Tui transfers shipbuilding slots from Marella Cruises to sister line in push for more UK passengers

Tui Cruises is a joint venture between Tui AG and Royal Caribbean Group (Credit: Tui Cruises)

The new-build slots were previously secured earlier this year for Marella Cruises for delivery in 2031 and 2033.

However, Tui AG said this "strategic decision" to move the slots across to Tui Cruises allows the brand to "build on the success of its Tui Cruises joint venture, which has a proven track record across various European markets and possesses the financial capacity for further expansion investments".

It also stated that the decision was made to strengthen Tui Cruises' long-term growth platform in Europe and the UK.

Tui Cruises is a joint venture between Tui AG and Royal Caribbean Group.

Marella Cruises' down payment to Fincantieri will be reimbursed, and it will continue operations with its existing five-ship fleet.

A Tui spokesperson said: "We are pleased to order two further new-build vessels at the Fincantieri shipyard in Italy. This move strengthens Tui Cruises' platform for long-term growth and enables us to gradually expand further into other markets, particularly in Northern Europe.

"We look forward to leveraging our solid financial position and proven market expertise to deliver outstanding experiences for our guests."

The spokesperson added, "As the delivery of the new ships is scheduled for 2031 and 2033, there are currently no further details to share. Over the coming months, we will work on the next steps for this exciting project and will share updates as soon as they are available."

Marella Cruises to build two new cruise ships

UK cruise ship operator moves into newbuilding for the first time as part of company’s refleeting

Fincantieri and TUI AG have signed a memorandum of agreement for the design and construction of two new cruise ships for the Marella Cruises brand. This agreement represents a major step for Marella Cruises, which is venturing into newbuilding for the first time and has chosen Fincantieri as its strategic partner for this transformation.

A statement said the ships would be designed specifically for the English market and have a focus on environmental sustainability. They will redefine premium cruising through refined design, high-quality materials and spacious accommodations.

The two vessels will be delivered in 2030 and 2032.

Fincantieri chief executive and managing director Pierroberto Folgiero commented, “We are proud to welcome Marella Cruises as a new customer and to support its vision as it enters the newbuild segment. The project will bring together our expertise in ship design, innovation and sustainability to deliver vessels that meet the evolving expectations of modern cruise passengers."

Fincantieri has built a solid and successful relationship with TUI Cruises, the joint venture between TUI AG and Royal Caribbean Cruises. In February, the Group delivered the cruise ship Mein Schiff Relax, the first of two InTUItion-class concept cruise ships which is dual-fuel powered, while the second unit, Mein Schiff Flow, is under construction at the Monfalcone shipyard, with delivery scheduled for 2026.

Marella Cruises said in a statement, “The UK cruise market, in which Marella holds a leading position, continues to prove an attractive investment proposition and is expected to grow by 9% per annum until 2030. The project is anticipated to enhance Marella’s competitive position in the UK market, ensuring a long-term cruise product proposition.”

New Mein Schiff Relax Launched at Fincantieri

New Mein Schiff Relax Launched at Fincantieri

The launch of Mein Schiff Relax, the first of two InTUItion class new concept cruise ships that are dual-fuel powered (LNG and MGO) that Fincantieri is building for TUI Cruises, a joint venture between TUI AG and Royal Caribbean Cruises, took place at the Monfalcone shipyard.

The godmother of the ship was Elena Sperti, an employee of the shipyard.

At 160,000 tons the ship is a new prototype for the TUI fleet developed by Fincantieri and due to enter service in early 2025.

The vessels will be future-proof thanks to their ability to also burn low-emission fuels such as bio- or e-LNG: an important step towards climate-neutral cruising.

Learning from RCCL’s cruise line partnerships

By Tom Stieghorst

Forming partnerships to operate cruise lines is a tricky business that can have hard-to-predict consequences.

Take, for example, two cruise lines that Royal Caribbean Cruises Ltd. (RCCL) got involved with in Europe.

One, Spain’s Pullmantur, has been a qualified disaster. As the economy in Spain soured over the past decade, Pullmantur’s results worsened. Because RCCL had acquired Pullmantur outright in 2006, it had to accept the subsidiary’s losses as its own on profit or loss statements.

Last year, RCCL took a $414 million writedown of Pullmantur’s assets. The only positive has been Pullmatur’s growing business in Latin America.

The other cruise line Royal took an interest in is Germany’s TUI. It remains 50/50 partners in TUI with TUI AG, which means it can’t incorporate either losses or profits directly in its bottom line.

In this case, it wishes it could. Unlike Spain, the German economy has mostly been strong and TUI has been highly profitable.

“TUI Cruises has been a very solid performer,” RCCL Chairman and CEO Richard Fain said in a recent conference call with Wall Street analysts. “I dearly wish they were included in our yield stats because it would make them look very good.”

Royal Caribbean reported $18.8 million of “other income” in a third quarter in which it earned $490.2 million. Most of that came from TUI, CFO Jason Liberty said.

The exact structure of how cruise line partnerships are formed is worth keeping in mind as both Royal Caribbean and Carnival Corp. negotiate joint ventures in China to further their interests in that key country.

The devil is in the details, as they say. It should be interesting to see what the details are if and when these Chinese ventures are finalized.

Tui AG to reduce stake in Hapag-Lloyd

German travel giant Tui AG's stake in container shipping company Hapag-Lloyd will drop to 13.9% following a tie-up with Chilean firm Compania SudAmericana de Vapores.

Tui, which also controls Europe's largest tour operator Tui Travel, currently owns 22% of Hapag-Lloyd.

The shareholding will drop first to 15% as part of the merger and then to 13.9% because Tui will not participate in a planned capital increase.

The deal between Vapores and Hapag-Lloyd will create the world's fourth-largest container-shipping company.

Tui, which has long planned to exit container shipping, will also get priority placement rights for its remaining stake as part of Hapag-Lloyd's planned stock market flotation in 2015, it said in an internal letter seen by Reuters.