If we go through Disney's 2017 financials, we see that pretty much every segment saw revenue and operating income declines. Including studio entertainment (with income DOWN 13%) - as much as everyone would like to believe in the Marvel / Star Wars franchises.
The one glaring exception was parks and resorts (which
DCL is a part of), whose operating income climbed 14%!
For Iger's team, the writing is on the wall. They need to leverage the secular growth in themed vacations and global branded travel. I am expecting them to announce a mix (or all) of the following over the next few years:
* A new resort in the Mediterranean opening in the same time frame as the new ships
* ~3 to 5 new ships to enter service between 2026 and 2030
* An additional resort closer to the southern Asian large populations but in the sun (such as in Singapore or Dubai) opening between 2026 and 2030
By the 2025-2030 timeframe, they can retire the Magic and Wonder - or just convert them to stationary resorts.
While
ABD is currently niche-y, I also expect it to go mainstream once the new ships and resorts open up the supply chain to other parts of the world.
Good times ahead.