The cruise operations of TUI AG, the German tour operator, have reached a break even level in EBIT terms in the first quarter of its financial year that runs to 31 December, the company said in a statement.
The cruise operations comprise the joint venture TUI Cruises with Royal CaribbeanGroup in Germany, which operates cruise ships under the brands Mein Schiff and Hapag-Lloyd Cruises, and Marella Cruises in UK that is fully owned by TUI AG.
Underlying EBIT for the 16 ships that these operations entail rose to positive by €0.2 million in the review period from being negative by €31.7 million in the same period a year earlier.
The segment operated a full fleet of 16 ships in the first quarter (Q1 2022: 14 ships operated due to a more restrictive travel environment).
Q1 2023 Cruises revenue, reflecting Marella Cruises solely (TUI Cruises is accounted for using the equity method) grew to €115.2m, with both TUI Cruises and Marella contributing to the positive development and highlight the continued improvement across all brands supported by higher volumes as well as improved occupancies.
“This is the third consecutive positive quarter for our Cruises business with TUI Cruises achieving Q1 2023 EAT (earnings after tax) at €8 million,” TUI said.
The Germany focused contemporary market unit Mein Schiff operated their full fleet of seven ships against six ships in the previous year, offering itin eraries to the Canaries, the Caribbean and around the world with Asian itineraries resuming in the quarter for the first time since the pandemic.
“Occupancy of the operated fleet in Q1 2023 was 88% as a result (Q1 2022: 53%) demonstrating the strong demand for our German language, premium all-inclusive product. At €139, the average daily rate was close to pre-pandemic levels (Q1 2019: 149€) but -10% lower versus prior year (Q1 2022: €155) due to a higher mix of premium cabins with overall lower occupancies and capacity in the prior year,” TUI said.
The luxury and expedition market unit Hapag-Lloyd Cruises operated itineraries around the world as well as voyages to Antarctica with, as in Q1 2022, their full fleet of five ships in Q1 2023. “Q1 average daily rate was €669, well above pre-pandemic levels (Q1 2019: €591), an increase of 7% on prior year (Q1 2022: €624). Q1 occupancy of the fleet was 65% (Q1 2022: 50%), underlining the increased demand for these cruises,” TUI noted.
Marella Cruises had all four ships in operation against three in Q1 2022, and it offered itineraries to the Caribbean and the Canaries. “The business achieved an average daily rate of £157 up 10.7 % (Q1 2022: £142) and above the pre-pandemic level of £137 with occupancy at 91%, versus a previous Q1 of 48% supported by an improved trading environment,” TUI said.
