Tui Group has today confirmed plans for two new-build ships for UK cruise arm Marella Cruises.
The disclosure came as part of a capital markets day update by Europe’s largest travel group which reaffirmed that travel and tourism market fundamentals “remain strong and consumer demand resilient”.
Tui highlighted that market growth continues to outpace GDP growth with its holiday experiences business “delivering further profitable and sustainable asset-right growth in differentiated content, serving strong global markets”.
More: Marella Cruises sees ‘double digit’ trade booking growth in January [Feb 5]
The company added: “Against the background of an ageing Marella Cruises fleet, we are currently exploring future growth options on how to position our highly profitable UK market leading business in a steadily growing market.
“We are in discussions with shipyards and we are currently considering ordering two vessels based on a design customised for the UK market.
“New-build slots are tentatively available from FY’31 onwards.
“In parallel we continue to explore partnership options for Marella Cruises, with Tui Group’s capital allocation framework remaining our overriding focus.”
Tui reiterated projections for pre-tax earnings [ebit] to increase by 7% to 10% year-on-year from almost €1.3 billion in 2024 “driven in particular by expectations for summer 2025 with a €30 million phasing effect from Easter holidays shifting to Q3.”
Looking forward, the company said: “Growth will be driven by dynamic products and by broadening our product offering transforming the business model to maximise the customer lifetime value.
“This will include own products delivering superior quality, margins, and differentiation.
“We will focus on making the Tui app our main digital channel, complementing our retail business, enabling greater cross- and up-selling opportunities as well as personalised marketing and driving down distribution costs.
“Our AI-powered global platforms will support our initiative to enter new growth markets, improve customer experience, increase ASPs and generate operational efficiencies.”
Chief executive Sebastian Ebel said: “Tui continues to grow. Our integrated business model is the basis for a stronger global presence.
“The goal is to strengthen the synergies between the various business areas, offer customers more products and significantly increase the number of customer contacts throughout the year.
“Tui develops, invests in and operates in the areas of hotels, cruises and activities. Tui is not just the partner for holidays, Tui is the partner for travel and leisure activities all year round – on holiday and at home.
“Our customer base of more than 33 million provides the basis for growth.
“The course has been set. We have delivered 10 consecutive quarters of growth. The next steps of the transformation offer new potential, and we will become more efficient, more profitable, economically stronger.”