TUI To Grow Cruise Business Via Fleet Expansion And Modernisation

20th Mar 2018 12:09

LONDON (Alliance News) - TUI Group AG said on Tuesday it plans to increase capacity at TUI Cruises through fleet expansion due to the continued increase in demand.

The TUI fleet - across all its subsidiaries - currently comprises 15 cruise ships.

The tourism company intends to grow its TUI Cruise business to 18 vessels by 2023. According to the plan, the group will launch the new Mein Schiff 1 in May. TUI will transfer the previous Mein Schiff 1 to its British subsidiary Marella Cruises, giving it the new name of Marella Explorer.

TUI also said it had delayed the Mein Schiff 2 vessel transfer to Marella and will expand its fleet with another newbuild ship, scheduled for delivery in 2019. After that, TUI Cruises' fleet will have seven ships in total.

FTSE 100-listed TUI said that Marella will also continue to modernise its fleet. TUI added that it will rename Mein Schiff 2 cruise ship into Marella Explorer 2 in 2019.

Also in 2019, the company said that its Hamburg-based subsidiary Hapag-Lloyd Cruises will obtain two new luxury expedition cruise ships, Hanseatic nature and Hanseatic inspiration.

The group said its UK & Ireland division will acquire SkySea Golden Era from Royal Caribbean Cruises for the group's British cruise subsidiary. Financial details of the transaction were kept confidential.

TUI said it expects newbuild Mein Schiff 7 to join the fleet in 2023, which will increase the size of the fleet operated by TUI around the world to a total of 18 cruise ships.

Member of TUI's executive board in charge of cruises Sebastian Ebel said: "We will continue to invest in our cruise portfolio and expand, modernise and rejuvenate our fleet. With these decisions we increase the offer at TUI cruises and accelerate the expansion of this growth segment."

TUI shares were up 2.4% at 1,569.00 pence per share on Tuesday.

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