Cruise division gains buoy TUI Group's Q1

Cruise segment revenue, reflecting Marella Cruises only (since the TUI Cruises joint venture is consolidated at equity), was €166.8m, a 44.7% increase from the €115.2m in Q1 2023. And underlying EBIT, including the equity result of TUI Cruises, improved significantly to €34.5m, up from €0.2m in the previous year, on higher capacities and significantly higher average rates.

Average cruise rate up 17%

The average rate rose by 17% to €204, up from €175 in Q1 2023, with Mein Schiff's at €169 (up from €139), Hapag-Lloyd Cruises at €678 (up from €669) and Marella Cruises at €177 (compared to €158).

Passenger cruise days (2.336m) were slightly down from a year ago (2.379m) due to scheduled dry docks and wet docks.

96% occupancy

Occupancy was 96%, up from 87%, with Mein Schiff at 99% (up from 88%), Hapag-Lloyd Cruises at 73% (up from 65%) and Marella Cruises at 93% (up from 91%).

Looking forward

During 2024 the three cruise brands are set to operate 16 ships, with Mein Schiff 7 — sister of Mein Schiff 1 and 2 — joining in the summer, making for a 9% capacity increase in the second half. Booked occupancy is up 5% for Q2 and well ahead for the second half, up 13%. TUI Group expects occupancy levels to normalize over the financial year to pre-pandemic levels.

Q2 booked ticket rates are 18% higher than in Q2 2023, while rates for the second half are 2% lower due to the changed brand mix with the addition of Mein Schiff 7.