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When Disney's negotiations with two major cruise lines, Carnival and Royal Caribbean, did not produce results, Disney had cruise ship designs drawn up by February 1994. Meanwhile, Walt Disney Travel Company started signing up other cruise lines to offer packages that included Disney hotels and resorts. On May 3, 1994, Disney announced that they intended to start their own cruise line with operations starting in 1998. Arthur Rodney was selected to serve as the first president of the cruise line tentatively called Disney Vacation Cruises. Disney Cruise Line in 1995 commissioned Disney Magic and Disney Wonder from Fincantieri in Italy. The cruise line was incorporated as Devonson Cruise Company, Limited on February 6, 1996, in the United Kingdom, but soon was renamed Magical Cruise Company Limited on October 1, 1996. The cruise line cost as much as a theme park to start up. In 1996, Magical Cruise Company purchased Gorda Cay as the line's private island. The company spent $25 million over 18 months on the island and renamed it Castaway Cay.

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