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All Aboard! It’s Time for Universal/Comcast to Set Sail!

For over a decade, I have been studying the Cruise Line Industry (CLI), with particular emphasis on the amazing success and growth that the Disney Cruise Line has experienced. Overall, the CLI has seen remarkable recovery and growth in recent years, particularly post Covid 2020, when it was reported that the cruise industry would never recapture its once strong position within the Leisure Industry. This cruise industry recovery and the strong entertainment position Universal/ Comcast presents a lucrative growth opportunity for the established entertainment giants Universal Studios and Comcast to enter this new stream of family leisure entertainment. With their vast portfolio of beloved intellectual properties (IPs) and proven expertise in creating immersive experiences, Universal is uniquely positioned to capitalize on this thriving market. The question remains, “when do they make the grand move”?

Since 2021, the cruise line industry has rebounded strongly, with an average annual growth rate of approximately 10-15%, fueled by pent-up demand for travel and leisure post-pandemic. Market analysts project that the industry will grow at a compound annual growth rate (CAGR) of around 11% through 2032, potentially reaching a global market value of over $65 billion by the end of the decade. Families in particular have demonstrated an increasing appetite for themed vacation experiences. This has contributed to the success of companies like Disney Cruise Line almost doubling in scope, and equally as well as for Royal Caribbean Cruises who has expanded their onboard entertainment with the popular Australian characters, THE WIGGLES. This surge indicates a ripe market for new entrants with fresh ideas and recognizable IPs. Who better than Universal to make a major move into the world of cruise lines!

Source:  Royal Caribbean Cruise Line

We know Universal Studios boasts an impressive array of iconic movies, TV shows, and characters that have already proven their ability to captivate audiences worldwide.

These include properties such as:

• Harry Potter and the Wizarding World
  

• Jurassic Park/Jurassic World
  

• Illumination's Minions and Despicable Me

• DreamWorks Animation hits like Shrek, How to Train Your Dragon, and Kung Fu Panda
  

• Classic Monsters like Dracula, Frankenstein, and the Mummy
  

• Mario Brothers

These franchises have established fan bases across generations, making them perfect for adaptation into themed cruise experiences.

Imagine a "Wizarding World at Sea" with wand dueling classes, a Jurassic World waterpark, or Minions-themed kids’ clubs. Universal could create unmatched, immersive family experiences, capitalizing on their enormous Theme Park successes.

As a dominate force in themed entertainment, Universal Studios with Its parks in Orlando, Hollywood, Japan, China, and Singapore demonstrate the company's ability to build appealing environments that blend storytelling, technology, and hospitality. Extending this expertise to a robust cruise line industry would allow Universal to offer all types of themed experiences.

Imagine your family dining one night in the Hogwarts “Great Hall” from Harry Potter, and another night sharing a prehistoric Brontosaurus feast with all the trimmings, inspired by Jurassic World movies. The leisure industry’s ability to create virtual reality experiences, escape rooms, and live shows based on blockbuster franchises could all become programs for families to enjoy on the cruises. The great thing about these types of undertakings is that they are customizable family activities catering to all - kids, teens, and adults - ensuring every family member is entertained.

Source:  Universal Studios

Entering the cruise line industry would position Universal again as a direct competitor to Disney Cruise Line, leveraging its unique properties to capture market share. While Disney has built a loyal customer base with its family-focused cruises, Universal’s edgier, diverse slate of IPs provides an opportunity to appeal to a broader demographic, including older children and teens - a mainstay of Universal Theme Parks attendance.

Moreover, Universal’s parent company, Comcast, brings significant resources and synergies. Comcast’s expertise in broadband and streaming could enable innovative onboard entertainment options, such as exclusive content streaming or interactive gaming experiences powered by Xfinity technology. We are predicting that immersive and tech-driven experiences will contribute to 20-25% of the anticipated growth in the cruise line industry over the next decade, making Universal’s existing position in tech capabilities a vital competitive advantage in this emerging cruise line possibility.

To ensure a successful cruise ship program launch (literally), Universal could explore partnering with established shipbuilders like Meyer Werft in Papenburg, Germany, who build the Disney Ships (probably a big non-compete) or other maritime experts who design vessels tailored for themed entertainment (such as Fincantieri who has built 75 Carnival ships). These type of collaborations with existing cruise operators and ship builders could also help Universal gain industry insights while minimizing their initial entry risks.

Thinking a little further down the pike (or stream as it may be), Universal the cruise line could integrate Universal’s theme park destinations into its itineraries, offering exclusive onshore excursions at Universal Orlando, Hollywood, Singapore, Shanghai, or Osaka. This familiar approach (ala Disney) would create a seamless vacation experience, driving synergy between Universal’s land-based and sea-based offerings. Such integration could boost overall attendance at Universal parks by 8-12% annually once instituted.

Those of us in the attraction industry well know the family cruise line industry has changed dramatically over the last 25 years, with many ships becoming floating theme or water parks. They now represent a significant position in the family leisure entertainment experience segment. The pipe has been laid for the growth entry opportunity for Universal Studios and Comcast. With their unparalleled library of IPs, expertise in creating immersive experiences, and access to Comcast’s technological capabilities, Universal is well-equipped to disrupt the market and deliver unforgettable vacations at sea. By entering this space, Universal can expand its entertainment empire, tap into new revenue streams, and further solidify its position as a global leader in family entertainment. With projected annual industry growth exceeding 11% and Universal’s competitive strengths, the time to embark on this excursion is now. All Aboard!!!! And remember Universal, “Don’t be at the airport when your ship comes in”!

Source:  Disney Cruise Line

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