Disney CEO contender bets on the high seas

• "Right now, my energy is focused on growing Disney Experiences," D'Amaro tells Axios. "We have more projects in motion than ever before — expansions on land, on sea and online with the incredible innovation happening in our gaming division."

The big picture: D'Amaro has staked his leadership on turning Disney's storytelling power into more real-world experiences. The cruise expansion represents one of his boldest bets, given its high investment costs and industry competition.

• "We're seeing incredible demand for these experiences," D'Amaro says. "Disney Cruise Line has some of the highest guest satisfaction scores across the entire company and that tells us we're doing something special."
• "Because these ships are moveable assets, they are powerful ambassadors for the Disney brand, giving us opportunities to connect with new customers all over the world," he adds.

By the numbers: Disney ran a modest cruise business for decades, debuting its first ship in 1998 and second in 1999, then adding two more in 2011 and 2012.

• Now the business is expanding quickly. Destiny is the third new ship in four years, with six more setting sail by 2031 for a total of 13.
• In 2026, 1 million passengers from Disney ships will disembark in Florida, according to Disney.
• Four in 10 Disney cruise guests said they wouldn't have cruised at all if Disney wasn't an option, D'Amaro says.
• Disney's Experiences division, which is run by D'Amaro and includes parks and cruises, reported record operating income last quarter, up 13% year-over-year. CFO Hugh Johnston said cruise demand is "very strong" on the earnings call.

Follow the money: Analysts have taken note. In June, Jefferies analyst James Heaney cited Disney's cruise performance as he upgraded his rating on the stock to buy.

• Seaport analyst David Joyce pointed to cruises as a "focal point for Disney investors" in a note last week, estimating the three new ships (Treasure, Destiny and Adventure) could add more than $500 million of segment operating income in fiscal 2026.
• Joyce tells Axios each ship can generate about $1 billion in annual revenue with operating margins in the high teens — at or above the midpoint of its peers — and 10% return on investment each year. Disney historically has filled ships earlier and more fully than competitors, he says.
• "They don't have an issue like some cruise ships have in trying to fill the inventory," Joyce says. "People know what they're getting with the Disney Cruise Line experience."

Between the lines: Growing demand for cruises reflects a broader cultural shift toward shared experiences, says Jamie Ane Eubanks, CEO of travel agency Magical Vacation Planner.

• "People are realizing that they're wanting to create more core memories," Eubanks says. "People work really hard, day in and day out, and so when they book a vacation, it's a time to escape but also escape with their loved ones and create these memories."
• Eubanks says Disney attracts multi-generation travel. Her own group of family and friends — 100 strong, ranging from one-year-old to over 50 — spent Thanksgiving aboard the Destiny.

Yes, but: Disney cruises are expensive with typical starting costs at $1,000 per guest.

• Asked about affordability, D'Amaro says Disney offers a range of options for different budgets and prioritizes making the experience feel worth it.
• "What matters most to us, across all of our businesses, is delivering experiences families feel have value. We know these moments are planned and saved for, and we take that responsibility seriously," he says.

💭 Kerry's thought bubble: Disney stands apart from other cruises lines, as someone who's sailed on many of them, for its level of service and entertainment.

• Axios was part of a preview sailing last month. My favorite moments included watching the Broadway-caliber Hercules musical, riding the Aquamouse water coaster and sipping aged rum at a pirate bar.

The intrigue: Top creators like Dude Perfect, Savannah Bananas player Jackson Olson and Pierson Wodzynski were also part of the preview.

• "They reach audiences who may never have considered a Disney cruise," D'Amaro says. "But what's really important to us is that these creators are also true Disney fans."

What's next: The Adventure sets sail next year as Disney's first ship based in Asia.