TUI AG is realigning its cruise strategy. According to the group, two new construction slots originally reserved for Marella Cruises are being transferred to the successful subsidiary TUI Cruises. The ships are scheduled to be delivered in the fiscal years 2031 and 2033 and are considered an important part of the long-term growth strategy in the UK and Northern Europe.
With this step, TUI builds on the strong position of TUI Cruises, which is already a fixture in the European cruise market as a joint venture with Royal Caribbean. The company has "the financial capacity for further expansion investments," the statement says. The decision also supports the group's so-called asset-right approach – more growth through investments and partnerships rather than through its own debt.
Focus on Returns and Balance Sheet Strength
The transfer of newbuild slots is also intended to help keep debt low. TUI continues to aim for a net debt ratio of below 1.0x. The deposit Marella Cruises had already made to the Italian shipyard Fincantieri will be refunded. Therefore, nothing changes for TUI in terms of financial objectives.
At the same time, the profit contribution of the new ships should be similarly high as with the latest units of the fleet - such as the "Mein Schiff Relax" or the "Mein Schiff Flow". In this way, TUI is aiming for profitable growth without taking additional risks on the balance sheet.
Marella remains important for the British market
Even though Marella Cruises is foregoing new builds, the business in the UK is to continue unchanged. The shipping company remains a "leading brand in the British cruise market" and will continue to operate its fleet successfully. The collaboration with TUI tour operators in the UK and with TUI Airways remains in place.
For TUI, the step is part of a larger strategy: The company aims to further expand its market position in Northern Europe and the UK while improving its return on capital. Cruises are considered a strong growth sector with stable demand and attractive margins.
Conclusion: With the transfer of new-build slots, TUI is focusing on long-term, high-return growth and a healthy balance sheet. The cruise division is clearly positioned towards TUI Cruises as a growth platform, while Marella Cruises maintains its market position with the existing fleet. For investors, this move signals that TUI intends to grow more profitably in the future and use capital more efficiently.
