID-19 pandemic, as well as shifting to more sustainable practices, the cruise industry faces
a bright future. Disney Cruise Line is able to create a space for itself by focusing on its family-
friendly marketing, using the Disney brand’s famous stories, and providing exceptional customer
service. The service is sufficient thus far, but the company has a great opportunity to carry this
into the future with changing technology. One can see the use of advanced technologies already
present in The Walt Disney Company’s theme park and hotel experiences, making them already
available to the cruise line. Recommendations include transferring systems like Genie over to the
cruise ships, ultimately improving the customer experience without the need to develop a brand-
new product.

3. Page 3
OBJECTIVE
This market analysis was completed to discover how Disney Cruise Line can maintain
the high level of customer service currently offered, while facing elevated competition levels and
changing industry standards. This high degree of customer satisfaction is expected with the
reputation of the parent company, The Walt Disney Company. Thus, research has been compiled
to demonstrate ways DCL can better cater to customers using technologies already available to
them, ultimately setting the company apart from competitors.
RESEARCH METHODOLOGY
The facts and information gathered for this report were found during December 2023 and
is current up to December 2023. All resources are external, coming from the internet or online
databases. Both qualitative and quantitative information was found to be relevant including, but
not limited to, news articles and industry reports from third-party sources, as well as the
company’s website. The only challenge encountered was the inability to differentiate Disney
Cruise Line’s success from the success of its parent company, The Walt Disney Company.
Figures were found to often be combined with other segments of the company at large.
RESEARCH AND KEY FINDINGS
Disney Cruise Line is the Walt Disney Company’s cruise line, made up of a fleet of six
state-of-the-art ships. It offers a wide variety
of itineraries to guests, all featuring
Disney’s famous characters and stories
(Disney, n.d.-c). The vacation experiences
available range from 2 to 15 nights, and the
(Frontado, 2016)

4. Page 4
port destinations are constantly growing (Disney, n.d.-b). For travelers looking for an all-
inclusive getaway, Disney Cruise line provides guests with immersive dining, nostalgic stories,
world-famous destinations, and an array of entertainment opportunities. Families, as well as
Disney fans alike, will find something for everyone on board these stately ships.
The cruise industry is a fast-evolving industry to be a part of. The COVID-19 pandemic
made a lasting impact, initially restricting travel and minimizing profits. However, as the
restrictions lifted, cruises around the world have rebounded positively. As stated by The New
York Post, “fresh demand is sending ticket prices to new heights (Thaler, 2023). Along with the
uptrend in travel, the cruise industry is seeing a forced shift to sustainable sailing. According to
Garay (2023), “Currently, cruise ships and other maritime vessels are responsible for nearly 3%
of global greenhouse emissions each year.” As global warming becomes more prevalent, cruise
lines must look to changing practices to meet changing regulations (Garay, 2023). Carbon
emissions, threats to sea life (Living with Harmony, 2020), and the impact of over-tourism in
port cities are all ecological concerns associated with the cruise industry (Palmer, 2022). Despite
these challenges, overall, the industry is thriving economically and will likely continue to do so
thanks to the social media age the world is currently living in.
(CLIA, 2023a)

5. Page 5
Disney Cruise Line stands out in a sea of competitors due to its family-oriented sailings,
its world class customer service, and its “Disney Magic”. These benefits appeal strongly to its
primary target market, families in Northern America and Europe, as well as many others, such as
couples and Disney fans (CLIA, 2023b). While other cruise lines have since evolved to include
family-friendly options, Disney Cruise Line was the originator of family cruising. Companies
like Royal Caribbean International, Norwegian Cruise Line, Carnival Cruise Line, MSC Cruises,
and Virgin Voyages surpass Disney Cruise Line in many ways, especially in the categories of
fleet size and markets reached (Mason, 2023). These competitors have attained a broader
spectrum of markets such as the elderly population, customers in Asia, and adults without
children. However, Disney Cruise Line has managed to maintain a strong customer base.
As stated, the Walt Disney Company’s stories and reputation with consumers has carried
Disney Cruise Line far. As the parent company, the Walt Disney Company, is financially stable,
it is even looking to expand its entertainment in the coming years. Some of this will be invested
in DCL, as “The company will spend roughly $60 billion in the next 10 years on its parks and
cruise line segments, nearly doubling the investment it's made in those areas in the past 10 years”
(Habeshian & Fischer, 2023). This will have a massive impact on the future of Disney Cruise
Line, allowing for fleet expansion as well as the introduction of more advanced technologies
onboard ships.
Augmented reality (AR) and virtual reality (VR) are becoming increasingly present in
every industry. However, they are even more prevalent in the world of entertainment. These new
technologies can completely change the way one experiences storytelling, something that is such
a large part of Disney Cruise Line in particular. As this kind of technology becomes a normal
part of everyday life, guests’ expectations regarding entertainment are sure to follow. Guests will
expect their vacation experiences to be more immersive than ever before (Onar, 2023).

6. Page 6
AR and VR are not the only new technologies to work their way into the entertainment
industry. Artificial intelligence (AI) and machine learning have already been implemented
around the world, with their introduction to cruise experiences imminent. Sea Trade Cruise News
states, “By analysing data on guest behaviour and preferences, cruise lines can also use AI to
optimize the layout of the ship and to then allocate space to the areas that are most in demand”
(theICEway, 2023). It will quickly revolutionize the industry.
These kinds of technologies are not new to The Walt Disney Company. According to
research, the new expectation of customer service in theme parks is “the ability to ask Alexa to
reserve our Fast Passes and dinner reservations based on our favorite characters and food
allergies” (Johnston, 2018). In fact, Disney has basically done exactly this having “created a
virtual assistant-style application
called Genie, which helps you plan your
visit and can create a personalized
itinerary, so visitors don't miss out on
the attractions they are most likely to
enjoy” (Marr, 2022). With this type of
technology having been fine-tuned by the company already, there is a large opportunity for
similar systems to be transferred over to the ships.
CONCLUSIONS
Despite Disney Cruise Line being a rather small fleet in comparison to competitors, it’s
relationship with its parent company, The Walt Disney Company, has helped the cruise line build
a great reputation. DCL is viewed overall as the number one family-friendly cruise line that
offers great customer service, and immersive entertainment (Mason, 2023). All in all, DCL exists
(Maehrer, 2021)

7. Page 7
within a competitive industry that has managed to thrive despite the recent setbacks the COVID-
19 pandemic plagued it with, as well as the ever-evolving environmental standards it faces. It has
reached a point where most cruise companies are offering getaways to the same locations aboard
comparatively grand vessels. Ultimately, the products offered are the same. Therefore, Disney
Cruise Line must continue to evolve and work to surpass its competitors in the places where it
already has the upper hand. One of these opportunities lies in the technology that Disney Cruise
Line has at its disposal, under the umbrella of The Walt Disney Company. By taking advantage
of this advanced technology, Disney Cruise Line could put itself ahead of competitors, despite
being pigeonholed as a cruise experience for families. These are technologies that other cruise
lines don’t have much experience with, meaning it could help set Disney Cruise Line apart from
its competitors, especially when combined with the imaginative world of Disney.
RECOMMENDATIONS
Based on the research provided, Disney Cruise Line needs to expand the technology
featured on board the cruise ships and in the cruise planning process. It should better align with
the Disney experiences guests are having on land. Within Disney’s theme parks and hotels,
guests are given access to technologies that work to enhance their vacations. Technologies such
as augmented and virtual realities, artificial intelligence, and machine learning are being
integrated into the customer experience. As stated by Johnston (2018), “The advancement
of machine learning ties in so well with hospitality convenience that it's no wonder consumers
will eagerly hand over a bit of data in exchange for a better experience.” This means Disney
Cruise Line has a plethora of opportunities to enhance their customer service without spending a
large sum of money developing new products. They can establish already existing systems
onboard to create luxurious vacation experiences that customers dream of. If Disney Cruise Line

8. Page 8
takes these steps, guests will gladly contribute the data needed for the company to create a more
personalized experience for them.
It isn’t necessarily a bad thing that Disney Cruise Line has a smaller fleet than
competitors or that it is seen as a cruising opportunity that’s geared only towards certain markets.
This just means that DCL needs to take the things that it does best and elevate them further.
Competitors do not have the ability to create the same nostalgia and fandom that Disney has with
their stories and character. It is an advantage only Disney Cruise Line possesses, so that
combined with AR and VR technologies will only widen the gap between the entertainment
produced onboard by Disney versus its competitors. By using these new technologies and
making simple operational adjustments, DCL can immerse guests even further into the worlds
they have grown to know and love.
Disney Cruise Line should aim to implement a system similar to Genie, where guests can
build their cruise itinerary with the help of artificial intelligence and machine learning. When
taking a Disney Cruise, guests use an app called Navigator to complete all important activities
that their trip involves (Disney, n.d.-a). The Genie element could be easily woven into the app,
taking away the need for guests to assemble an itinerary, booking elements of their trip
individually. Instead, it could do so for them. Being a system that is already in use, it should not
take long to develop and adapt to the needs of the cruise line. Therefore, Disney Cruise Line
should aim to have it as a feature for all of their cruises by the end of 2024. The feature would
take into account the user’s preferences, collected via a short survey, and plan a seamless
vacation. It is currently unknown what kind of data would need to be collected to make this
technology create such personalized recommendations. However, it would likely depend on the
offerings, theming, and availability of said offerings on each cruise. Once established, this
system would take away a large amount of stress for vacationers, who are unsure what to do and

9. Page 9
when to do it. They would get a sense for the reputable Disney customer service experience
where “magical moments” are created for them before the trip even begins.

10. Page 10
REFERENCES
CLIA. (2023a). Cruise Capacity Projections. Cruise Lines International Association. Retrieved
December 11, 2023, from https://cruising.org/-/media/clia-media/research/2023/2023-clia-
state-of-the-cruise-industry-report_low-res.ashx.
CLIA. (2023b). State of the cruise industry 2023 - cruising home. Cruise Lines International
Association. https://cruising.org/-/media/clia-media/research/2023/2023-clia-state-of-the-
cruise-industry-report_low-res.ashx
Disney. (2007, February 22). Disney announces expansion of successful cruise business. The
Walt Disney Company. https://thewaltdisneycompany.com/disney-announces-expansion-
of-successful-cruise-business/
Disney. (n.d.-a). Disney Cruise Line Navigator App. Disney Cruise Line.
https://disneycruise.disney.go.com/featured/navigator-app/
Disney. (n.d.-b). Find a cruise. Disney Cruise Line. https://disneycruise.disney.go.com/cruises-
destinations/itineraries/
Disney. (n.d.-c). Meet our cruise ship fleet. Disney Cruise Line.
https://disneycruise.disney.go.com/ships/
Frontado, J. (2016). Disney Cruise Line’s Fleet. Disney Parks Blog. Retrieved December 11,
2023, from https://disneyparks.disney.go.com/blog/2016/03/disney-planning-two-new-
cruise-ships/.
Garay, E. (2023, February 27). Sustainable ships: The World’s most eco-conscious cruises.
CNN. https://edition.cnn.com/travel/article/eco-conscious-sustainable-cruises-
cmd/index.html
Habeshian, S., & Fischer, S. (2023, September 19). Disney to double investment in theme parks
and cruise line over ... - axios. AXIOS. https://www.axios.com/2023/09/19/disney-theme-
parks-cruise-investments
Johnston, L. (2018, April 2). The Nosiest Place on Earth. EBSCOhost. https://web-s-ebscohost-
com.oclc.fullsail.edu/ehost/detail/detail?vid=15&sid=d6f8686c-7c51-423f-b65e-
0df5045a44f2%40redis&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3D%3D#AN=128835018
&db=a9h
Living with Harmony. (2020, June 18). How cruises affect the environment. Living With
Harmony. https://livingwithharmony.org/how-cruises-affect-the-environment/
Maehrer, A. (2021). Disney Genie Service. Disney Parks Blog. Disney. Retrieved December 11,
2023, from https://disneyparks.disney.go.com/blog/2021/08/introducing-disney-genie/.

11. Page 11
Marr, B. (2023, October 7). Disney: The Metaverse, Digital Transformation, and the future of
storytelling. Forbes. https://www.forbes.com/sites/bernardmarr/2022/10/07/disney-the-
metaverse-digital-transformation-and-the-future-of-storytelling/?sh=6c0e707913c0
Mason, S. (2023, November 9). 5 Best Cruise Lines for families. U.S. News.
https://travel.usnews.com/cruises/best-cruise-lines-for-families/
Onar, M. (2023, July 12). How will AR / VR Headsets Affect Media & Entertainment Industry.
Digital Agency Network. https://digitalagencynetwork.com/how-will-ar-vr-headsets-affect-
media-entertainment-industry/
Palmer, C. (2022, July 28). Cruise industry faces choppy seas as it tries to clean up its act on
climate. Reuters. https://www.reuters.com/business/sustainable-business/cruise-industry-
faces-choppy-seas-it-tries-clean-up-its-act-climate-2022-07-27/
Thaler, S. (2023, October 10). Cruise prices surge 43% amid post-pandemic travel boom. New
York Post. https://nypost.com/2023/10/10/cruise-prices-surge-43-amid-post-pandemic-
travel-boom/
theICEway. (2023, June 22). Blog: Tech trends in cruise. SeaTrade Cruise News.
https://www.seatrade-cruise.com/blog/blog-tech-trends-cruise