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Cruise division gains buoy TUI Group's Q1

Higher occupancy and significantly higher average rates for cruises contributed to TUI Group's first quarter record €4.3b revenue and positive underlying EBIT of €6m.

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.