Could This Be Disney’s Next Big Thing?

Walt Disney (NYSE:DIS) has built a massive business catering to guests in its parks, resorts, and on its cruise line. Is there an opportunity to expand on its destination and travel business even more? On a Fool Live episode recorded on July 14, Fool contributors Toby Bordelon and Brian Withers discuss what the entertainment juggernaut may be able to do with its National Geographic brand married with its superior guest services.

Brian Withers: Disney is also known for its superior guest services and giving guests at its parks and cruise lines a really wonderful, experience. [Do] you see other opportunities for Disney to double down on that and maybe go into new markets?

Toby Bordelon: Yeah. One thing that’s interesting is the travel space, especially family, friendly travel. They’re a very good big player in that already. They have Disney Cruise lines. They have obviously the theme parks, which are huge, and they have resorts. Resorts focused around the theme parks, but also other places, timeshares resorts, Disney Vacation Club is the brand there. But they also own National Geographic, including that tour business and so you could see how that comes in maybe and becomes an adventure, kind of an adventure-focused vacation, family-friendly adventure travel beyond just the resorts and theme parks. I think that’s an opportunity for them.

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They haven’t done much in that yet. Now, look, this is not going to give us nearly the same revenue as Disney+. Or even like the theme parks themselves, which pre-pandemic were the No. 1 segment of the business. But it’s something. I think they can make a big push in there, especially as we reopen, people want to travel more. There’s an opportunity, there is a demand, and Disney has an opportunity to meet some of this. That would be interesting to watch I think, as we go forward.

Withers: Yes, I think that may have some legs. I know that I’ve gotten some fliers in the mail and this doesn’t happen too often, really thick colored magazines that cost probably quite a bit to produce and ship, of very focused, small guided tours for families or small groups into exotic places. Where you just sign up, they tell you what to bring, you just have a wonderful experience with the people you’re traveling with. I could totally see Disney and National Geographic pulling that off extraordinarily well.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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