Reporting full year earnings, TUI Group saw revenue increase across its three cruise brands by 10.7 percent to 901.9 million euro for the 2018 fiscal year.
Turnover was reported at 324 million euro, up 26.8 percent over the year prior.
It was a strong year for TUI Cruises, Marella Cruises and Hapag-Lloyd Cruises with the company noting that investments in growing and modernizing its fleet were paying off.
“We will also launch three ships for our cruise brands in 2019,” TUI noted, in a prepared statement. “Bookings for the new ships and the existing fleet are progressing well, with a continued strong yield performance. Two ships exited our fleets (Marella Spirit and Hapag-Lloyd Cruises Hanseatic) in autumn 2018. Five further newbuilds are on order for TUI Cruises and Hapag-Lloyd Cruises, for delivery between end of 2019 and 2026, as we continue to build on our leadership position in the German-speaking cruise market.”
Average daily rates were up across the board, with TUI Cruises reporting 178 euro per day, up from 173 euro; while the average daily rate from Marella was up from 131 euro to 141 euro. For Hapag-Lloyd, which operates in the luxury and expedition segments, daily rates rose to 615 euro from 594 euro.
TUI said its cruise segment delivered a record ROIC performance at 22.8 percent “reflecting the return on equity in the high-performing TUI Cruises as well as strong performances by our Marella Cruises and Hapag-Lloyd Cruises subsidiaries.”
TUI benefited from its first winter of operations for the Mein Schiff 6, along with the launch of the Mein Schiff 1 in May. In addition, fewer drydock days were noted.
“The average rate increased versus the prior year, driven by sustained growth in demand for cruise in Germany, and in particular high demand for our German language, premium all-inclusive product.”
Rates increased at Marella Cruises, a British brand, with the company seeing the benefits of its fleet expansion and modernization program.
“Hapag-Lloyd Cruises delivered a strong performance and an increase in earnings with increased occupancy and average daily rate, and a good performance offsetting the higher number of drydock days,” the company reported.